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Extreme Networks Reports Fourth Quarter and Fiscal Year 2014 Financial Results

Q4 GAAP Revenue of $155.3 million & non-GAAP Revenue of $156.9 million

SAN JOSE, Calif., Aug. 14, 2014 /PRNewswire/ -- Extreme Networks, Inc. (Nasdaq: EXTR) today released financial results for the fourth quarter of fiscal year 2014, ended June 30, 2014.  GAAP revenue was $155.3 million and non-GAAP revenue was $156.9 million.  GAAP net loss for the fourth fiscal quarter was $16.2 million, or $0.17 per share, and non-GAAP net income was $8.5 million, or $0.09 per diluted share.  This is the second quarter that Extreme Networks is reporting full quarter results that include the Enterasys acquisition.

Extreme Networks Logo

For the full fiscal year, Extreme Networks reported GAAP revenue of $519.6 million, compared to $299.3 million for fiscal 2013.  Fiscal year non-GAAP revenue was $524.8 million.  GAAP net loss was $57.3 million, or $0.60 per share, for fiscal 2014, compared to GAAP net income of $9.7 million, or $0.10 per diluted share, for 2013.  On a non-GAAP basis, net income for the fiscal 2014 was $29.5 million, or $0.30 per diluted share, compared to $16.2 million, or $0.17 per diluted share, for fiscal 2013.

"Extreme ended our first fiscal year as a combined company with a strong finish.  Our sales force integration is complete, with all territories rationalized, and the team is aligned and executing, which is evident in this quarter's results.  Our new channel program brings together legacy partner programs and provides better resources and incentives for our more than 2,700 worldwide partners.  With new branding rolled out this year, our go to market approach has never been stronger," said Chuck Berger, president and CEO of Extreme Networks.  "Our engineering team continues to create products that deliver on our promise of simple, fast and smart networking solutions, including our new SDN platform and IdentiFi outdoor wireless access point."

Berger added, "On the integration front, Extreme had a number of significant accomplishments.  Most notably, we successfully combined ERP systems in early July, two months ahead of schedule.  With our relationship to our customers, partners, distributors, vendors and employees united on a single interface, the combined company is in a better position than ever to seamlessly deliver value to the customer."

Fiscal Q4 2014 Financial Metrics:



Fourth Quarter









(in millions, except per share amounts and percentages)









(unaudited)









2014



2013



Change

GAAP Net Revenue













Product


$

121.8



$

64.5



$

57.3



89

%

Service


$

33.5



$

15.0



$

18.5



123

%

Total Net Revenue


$

155.3



$

79.5



$

75.8



95

%

Gross Margin


53.4

%


55.3

%


(1.9)%



(3)%


Operating Margin/Loss


(8.7)%



3.7

%


(12.0)%



(324)%


Net (Loss) Income


$

(16.2)



$

3.2



$

(19.4)



(606)%


Earnings per diluted share


$

(0.17)



$

0.03



$

(0.20)



(667)%















Non-GAAP Net Revenue













Product


$

121.8



$

64.5



$

57.3



89

%

Service


$

35.1



$

15.0



$

20.1



134

%

Total Net Revenue


$

156.9



$

79.5



$

77.4



97

%

Gross Margin


56.9

%


55.3

%


1.6

%


3

%

Operating Margin


7.2

%


8.2

%


(1.0)%



(12)%


Net Income


$

8.5



$

6.7



$

1.8



27

%

Earnings per diluted share


$

0.09



$

0.07



$

0.02



29

%

  • Cash and investments ended the quarter at $105.9 million, as compared to $106.1 million from the prior quarter.
  • Accounts receivable balance ending Q4 was $124.7 million, with non-GAAP days sales outstanding (DSO) of 72, both impacted by heavy shipments near the end of the quarter.
  • Inventory ending Q4 was $57.1 million, a decrease of $6 million from the prior quarter, due to continued right sizing of inventory.

