Extreme Networks Reports Fourth Quarter 2014 Financial Results

August 15, 2014

SAN JOSE, Calif.Aug. 15 — Extreme Networks, Inc. has released financial results for the fourth quarter of fiscal year 2014, ended June 30, 2014.  GAAP revenue was $155.3 million and non-GAAP revenue was $156.9 million.  GAAP net loss for the fourth fiscal quarter was $16.2 million, or $0.17 per share, and non-GAAP net income was $8.5 million, or $0.09 per diluted share.  This is the second quarter that Extreme Networks is reporting full quarter results that include the Enterasys acquisition.

For the full fiscal year, Extreme Networks reported GAAP revenue of $519.6 million, compared to $299.3 million for fiscal 2013.  Fiscal year non-GAAP revenue was $524.8 million.  GAAP net loss was $57.3 million, or $0.60 per share, for fiscal 2014, compared to GAAP net income of $9.7 million, or $0.10 per diluted share, for 2013.  On a non-GAAP basis, net income for the fiscal 2014 was $29.5 million, or $0.30 per diluted share, compared to $16.2 million, or $0.17 per diluted share, for fiscal 2013.

“Extreme ended our first fiscal year as a combined company with a strong finish.  Our sales force integration is complete, with all territories rationalized, and the team is aligned and executing, which is evident in this quarter’s results.  Our new channel program brings together legacy partner programs and provides better resources and incentives for our more than 2,700 worldwide partners.  With new branding rolled out this year, our go to market approach has never been stronger,” said Chuck Berger, president and CEO of Extreme Networks.  “Our engineering team continues to create products that deliver on our promise of simple, fast and smart networking solutions, including our new SDN platform and IdentiFi outdoor wireless access point.”

Berger added, “On the integration front, Extreme had a number of significant accomplishments.  Most notably, we successfully combined ERP systems in early July, two months ahead of schedule.  With our relationship to our customers, partners, distributors, vendors and employees united on a single interface, the combined company is in a better position than ever to seamlessly deliver value to the customer.”

Recent Business Highlights

  • Selected by Tennessee Titans to set up In-Stadium Wi-Fi and Analytics. Extreme’s IdentiFi high performance Wi-Fi technology will provide fans the capability to seamlessly access mobile services and custom applications in the Nashville’s LP Field.
  • Announced an open and standards-based Software Defined Networking (SDN) platform. This versatile offering will enable customers to meet challenges in implementing SDN and evolve data center orchestration, automation and provisioning.
  • Advances mobile scalability with IdentiFiTM Wireless LAN. With the addition of the 802. 11ac WLAN outdoor access point, IdentiFi is one of the most complete and scalable enterprise Wi-Fi solutions addressing both indoor and outdoor wireless connectivity.
  • Named proud partner of the Pro Football Hall of Fame. Centered on education and community outreach in K-12 school districts, the partnership highlights Extreme’s leadership as a provider of optimized networking and wireless solutions to support education innovation.
  • Launched Extreme Partner Network. The program offers a single global framework to simplify the way business is done, empowering partners to deliver significant value to customers while simplifying engagement and maximizing partner profitability.
  • Recognized as a leader and innovator
    • Named a “Champion” in the 2014 Vendor Landscape report assessing Network Access Control solutions for secure network edge.
    • Awarded the 2014 Network Innovation Award for the Purview application by SearchNetworking.
    • Recognized with two 2014 Manufacturing Leadership Awards.

Business Outlook

For its first quarter of fiscal 2015 ending September 30, 2014, the Company is targeting GAAP revenue in a range of $149 million to $154 million with non-GAAP revenue in a range of $150 million to $155 million. GAAP gross margin is targeted at 51% and non-GAAP gross margin targeted at 55%. Operating expenses are targeted to be between $86 million and $88 million on a GAAP basis and $75 million to $77 million on a non-GAAP basis. GAAP net loss is targeted to be between $7 million to $12 million, or $0.08 to $0.12 per diluted share.  Non-GAAP net income is targeted in a range of $6 million to $8 million, or $0.06 to $0.08 per diluted share. The GAAP and non-GAAP net income targets are based on an estimated 96 million and 101 million average outstanding shares, respectively. The estimates for non-GAAP revenue include purchase accounting adjustments for deferred revenue of approximately $1M related to our acquisition of Enterasys Networks. The estimates for non-GAAP gross margin include adjustments of $4 million for amortization of intangibles, $1 million for purchase accounting adjustments and $1 million stock based compensation expense. The estimate for non-GAAP operating expenses exclude $7 to $8M for amortization of intangibles and integration expenses related to our acquisition of Enterasys Networks, stock based compensation expenses of $4 to $5 million and executive transition costs of $0.5 million.

Financial Model Targets

The Company is targeting a quarterly financial model of operating at an approximate non-GAAP operating income of 10%, exiting the fiscal year ending June 30, 2015.  To achieve this goal, the Company intends to focus on completing the integration of the two companies, achieving its synergy goals and growing its revenue.

