Core Viewpoint - Extreme Networks (EXTR) has seen a 6.3% increase in share price over the past four weeks, closing at $16.10, with a potential upside of 25.8% based on Wall Street analysts' mean price target of $20.25 [1][9] Price Targets and Analyst Estimates - The mean estimate consists of four short-term price targets with a standard deviation of $2.60, indicating variability among analysts [2] - The lowest estimate is $16.50, suggesting a 2.5% increase, while the highest estimate is $22.50, indicating a potential surge of 39.8% [2] - A low standard deviation signifies a high degree of agreement among analysts regarding the stock's price movement direction [7] Earnings Estimates and Market Sentiment - Analysts have shown increasing optimism about EXTR's earnings prospects, with a strong consensus on higher EPS estimates, which correlates with potential stock price increases [9][10] - The Zacks Consensus Estimate for the current year has risen by 5.9% over the past month, with two estimates increasing and no negative revisions [10] - EXTR holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors, indicating strong potential for upside [11]

Market Overview - The total addressable market for Extreme's Enterprise Networking solutions is estimated to exceed $47 billion, growing at approximately 13% annually over the next five years[88]. - The cloud networking segment is projected to be an $11 billion market, with an annual growth rate of 14% over the next five years[94]. Cloud Solutions and Technology - Extreme's cloud management platform, ExtremeCloud IQ, provides unified management driven by AI and ML, enhancing operational efficiency and reducing time to resolution[91]. - The company emphasizes a hybrid approach, offering customers the choice of public or private cloud, or on-premises solutions, ensuring flexibility and adaptability[94]. - Extreme's AI capabilities, including the recently introduced Extreme AI Expert, aim to optimize network performance and improve mean time to resolution for technical issues[95]. - The company leverages machine learning and AI to enhance network management and automation, addressing the complexities of modern distributed networks[85]. - Extreme's cloud solution integrates machine learning and analytics to deliver actionable insights, helping customers reduce costs and streamline operations[84]. - The company aims to provide a differentiated end-to-end cloud architecture, enhancing visibility, intelligence, and assurance across the network[94]. - Extreme's networking technology is designed to support the increasing complexity of networks, driven by the rise of distributed workforces and cloud-based applications[85]. - The company focuses on delivering a simple and easy-to-manage enterprise networking platform, positioning itself against competitors with complex solutions[90]. Financial Performance - Net revenues for Q1 fiscal 2025 were $269.2 million, a decrease of 23.8% from $353.1 million in Q1 fiscal 2023[98]. - Product revenues fell to $162.3 million, down 36.0% from $253.5 million in the same period last year[101]. - Subscription and support revenues increased to $106.9 million, up 7.3% from $99.7 million in Q1 fiscal 2023[98]. - Total gross margin improved to 63.0% compared to 60.3% in Q1 fiscal 2023[99]. - Operating loss was $4.7 million, a decline from operating income of $35.9 million in Q1 fiscal 2023[99]. - Net loss for the quarter was $10.5 million, compared to net income of $28.7 million in the prior year[100]. - Cash flows from operating activities were $18.6 million, down from $75.6 million in the same period last year[100]. - Research and development expenses decreased by 6.1% to $54.5 million compared to $58.0 million in Q1 fiscal 2023[105]. - Sales and marketing expenses decreased by 11.5% to $81.4 million from $91.9 million in the prior year[107]. - General and administrative expenses increased by 53.3% to $36.6 million, primarily due to litigation charges and system transition costs[108]. Tax and Cash Flow - The income tax provision for the three months ended September 30, 2024, was $1.5 million, a decrease from $4.6 million in the same period of 2023[116]. - Cash and cash equivalents as of September 30, 2024, totaled $159.5 million, up from $156.7 million as of June 30, 2024[118]. - Net cash provided by operating activities for the three months ended September 30, 2024, was $18.6 million, significantly lower than $75.6 million for the same period in 2023[121]. - Net cash used in investing activities was $6.9 million for the three months ended September 30, 2024, compared to $4.3 million in the same period of 2023[121]. - Net cash used in financing activities was $9.1 million for the three months ended September 30, 2024, a substantial decrease from $81.5 million in the same period of 2023[122]. Debt and Commitments - As of September 30, 2024, the company had $187.5 million of debt outstanding, with an average daily outstanding amount of $196.7 million during the quarter[125]. - The company had non-cancelable commitments to purchase $37.3 million of inventory as of September 30, 2024[123]. - Foreign currency transaction losses were $1.4 million for the three months ended September 30, 2024, compared to gains of $0.5 million in the same period of 2023[128]. - The company had $50.3 million available under the 2022 Repurchase Program as of September 30, 2024[118]. - The average interest rate on the company's debt was 7.52% as of September 30, 2024[126].

