Extreme Networks Reports Fourth Quarter Financial Results

Extreme Networks has announced financial results for its fiscal fourth quarter and year ended June 29, 2008. For the quarter, net revenue was $98.3 million, compared to $87.1 million in the year-ago quarter, a 13% increase.

Net income on a GAAP basis was $0.8 million or $0.01 per diluted share, compared to a net loss of $5.0 million or a loss of $0.04 per diluted share in the year-ago quarter. Non-GAAP net income for the fiscal fourth quarter of 2008, excluding $1.3 million in stock-based compensation charges and a $0.9 million change in estimate related to our prior restructuring accruals, was $3.0 million or $0.03 per diluted share. That compares to year-ago non-GAAP net income of $0.3 million or $0.00 per diluted share, excluding $1.2 million in stock-based compensation charges, $1.3 million related to the special investigation into historical stock option grants, and $2.9 million in restructuring charges.

For the fiscal year ended June 29, 2008, net revenue was $361.8 million, up 6% from $342.8 million for the prior fiscal year. GAAP net income was $8.4 million or $0.07 per diluted share, compared to a GAAP net loss of $14.2 million or a loss of $0.12 per diluted share in fiscal 2007. Non-GAAP net income was $14.3 million or $0.12 per diluted share, compared to non-GAAP net income of $2.9 million or $0.03 per diluted share in fiscal 2007. A reconciliation of GAAP to non-GAAP financial measures is included in the accompanying financial tables.

With revenue up 13% for the quarter and 6% for the year, we continue to gain momentum with our channels and end users,” said Extreme Networks president and CEO, Mark Canepa. “Our newer products are being particularly well received in our chosen markets, where there is healthy demand for innovative solutions that scale to meet our customers’ evolving needs.”

For the fiscal fourth quarter of 2008, revenues in North America (U.S., Canada, and Central America) were $45.1 million, revenues in EMEA (Europe, Middle East, Africa, and South America) were $38.8 million and revenues in Asia (Asia Pacific and Japan) were $14.4 million. That compares to year-ago revenues of $41.5 million in North America, $33.4 million in EMEA and $12.2 million in Asia.

Cash, short-term investments, and marketable securities were $225.7 million as of June 29, 2008, compared to $231.1 million as of March 30, 2008.