About Extreme Networks

Extreme Networks, Inc. is setting a new standard for superior customer experience by delivering network-powered innovation and marketing leading service and support. Extreme Networks delivers high-performance switching and routing products for data center and core-to-edge networks, wired/wireless LAN access, and unified network management and control.  Its award-winning solutions include software-defined networking (SDN), cloud and high-density Wi-Fi, BYOD and enterprise mobility, identity access management and security.  Extreme Networks is headquartered in San Jose, CA and has more than 12,000 customers in over 80 countries. For more information, visit the Company’s website at http://www.extremenetworks.com.

Source: Extreme Networks

Subscribe to HPCwire's Weekly Update!

Be the most informed person in the room! Stay ahead of the tech trends with industy updates delivered to you every week!

Data Vortex Users Contemplate the Future of Supercomputing

October 19, 2017

Last month (Sept. 11-12), HPC networking company Data Vortex held its inaugural users group at Pacific Northwest National Laboratory (PNNL) bringing together about 30 participants from industry, government and academia t Read more…

By Tiffany Trader

AI Self-Training Goes Forward at Google DeepMind

October 19, 2017

DeepMind, Google’s AI research organization, announced today in a blog that AlphaGo Zero, the latest evolution of AlphaGo (the first computer program to defeat a Go world champion) trained itself within three days to play Go at a superhuman level (i.e., better than any human) – and to beat the old version of AlphaGo – without leveraging human expertise, data or training. Read more…

By Doug Black

Researchers Scale COSMO Climate Code to 4888 GPUs on Piz Daint

October 17, 2017

Effective global climate simulation, sorely needed to anticipate and cope with global warming, has long been computationally challenging. Two of the major obstacles are the needed resolution and prolonged time to compute Read more…

By John Russell

HPE Extreme Performance Solutions

Transforming Genomic Analytics with HPC-Accelerated Insights

Advancements in the field of genomics are revolutionizing our understanding of human biology, rapidly accelerating the discovery and treatment of genetic diseases, and dramatically improving human health. Read more…

Student Cluster Competition Coverage New Home

October 16, 2017

Hello computer sports fans! This is the first of many (many!) articles covering the world-wide phenomenon of Student Cluster Competitions. Finally, the Student Cluster Competition coverage has come to its natural home: H Read more…

By Dan Olds

Data Vortex Users Contemplate the Future of Supercomputing

October 19, 2017

Last month (Sept. 11-12), HPC networking company Data Vortex held its inaugural users group at Pacific Northwest National Laboratory (PNNL) bringing together ab Read more…

By Tiffany Trader

AI Self-Training Goes Forward at Google DeepMind

October 19, 2017

DeepMind, Google’s AI research organization, announced today in a blog that AlphaGo Zero, the latest evolution of AlphaGo (the first computer program to defeat a Go world champion) trained itself within three days to play Go at a superhuman level (i.e., better than any human) – and to beat the old version of AlphaGo – without leveraging human expertise, data or training. Read more…

By Doug Black

Student Cluster Competition Coverage New Home

October 16, 2017

Hello computer sports fans! This is the first of many (many!) articles covering the world-wide phenomenon of Student Cluster Competitions. Finally, the Student Read more…

By Dan Olds

Intel Delivers 17-Qubit Quantum Chip to European Research Partner

October 10, 2017

On Tuesday, Intel delivered a 17-qubit superconducting test chip to research partner QuTech, the quantum research institute of Delft University of Technology (TU Delft) in the Netherlands. The announcement marks a major milestone in the 10-year, $50-million collaborative relationship with TU Delft and TNO, the Dutch Organization for Applied Research, to accelerate advancements in quantum computing. Read more…

By Tiffany Trader

Fujitsu Tapped to Build 37-Petaflops ABCI System for AIST

October 10, 2017

Fujitsu announced today it will build the long-planned AI Bridging Cloud Infrastructure (ABCI) which is set to become the fastest supercomputer system in Japan Read more…

By John Russell

HPC Chips – A Veritable Smorgasbord?

October 10, 2017

For the first time since AMD's ill-fated launch of Bulldozer the answer to the question, 'Which CPU will be in my next HPC system?' doesn't have to be 'Whichever variety of Intel Xeon E5 they are selling when we procure'. Read more…

By Dairsie Latimer

Delays, Smoke, Records & Markets – A Candid Conversation with Cray CEO Peter Ungaro

October 5, 2017

Earlier this month, Tom Tabor, publisher of HPCwire and I had a very personal conversation with Cray CEO Peter Ungaro. Cray has been on something of a Cinderell Read more…

By Tiffany Trader & Tom Tabor

Intel Debuts Programmable Acceleration Card

October 5, 2017

With a view toward supporting complex, data-intensive applications, such as AI inference, video streaming analytics, database acceleration and genomics, Intel i Read more…

