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Mar 31, 2021
Extreme Networks Q3 2021 Earnings Report
Achieved 21% year-over-year revenue growth and double-digit non-GAAP operating margin.
Key Takeaways
Extreme Networks reported strong Q3 fiscal year 2021 results, with a 21% year-over-year revenue increase and double-digit non-GAAP operating margin. The company's cloud solutions are driving growth, with ExtremeCloud IQ new subscription growth up 122% year-over-year. Strong operating performance and reduction in inventory led to strong cash flow generation.
Revenue reached $253.4 million, a 21% increase year-over-year and a 5% increase quarter-over-quarter.
GAAP EPS was $0.03, up from ($0.37) in Q3 last year.
Non-GAAP EPS was $0.16, up from ($0.09) in Q3 last year.
Free Cash Flow was $20.4 million.
Revenue by Segment
Forward Guidance
For its fourth quarter of fiscal 2021, ending June 30, 2021, the Company is targeting revenue between $260.0 million and $270.0 million, GAAP gross margin between 57.8% and 58.9%, GAAP operating margin between 3.5% and 5.9%, GAAP net income between $2.6 million and $9.4 million, and GAAP net income per diluted share between $0.02 and $0.07. The Company is also targeting non-GAAP revenue between $260.0 million and $270.0 million, non-GAAP gross margin between 60.5% and 61.5%, non-GAAP operating margin between 10.1% and 12.2%, and non-GAAP net income per diluted share between $0.16 and $0.20.
Positive Outlook
- Targeting revenue between $260.0 million and $270.0 million.
- Targeting GAAP gross margin between 57.8% and 58.9%.
- Targeting GAAP operating margin between 3.5% and 5.9%.
- Targeting GAAP net income between $2.6 million and $9.4 million.
- Targeting non-GAAP net income per diluted share between $0.16 and $0.20.
Challenges Ahead
- Operating Expenses between $141.0 and $143.0 million (GAAP).
- Operating Expenses between $131.0 and $133.0 million (Non-GAAP).
Historical Earnings Impact
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Avg. Return Before/After Earnings
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