Extreme Networks Q1 Revenue Hits $320.7M

TL;DR

EXTR Q1 revenue $320.7M, hedging FX contracts, restructuring charges noted.

AI Summary

Extreme Networks Inc. reported its first quarter results for the period ending September 30, 2024. The company's revenue for the quarter was $320.7 million. Key financial activities include restructuring and related charges, and the company utilizes foreign exchange contracts for hedging purposes. Extreme Networks is based in Morrisville, NC, with its principal executive offices located in San Jose, CA.

Why It Matters

This filing provides insight into Extreme Networks' financial performance and operational strategies, including revenue generation and risk management through hedging instruments.

Risk Assessment

Risk Level: medium — The company's reliance on specific customers like Jenne Inc. and its use of financial instruments like foreign exchange contracts introduce potential financial risks.

Key Numbers

• $320.7M — Revenue (Total sales for the first quarter ending September 30, 2024.)
• 2024-09-30 — Reporting Period End (The date as of which the financial information is reported.)

Key Players & Entities

• Extreme Networks Inc. (company) — Filer of the 10-Q report.
• September 30, 2024 (date) — End of the reporting period for the 10-Q.
• $320.7 million (dollar_amount) — Total revenue for the first quarter.
• Jenne Inc. (company) — A customer identified with potential concentration risk.
• Morrisville, NC (location) — Location of the company's business address.
• San Jose, CA (location) — Location of the company's mail address.

FAQ

Key Financial Figures

• $0.001 — had 132,134,921 shares of common stock, $0.001 par value per share, outstanding. EXT

Filing Documents

• extr-20240930.htm (10-Q) — 1698KB
• extr-ex31_1.htm (EX-31.1) — 14KB
• extr-ex31_2.htm (EX-31.2) — 14KB
• extr-ex32_1.htm (EX-32.1) — 7KB
• extr-ex32_2.htm (EX-32.2) — 7KB
• 0000950170-24-119570.txt ( ) — 8889KB
• extr-20240930.xsd (EX-101.SCH) — 1441KB
• extr-20240930_htm.xml (XML) — 1608KB

CONDENSED CONSOLIDATED FINANCIAL INFORMATION

PART I. CONDENSED CONSOLIDATED FINANCIAL INFORMATION Item 1. Condensed Consolidated Financial Statements (Unaudited) 3 Condensed Consolidated Balance Sheets as of September 30, 2024 and June 30, 2024 3 Condensed Consolidated Statements of Operations for the three months ended September 30, 2024 and 2023 4 Condensed Consolidated Statements of Comprehensive Income (Loss) for the three months ended September 30, 2024 and 2023 5 Condensed Consolidated Statements of Stockholders' Equity for the three months ended September 30, 2024 and 2023 6 Condensed Consolidated Statements of Cash Flows for the three months ended September 30, 2024 and 2023 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 36 Item 3. Defaults Upon Senior Securities 36 Item 4. Mine Safety Disclosure 36 Item 5. Other Information 36 Item 6. Exhibits 37

Signatures

Signatures 38 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) September 30, 2024 June 30, 2024 ASSETS Current assets: Cash and cash equivalents $ 159,546 $ 156,699 Accounts receivable, net 97,213 89,518 Inventories 143,555 141,032 Prepaid expenses and other current assets 76,453 79,677 Total current assets 476,767 466,926 Property and equipment, net 34,393 43,744 Operating lease right-of-use assets, net 43,561 44,145 Goodwill 396,345 393,709 Intangible assets, net 9,762 10,613 Other assets 95,695 83,457 Total assets $ 1,056,523 $ 1,042,594 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 65,769 $ 51,423 Accrued compensation and benefits 45,533 42,064 Accrued warranty 10,239 10,942 Current portion of deferred revenue 304,785 306,114 Current portion of long-term debt, net of unamortized debt issuance costs of $ 761 and $ 674 , respectively 10,489 9,326 Current portion of operating lease liabilities 11,045 10,547 Other accrued liabilities 78,549 87,172 Total current liabilities 526,409 517,588 Deferred revenue, less current portion 272,092 268,909 Long-term debt, less current portion, net of unamortized debt issuance costs of $ 1,819 and $ 1,735 , respectively 174,431 178,265 Operating lease liabilities, less current portion 40,137 41,466 Deferred income taxes 8,073 7,978 Other long-term liabilities 2,660 3,106 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; 150,265 and 148,503 shares issued, respectively; 132,046 and 130,284 shares outstanding, respectively 150

View Full Filing

View this 10-Q filing on SEC EDGAR