Extreme Networks Reports First Quarter 2016 Financial Results 

SAN JOSE, Calif., Oct. 30 -- Extreme Networks, Inc. (Nasdaq: EXTR) has released financial results for the first quarter ended September 30, 2015.  First quarter GAAP revenue was $124.6 million and non-GAAP revenue was $125.0 million.  GAAP net loss for the first fiscal quarter was $11.5 million, or $0.11 per basic share, and non-GAAP net income was $6.7 million, or $0.07 per diluted share.

"Fiscal 2016 is off to a good start with solid execution in the US and Europe and a nice rebound in Latin America," stated Ed Meyercord, president and CEO of Extreme Networks.  "We made excellent progress with our solutions-based selling initiatives and the expense actions taken last quarter are producing increased operating margins and profitability," said Meyercord.  "While our E-Rate revenue in the first quarter was lower than originally anticipated and our inside sales got off to a slow start, we expect these initiatives to deliver stronger contributions in future quarters."

Meyercord continued, "Over the past six months, our management team, employees and partners have come together and are aligned with our new vision and software-driven strategy.  I am pleased with how well they have executed the numerous operating initiatives to transform Extreme into a customer driven company."

Recent Key Events:

• Extreme Networks announced the appointment of John Kispert to chairman of the board of directors, effective Aug. 25, 2015.
• Extreme Networks was positioned the furthest for Completeness of Vision in the Visionaries quadrant of the September 2015 Gartner Magic Quadrant for Wired and Wireless LAN Access Infrastructure. For the second consecutive year, the company was also recognized by Gartner, Inc. in the top five of all 14 vendors across six capabilities use cases in the September 2015 Gartner Critical Capabilities Report for Wired and Wireless LAN Access Infrastructure report. The Use Cases include: Enterprise Unified Wired and WLAN Access, Enterprise Wired-Only Connectivity, Enterprise Wireless-Only Connectivity, SMB and/or Mall or Remote Branch Office, Voice Over WLAN and IaaS or Managed Service.
• Extreme Networks joined the VMware NSX partner ecosystem to enable interoperability between the Extreme Summit x670-G2 and Summit x770 series switches and the VMware NSX network virtualization platform.
• Extreme Networks unveiled the latest simple, fast and smart IdentiFi wireless solution, which includes support for IEEE 802.11r & k standards, the AP3801 802.11ac access point, new C35 IdentiFi appliance and VMWare virtual appliance.
• Extreme Networks partnered with Axis Communications for the second consecutive year to provide a state of the art high density Wi-Fi network at the Little League World Series.
• Extreme Networks' Bob Gault was honored as one of the most influential vendor executives in the midmarket by CRN, an award that recognizes leadership, strategic thinking and solution excellence. Over the last year, Bob was also named one of the 50 Most Influential Leaders on CRN's annual Channel Chiefs listing and one of the Top 50 Channel Influencers by The VAR Guy.
• Extreme Networks continued to showcase customer momentum across the global education, healthcare, manufacturing, sports and entertainment, government and financial services markets. Notable Customer wins include the Chicago Cubs, Jefferson County Public Schools, SK Telecom, Christiana Care Health System, Skywalker Sound, a Lucasfilm company, Process Automation within Schneider Electric's Industry Business, and Middle Tennessee State University.

Business Outlook

For its second quarter of fiscal 2016 ending December 31, 2015, the Company is targeting GAAP revenue in a range of $129.6 million to $139.6 million with non-GAAP revenue in a range of $130 million to $140 million. GAAP gross margin is targeted between 51.0% and 52.0% and non-GAAP gross margin targeted between 54.7% and 55.7%. Operating expenses are targeted to be between $74.5 million and $77.0 million on a GAAP basis and $62.5 million to $65.0 million on a non-GAAP basis. GAAP net loss is targeted to be between $7.0 million to $11.0 million, or $0.07 to $0.11 per share.  Non-GAAP earnings are targeted in a range of a net income of $6.5 million to $10.5 million, or $0.06 to $0.10 per diluted share. The GAAP and non-GAAP net income (loss) targets are based on an estimated 102 million and 104 million average outstanding shares, respectively. Targeted non-GAAP earnings exclude expenses related to stock-based compensation expense, the amortization of acquired intangibles, acquisition and integration related expenses, restructuring expenses and the purchase accounting adjustment related to deferred service revenue.

About Extreme Networks

Extreme Networks, Inc. (EXTR) delivers software-driven networking solutions that help IT departments everywhere deliver the ultimate business outcome: stronger connections with customers, partners and employees. Wired to wireless, desktop to datacenter, we go to extreme measures for our 20,000-plus customers in more than 80 countries, delivering 100% insourced support to organizations large and small, including some of the world's leading names in business, education, government, healthcare, manufacturing and hospitality. Founded in 1996, Extreme is headquartered in San Jose, California. For more information, visit Extreme's website or call 1-888-257-3000.

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Source: Extreme Networks