extreme networks earnings call
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Yeah, I would say it's predictable. This compares to earnings of $0.16 per share a year ago. So now you have what we would call excess edge switching that can be managed from the cloud. So about $2 million a quarter is what you should be modeling. I mean, you guys have the suite to deliver digital transformation to your enterprise customers. I mean, we've -- it's a very predictable transaction and HPE -- it was a smart move for HPE to buy them. Right. And then very difficult for us to forecast the interest line the interest expense line here. Our Universal APs are coming to market in August. Extreme Networks (NASDAQ:EXTR) Q1 2021 Earnings Call Oct 28, 2020, 8:00 a.m. Extreme Networks ® Investor Relations: Extreme Networks provides the latest information about the Company's financial performance, recent SEC filings and links to corporate news. So we're going to do a better job of handling those bigger projects with larger strategic opportunities, and then we set up a territory model where we're tightly aligned with partners and also our marketing teams and lead gen teams to do a better job of fielding the new leads and to feel more of that run rate business. And there's a pretty wide range of outlooks for revenue for the FY '21 period ranges from $900 million at the low end to as high as $953 million at the high end. When you see what's going on in the macro economy globally. Grocery and retail stores will add more in-store pickup capabilities. We have -- when you go into our cloud, we can actually follow a device. During the quarter, the Americas contributed 55% to total revenue, EMEA 35% and APJC closed out the remaining 10%. Two, we strengthened our financial position and flexibility by further reducing our revenue breakeven point, delivering on profitability and cash generation during the quarter. Revenue associated with newly introduced products grew 58% quarter over quarter. I was hoping you could talk a little bit about the difference between what you're seeing in the campus market, what your expectations are for that relative to the environment versus, say, data center type of environment and also relative to cloud edge, what's going on in core campus? Thank you, Gigi, and welcome to the Extreme Networks fourth-quarter fiscal and year-end 2020 earnings conference call. But as you would predict, we are seeing opportunities that are more distributed in nature. I have a couple of technology, big picture questions for you. We call it hospitality is like 5% of revenue number. Yeah, I was going to say, when you provide that range of $900 million to $950 million, you look at the midpoint of $925 million. Second of all, I mentioned earlier that the inventory in the channel was typically not as strong as you would expect at the end of March because of this, he's playing it by ear. So we have a branch solution. We have lots of examples of what we're doing. And Christian, as much as I'd like to provide you better visibility on the rest of the year. And this is something that it was a practice that we were less disciplined in, in the past. Extreme Empower is already in production with the select group of distributors are very positive. [Operator Instructions] Your next question comes from the line of Alex Henderson with Needham. Yes. I hope that's helpful. First question is on HPE acquiring Silver Peak, how does it change the competitive landscape? Extreme Networks (EXTR) came out with quarterly earnings of $0.09 per share, beating the Zacks Consensus Estimate of $0.07 per share. Or is that mix across the three buckets? There's no minimal flow. The technology company reported $0.03 EPS for the quarter, beating the consensus estimate of ($0.03) by $0.06. And we have been in a position for us to shrink our inventory with our distributors. So you'll see a full-quarter benefit as we roll into fiscal '21. Advancing for Good 2020 Corporate Social Responsibility Report. ET, Ladies and gentlemen, thank you for standing by, and welcome to the Extreme Networks Q3 FY 2020 Financial Results Conference Call. And we don't -- we're not assuming that we snap back, and so we're somewhat guarded in calling for a return to previous spending levels. Other remains muted. Erik, our mix is typically 20% new, 80% existing, and that was consistent in Q4. The Algorithm predicts "% Predicted Move After Earnings Announcement" (PMAEA) for EXTR three weeks prior to earnings date. Okay. So we don't see accelerated price pressure. It is on Wed 28 Oct (33 days ago). We continue to book very large deals across the product portfolio, including healthcare, government, education, service provider, enterprise and other segments. We have hospitals and healthcare, which is an important vertical. So that's what's giving us confidence to me. But in our IR package, we highlight vertical trends. In Q1 of fiscal 2021, they will be up very modestly from that number. This is a wild share win with one of the world's largest manufacturers. We also launched a new sales playbook platform that was built by sales, for sales and will empower every seller in our organization with very specific tools and training for their roles. [Operator instructions] Please be advised that today's conference is being recorded. Thanks for taking the question. This customer will extend and integrate its fabric deployment to this new facility and recently purchased a variety of Extreme switching solutions and XMC for this new building. I think they were way over the cover bid in that process. Extreme Networks (EXTR) delivered earnings and revenue surprises of 200.00% and 1.21%, respectively, for the quarter ended June 2020. I also mentioned we have a new chief revenue officer, as well as the new chief marketing officer that have identified new routes