Extreme Networks, Inc (NASDAQ:EXTR) Matches Analyst Estimate With Third Quarter Earnings Report


Dallas, Texas 05/07/2014 (FINANCIALSTRENDS) – Extreme Networks, Inc (NASDAQ:EXTR) released its earnings report for the third quarter of fiscal year 2014, and the report shows that the company’s earnings for the quarter neatly matches the analyst consensus estimate of $0.02.

Extreme Networks Third Quarter FY 2014 Earnings Report

Extreme Networks reported that GAAP revenue of $141.8 million and non-GAAP revenue of $143.7 million for the third quarter of fiscal year 2014. GAAP net loss for the quarter was $25.1 million, or $0.26 per share. The non-GAAP net income was pegged at $1.6 million, or $0.02 per diluted share.

The $0.02 in earnings was on par with the analyst consensus estimate, but the revenue fell below the estimate of $145.83 million, which is albeit much higher than the revenue the company reported in the same quarter last year.

Statement from Extreme Networks CEO Chuck Berger

Extreme Networks President and CEO Chuck Berger said that, “Revenues of the combined Company grew three percent on a pro forma basis when compared to the prior year, with growth across all four sales regions.”

Berger added that their integration efforts related to the Enterasys acquisition are ahead of plan, and the process of combining both their ERP systems onto a single platform is scheduled to be achieved in the first fiscal quarter of 2015, and that will enable them to operate as a single Company and produce more cost synergies.

On a related note, Extreme Networks announced that its COO Chris Crowell, formerly CEO and president of Enterasys before its acquisition by Extreme Networks, is leaving the Company, effective immediately. After the acquisition, Cromwell led Extreme Networks’ worldwide sales and marketing organization.

Berger noted that “Chris has been an invaluable part of the team that brought Extreme and Enterasys together since the acquisition.”