Extreme Networks Reports Third Quarter Fiscal Year 2019 Financial Results

About this update from Extreme Networks, Inc.

[{"type":"text","content":"SAN JOSE, Calif., May 1, 2019 /PRNewswire/ -- Extreme Networks, Inc. (\"Extreme\") (Nasdaq: EXTR) today released financial results for its fiscal third quarter ended March 31, 2019.\n\n \nFiscal Third Quarter Results: \nRevenue $250.9 million, down 4% year-over-year and down 1% quarter-over-quarter. GAAP gross margin 55.4% compared to 54.6%, in Q3 last year. Non-GAAP gross margin 57.6% compared to 57.9%, in Q3 last year. GAAP operating margin (0.9)% compared to (3.1)%, in Q3 last year. Non-GAAP operating margin 5.6%, compared to 9.3%, in Q3 last year. Net cash provided by operating activities $17.7 million. Free Cash Flow $12.7 million.\"We reported revenue towards the midpoint of our guidance range reflecting seasonality in our business following a strong second quarter. The execution of our acquisition strategy is coming together: customers are embracing the capabilities and ease of use of our software driven solutions; especially in our Automated Campus and Agile Data Center pillars. We are at the early stages of refreshing 70% of our products, which will put us in a better competitive position; our supply chain operations are running more efficiently than ever before; our digital transformation is paving the way for higher productivity; and we have a strong balance sheet resulting from consistent quarterly cash flow generation this year,\" stated Ed Meyercord, President and CEO of Extreme Networks. \nMeyercord added, \"Looking ahead, we expect FY19 revenue of approximately $1 billion. Our outlook for Q4 reflects the weakening economic environment in EMEA, lengthening sales cycles in our wireless business reflecting the introduction of WiFi6, and a lower backlog entering Q4. On a positive note, our E-Rate filings were up 50% year-over-year, the benefit of which will be realized in Q1 and Q2, FY20. We remain committed to achieving our goal of a 15% operating margin and are focused on driving greater operational efficiency to balance the near-term revenue trends we are experiencing.\"\nRecent Key Highlights:\nBrigham Young University, (BYU), deployed Extreme's Smart OmniEdge™ solution to deliver an interactive game-day experience and provide mobile ticketing and payment at LaVell Edwards Stadium; making it the first collegiate football stadium in Utah to have an NFL-caliber, high-density Wi-Fi system. Extreme installed approxim...

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