Extreme Networks Inc. Files 10-Q for Period Ending December 31, 2023

TL;DR

<b>Extreme Networks Inc. filed its Q2 2024 10-Q report, detailing financial performance and operational data for the period ending December 31, 2023.</b>

AI Summary

EXTREME NETWORKS INC (EXTR) filed a Quarterly Report (10-Q) with the SEC on February 1, 2024. Extreme Networks Inc. filed a 10-Q for the period ending December 31, 2023. The filing covers the second quarter of fiscal year 2024. Key dates mentioned include July 1, 2023, to December 31, 2023, for financial reporting. The company's fiscal year ends on June 30. Business address is located in Morrisville, NC, with a mailing address in San Jose, CA.

Why It Matters

For investors and stakeholders tracking EXTREME NETWORKS INC, this filing contains several important signals. This 10-Q filing provides investors and analysts with updated financial statements and management's discussion and analysis, crucial for evaluating the company's performance and outlook. The detailed disclosures within the report are essential for understanding Extreme Networks' financial health, operational strategies, and any potential risks or opportunities.

Risk Assessment

Risk Level: medium — EXTREME NETWORKS INC shows moderate risk based on this filing. The filing is a standard quarterly report (10-Q), which typically contains routine financial information. However, the complexity of financial instruments and potential market/operational factors mentioned in the data suggest a medium risk level for detailed analysis.

Analyst Insight

Review the detailed financial statements and management discussion within the 10-Q to assess Extreme Networks' performance trends and identify any significant changes or risks.

Key Numbers

• 20231231 — Period End Date (Conformed period of report)
• 20240201 — Filing Date (Filed as of date)
• Q2 2024 — Fiscal Quarter (Filing values)
• 0630 — Fiscal Year End (Fiscal year end)

Key Players & Entities

• EXTREME NETWORKS INC (company) — Filer name
• 20231231 (date) — Conformed period of report
• 20240201 (date) — Filed as of date
• Morrisville, NC (location) — Business address city and state
• San Jose, CA (location) — Mail address city and state
• TDSynnexCorporation (company) — Customer concentration risk
• Westcon (company) — Customer concentration risk
• DE (location) — State of incorporation and geographic concentration risk

Forward-Looking Statements

• Extreme Networks' profitability will remain under pressure in the short term due to ongoing restructuring efforts. (Extreme Networks Inc.) — medium confidence, target: 2024-06-30
• The company's operating efficiency will improve in the long term as a result of the 2023 Restructuring Plan. (Extreme Networks Inc.) — medium confidence, target: 2025-12-31

FAQ

Risk Factors

• Customer Concentration Risk [medium — market]: The company faces risk due to significant sales to specific customers like TDSynnex Corporation and Westcon.
• Geographic Concentration Risk [medium — market]: Sales revenue is concentrated in certain geographic regions, specifically Germany (DE).

Key Dates

• 2023-12-31: Period End Date — End of the reporting period for the 10-Q filing.
• 2024-02-01: Filing Date — Date the 10-Q report was officially filed with the SEC.

Key Financial Figures

• $0.001 — had 128,730,411 shares of common stock, $0.001 par value per share, outstanding. EXT

Filing Documents

• extr-20231231.htm (10-Q) — 2263KB
• extr-ex10_1.htm (EX-10.1) — 55KB
• extr-ex31_1.htm (EX-31.1) — 13KB
• extr-ex31_2.htm (EX-31.2) — 14KB
• extr-ex32_1.htm (EX-32.1) — 7KB
• extr-ex32_2.htm (EX-32.2) — 7KB
• 0000950170-24-009819.txt (&nbsp;) — 10356KB
• extr-20231231.xsd (EX-101.SCH) — 1436KB
• extr-20231231_htm.xml (XML) — 2119KB

CONDENSED CONSOLIDATED FINANCIAL INFORMATION

PART I. CONDENSED CONSOLIDATED FINANCIAL INFORMATION Item 1. Condensed Consolidated Financial Statements (Unaudited) 3 Condensed Consolidated Balance Sheets as of December 31, 2023 and June 30, 2023 3 Condensed Consolidated Statements of Operations for the three and six months ended December 31, 2023 and 2022 4 Condensed Consolidated Statements of Comprehensive Income for the three and six months ended December 31, 2023 and 2022 5 Condensed Consolidated Statements of Stockholders' Equity for the three and six months ended December 31, 2023 and 2022 6 Condensed Consolidated Statements of Cash Flows for the six months ended December 31, 2023 and 2022 7 Notes to Condensed Consolidated Financial Statements 8 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 24 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 34 Item 4.

Controls and Procedures

Controls and Procedures 35

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 36 Item 1A

Risk Factors

Risk Factors 36 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 37 Item 3. Defaults Upon Senior Securities 37 Item 4. Mine Safety Disclosure 37 Item 5. Other Information 37 Item 6. Exhibits 38

Signatures

Signatures 39 2 PAR T I. CONDENSED CONSOLIDATED FINANCIAL INFORMATION

Condensed C onsolidated Financial Statements (Unaudited)

ITEM 1. Condensed C onsolidated Financial Statements (Unaudited) EXTREME NETWORKS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except per share amounts) (Unaudited) December 31, 2023 June 30, 2023 ASSETS Current assets: Cash and cash equivalents $ 221,403 $ 234,826 Accounts receivable, net 112,047 182,045 Inventories 152,521 89,024 Prepaid expenses and other current assets 72,272 70,263 Total current assets 558,243 576,158 Property and equipment, net 47,598 46,448 Operating lease right-of-use assets, net 47,124 34,739 Intangible assets, net 13,104 16,063 Goodwill 395,606 394,755 Other assets 80,983 73,544 Total assets $ 1,142,658 $ 1,141,707 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Current portion of long-term debt, net of unamortized debt issuance costs of $ 675 and $ 674 , respectively $ 9,325 $ 34,326 Accounts payable 87,790 99,724 Accrued compensation and benefits 50,862 71,367 Accrued warranty 11,397 12,322 Current portion of operating lease liabilities 10,686 10,847 Current portion of deferred revenue 300,399 282,475 Other accrued liabilities 78,507 64,440 Total current liabilities 548,966 575,501 Deferred revenue, less current portion 247,777 219,024 Long-term debt, less current portion, net of unamortized debt issuance costs of $ 2,069 and $ 2,409 , respectively 182,931 187,591 Operating lease liabilities, less current portion 43,852 31,845 Deferred income taxes 7,748 7,747 Other long-term liabilities 3,200 3,247 Commitments and contingencies (Note 8) Stockholders' equity: Convertible preferred stock, $ 0.001 par value, issuable in series, 2,000 shares authorized; none issued — — Common stock, $ 0.001 par value, 750,000 shares authorized; 146,843 and 143,629 shares issued, respectively; 128,624 and 127,775 shares outstanding, respectively 1

View Full Filing

View this 10-Q filing on SEC EDGAR