Financial Performance - FQ1'18 (GAAP) - Total revenue reached $211.7 million, a significant increase of $89.1 million compared to FQ1'17 as reported[7] - Product revenue was $164.8 million, up by $74.7 million from FQ1'17 as reported[7] - Services revenue amounted to $46.9 million, an increase of $14.4 million compared to FQ1'17 as reported[7] - Operating income was $4.5 million, a substantial improvement of $9.3 million from FQ1'17 as reported[7] - Net income stood at $4.4 million, a notable increase of $10.9 million from FQ1'17 as reported[7] Financial Performance - FQ1'18 (Non-GAAP) - Operating income reached $22.5 million, an increase of $13.7 million from FQ1'17 as reported[7] - Net income was $18.6 million, an increase of $11.5 million from FQ1'17 as reported[7] Revenue by Geography (GAAP) - Americas generated $114.2 million in total revenue, up by $52.1 million from FQ1'17 as reported[13] - EMEA contributed $79.1 million in total revenue, an increase of $28.6 million from FQ1'17 as reported[13] - APAC accounted for $18.4 million in total revenue, an increase of $8.5 million from FQ1'17 as reported[13] Financial Position - Cash and investments increased to $154.1 million[18] - Debt payable increased to $167.6 million[18] FQ2'18 Guidance (GAAP) - Revenue is projected to be between $236.0 million and $246.0 million[29] - Net loss is expected to be between $35.0 million and $40.2 million[29] FQ2'18 Guidance (Non-GAAP) - Revenue is projected to be between $236.0 million and $246.0 million[31] - Net income is expected to be between $12.5 million and $17.0 million[31]

Financial Performance - Q2'18 vs Q2'17 (Adjusted) - Total revenue increased to $231.1 million, a $74.7 million increase[7, 15] - Product revenue increased to $174.8 million, a $56.7 million increase[7, 15] - Service revenue increased to $56.3 million, an $18.0 million increase[7, 15] - GAAP operating loss was $(31.1) million, compared to $(3.0) million[7] - Non-GAAP operating income was $20.3 million, compared to $18.4 million[7] Financial Performance - Q2'18 vs Q1'18 - Total revenue increased to $231.1 million, a $19.4 million increase[7, 15] - Product revenue increased to $174.8 million, a $10.0 million increase[7, 15] - Service revenue increased to $56.3 million, a $9.4 million increase[7, 15] - GAAP operating loss was $(31.1) million, compared to $4.5 million[7] - Non-GAAP operating income was $20.3 million, compared to $22.5 million[7] Geographical Revenue (Product & Service) - Americas total revenue increased to $117.7 million, a $34.2 million increase compared to the adjusted Q2'17[15] - EMEA total revenue increased to $89.6 million, a $29.1 million increase compared to the adjusted Q2'17[15] - APAC total revenue increased to $23.8 million, an $11.4 million increase compared to the adjusted Q2'17[15] Q3'18 Financial Guidance - Revenue is projected to be between $262.0 million and $272.0 million[30, 32] - GAAP EPS is projected to be between $(0.09) and $(0.01)[30] - Non-GAAP EPS is projected to be between $0.17 and $0.24[32]

Financial Performance - Q3'18 - Total GAAP revenue reached $262.0 million, a $30.9 million increase compared to Q2'18 and a $112.8 million increase compared to Q3'17[6] - GAAP product revenue was $203.5 million, up $28.7 million from Q2'18 and $92.2 million from Q3'17[6] - GAAP service revenue amounted to $58.5 million, a $2.2 million increase from Q2'18 and a $20.6 million increase from Q3'17[6] - Non-GAAP EPS was $0.16, compared to $0.14 in Q2'18 and $0.11 in Q3'17[6] - GAAP gross margin was 54.6%, a decrease of 1.2% compared to Q2'18 and a decrease of 0.9% compared to Q3'17[6] - Non-GAAP operating income was $24.4 million, up from $20.3 million in Q2'18 and $14.6 million in Q3'17[6] Revenue by Geography (GAAP) - Americas total revenue reached $143.8 million, a $26.1 million increase compared to Q2'18 and a $61.0 million increase compared to Q3'17[12] - EMEA total revenue was $94.8 million, a $5.2 million increase compared to Q2'18 and a $42.6 million increase compared to Q3'17[12] - APAC total revenue was $23.4 million, a decrease of $0.4 million compared to Q2'18 and a $9.2 million increase compared to Q3'17[12] Financial Position (GAAP) - Cash and short-term investments were $105.3 million[19] - Accounts receivable (AR) totaled $188.4 million[19] - Debt payable was $178.7 million[19] Q4'18 Financial Guidance - The company projects Q4'18 revenue between $277.0 million and $287.0 million[27, 28] - The company projects Q4'18 GAAP EPS between $0.01 and $0.08[27] - The company projects Q4'18 non-GAAP EPS between $0.16 and $0.23[28]