Core Insights - Extreme Networks' recent quarterly report indicates potential stabilization in the business, with stock prices rising by 13.9% following the announcement [1] Financial Performance - For Q1 of fiscal 2025, Extreme Networks reported non-GAAP earnings per share of $0.17 on revenue of $269.2 million, surpassing analyst expectations of $0.13 per share and revenue of approximately $261.3 million [3] - Revenue experienced a decline of 23.8% year-over-year but showed a sequential increase of 4.9% compared to the previous quarter [3] - The company's annualized recurring revenue for software as a subscription (SaaS) reached $174.1 million, reflecting a year-over-year increase of 23.4% and a sequential quarterly increase of 4.3% [3] Future Guidance - For Q2 of the current fiscal year, Extreme Networks projects sales between $273 million and $283 million, indicating a potential sales decline of about 6% year-over-year but a sequential increase of approximately 3% [4] - Management anticipates an adjusted gross margin between 62.2% and 63.2% for the current quarter, compared to 63% in Q1 of this fiscal year and 62.5% in Q2 of the previous year [5] - Adjusted earnings per share for the current quarter are expected to range between $0.16 and $0.20, which would represent a 25% year-over-year decline but a 6% increase over the previous quarter's earnings [6]

1Q25 Financial Results October 30, 2024 ExtremeCloud Universal ZTNA DISCLAIMER Non-GAAP Financial Measures This presentation includes certain financial measures that are not presented in accordance with generally accepted accounting principles in the United States ("GAAP), such as, among other things, Non-GAAP Net Income (Loss), Non-GAAP EPS, Non-GAAP Operating Margin, Free Cash Flow, Net Cash (Debt), Non-GAAP Gross Margin, Non-GAAP Operating Income (Loss), and Adjusted EBITDA. Extreme Networks, Inc. (the " ...

