Press release
Extreme Networks Reports Second Quarter Fiscal Year 2021 Financial Results
Achieved Record Non-GAAP Gross Margin and Double-Digit Operating Profit Reaffirms Q3 Business Outlook SAN JOSE, Calif., Feb. 9, 2021 /PRNewswire/ -- Extreme
About this update from Extreme Networks, Inc.
[{"type":"text","content":"Achieved Record Non-GAAP Gross Margin and Double-Digit Operating Profit\n Reaffirms Q3 Business Outlook\n\n\nSAN JOSE, Calif., Feb. 9, 2021 /PRNewswire/ -- Extreme Networks, Inc. (\"Extreme\") (Nasdaq: EXTR) today released financial results for its second fiscal quarter ended December 31, 2020, which follows Extreme's preliminary results reported on January 27, 2021. The company has finalized its quarter-end procedures and is reporting its final Q2 financial results. \n\n \n \n \n \n \n \n\n \nFiscal Second Quarter Results: \nRevenue $242.1 million, down 9% year-over-year and up 3% quarter-over-quarter GAAP EPS $(0.02), up from ($0.20) in Q2 last year Non-GAAP EPS $0.13, up from $0.11 in Q2 last year GAAP gross margin 57.9% compared to 55.6% in Q2 last year Non-GAAP gross margin 61.0% compared to 60.0% in Q2 last year GAAP operating margin 2.4% compared to (5.7)% in Q2 last year Non-GAAP operating margin 10.2%, compared to 9.0% in Q2 last year Net cash provided by operating activities of $38.0 million Free Cash Flow of $33.0 million \"Our Q2 results reflect the strength of Extreme's financial and business performance, despite the challenging operating environment. We reiterate our previously issued Q3 business outlook. We expect double-digit year-over-year revenue growth and margin expansion due to increased demand in the marketplace for our differentiated solutions in the second half of FY21,\" stated Ed Meyercord, President and CEO of Extreme. \n\"Our final Q2 results are highlighted by 3% sequential revenue growth and record non-GAAP gross margins, driven by a third consecutive quarter of improvement in product gross margin. We achieved double-digit operating margin two quarters ahead of our prior expectations, with a 10.2% non-GAAP operating margin, and generated over $30 in million cash flow,\" stated Remi Thomas, CFO of Extreme.\nFiscal Q2 2021 Financial Metrics:\n(in millions, except percentages and per share information)\nQ2 FY'21\nQ2 FY'20\nChange\nGAAP Results of Operations\nProduct\n$\n165.8\n$\n190.5\n$\n(24.7)\n(13)\n%\nService and subscription\n76.3\n77.0\n(0.7)\n(1)\n%\nTotal net revenue\n$\n242.1\n$\n267.5\n$\n(25.4)\n(9)\n%\nGross margin\n57.9\n%\n55.6\n%\n230 bps\n-\nOperating margin\n2.4\n%\n(5.7)\n%\n806 bps\n-\nNet loss\n$\n(3.1)\n$\n(23.5)\n$\n20.4\n87\n%\nNet loss per diluted share\n$\n(0.02)\n$\n(0.20)\n$...