Press release
Extreme Networks Provides Update on Q1 Outlook; Expects to Deliver Revenue and EPS Above High-End of Previous Outlook
Company Makes $20 Million in Partial Repayment of Revolving Credit Facility First Quarter Earnings Call Scheduled for October 28 SAN JOSE, Calif., Oct. 8,
About this update from Extreme Networks, Inc.
[{"type":"text","content":"Company Makes $20 Million in Partial Repayment of Revolving Credit Facility\n First Quarter Earnings Call Scheduled for October 28\n\n\nSAN JOSE, Calif., Oct. 8, 2020 /PRNewswire/ -- Extreme Networks, Inc. (Nasdaq: EXTR), a cloud-driven networking company, today announced a business update on the financial results for its first quarter ended September 30, 2020, and a partial repayment of its revolving credit facility. The company will review the updates in full detail on its first fiscal quarter earnings results call, set for October 28, 2020.\n\n \n \n \n \n \n \n\n \nQ1 2021 Earnings Outlook Update Based on better-than-expected preliminary results across our geographies and major market segments, Extreme now expects to report first quarter 2021 revenue of $233 to $236 million, up 9% sequentially at the midpoint from $215.5 million last quarter. As a result, we now expect a GAAP loss per share of ($0.11) to ($0.08), and a non-GAAP EPS of $0.05 to $0.08. This compares to initial first quarter guidance for revenue of $220 to $230 million, GAAP loss per share of ($0.14) to ($0.11) and Non-GAAP EPS of $0.01 to $0.04. We expect GAAP and Non-GAAP Gross Margin to be slightly better than original guidance, while we expect GAAP and Non-GAAP Operating Expenses to be in-line with Extreme's prior guidance.\nRepaid $20 Million of the $55 Million Revolving Credit Facility As a result of preliminary financial results in Q1, on September 29, 2020, Extreme repaid $20 million of the $55 million previously drawn from its revolving credit facility on March 24, 2020. Extreme also maintains a $361 million Term Loan A that matures in 2024, along with the remaining revolver balance of $35 million; cash and cash equivalents at the end of the quarter were $193 million, and net debt was $203 million.\nManagement Commentary\"Our first fiscal quarter outlook improved across a number of financial metrics. Our better-than-expected performance is a result of strong bookings and customer response to our 'effortless' strategy. The simplicity of our ExtremeCloud IQ platform, edge switching and Wi-Fi applications, and our end-to-end fabric technology is creating differentiation in the market during a challenging business environment. We are especially pleased with our team's execution, as this marks the second quarter of sequential revenue and EPS growth in our b...