Financial Data and Key Metrics Changes - First quarter revenue reached $269.2 million, growing 5% sequentially, driven by recovery in product sales and subscription contracts [25][24] - Earnings per share (EPS) was $0.17, exceeding initial outlook by $0.05 and the high end of guidance [24][31] - Gross margin improved to 63.7%, up 20 basis points sequentially, attributed to higher product revenue and favorable product mix [29][31] - Total recurring revenue accounted for 38% of first quarter revenue, with subscription deferred revenue increasing 19% year-over-year to $282 million [28][31] Business Line Data and Key Metrics Changes - SaaS ARR grew 23% year-over-year, indicating strong demand for cloud offerings [9] - Product revenue was $162.3 million, up 6% sequentially, with notable growth in data center and campus switching [26] - Subscription and support revenue totaled $107 million, up 3% sequentially, driven by cloud subscription strength [27] Market Data and Key Metrics Changes - Revenue in the Americas grew double digits sequentially, with strength noted in North America [25] - APAC region also saw sequential and year-over-year growth, while EMEA experienced a slower recovery due to government spending delays [25][24] Company Strategy and Development Direction - The company is focusing on expanding its cloud management capabilities, integrating AI and security features to enhance competitive advantages [9][10] - New commercial models, including subscription private offers and managed services, are gaining traction, with significant growth in partner engagement [21][22] - The company anticipates continued sequential growth in Q2, supported by a robust funnel of opportunities and market share gains [23][32] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about a broad networking market recovery, with expectations for continued demand growth in the second quarter [8][23] - Challenges in the European market were acknowledged, particularly in the public sector, with project delays due to budgetary issues [36][38] - The company expects to see a more robust recovery in larger customer segments as budget resolutions occur [50][51] Other Important Information - The company is the first to ship enterprise-grade Wi-Fi 7 Access Points, enhancing its product offerings [14][15] - Recent significant wins include contracts with major institutions and sports teams, reinforcing the company's market position [19][20] Q&A Session Summary Question: U.S. vs EMEA recovery - Management confirmed that the U.S. is leading the recovery, while EMEA is experiencing delays due to macroeconomic factors [36][38] Question: Share gain against competitors - The company is gaining share primarily from Cisco, with some wins against Juniper and HPE, driven by unique technology advantages [40][41] Question: Recovery in larger customer segments - Management anticipates a return of larger projects, supported by a strong funnel of opportunities [50][51] Question: AI strategy - The company is developing AIOps capabilities to enhance network management and is collaborating with AWS and Microsoft for future AI solutions [56][60] Question: Project impacts and receivables - Earlier project closures contributed modestly to revenue, with a normal gross margin profile [92][93] - Receivables are within normal ranges, with good collection expectations [95][96]

Extreme Networks (EXTR) came out with quarterly earnings of $0.17 per share, beating the Zacks Consensus Estimate of $0.12 per share. This compares to earnings of $0.35 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 41.67%. A quarter ago, it was expected that this maker of network infrastructure equipment would post earnings of $0.13 per share when it actually produced a loss of $0.08, delivering a surprise of -161.54%. Over ...

Exhibit 99.1 For more information, contact: Investor Relations Media Contact Stan Kovler Amy Aylward 919/595-4196 603/952-5138 Investor_relations@extremenetworks.com pr@extremenetworks.com Extreme Networks Reports First Quarter Fiscal Year 2025 Financial Results Beats Revenue and EPS Guidance Sequential Revenue Growth Drives Margin Improvement and Cash Flow Morrisville, NC, October 30, 2024 -- Extreme Networks, Inc. ("Extreme") (Nasdaq: EXTR) today released financial results for its first quarter ended Sept ...

RADNOR, Pa., Oct. 15, 2024 /PRNewswire/ -- The law firm of Kessler Topaz Meltzer & Check, LLP (www.ktmc.com) informs investors that a securities class action lawsuit has been filed in the United States District Court for the Northern District of California against Extreme Networks, Inc. ("Extreme") (NASDAQ: EXTR) on behalf of investors who purchased or otherwise acquired Extreme common stock between July 27, 2022 and January 30, 2024, inclusive (the "Class Period") The lead plaintiff deadline is October 15, ...

NEW YORK, Oct. 15, 2024 (GLOBE NEWSWIRE) -- Leading securities law firm Bleichmar Fonti & Auld LLP announces that a lawsuit has been filed against Extreme Networks, Inc. (NASDAQ: EXTR) and certain of the Company's senior executives. If you invested in Extreme, you are encouraged to obtain additional information by visiting https://www.bfalaw.com/cases-investigations/extreme-networks-inc. Investors have until October 15, 2024 to ask the Court to be appointed to lead the case. The complaint asserts claims und ...

Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses Exceeding $100,000 In Extreme Networks To Contact Him Directly To Discuss Their Options If you suffered losses exceeding $100,000 in Extreme Networks between July 27, 2022 and January 30, 2024 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247- 4292 or 212-983-9330 (Ext. 1310). [You may also click here for additional information] NEW YORK, Oct ...