Summary of Extreme Networks (EXTR) FY Conference Call - May 13, 2025 Company Overview - **Company**: Extreme Networks (EXTR) - **Industry**: Networking and Hardware Key Points Macro Environment and Demand - **Current Demand**: No significant impact from macroeconomic concerns observed; demand remains strong, particularly in the education sector [2][3][4] - **Growth Opportunities**: Extreme Networks is experiencing growth in higher education, capturing market share despite being a smaller player [5][6] - **Market Characteristics**: The company operates in 19 different markets, each with unique growth characteristics [5] Supply Chain and Tariffs - **Tariff Management**: The company has established processes to reclaim tariffs and has adapted its supply chain to mitigate impacts [11][12][13] - **Supply Chain Resilience**: No current impact from tariffs; supply chain operations have been adjusted to include manufacturing in Taiwan, Vietnam, and other countries [11][12] - **Pricing Strategy**: The company plans to maintain stable pricing through June 30, 2025, despite potential tariff-related price increases [16] Bookings and Sales Strategy - **Bookings Performance**: Reported the best bookings in six quarters, with minimal pull-in action from customers [20][22] - **Sales Execution**: Improved execution attributed to a revamped marketing strategy and targeted regional sales efforts [21][22] - **Large Deals**: Increased success in securing deals over $1 million, indicating a shift towards larger contracts [24][26] Competitive Landscape - **Market Positioning**: The company is focused on taking market share from larger competitors like Cisco, leveraging differentiated technology [34][41] - **Technology Differentiation**: Unique capabilities in network provisioning and resilience are key competitive advantages [34][36] - **Customer References**: Winning large customers enhances credibility and opens up further opportunities [39][40] Future Growth Drivers - **AI Integration**: The company aims to lead in AI for networking, with plans to unveil new capabilities that enhance operational efficiency [42][46] - **Campus Refresh Drivers**: Upgrades driven by advancements in WiFi technology and the need for high-performance networks [54][56] - **E-Rate Programs**: The E-Rate funding program for K-12 schools is significant for the company, contributing about 7% of its business [61][64] Financial Outlook - **Gross Margin Goals**: Targeting gross margins of 64% to 66% through product margin improvements and higher recurring revenue from the new platform [65][67] - **Capital Allocation**: Focused on share buybacks with a new authorization of $200 million, while remaining cautious about M&A opportunities [68][71] Customer Retention and Platform Strategy - **Platform One**: The new platform is expected to enhance customer retention due to bundled services, similar to a SaaS model [72][73] Additional Insights - **Visibility and Reporting**: Enhanced visibility into customer inventory and bookings compared to the post-COVID period [29][32] - **Cybersecurity Concerns**: Increasing importance of modern networking infrastructure due to rising cybersecurity threats [60] This summary encapsulates the key insights and strategic directions discussed during the conference call, highlighting Extreme Networks' current market position, growth strategies, and financial outlook.

Summary of Extreme Networks (EXTR) FY Conference Call - May 09, 2025 Company Overview - **Company**: Extreme Networks (EXTR) - **Industry**: Networking technology Key Financial Performance - **Quarterly Performance**: Achieved sequential revenue growth, bucking typical seasonal trends, with strong bookings performance, the best in the last six quarters [4][5] - **Cash Flow**: Strong operational cash flow of $30 million, with a healthy non-GAAP earnings of $0.21 per share [6] - **Fourth Quarter Guidance**: Projecting to reach $300 million in revenue at the midpoint of guidance, indicating improved scale and bookings [7] Geographic and Segment Performance - **Government Sector**: Strong performance in government spending, particularly in Europe and Asia Pacific, with limited exposure to federal risks in the U.S. [10][11] - **Europe**: Notable recovery in spending, with expectations for sustained growth due to increased military investments amid geopolitical tensions [14][15][16] - **Education Sector**: E-Rate program remains unaffected by federal spending cuts, with strong bookings driven by the uncertainty surrounding competitors [25][26][27] Competitive Landscape - **Tariff Management**: Implementing various mitigation strategies to manage potential tariff impacts, with limited exposure of approximately $1.5 million expected in the fourth quarter [20][21] - **Competitor Pricing**: Awareness of potential price increases from competitors like Juniper and Cisco, with a readiness to adjust pricing accordingly [23][24] - **Market Dynamics**: Favorable competitive environment due to challenges faced by larger competitors like HP and Juniper, and Cisco's struggles with integration and licensing complexity [71][76][82] Product and Technology Developments - **Platform One**: Introduction of a unified platform that integrates AI, security, and cloud management, enhancing customer experience and operational efficiency [90][91][110] - **AI Integration**: Focus on bringing advanced AI capabilities to networking, differentiating from competitors by offering automation and improved network management [66][68] - **Channel Strategy**: Strengthening relationships with channel partners and expanding managed service provider (MSP) offerings, with a goal to increase the number of MSPs to 75 by year-end [35][92] Future Outlook - **Gross Margin Targets**: Aiming for gross margins of 64-66%, with improvements expected from a shift towards subscription and recurring revenue models [99][100] - **Inventory Management**: Plans to normalize inventory levels to around $80 million over the next few quarters, with a focus on balancing raw materials and finished goods [55][57] - **Market Share Growth**: Anticipating growth in subscription revenue through bundled offerings and private offers for large customers [93][94] Conclusion - **Investor Message**: The company is on track for consistent growth, with excitement surrounding the launch of Platform One and its potential to differentiate Extreme Networks in the competitive landscape [114][115]

