Extreme Networks Reports Second Quarter Fiscal Year 2022 Financial Results
- Achieved Record Quarterly Revenue and Net Income
- Double-Digit Growth Expected from Unprecedented Backlog, Demand for Cloud-Driven Networking and Emerging 5G Solutions
MORRISVILLE, N.C., Jan. 27, 2022 /PRNewswire/ — Extreme Networks, Inc. (“Extreme”) (Nasdaq: EXTR) today released financial results for its second fiscal quarter ended December 31, 2021.
Fiscal Second Quarter Results:
- Revenue $280.9 million, up 16% year-over-year, and up 5% quarter-over-quarter
- SaaS ARR* $88.3 million, up 55% year-over-year, and up 11% quarter-over-quarter
- GAAP EPS $0.10, up from ($0.02) in Q2 last year
- Non-GAAP EPS $0.21, up from $0.13 in Q2 last year
- GAAP gross margin 56.5% compared to 57.9% in Q2 last year
- Non-GAAP gross margin 58.2% compared to 61.0% in Q2 last year
- GAAP operating margin 6.4% compared to 2.4% in Q2 last year
- Non-GAAP operating margin 13.1% compared to 10.2% in Q2 last year
- Net cash provided by operating activities of $22.2 million
- Free Cash Flow of $19.0 million
- Executed $25.0 million share repurchase during the quarter
“Extreme continued its momentum with strong execution, once again exceeding our outlook to set a new quarterly record for revenue and net income, despite significant supply chain challenges. We continued to gain market share in cloud networking, delivering 55% growth year-over-year in SaaS ARR. Strong demand for our solutions across all our customer verticals resulted in over $90 million of incremental backlog during the quarter, bringing the total to nearly $300 million at quarter end. I am also very proud to report that earlier this month we completed the integration of Ipanema ahead of plan. We will launch our ExtremeCloud SD-WAN solutions this quarter, which will drive additional subscription revenue for Extreme, particularly as we enter Fiscal ’23,” stated Ed Meyercord, President and CEO of Extreme.
“The ability to create new services and unlock value from the data in our cloud to extract meaningful insights and analytics from networks is driving multi-year investment cycles with major new and existing customers. This is highlighted by being named the official Wi-Fi analytics provider for Manchester United, the NHL, and the 9th consecutive NFL Super Bowl. Our cloud-driven networking solutions are helping our customers drive operational efficiencies, enhance security, inform sales strategies, and accelerate business growth. We are also innovating and driving new growth opportunities with the early rollout of 5G networks” concluded Meyercord.
“Extreme delivered another quarter of strong financial performance with double-digit year over year revenue growth for the fourth consecutive quarter and an improvement in our non-GAAP operating margin of nearly 3-percentage points to 13.1%, despite higher costs associated with supply chain constraints. During the quarter, we executed a buyback of 1.8 million Extreme shares for $25 million under our existing share repurchase program. As we enter the second half of fiscal year 2022, we remain confident in our ability to deliver double-digit revenue growth and a non-GAAP operating margin in the range of 10 to 15%,” concluded Remi Thomas, Chief Financial Officer.
Recent Key Highlights:
- In addition to Q2 FY22 financial results, Extreme today demonstrated its continued dominance as the preferred Wi-Fi and Wi-Fi Analytics provider of several global professional sports organizations committed to up-leveling the gameday experience for players and fans, including:
- Manchester Unitedhas selected Extreme to modernize the fan experience at Old Trafford stadium with fast, reliable Wi-Fi connectivity and increase the Club’s capability to deliver high performance, low latency and secure digital services. Extreme will enable Manchester United to access real-time network analytics to drive more personalized and informed decisions around both the fan experience and overall venue operations. The deployment will start later this year.
- Extreme was named the Official Wi-Fi Analytics Provider and an Official Wi-Fi Partner of the NHL through 2026. As part of the partnership, Extreme will deploy ExtremeAnalytics™ across select NHL arenas and work together to create more personalized, fluid, and memorable gameday experiences.
- For the ninth consecutive year, Extreme is the Official Wi-Fi Analytics provider of Super Bowl LVI, set to take place on February 13, 2022 at SoFi Stadium in Inglewood, California. Extreme officially extended its partnership with the National Football League (NFL) and will remain the Official Wi-Fi Network Solutions Provider and Official Wi-Fi Analytics Provider of the NFL through 2024. Extreme is rolling out next-generation analytics capabilities to the NFL this season, providing IT teams with richer data sets and insights around app performance and usage, dwell time, and location-based services.
- Extreme Networks, Inc announced it is once again positioned as a Leader in the 2021 Gartner®**Magic Quadrant™ for Enterprise Wired and Wireless LAN Infrastructure. This is the fourth consecutive year Extreme has been positioned as a Leader in this annual research report.
- Skyguide, the leading provider of air navigation services in Switzerland and delegated airspaces, needed a network that would enable more efficient deployments of multiple wide area security zones with strong support for multicast traffic. Extreme was selected to deliver switching and management solutions including Extreme Fabric Connect, making Skyguide’s network infrastructure more flexible, simpler to deploy, and easier to automate.
- Onondaga Community College, part of the State University of New York system, selected Extreme to replace its entire edge-to-core network infrastructure. The new cloud-managed fabric network eliminates configuration touchpoints and errors and provides full network visibility from a single pane of glass, simplifying network management for the college’s two-person IT team and improving network performance.
- Extreme introduced Trusted Delivery, a carrier-grade solution designed to protect critical 5G network infrastructure and help ensure it is performing as anticipated without interference, regardless of location. Available across the 8000 Series (8520 and Extreme 8720) data center and cellular edge leaf and spine switches, Trusted Delivery provides mechanisms for service providers to verify device security and performance during operation without shutting the device down.
**Gartner, Magic Quadrant for Enterprise Wired and Wireless LAN Infrastructure, Published 15 November 2021.
**Gartner and Magic Quadrant are registered trademarks of Gartner, Inc. and/or its affiliates in the U.S. and internationally and are used herein with permission. All rights reserved.
**Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.
=== noot voor de redactie ===
Bekijk het volledige persbericht hier: https://www.prnewswire.com/news-releases/extreme-networks-reports-second-quarter-fiscal-year-2022-financial-results-301469410.html SOURCE Extreme Networks, Inc.
Het volledige persbericht is ook beschikbaar als PDF-version.
+1 919 595-4196
Tel: +1 603 952-5138