Extreme Networks Inc. Announces Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended December 31, 2012; Provides Earnings Guidance for the Third Quarter Ending March 31, 2013
January 30, 2013 at 04:02 pm
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Extreme Networks Inc. announced unaudited consolidated earnings results for the second quarter and six months ended December 31, 2012. For the quarter, the company reported total net revenues were $75.55 million against $82.8 million a year ago. Operating loss was $3.76 million against profit of $4.06 million a year ago. Loss before income taxes was $3.8 million against profit of $4.32 million a year ago. Net loss was $4.2 million or $0.04 diluted loss per share against net income of $4.11 million or $0.04 diluted per share a year ago. Non-GAAP operating income was $2.61 million against profit of $5.78 million a year ago. Non-GAAP net income was $2.78 million against profit of $5.82 million a year ago. Non-GAAP diluted income per share was $0.03 against $0.06 a year ago. Net cash provided by operating activities was $1.02 million against $7.9 million a year ago. Capital spending on property, plant and equipment was $1.46 million against $1.26 million a year ago.
For the six months, the company reported total net revenues were $151.68 million against $161.71 million a year ago. Operating income was $9.8 million against profit of $5.84 million a year ago. Income before income taxes was $9.69 million against profit of $6.42 million a year ago. Net income was $8.71 million or $0.09 diluted per share against net income of $5.69 million or $0.06 diluted per share a year ago. Net cash provided by operating activities was $8.08 million against $3.95 million a year ago. Capital expenditures were $3.03 million against $2.01 million a year ago. Purchase of intangible assets was $0.335 million. Non-GAAP operating income was $6.8 million against profit of $10.4 million a year ago. Non-GAAP net income was $6.16 million against profit of $10.26 million a year ago. Non-GAAP diluted income per share was $0.06 against $0.11 a year ago.
For its third quarter ending March 31, 2013, the company is targeting revenue in a range of $70 million to $75 million with GAAP and non-GAAP gross margin targeted to be between 54% and 55%. Interest income and other expense is targeted to be approximately $0.2 million with tax expense targeted to be approximately $0.6 million. GAAP net income is targeted at $3.0 million to $5.0 million, or $0.03 to $0.06 per diluted share. Non-GAAP net income is targeted in a range of $4.0 million to $7.0 million, or $0.04 to $0.08 per diluted share. The GAAP and non-GAAP net income targets are based on an estimated 93.5 million diluted weighted average shares. Targeted non-GAAP earnings exclude expenses related to stock-based compensation expense of approximately $1.5 million and restructuring charges of approximately $0.6 million.
Extreme Networks, Inc. is a provider of cloud networking solutions and industry services and support. The Company designs, develops, and manufactures wired, wireless, and software-defined area-network (SD- WAN) infrastructure equipment. The Company's cloud solution is a single platform that offers unified network management of wireless access points, switches, and SD-WAN. Its products and services categories include Cloud Networking Platform, Automation, Analytics, and Security Applications, Wireless LAN AP, Wired for Edge, Campus, and Data Center, SD-WAN, Cloud Native Platforms and Applications for Service Providers and Customer Service and Support. It offers its services in business, hospitality, retail, transportation and logistics, education, government, healthcare, manufacturing, and service providers. Its cloud networking technologies provide flexibility and scalability in deployment, management, and licensing of networks globally.
Extreme Networks Inc. Announces Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended December 31, 2012; Provides Earnings Guidance for the Third Quarter Ending March 31, 2013