Core Viewpoint - Extreme Networks (EXTR) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system emphasizes the correlation between changes in earnings estimates and stock price movements, particularly influenced by institutional investors [4]. - For Extreme Networks, the increase in earnings estimates suggests an improvement in the company's business fundamentals, likely leading to higher stock prices [5]. Earnings Estimate Revisions - Extreme Networks is projected to earn $0.81 per share for the fiscal year ending June 2025, reflecting a year-over-year increase of 153.1% [8]. - Over the past three months, the Zacks Consensus Estimate for Extreme Networks has risen by 4.9%, indicating a positive trend in earnings expectations [8]. Zacks Rank System - The Zacks Rank system categorizes stocks based on earnings estimate revisions, with only the top 20% of stocks receiving a 'Strong Buy' or 'Buy' rating, highlighting their potential for market-beating returns [9][10]. - The upgrade of Extreme Networks to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting a favorable outlook for near-term stock performance [10].

Group 1 - Extreme Networks (EXTR) has shown a significant price increase of 26.3% over the past four weeks, with a mean price target of $18.75 indicating a potential upside of 33.8% from the current price of $14.01 [1] - The mean estimate consists of six short-term price targets with a standard deviation of $3.31, suggesting variability in analyst predictions; the lowest estimate is $15 (7.1% increase), while the highest is $22.50 (60.6% increase) [2] - Analysts have shown strong agreement in revising earnings estimates higher, which correlates with potential stock price movements, indicating a positive outlook for EXTR [11][12] Group 2 - The Zacks Consensus Estimate for EXTR's current year earnings has increased by 4.9% over the last 30 days, with two estimates moving higher and no negative revisions [12] - EXTR holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors, suggesting a strong potential for upside in the near term [13] - While price targets can be misleading, the direction implied by the consensus price target for EXTR appears to be a useful guide for potential price movement [10][13]

Financial Data and Key Metrics Changes - Revenue for the quarter reached $284.5 million, representing a 35% increase year over year and a 2% sequential increase [6][19] - Earnings per share were $0.21, consistent with the prior quarter and significantly up year over year, exceeding the high end of guidance [18] - Gross margin for the quarter was 62.3%, a 110 basis point sequential decrease but up 470 basis points year over year [23] Business Line Data and Key Metrics Changes - Product revenue increased to $178.1 million, up 67% year over year and 3% quarter over quarter, with wireless solutions growing 12% sequentially [19] - Subscription business grew double digits, with SaaS annual recurring revenue reaching $184 million, up 13.4% year over year [19] - Total deferred recurring revenue grew 7% year over year to $578 million, reflecting strong momentum in the recurring revenue model [19] Market Data and Key Metrics Changes - The Americas region grew 19% year over year, while EMEA revenue grew 81% year over year [20] - APAC revenue was flat year over year, but bookings were up double digits [20] - K-12 bookings, including E Rate, grew double digits over both periods, indicating market share gains in this segment [22] Company Strategy and Development Direction - The company is focusing on expanding its footprint in larger enterprise customers and enhancing its competitive position against major players like Cisco and HP [8][9] - The introduction of Extreme Platform One aims to leverage AI for networking, driving automation and efficiency for enterprise customers [14][15] - The company is committed to strategic investments in R&D and marketing to support product innovation and market expansion [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustained customer demand based on strong funnel generation and pipeline growth [8] - The company anticipates further market share gains and revenue growth for the full year, with expectations of increased margins and cash flow [17] - Management noted that the tariff situation is dynamic but currently has minimal impact on the business [36][39] Other Important Information - The company repurchased $13 million worth of shares during the quarter and authorized an additional $200 million for buybacks over the next three years [26] - The company transitioned to a net cash position of $3 million, a significant improvement from a net debt position of $15 million at the end of the previous year [27] Q&A Session Summary Question: Feedback from customers regarding tariffs and future outlook - Management indicated that there is minimal impact from tariffs currently, with customers showing minor early buying to mitigate potential price increases [32][36] Question: Competitive trends among major players - Management noted that HPE is struggling and losing market share, while Cisco remains strong but faces dissatisfaction from customers regarding complexity and cost [44][47] Question: Growth expectations for SaaS ARR - Management highlighted strong bookings for SaaS subscriptions, with expectations for growth driven by the adoption of Platform One [50][51] Question: Customer adoption of WiFi 7 - Management reported strong adoption of WiFi 7, with enterprises increasingly confident in using it for mission-critical solutions [69][71] Question: Regional demand and inventory planning - Management noted that demand is returning to the marketplace, particularly in the Americas, and that inventory levels are normalizing [78][100]

April 30, 2025 3Q25 Financial Results 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 Gross Profit, Non-GAAP EPS, Free Cash Flow, Non-GAAP Gross Margin, Non-GAAP Operating Margin, Net Cash (Debt), Non-GAAP Operating Income (Loss), EBITDA, Non-GAAP Net Income (Loss), Non-GAAP Operating Expense, Gross Debt, and Adjus ...