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.