Press release
Extreme Networks Reports Fourth Quarter Fiscal Year 2019 Financial Results
SAN JOSE, Calif., July 31, 2019 /PRNewswire/ -- Extreme Networks, Inc. ("Extreme") (Nasdaq: EXTR) today released financial results for its fiscal fourth
About this update from Extreme Networks, Inc.
[{"type":"text","content":"SAN JOSE, Calif., July 31, 2019 /PRNewswire/ -- Extreme Networks, Inc. (\"Extreme\") (Nasdaq: EXTR) today released financial results for its fiscal fourth quarter ended June 30, 2019. \n\n \nFiscal Fourth Quarter Results: \nGAAP EPS ($0.14), down ($0.09) year-over-year and down ($0.08) quarter-over-quarter Non-GAAP EPS $0.06, down ($0.14) year-over-year and down ($0.02) quarter-over-quarter Revenue $252.4 million, down 9% year-over-year and up 1% quarter-over-quarter GAAP gross margin 55.1% compared to 54.0%, in Q4 last year Non-GAAP gross margin 59.2% compared to 57.6%, in Q4 last year GAAP operating margin (4.8)% compared to (1.2)%, in Q4 last year Non-GAAP operating margin 4.9%, compared to 9.8%, in Q4 last year Net cash provided by operating activities $25.4 million Free Cash Flow $18.9 million\"We reported revenue above the high-end of our guidance range, reflecting strength in our Americas business and early signs of demand for new products in our Smart OmniEdge switching portfolio. Our year-over-year and sequential improvement in gross margin put us towards the high-end of our guidance range, and close to our 60% target. Our gross margin performance was a function of several factors: lower standard costs, partly related to the improved profitability of our new products; higher mix of Services revenue; and mix shift owing to stronger demand in North America in Q4. We closed fiscal year 2019 at $1B in revenue and look forward to bringing exciting new solutions to our partners and customers once we have successfully closed the Aerohive acquisition,\" stated Ed Meyercord, President and CEO of Extreme Networks.\nMeyercord added, \"Looking ahead, we are expecting fiscal year 2020 organic revenue growth to be in the low single-digit range. Our outlook for Q1 reflects the normal seasonality of our business, ongoing economic challenges in EMEA, and conservatism around our wireless business as customers consider the alternative Smart OmniEdge solutions that will be available following the close of our Aerohive acquisition. With the cost savings actions we took at the end of Q4, we are on plan to achieve our goal of a 15% operating margin toward year-end fiscal year 2020, and to improve our cash flow generation throughout the year.\" \nRecent Key Highlights:\nIn Q4, Extreme closed 23 deals of $1 million or more, up from 17 such deal...