to market, which basically are partners for Extreme. So it's easier to attend. And we did feel the impact of a slowdown of that run rate business in both Q3 and Q4. And then, second, I'll let you answer this question, and then I have another architectural question that I want to ask. And that's where we feel like we have an advantage, and we're running really fast to stay on top of that. So that if you think about our operating expenses in Q1 I gave an indication that in Q4, they'd be somewhere between $115 million and $120 million. So with all three of the revamps on display conducted significant edge migration of its network using a range of Extreme edge switches. And the answer is yes. Great. What we are seeing, and you could hear in our prepared remarks is distributed. I was looking at the expectations on the street. Ed, how much of the purchasing delays from last quarter reflect on this quarter's result? I mean, if you check out some of our -- what we -- #NewNormal solutions, we've been working with different contact tracing solutions. And with me today are Extreme Networks' president and CEO, Ed Meyercord; and CFO, Remi Thomas. We are seeing people return to work. And this is a business that's below $50,000. And we have a bucket of these opportunities that we're working that are progressing really nicely. So it's in the December quarter. And Remi, I don't know if you want to provide any additional color on that front. We continue to see that networking remains vital for our customers despite the virus, and demand remains strong. I know that's how we're thinking about going back to work in a more flexible way, but you'll still require networking in your environment. At our upcoming Connect user conference we're expecting five times of participation rate versus last year. I'm assuming it's also a WiFi commentary as well. This is what we see based on a combination of some of the temporary measures that we've taken as well as the more structural measures, which full benefit will not reach until fiscal Q1 of 2021. Is that driving some of your customers to -- and particularly, if I look outside the two verticals that are strong, if I look at a general kind of overall enterprise spending, is that driving customers to give you more visibility in terms of their pipeline than you would have ideally at this time, maybe last year? I would expect April is typically up versus January. Can you talk about how many of your cloud IQ customers are using you for analytics and for the breadth of capabilities that you have there? Can you help us understand either from a mix standpoint or a revenue standpoint what it would take for us to be at 60% plus type of gross margins? We're seeing that starting to open back up again depending on where you are in the world. For a third consecutive year, Extreme Networks has been recognized as a Leader in the Gartner 2020 Magic Quadrant for Wired and Wireless LAN Access Infrastructure. And that's where cloud comes in. I will take my other off-line. Finally, we estimate that the net impact of tariff was a negative 210 basis points, up from 150 basis points last quarter as much of our inventory sold during the quarter was purchased under 15% List 4A tariffs prior to the mid-February reduction to 7.5% on wireless access points and optics. Thank you. We believe that it will be less influenced by legacy history considerations and become more influenced by the flexibility for one solution set that can work on the enterprise campus and with a large number of distributed work-from-home workers, all managed from one user interface. Or is it more about just kind of doing the high priority, kind of keeping the lights on kind of projects? Three, we revamped our go-to-market strategy and hired Joe Vineland as our new chief revenue officer. And as far as tax is concerned, we typically guided that at around $2 million in the quarter or $8 million for the full year, and that's mostly state and local taxes and taxes in some of the countries that we operate outside the U.S., specifically, Ireland, which is our second tax principle. We have time for one more question. Sports is cyclical and will come back as it is highly experiential. So it's happening within this quarter, we'll be edged to core from ExtremeCloud IQ. And so I think cloud for us is giving us more weapons and more tools and the ability to up level our conversations where Extreme is a much stronger competitor in these discussions with higher education customers and I think our position for next year's e-Rate is going to be even stronger. Coming out of, I guess, the pandemic closures, has the nature of your customer dialogue change regarding the digital transformation? If you were to see somewhere up from that level, I think you'd be in the right direction. Stock Advisor launched in February of 2002. We caution you not to put undue reliance on these forward-looking statements as they involve risks and uncertainties that can cause actual results to differ materially from those anticipated by these statements as described in our risk factors in our 10-K report for the period ending June 30, 2019, filed with the SEC and in our more recent 8-K and 10-Q filings. And so really, for us to go back to the 60% that we achieved in Q2 of fiscal 2020, we need to get volumes up because that will help us absorb basically the fixed cost that we carry in our cost of goods sold related to the cost of our supply chain, the tariffs, excess in obsolete,etc. They can provide us with new leads that can fill up the funnel with new logos and new selling opportunities. One of the things we started doing this quarter is we started imposing the discipline of our field to look at future quarters and the funnel for future quarters and cleaning that up. This is an example of where COVID-19 offers Extreme future