Press release
Extreme Networks Reports Fourth Quarter and Fiscal Year 2024 Financial Results
Revenue Growth in-line With Previous Outlook With 29% Year-over-Year Growth in SaaS ARR MORRISVILLE, N.C.--(BUSINESS WIRE)-- Extreme Networks, Inc.
About this update from Extreme Networks, Inc.
[{"type":"text","content":"\nRevenue Growth in-line With Previous Outlook With 29% Year-over-Year Growth in SaaS ARR\n\n\n MORRISVILLE, N.C.--(BUSINESS WIRE)--\nExtreme Networks, Inc. (“Extreme”) (Nasdaq: EXTR) today released financial results for its fourth quarter and fiscal year ended June 30, 2024.\n\n\n\"We’re pleased to see strengthening global demand and to have moved past the historic challenges of the multi-year supply chain constraints. We successfully completed our initiatives to eliminate channel and inventory headwinds. Entering fiscal 2025, we have a significant growth opportunity based on the rapid convergence of cloud networking, generative AI and security. Our unique value proposition continues to resonate with enterprise customers and channel partners, as evidenced by the growth and quality of our pipeline and rising SaaS ARR,\" said Ed Meyercord, President and Chief Executive Officer.\n\n\n\"As the second largest cloud networking services provider, and a continued strong leadership position in the Gartner MQ, Extreme is poised to benefit from the industry disruption from larger players in the enterprise market. Key competitors are either distracted by portfolio rationalization and integration, or shifting business focus away from networking, just as we are gaining share. Customers and channel partners recognize our innovation, unparalleled flexibility, ease of doing business, and the simplicity we deliver. We de-risk the process for customers to evolve their networks to the most modern platform in the industry,\" concluded Meyercord.\n\n\nKevin Rhodes, Executive Vice President and Chief Financial Officer, stated, \"We took action in the fourth quarter to reserve end of sale inventory and position our new products for growth in fiscal 2025. As a result, we recorded an additional provision for excess and obsolete inventory to align these plans and outlook with our expectations. Our current distributor inventory position now better reflects end customer demand trends. We are optimistic about a return to growth this year and expect gross margins to progressively improve throughout the fiscal year, resulting in non-GAAP double-digit operating margins, and strengthening cash flow.\"\n\n\nFiscal Fourth Quarter Results:\n\n\n\nRevenue $256.7 million, down 29% year-over-year and up 22% quarter-over-quarter\n\n\n\nSaaS ARR $167.0 million, up 29.0...