Press release
Extreme Networks Reports Second Quarter Fiscal Year 2020 Financial Results
Announces Completion of $30 Million Accelerated Share Repurchase Program Conference Call at 8:00 a.m. EST SAN JOSE, Calif., Jan. 29, 2020 /PRNewswire/ --
About this update from Extreme Networks, Inc.
[{"type":"text","content":"Announces Completion of $30 Million Accelerated Share Repurchase Program\n Conference Call at 8:00 a.m. EST\n\n\nSAN JOSE, Calif., Jan. 29, 2020 /PRNewswire/ -- Extreme Networks, Inc. (\"Extreme\") (Nasdaq: EXTR) today released financial results for its fiscal second quarter ended December 31, 2019. \n\n \n \n\n \nFiscal Second Quarter Results: \nRevenue $267.5 million, up 6% year-over-year and up 5% quarter-over-quarter GAAP EPS $(0.20), down $(0.26) year-over-year and up $0.11 quarter-over-quarter Non-GAAP EPS $0.13, flat year-over-year and up $0.05 quarter-over-quarter GAAP gross margin 55.6% compared to 55.9% in Q2 last year Non-GAAP gross margin 60.0% compared to 58.2% in Q2 last year GAAP operating margin (5.7)% compared to 1.9% in Q2 last year Non-GAAP operating margin 9.0%, compared to 8.0% in Q2 last year Net cash provided by operating activities was $22.1 million Free Cash Flow of $17.9 million \"Our Q2 Non-GAAP EPS of $0.13 was the result of achieving our long-standing Non-GAAP gross margin target of 60% for the first time in Extreme's history and growing operating margin both year-over-year and quarter-over-quarter. We made progress in the integration of Aerohive Networks and in extracting related synergies. Nevertheless, Q2 revenue fell short of our guidance expectations owing to weakness in US public sector and Asia Pacific,\" stated Ed Meyercord, President and CEO of Extreme Networks. \nMeyercord added, \"We executed a $30 million accelerated share repurchase program during the quarter, reflecting opportunistic action by our Board of Directors and demonstrating our ongoing commitment to drive shareholder value and minimize dilution from our equity programs. We remain confident in our ability to execute our long-term strategy and will continue to use share repurchases as a vehicle to create value for our shareholders.\" \nMeyercord also announced significant changes to Extreme's sales organization. \"We are very focused on driving growth in our business through increased efficiency and sales productivity. We've made changes to streamline operations as we head into the second half of 2020. I am confident that these changes, along with the refresh and stratification of our product portfolio, will enhance our go-to-market efforts and allow us to drive further gross margins.\" \n\"With our revised guidance we now expec...