Recent Business Highlights:                                                                 

  • Selected by Tennessee Titans to set up In-Stadium Wi-Fi and Analytics. Extreme's IdentiFi high performance Wi-Fi technology will provide fans the capability to seamlessly access mobile services and custom applications in the Nashville's LP Field.
  • Announced an open and standards-based Software Defined Networking (SDN) platform. This versatile offering will enable customers to meet challenges in implementing SDN and evolve data center orchestration, automation and provisioning.
  • Advances mobile scalability with IdentiFiTM Wireless LAN. With the addition of the 802. 11ac WLAN outdoor access point, IdentiFi is one of the most complete and scalable enterprise Wi-Fi solutions addressing both indoor and outdoor wireless connectivity.
  • Named proud partner of the Pro Football Hall of Fame. Centered on education and community outreach in K-12 school districts, the partnership highlights Extreme's leadership as a provider of optimized networking and wireless solutions to support education innovation.
  • Launched Extreme Partner Network. The program offers a single global framework to simplify the way business is done, empowering partners to deliver significant value to customers while simplifying engagement and maximizing partner profitability.
  • Recognized as a leader and innovator
    • Named a "Champion" in the 2014 Vendor Landscape report assessing Network Access Control solutions for secure network edge.
    • Awarded the 2014 Network Innovation Award for the Purview application by SearchNetworking.
    • Recognized with two 2014 Manufacturing Leadership Awards.

Business Outlook:
For its first quarter of fiscal 2015 ending September 30, 2014, the Company is targeting GAAP revenue in a range of $149 million to $154 million with non-GAAP revenue in a range of $150 million to $155 million. GAAP gross margin is targeted at 51% and non-GAAP gross margin targeted at 55%. Operating expenses are targeted to be between $86 million and $88 million on a GAAP basis and $75 million to $77 million on a non-GAAP basis. GAAP net loss is targeted to be between $7 million to $12 million, or $0.08 to $0.12 per diluted share.  Non-GAAP net income is targeted in a range of $6 million to $8 million, or $0.06 to $0.08 per diluted share. The GAAP and non-GAAP net income targets are based on an estimated 96 million and 101 million average outstanding shares, respectively. The estimates for non-GAAP revenue include purchase accounting adjustments for deferred revenue of approximately $1M related to our acquisition of Enterasys Networks. The estimates for non-GAAP gross margin include adjustments of $4 million for amortization of intangibles, $1 million for purchase accounting adjustments and $1 million stock based compensation expense. The estimate for non-GAAP operating expenses exclude $7 to $8M for amortization of intangibles and integration expenses related to our acquisition of Enterasys Networks, stock based compensation expenses of $4 to $5 million and executive transition costs of $0.5 million.

Financial Model Targets:
The Company is targeting a quarterly financial model of operating at an approximate non-GAAP operating income of 10%, exiting the fiscal year ending June 30, 2015.  To achieve this goal, the Company intends to focus on completing the integration of the two companies, achieving its synergy goals and growing its revenue.

Conference Call:
Extreme Networks will host a conference call at 5:00 p.m. Eastern (2:00 p.m. Pacific) today to review the highlights of the fourth fiscal quarter 2014 and business outlook, including significant factors and assumptions underlying the targets noted above. The conference call will be available to the public through a live audio web broadcast via the Internet at http://investor.extremenetworks.com and a replay of the call will be available on the website through August 13, 2015.  The conference call may also be heard by dialing 1-877-303-9826 (international callers dial 1-224-357-2194). Supplemental financial information to be discussed during the conference call will be posted in the Investor Relations section of the Company's website www.extremenetworks.com including the non-GAAP reconciliation attached to this press release. The encore recording can be accessed by dialing (855) 859-2056 /or international 1 (404) 537-3406; Conference ID #: 74641489.

About Extreme Networks:
Extreme Networks, Inc. (NASDAQ: EXTR) is setting a new standard for superior customer experience by delivering network-powered innovation and marketing leading service and support. Extreme Networks delivers high-performance switching and routing products for data center and core-to-edge networks, wired/wireless LAN access, and unified network management and control.  Its award-winning solutions include software-defined networking (SDN), cloud and high-density Wi-Fi, BYOD and enterprise mobility, identity access management and security.  Extreme Networks is headquartered in San Jose, CA and has more than 12,000 customers in over 80 countries. For more information, visit the Company's website at http://www.extremenetworks.com.

