Press release
Extreme Networks Reports Third Quarter Fiscal Year 2024 Financial Results
Financial Results in-line With Previous Outlook 38% Growth in SaaS ARR MORRISVILLE, N.C.--(BUSINESS WIRE)-- Extreme Networks, Inc. (“Extreme”) (Nasdaq: EXTR)
About this update from Extreme Networks, Inc.
[{"type":"text","content":"\nFinancial Results in-line With Previous Outlook\n\n\n38% Growth in SaaS ARR\n\n\n MORRISVILLE, N.C.--(BUSINESS WIRE)--\nExtreme Networks, Inc. (“Extreme”) (Nasdaq: EXTR) today released financial results for its third quarter ended March 31, 2024.\n\n\n\"Extreme’s focus on the intersection of networking, security, and AI is creating a compelling value proposition that's resonating with customers and driving significant traction in our business. Net new logos grew double-digits this quarter, particularly in the Americas. Our SaaS ARR grew again by 38%, as we continue to deliver on our promise of creating flexibility and simplicity with One Network, One Cloud. Our competitive positioning in the market has never been stronger, as we believe key competitors are either distracted by portfolio rationalization and integration or have lost their focus on networking. Meanwhile, Extreme remains solely focused on our customers' networking needs,\" said Ed Meyercord, President and Chief Executive Officer.\n\n\n\"Consistent with our expectations, channel inventory was significantly reduced during the quarter. Heading into the fourth quarter, we expect sequential growth in revenue, but note that the networking industry is still impacted by customers working through their prior purchases. Our expanded go to market opportunities around the integration of networking, security, and AI, give us confidence that we are positioned for a return to growth in FY25,\" concluded Meyercord.\n\n\nKevin Rhodes, Executive Vice President and Chief Financial Officer stated, \"During the quarter we took actions to improve our operating expense profile that will once again lead to double-digit operating margins and strong cash flow. We expect to return to solid profitability and cash flow generation during the fourth quarter.\"\n\n\nFiscal Third Quarter Results:\n\n\n\nRevenue $211.0 million, down 36.5% year-over-year\n\n\n\nSaaS ARR $162.0 million, up 38.0% year-over-year\n\n\n\nGAAP diluted EPS ($0.50), compared to $0.17 in the prior year quarter\n\n\n\nNon-GAAP diluted EPS ($0.19), compared to $0.29 in the prior year quarter\n\n\n\nGAAP gross margin 56.8% compared to 57.7% in the prior year quarter\n\n\n\nNon-GAAP gross margin 57.6% compared to 59.1% in the prior year quarter\n\n\n\nGAAP operating margin (29.6%) compared to 8.9% in the prior year quarter\n\n\...