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Dec 31, 2019
Extreme Networks Q2 2020 Earnings Report
Announced financial results for the second quarter of fiscal year 2020 and the completion of a $30 million accelerated share repurchase program.
Key Takeaways
Extreme Networks reported a revenue increase of 6% year-over-year, reaching $267.5 million. Non-GAAP EPS was $0.13, and the company achieved a Non-GAAP gross margin of 60%. The company also executed a $30 million accelerated share repurchase program.
Revenue was $267.5 million, up 6% year-over-year.
GAAP EPS was $(0.20).
Non-GAAP EPS was $0.13, flat year-over-year.
Non-GAAP gross margin was 60.0% compared to 58.2% in Q2 last year.
Extreme Networks
Extreme Networks
Extreme Networks Revenue by Segment
Revenue by Segment
Product Revenue
CapyFin.com Forward Guidance
For its third quarter of fiscal 2020, ending March 31, 2020, the Company is targeting total net revenue between $255.0 million and $265.0 million and Non-GAAP operating income margins in the 12-13% range by the end of fiscal year 2020.
Positive Outlook
- Expect to achieve Non-GAAP operating income margins in the 12-13% range by the end of fiscal year 2020.
- Expect to attain organic growth in the second half of calendar year 2020.
- Expect to attain our 15% Non-GAAP long term operating margin target in the second half of calendar year 2020.
- Confident in our plan based on the growing strength of our enterprise franchise in the market.
- Confident in our plan based on the market migration to cloud-based networking and our leadership position
Challenges Ahead
- Actual results could differ materially based on market conditions.
- Actual results could differ materially based on the factors set forth under “Forward-Looking Statements”.
- Targeting GAAP total net revenue between $255.0 million and $265.0 million.
- Targeting GAAP operating margin between (1.8 %) and (0.2 %).
- Targeting net loss between $(12.8 ) million and $(8.6 ) million.