Non-GAAP Financial Measures:
Extreme Networks provides all financial information required in accordance with generally accepted accounting principles (GAAP). To supplement its consolidated financial statements presented in accordance with GAAP, the Company is also providing with this press release non-GAAP net income/(loss) and non-GAAP operating income/(loss) financial measures. In preparing non-GAAP information, the company has excluded, where applicable, the impact of acquisition and integration costs, purchase accounting adjustments, amortization of acquired intangibles, restructuring charges, executive transition costs, share-based compensation, gain on sale of facilities and litigation settlements.  The company believes that excluding these items provides both management and investors with additional insight into its current operations, the trends affecting the company and the company's marketplace performance. In particular, management finds it useful to exclude these items in order to more readily correlate the company's operating activities with the company's ability to generate cash from operations. Accordingly, management uses these non-GAAP measures, along with the comparable GAAP information, in evaluating the Company's historical performance and in planning its future business activities. Please note that the company's non-GAAP measures may be different than those used by other companies. The additional non-GAAP financial information the company presents should be considered in conjunction with, and not as a substitute for, the company's financial information presented in accordance with GAAP.  The Company has provided a non-GAAP reconciliation of the Condensed Consolidated Statement of Operations for the periods presented in this release, which are adjusted to exclude acquisition and integration costs, purchase accounting adjustments, amortization of acquired intangibles, restructuring charges, share-based compensation expense and gain on sale of facilities for these periods. These measures should only be used to evaluate the company's results of operations in conjunction with the corresponding GAAP measures for comparable financial information and understanding of the company's ongoing performance as a business. Extreme Networks uses both GAAP and non-GAAP measures to evaluate and manage its operations.

Forward Looking Statements:
Actual results, including with respect to the Company's financial targets and general business prospects, could differ materially due to a number of factors, including the risks that:

  • The Company may not achieve targeted revenues for the Company's products and services given increasing price competition and product technology developments in key network switching equipment markets;
  • The Company may be unable to effectively integrate the businesses of Extreme Networks and Enterasys Networks, both in terms of customer acceptance of combined product lines as well as the need to align the Company's cost structure to meet the company's financial goals, including controlling expenses, and meet financial covenants as part of the Company's debt financing used to acquire Enterasys Networks;
  • The Company may not accurately anticipate demand from end customers, which can result in increased inventory and reduced orders as it experiences wide fluctuations in supply and demand;
  • The Company is dependent on third parties to manufacture its products and any potential production delays could preclude the Company from shipping sufficient quantities to meet customer orders or could result in higher production costs and lower margins;
  • Ongoing uncertainty in global economic conditions, infrastructure development or customer demand could negatively affect product demand, collectability of receivables and other related matters as consumers and businesses may defer purchases or payments, or default on payments;
  • The Company may be unable to complete development and commercialization of products under development, such as its pipeline of new network switches and related software;
  • The Company may be adversely affected by ongoing litigation.

More information about potential factors that could affect the Company's business and financial results is included in its filings with the Securities and Exchange Commission, including, without limitation, under the captions: "Management's Discussion and Analysis of Financial Condition and Results of Operations," and "Risk Factors," which are on file with the Securities and Exchange Commission.  Except as required under the U.S. federal securities laws and the rules and regulations of the SEC, Extreme Networks disclaims any obligation to update any forward-looking statements after the date of this release, whether as a result of new information, future events, developments, changes in assumptions or otherwise.

 

EXTREME NETWORKS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share amounts)

(Unaudited)






June 30, 2014


June 30, 2013







ASSETS






Current assets:






Cash and cash equivalents

$

73,190



$

95,803


Short-term investments

32,692



43,034


Accounts receivable, net of allowances of $3,618 at June 30, 2014 and $1,252 at June 30, 2013

124,664



47,642


Inventories

57,109



16,167


Deferred income taxes

1,058



386


Prepaid expenses and other current assets

15,562



5,749


Total current assets

304,275



208,781


Property and equipment, net

46,554



23,644


Marketable securities



66,776


Intangible assets, net

87,459



4,243


Goodwill

69,458




Other assets, net

18,686



7,980


Total assets

$

526,432



$

311,424


LIABILITIES AND STOCKHOLDERS' EQUITY






Current liabilities:






