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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.
Extreme Networks
Extreme Networks
Extreme Networks Revenue by Segment
Revenue by Segment
Product Revenue
CapyFin.com 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).
- GAAP net income per diluted share between $0.02 and $0.07.
- Targeting non-GAAP gross margin between 60.5% and 61.5%.
- Targeting non-GAAP operating margin between 10.1% and 12.2%.