By Doug Black

Reinders: “AVX-512 May Be a Hidden Gem” in Intel Xeon Scalable Processors

June 29, 2017

Imagine if we could use vector processing on something other than just floating point problems.  Today, GPUs and CPUs work tirelessly to accelerate algorithms Read more…

By James Reinders

NERSC Scales Scientific Deep Learning to 15 Petaflops

August 28, 2017

A collaborative effort between Intel, NERSC and Stanford has delivered the first 15-petaflops deep learning software running on HPC platforms and is, according Read more…

By Rob Farber

Oracle Layoffs Reportedly Hit SPARC and Solaris Hard

September 7, 2017

Oracle’s latest layoffs have many wondering if this is the end of the line for the SPARC processor and Solaris OS development. As reported by multiple sources Read more…

By John Russell

US Coalesces Plans for First Exascale Supercomputer: Aurora in 2021

September 27, 2017

At the Advanced Scientific Computing Advisory Committee (ASCAC) meeting, in Arlington, Va., yesterday (Sept. 26), it was revealed that the "Aurora" supercompute Read more…

By Tiffany Trader

How ‘Knights Mill’ Gets Its Deep Learning Flops

June 22, 2017

Intel, the subject of much speculation regarding the delayed, rewritten or potentially canceled “Aurora” contract (the Argonne Lab part of the CORAL “ Read more…

By Tiffany Trader

Google Releases Deeplearn.js to Further Democratize Machine Learning

August 17, 2017

Spreading the use of machine learning tools is one of the goals of Google’s PAIR (People + AI Research) initiative, which was introduced in early July. Last w Read more…

By John Russell

GlobalFoundries Puts Wind in AMD’s Sails with 12nm FinFET

September 24, 2017

From its annual tech conference last week (Sept. 20), where GlobalFoundries welcomed more than 600 semiconductor professionals (reaching the Santa Clara venue Read more…

By Tiffany Trader

Nvidia Responds to Google TPU Benchmarking

April 10, 2017

Nvidia highlights strengths of its newest GPU silicon in response to Google's report on the performance and energy advantages of its custom tensor processor. Read more…

By Tiffany Trader

Leading Solution Providers

Graphcore Readies Launch of 16nm Colossus-IPU Chip

July 20, 2017

A second $30 million funding round for U.K. AI chip developer Graphcore sets up the company to go to market with its “intelligent processing unit” (IPU) in Read more…

By Tiffany Trader

Amazon Debuts New AMD-based GPU Instances for Graphics Acceleration

September 12, 2017

Last week Amazon Web Services (AWS) streaming service, AppStream 2.0, introduced a new GPU instance called Graphics Design intended to accelerate graphics. The Read more…

By John Russell

EU Funds 20 Million Euro ARM+FPGA Exascale Project

September 7, 2017

At the Barcelona Supercomputer Centre on Wednesday (Sept. 6), 16 partners gathered to launch the EuroEXA project, which invests €20 million over three-and-a-half years into exascale-focused research and development. Led by the Horizon 2020 program, EuroEXA picks up the banner of a triad of partner projects — ExaNeSt, EcoScale and ExaNoDe — building on their work... Read more…

By Tiffany Trader

Delays, Smoke, Records & Markets – A Candid Conversation with Cray CEO Peter Ungaro

October 5, 2017

Earlier this month, Tom Tabor, publisher of HPCwire and I had a very personal conversation with Cray CEO Peter Ungaro. Cray has been on something of a Cinderell Read more…

By Tiffany Trader & Tom Tabor

Cray Moves to Acquire the Seagate ClusterStor Line

July 28, 2017

This week Cray announced that it is picking up Seagate's ClusterStor HPC storage array business for an undisclosed sum. "In short we're effectively transitioning the bulk of the ClusterStor product line to Cray," said CEO Peter Ungaro. Read more…

By Tiffany Trader

Intel Launches Software Tools to Ease FPGA Programming

September 5, 2017

Field Programmable Gate Arrays (FPGAs) have a reputation for being difficult to program, requiring expertise in specialty languages, like Verilog or VHDL. Easin Read more…

By Tiffany Trader

IBM Advances Web-based Quantum Programming

September 5, 2017

IBM Research is pairing its Jupyter-based Data Science Experience notebook environment with its cloud-based quantum computer, IBM Q, in hopes of encouraging a new class of entrepreneurial user to solve intractable problems that even exceed the capabilities of the best AI systems. Read more…

By Alex Woodie

HPC Chips – A Veritable Smorgasbord?

October 10, 2017

For the first time since AMD's ill-fated launch of Bulldozer the answer to the question, 'Which CPU will be in my next HPC system?' doesn't have to be 'Whichever variety of Intel Xeon E5 they are selling when we procure'. Read more…

By Dairsie Latimer

  • arrow
  • Click Here for More Headlines
  • arrow
Share This