Current portion of long-term debt

$

29,688



$


Accounts payable

37,308



27,163


Accrued compensation and benefits

26,677



13,503


Restructuring liabilities

322



1,466


Accrued warranty

7,551



3,296


Deferred revenue, net

74,735



33,184


Deferred distributors revenue, net of cost of sales to distributors

31,992



17,388


Other accrued liabilities

38,035



16,502


Total current liabilities

246,308



112,502


Deferred revenue, less current portion

22,942



8,270


Long-term debt, less current portion

91,875




Other long-term liabilities

8,595



1,507


Commitments and contingencies






Stockholders' equity

156,712



189,145


Total liabilities and stockholders' equity

$

526,432



$

311,424


 

EXTREME NETWORKS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

(Unaudited)






Three Months Ended


Year Ended


June 30, 2014


June 30, 2013


June 30, 2014


June 30, 2013

Net revenues:












Product

$

121,761



$

64,505



$

411,761



$

239,955


Service

33,532



14,957



107,793



59,388


Total net revenues

155,293



79,462



519,554



299,343


Cost of revenues:












Product

60,561



30,803



213,673



115,862


Service

11,810



4,684



38,552



20,855


Total cost of revenues

72,371



35,487



252,225



136,717


Gross profit:












Product

61,200



33,702



198,088



124,093


Service

21,722



10,273



69,241



38,533


Total gross profit

82,922



43,975



267,329



162,626


Operating expenses:












Research and development

24,048



9,567



77,146



40,521


Sales and marketing

48,634



22,438



156,666



87,202


General and administrative

11,511



8,434



40,912



26,725


Acquisition and integration costs

6,890





25,716




Restructuring charge, net of reversals

11



593



510



6,836


Amortization of intangibles

5,267





16,711




Litigation settlement (income) expense





(100)



2,029


Gain on sale of facilities







(11,539)


Total operating expenses

96,361



41,032



317,561



151,774


Operating (loss) income

(13,439)



2,943



(50,232)



10,852


Interest income

148



284



751



1,070


Interest expense

(796)





(2,085)




Other (expense) income, net

(217)



243



(1,555)



(571)


(Loss) income before income taxes

(14,304)



3,470



(53,121)



11,351


Provision for income taxes

1,927



286



4,189



1,678


Net (loss) income

$

(16,231)



$

3,184



$

(57,310)



$

9,673


Basic and diluted net (loss) income per share:












Net (loss) income per share - basic

$

(0.17)



$

0.03



$

(0.60)



$

0.10


Net (loss) income per share - diluted

$

(0.17)



$

0.03



$

(0.60)



$

0.10


Shares used in per share calculation - basic

96,713



93,611



95,515



93,954


Shares used in per share calculation - diluted

96,713



94,894



95,515



95,044


 

EXTREME NETWORKS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)



Year Ended


June 30, 2014


June 30, 2013







Net cash (used in) provided by operating activities

$

(26,843)



$

32,237


Cash flows from investing activities:






Capital expenditures

(22,373)



(12,737)


Acquisition, net of cash acquired

(180,000)




Purchases of investments

(9,045)



(57,712)


Proceeds from maturities of investments and marketable securities

28,722



16,367


Proceeds from sales of investments and marketable securities

56,594



28,528


Purchases of intangible assets

(87)



(625)


Proceeds from sales of facilities



42,659


Net cash (used in) provided by investing activities

(126,189)



16,480


Cash flows from financing activities:






Borrowings under Revolving Facility

83,000




Borrowings under Term Loan

65,000




Repayment of debt

(26,437)




Proceeds from issuance of common stock

8,017



7,084


Repurchase of common stock



(14,475)


Net cash provided by (used in) financing activities

129,580



(7,391)








Foreign currency effect on cash

839



(119)


Net (decrease) increase in cash and cash equivalents

(22,613)



41,207


Cash and cash equivalents at beginning of period

95,803



54,596


Cash and cash equivalents at end of period

$

73,190



$

95,803


 

Extreme Networks, Inc.
Non-GAAP Measures of Financial Performance

To supplement the Company's consolidated financial statements presented in accordance with generally accepted accounting principles, or GAAP, Extreme Networks uses non-GAAP measure of certain components of financial performance.  These non-GAAP measures include non-GAAP net income, non-GAAP earnings per diluted share, non-GAAP gross margin, non-GAAP operating expenses and free cash flow.