opportunities. Thank you. Total services revenue of $73 million grew 21% year-over-year but fell 5% quarter-over-quarter, largely on a sequential decrease in maintenance. Our sales teams are stepping up in a big way. That's powerful. When we were talking to schools globally -- and the nice thing about the environment that we're in is that within Zoom, it allows executive engagement at levels that we haven't seen before. And finally, transportation and logistics is 4% to 6%. If you recall, the normal seasonal pattern of the way the bookings come in is 20% month 1, 30% month two and 50% month three. We are living in unprecedented times, and I want to thank our customers and partners for their resilience and support. We are now 90% complete with our product refresh as of the June quarter, in line with our previously announced goals. So that is largely done. I'm Stan Kovler, Vice President of Corporate Strategy and Investor Relations. Thank you very much, and have a great day. But if you were able to supply that going forward, it would imply sequential improvement in revenues, obviously, COVID offsetting, but I mean, is it reasonable to think that now that you're no longer constrained that you should at least be at the current level of revenues or maybe the hair above that in the June quarter? And how will -- how do you think that will play out for your better 2021 outlook? But because of NOLs, we don't pay any federal income tax in the U.S. As an added benefit, Joe and our new Chief Marketing Officer Wes Durow worked together at Mitel, and both have had successful experiences, pivoting businesses from on-prem to as a service model. Yes. And the data is what's happening in the network. In acquiring Aerohive in August, we took the next step in our strategy, and we are seeing the proof points of that with an inflection in the market of customers wanting to move to cloud-based networking. Eric, this is Ed. Thanks, Ed. And what we're doing now is we're launching, we have a base level, what we call pilot platform, which provides management for customers. I'm Stan Kovler, Vice President of Corporate Strategy and Investor Relations. As far as our plans are concerned, we are planning more expense reductions. Can you talk a little bit about what they're seeing in terms of their inventory? It also enabled us to generate free cash flow during the quarter of $6.2 million. We developed a very simple licensing model, and it's the simplest in the industry. Governments, both Fed and local, accounted for 14% to 16% of first nine month revenue. First of all, we typically don't disclose revenue on a monthly basis. I can jump in first, Remi, and then you can provide comments afterwards. So you've got edge all the way to the core where you have that management capability. Extreme Networks, Inc. Non-GAAP Measures of Financial Performance. So that's kind of an overlay of our different verticals and where we're playing from a customer perspective. No. Thanks, Federica. And thank you all for joining us this morning. It is on Wed 28 Oct (33 days ago). Perfect. Thank you. Woo Jin, you're spot on, and I mentioned it in my comments, I talked -- I made the comment up-leveling our conversation. Extreme Networks (EXTR) came out with quarterly earnings of $0.03 per share, beating the Zacks Consensus Estimate of a loss of $0.03 per share. Our Q4 results reflect the resilience of our business and our ability to move quickly to adapt to the new normal. And so we're seeing strength in manufacturing, and we expect healthcare to return. Again, you're trying to get me to provide guidance. Market data powered by FactSet and Web Financial Group. read the report. And so from a demand perspective, that hasn't changed. All in all, our sellers are off to a great start to fiscal '21. And service provider has been strong. It's unprecedented what we are seeing. Your network doesn’t have to be. And I mentioned leveling the playing field. This is our channel self-service environment with volume-based promotions to enable zero-touch discount authorizations to our distributors and partners. SAN JOSE, Calif., Oct. 8, 2020 /PRNewswire/ -- Extreme Networks, Inc. (Nasdaq: EXTR), a cloud-driven networking company, today announced a business update on the financial results for its first quarter ended September 30, 2020, and a partial repayment of its … And so the available capacity is costing us all or more. We're talking to other customers where they have work from home environments. Our customers are experiencing a shift in use cases. But as far as not being able to ship products, we will be limited to those products that are coming out of our factory in Mexico. Now that we're almost done with the entire product refresh. Moreover, the post-COVID-19 buying criteria for networking will also change. The program enabled us to leverage a third-party financial solutions company to provide additional flexibility to customers during the pandemic. This resulted in an operating margin of 5.2% versus an operating margin loss of 5.1% in Q3 and up from an operating margin of 4.9% in the year-ago quarter. This resulted in an operating margin loss of 5.1%, down from an operating margin of 9% in Q2. But under the amendment of our term loan A, we are at LIBOR plus 450. Great. I'm Stan Kovler, vice president of corporate strategy and investor relations. Q1 2019 Extreme Networks Inc Earnings Call 11/02/2018 08:30 AM (EDT) EXTR. Right. And extreme networks earnings call $ 4.5 million excess in obsolete inventory writedown to help us pricing acquisition but... Lockdowns in India, Philippines and other verticals are delayed press release and filed an 8-K detailing Networks! Offers Extreme future opportunities ID # 7669229 and sells out are more closely correlated our overall business company 60! 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