Reconciliation to the nearest GAAP measure of all historical non-GAAP measures included in this press release can be found in the tables included with this press release.  In this press release, Extreme Networks also presents its target for non-GAAP expenses, which is expenses less stock based compensation expense, acquisition and integration costs, purchase accounting adjustments, amortization of acquired intangibles, restructuring expenses and gains related to the sale of the Santa Clara campus.

Non-GAAP measures presented in this press release are not in accordance with or an alternative measures prepared in accordance with GAAP and may be different from non-GAAP measures used by other companies.  In addition these, non-GAAP measures are not based on any comprehensive set of accounting rules or principles.  Non-GAAP measures have limitations in that they do not reflect all of the amounts associated with Extreme Networks' results of operations as determined in accordance with GAAP.  These non-GAAP measures should only be used to evaluate Extreme Networks' results of operations in conjunction with the corresponding GAAP measures.

Extreme Networks believes that these non-GAAP measures when shown in conjunction with the corresponding GAAP measures enhance investors' and management's overall understanding of the Company's current financial performance and the Company's prospects for the future, including cash flows available to pursue opportunities to enhance shareholder value.  In addition, because Extreme Networks has historically reported certain non-GAAP results to investors, the Company believes that the inclusion of non-GAAP measures provides consistency in the Company's financial reporting.

For its internal planning process, and as discussed further below, Extreme Network's management uses financial statements that do not include stock-based compensation expense, acquisition and integration costs, purchase accounting adjustments, amortization of acquired intangibles, restructuring expenses and gains related to the sale of the Santa Clara campus.  Extreme Networks' management also uses non-GAAP measures, in addition to the corresponding GAAP measures, in reviewing the Company's financial results.

As described above, Extreme Networks excludes the following items from one or more of its non-GAAP measures when applicable.

Stock based compensation expense. This expense consists of expenses for stock options, restricted stock and employee stock purchases through its ESPP.  Extreme Networks excludes stock based compensation expenses from its non-GAAP measures primarily because they are non-cash expenses that the Company does not believe are reflective of ongoing cash requirement related to operating results. Extreme Networks expects to incur stock-based compensation expenses in future periods.

Acquisition and integration costs. Acquisition and integration costs primarily consist of legal and professional fees, severance costs, and other expenses related to the acquisition and integration of Enterasys Inc.  Extreme Networks excludes these expenses since they result from an event that is outside the ordinary course of continuing operations.

Amortization of intangibles.  Amortization of intangibles includes the monthly amortization expense of acquired intangible assets such as developed technology, customer relationships, trademarks and order backlog.  The amortization of the developed technology intangible is recorded in product cost of goods sold, while the amortization for the other intangibles are recorded in operating expenses.  Extreme Networks excludes these non-cash expenses since they result from an intangible asset and for which the period expense does not impact the operations of the business.

Purchase accounting adjustments relating to inventory and deferred revenue.  Purchase accounting adjustments consists of adjustments to the carrying value of deferred revenue and the step up of the carrying value for finished goods inventory.  We have recorded adjustments to the assumed deferred revenue to reflect only a fulfillment margin and thereby excluding the profit margin and revenue which would have been incurred had Extreme Networks entered into the service contract post-acquisition.   The carrying value of the finished goods inventories acquired was adjusted to reflect only a selling profit margin that a market participant would incur to fulfill an order.  However, we have excluded the step up adjustment since we believe it is not reflective of the normal profit margin we expect on similar types of transactions with 3rd party customers.

Restructuring expenses. Restructuring expenses primarily consist of cash severance and termination benefits. Extreme Networks excludes restructuring expenses since they result from events that often occur outside of the ordinary course of continuing operations. Extreme Networks expects to incur restructuring expenses in future periods.

Gains related to the sale of facilities.  The one-time net gain related to the sale of the Santa Clara campus consists of the gross proceeds of the sale less the expenses directly related to the sale such as commissions, closing costs and legal fees.  Extreme Networks excludes this gain because it is a one-time event and does not believe that the gain is reflective of ongoing operations.

Executive transition expenses. This expense is related to the costs associated with the severance payments, both cash and stock based, for the Company's prior executives and the cost of transitioning with the new executives. Extreme Networks excludes these costs as it does not believe it is reflective of ongoing operations.

Currency loss related to closing of certain foreign subsidiaries. This is related to the closing of our Japanese subsidiary. This has accumulated over time and has historically been included in Other Comprehensive Income. Extreme Networks excludes these losses as it is a one-time event and does not believe it is reflective of ongoing operations.

In addition to the non-GAAP measures discussed above, Extreme Networks also uses free cash flow as a measure of operating performance.  Free cash flow represents operating cash flows less net purchase of property and equipment.  Extreme Networks considers free cash flows to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business after the purchases of property and equipment, which can then be used to, among other things, invest in Extreme Networks business, make strategic acquisitions, strengthen the balance sheet and repurchase stock.  A limitation of the utility of free cash slows as a measure of financial performance is that it does not represent the total increases or decrease in the Company's cash balance for the period.

 

EXTREME NETWORKS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

GAAP TO NON-GAAP RECONCILIATION

(In thousands, except per share amounts)

(Unaudited)





Non-GAAP Revenue

Three Months Ended


Year Ended


June 30, 2014


June 30, 2013


June 30, 2014


June 30, 2013













Revenue - GAAP Basis

$

155,293



$

79,462



$

519,554



$

299,343


Adjustments:












Purchase accounting adjustments

$

1,579



$



$

5,256



$


Revenue - Non-GAAP Basis

$

156,872



$

79,462



$

524,810



$

299,343


























Non-GAAP Gross Margin

Three Months Ended


Year Ended


June 30, 2014


June 30, 2013


June 30, 2014


June 30, 2013













Gross profit - GAAP Basis

$

82,922



$

43,975



$

267,329



$

162,626


Gross margin - GAAP Basis percentage

53.4

%


55.3

%


51.5

%


54.3

%

Adjustments:












Stock based compensation expense

$

540



$

3



$

1,730



$

720


Purchase accounting adjustments

$

1,579



$



$

16,383



$


Amortization of intangibles

$

4,292



$



$

11,028



$


Gross profit - Non-GAAP Basis

$

89,333



$

43,978



$

296,470



$

163,346


Gross margin - Non-GAAP Basis percentage

56.9

%


55.3

%


56.5

%


54.6

%













Non-GAAP Operating Income

Three Months Ended


Year Ended


June 30, 2014


June 30, 2013


June 30, 2014


June 30, 2013













GAAP operating (loss) income

$

(13,439)



$

2,943



$

(50,232)



$

10,852


GAAP operating (loss) income percentage

(8.7)%



3.7

%


(9.7)%



3.6

%

Adjustments:












Stock based compensation expense

$

6,047



$

886



$

15,922



$

6,512


Acquisition and integration costs

$

6,890



$



$

25,716



$


Restructuring charge, net of reversal

$

11



$

593



$

510



$

6,836


Amortization of intangibles

$

9,559



$



$

27,739



$


Purchase accounting adjustments

$

1,579



$



$

16,383



$


Litigation settlement (income) expense

$



$



$

(100)



$

2,197


Gain on sale of facilities

$



$



$



$

(11,539)


Executive transition expenses

$

600



$

2,086



$

600



$

2,086


Total adjustments to GAAP operating income

$

24,686



$

3,565



$

86,770



$

6,092


Non-GAAP operating income

$

11,247



$

6,508



$

36,538



$

16,944


Non-GAAP operating income percentage

7.2

%


8.2

%


7.0

%


5.7

%

























Non-GAAP Net Income

Three Months Ended


Year Ended


June 30, 2014


June 30, 2013


June 30, 2014


June 30, 2013













GAAP net (loss) income

$

(16,231)



$

3,184



$

(57,310)



$

9,673


Adjustments:












Stock based compensation expense

$

6,047



$

886



$

15,922



$

6,512


Acquisition and integration costs

$

6,890



$



$

25,716



$


Restructuring charge, net of reversal

$

11



$

593



$

510



$

6,836


Amortization of intangibles

$

9,559



$



$

27,739



$


Purchase accounting adjustments

$

1,579



$



$

16,383



$


Litigation settlement (income) expense

$



$



$

(100)



$

2,197


Gain on sale of facilities

$



$



$



$

(11,539)


Executive transition expenses

$

600



$

2,086



$

600



$

2,086


Currency loss from closing of a foreign subsidiary

$



$



$



$

465


Total adjustments to GAAP net income

$

24,686



$

3,565



$

86,770



$

6,557


Non-GAAP net income

$

8,455



$

6,749



$

29,460



$

16,230














Earnings per share












Non-GAAP diluted net income per share

$

0.09



$

0.07



$

0.30



$

0.17


Shares used in diluted net income per share calculation

99,125



94,894



98,171



95,044


























Free Cash Flow

Three Months Ended


Year Ended


June 30, 2014


June 30, 2013


June 30, 2014


June 30, 2013













Cash flow used in operations

$

3,774



$

25,235



$

(26,843)



$

32,237


Add: PP&E CapEx spending

(4,988)



(8,315)



(22,373)



(12,737)


Total free cash flow

$

(1,214)



$

16,920



$

(49,216)



$

19,500














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SOURCE Extreme Networks, Inc.

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@ThingsExpo Stories
SYS-CON Events announced today that Windstream, a leading provider of advanced network and cloud communications, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Windstream (Nasdaq: WIN), a FORTUNE 500 and S&P 500 company, is a leading provider of advanced network communications, including cloud computing and managed services, to businesses nationwide. The company also offers broadband, phone and digital TV services to consumers primarily in rural areas.
"There is a natural synchronization between the business models, the IoT is there to support ,” explained Brendan O'Brien, Co-founder and Chief Architect of Aria Systems, in this SYS-CON.tv interview at the 15th International Cloud Expo®, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The major cloud platforms defy a simple, side-by-side analysis. Each of the major IaaS public-cloud platforms offers their own unique strengths and functionality. Options for on-site private cloud are diverse as well, and must be designed and deployed while taking existing legacy architecture and infrastructure into account. Then the reality is that most enterprises are embarking on a hybrid cloud strategy and programs. In this Power Panel at 15th Cloud Expo (http://www.CloudComputingExpo.com), moderated by Ashar Baig, Research Director, Cloud, at Gigaom Research, Nate Gordon, Director of T...
The definition of IoT is not new, in fact it’s been around for over a decade. What has changed is the public's awareness that the technology we use on a daily basis has caught up on the vision of an always on, always connected world. If you look into the details of what comprises the IoT, you’ll see that it includes everything from cloud computing, Big Data analytics, “Things,” Web communication, applications, network, storage, etc. It is essentially including everything connected online from hardware to software, or as we like to say, it’s an Internet of many different things. The difference ...

ARMONK, N.Y., Nov. 20, 2014 /PRNewswire/ --  IBM (NYSE: IBM) today announced that it is bringing a greater level of control, security and flexibility to cloud-based application development and delivery with a single-tenant version of Bluemix, IBM's platform-as-a-service. The new platform enables developers to build ap...

Cloud Expo 2014 TV commercials will feature @ThingsExpo, which was launched in June, 2014 at New York City's Javits Center as the largest 'Internet of Things' event in the world.
An entirely new security model is needed for the Internet of Things, or is it? Can we save some old and tested controls for this new and different environment? In his session at @ThingsExpo, New York's at the Javits Center, Davi Ottenheimer, EMC Senior Director of Trust, reviewed hands-on lessons with IoT devices and reveal a new risk balance you might not expect. Davi Ottenheimer, EMC Senior Director of Trust, has more than nineteen years' experience managing global security operations and assessments, including a decade of leading incident response and digital forensics. He is co-author of t...
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at Internet of @ThingsExpo, James Kirkland, Chief Architect for the Internet of Things and Intelligent Systems at Red Hat, described how to revolutioniz...
Technology is enabling a new approach to collecting and using data. This approach, commonly referred to as the "Internet of Things" (IoT), enables businesses to use real-time data from all sorts of things including machines, devices and sensors to make better decisions, improve customer service, and lower the risk in the creation of new revenue opportunities. In his General Session at Internet of @ThingsExpo, Dave Wagstaff, Vice President and Chief Architect at BSQUARE Corporation, discuss the real benefits to focus on, how to understand the requirements of a successful solution, the flow of ...
The security devil is always in the details of the attack: the ones you've endured, the ones you prepare yourself to fend off, and the ones that, you fear, will catch you completely unaware and defenseless. The Internet of Things (IoT) is nothing if not an endless proliferation of details. It's the vision of a world in which continuous Internet connectivity and addressability is embedded into a growing range of human artifacts, into the natural world, and even into our smartphones, appliances, and physical persons. In the IoT vision, every new "thing" - sensor, actuator, data source, data con...
"BSQUARE is in the business of selling software solutions for smart connected devices. It's obvious that IoT has moved from being a technology to being a fundamental part of business, and in the last 18 months people have said let's figure out how to do it and let's put some focus on it, " explained Dave Wagstaff, VP & Chief Architect, at BSQUARE Corporation, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Focused on this fast-growing market’s needs, Vitesse Semiconductor Corporation (Nasdaq: VTSS), a leading provider of IC solutions to advance "Ethernet Everywhere" in Carrier, Enterprise and Internet of Things (IoT) networks, introduced its IStaX™ software (VSC6815SDK), a robust protocol stack to simplify deployment and management of Industrial-IoT network applications such as Industrial Ethernet switching, surveillance, video distribution, LCD signage, intelligent sensors, and metering equipment. Leveraging technologies proven in the Carrier and Enterprise markets, IStaX is designed to work ac...
C-Labs LLC, a leading provider of remote and mobile access for the Internet of Things (IoT), announced the appointment of John Traynor to the position of chief operating officer. Previously a strategic advisor to the firm, Mr. Traynor will now oversee sales, marketing, finance, and operations. Mr. Traynor is based out of the C-Labs office in Redmond, Washington. He reports to Chris Muench, Chief Executive Officer. Mr. Traynor brings valuable business leadership and technology industry expertise to C-Labs. With over 30 years' experience in the high-tech sector, John Traynor has held numerous...
Bit6 today issued a challenge to the technology community implementing Web Real Time Communication (WebRTC). To leap beyond WebRTC’s significant limitations and fully leverage its underlying value to accelerate innovation, application developers need to consider the entire communications ecosystem.
The 3rd International @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - computers, smartphones, tablets, and sensors - connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades.
The Internet of Things is not new. Historically, smart businesses have used its basic concept of leveraging data to drive better decision making and have capitalized on those insights to realize additional revenue opportunities. So, what has changed to make the Internet of Things one of the hottest topics in tech? In his session at @ThingsExpo, Chris Gray, Director, Embedded and Internet of Things, discussed the underlying factors that are driving the economics of intelligent systems. Discover how hardware commoditization, the ubiquitous nature of connectivity, and the emergence of Big Data a...
Almost everyone sees the potential of Internet of Things but how can businesses truly unlock that potential. The key will be in the ability to discover business insight in the midst of an ocean of Big Data generated from billions of embedded devices via Systems of Discover. Businesses will also need to ensure that they can sustain that insight by leveraging the cloud for global reach, scale and elasticity.
SYS-CON Events announced today that IDenticard will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. IDenticard™ is the security division of Brady Corp (NYSE: BRC), a $1.5 billion manufacturer of identification products. We have small-company values with the strength and stability of a major corporation. IDenticard offers local sales, support and service to our customers across the United States and Canada. Our partner network encompasses some 300 of the world's leading systems integrators and security s...
IoT is still a vague buzzword for many people. In his session at @ThingsExpo, Mike Kavis, Vice President & Principal Cloud Architect at Cloud Technology Partners, discussed the business value of IoT that goes far beyond the general public's perception that IoT is all about wearables and home consumer services. He also discussed how IoT is perceived by investors and how venture capitalist access this space. Other topics discussed were barriers to success, what is new, what is old, and what the future may hold. Mike Kavis is Vice President & Principal Cloud Architect at Cloud Technology Pa...
Cloud Expo 2014 TV commercials will feature @ThingsExpo, which was launched in June, 2014 at New York City's Javits Center as the largest 'Internet of Things' event in the world. The next @ThingsExpo will take place November 4-6, 2014, at the Santa Clara Convention Center, in Santa Clara, California. Since its launch in 2008, Cloud Expo TV commercials have been aired and CNBC, Fox News Network, and Bloomberg TV. Please enjoy our 2014 commercial.