7/19....EXTR Announces Record Fourth Quarter Revenue
Revenues Increase 37% Over Q3 2000 and Annual Revenue Exceeds $260 Million
SANTA CLARA, Calif., July 19 /PRNewswire/
-- Extreme Networks, Inc., (Nasdaq: EXTR), a leader in broadband networking
solutions, today announced financial results for its fourth quarter and fiscal
year ended June 30, 2000.
Revenue for the fourth quarter of fiscal 2000 increased to $92.4 million,
which compares to $67.3 million in the third quarter of fiscal 2000, and to
$38.1 million in the fourth quarter of fiscal 1999, an increase of 37% and
142%, respectively.
Proforma net income, which excludes the effects of the amortization of
goodwill and intangibles, for the fourth quarter of fiscal 2000, was
$5.0 million, or $0.09 per share compared with third quarter net income of
$9.1 million, or $0.16 per share, and net income of $2.9 million or $0.05 per
share in the fourth quarter of fiscal 1999.
Actual net income for the fourth quarter of fiscal 2000, including the
effect of goodwill and intangibles, was $0.6 million, or $0.01 per share,
compared with third quarter net income of $9.1 million, or $0.16 per share,
and net income of $2.9 million or $0.05 per share in the fourth quarter of
fiscal 1999.
Revenue for the year ended June 30, 2000 was $262 million, compared to
$98 million for the year ended June 30, 1999. Proforma net income for the
year ended June 30, 2000 was $24.5 million or $0.44 per share, compared to a
net loss of $1.6 million or $0.04 per share for the fiscal year 1999.
Actual net income for the year ended June 30, 2000, including the effect
of goodwill and intangibles of fiscal 2000, was $20 million, or $0.36 per
share, compared to a net loss of $1.6 million or $0.04 per share for the
fiscal year 1999.
All per-share amounts are computed on a diluted basis.
"During fiscal 2000 we reached a major milestone of crossing the
quarter-billion dollar mark in sales. This milestone, combined with our
global scale of operations and our significant investment in technology,
continue to give customers the confidence to build their businesses based upon
Extreme," said Gordon Stitt, president and CEO of Extreme Networks. "Our
growing customer roster, which includes 15 metro networks, and accelerating
momentum clearly demonstrates that our Ethernet and IP strategy is gaining
wide acceptance."
Fourth Quarter Highlights
Extreme Networks announced its Metropolitan Area Network (MAN) strategy:
The Company announced its metro networks strategy; the strategy includes,
a unique technology that enables new age telcos to build high-capacity
data-optimized optical networks based on Ethernet and IP, a service provider
business unit, a research and development center in Research Triangle Park,
NC, and a direct sales organization.
Extreme extended is service provider strategy with the introduction of the
Summit5i and the Summit1i that bring new services to broadband points of
presence (POPs) in the Metro and multi-tenant building markets.
Extreme Networks unveiled a comprehensive suite of new ExtremeWare
capabilities:
The Company announced added ExtremeWare features for its award-winning "i"
series Summit, Alpine and BlackDiamond switches. The new ExtremeWare
capabilities allow customers to maximize their equipment investment by
combining routing, switching and load balancing functions into one Extreme
Networks switch.
Leading Internet, metro networks and service provider companies select
Extreme Networks; such companies, include:
Speedera, the first single-source provider of global traffic management
and Internet content delivery services using Extreme switches to provide
increased Internet performance and reliability
Fogdog Sports, the leading sporting goods online retailer, standardized on
Extreme's switching solutions to provide customers with the performance and
bandwidth necessary for a pleasant online shopping experience
The City of Ann Arbor, Michigan using Extreme's award-winning switching
solutions for its citywide network
Continued market leadership:
Extreme Networks was ranked number one for overall Layer 3 switch port
shipments for the quarter ended March 2000 by The Dell'Oro Group. Extreme
holds approximately 24% of the Layer 3 switching market and has captured the
number-one position more often than any other vendor. In addition, Extreme
Networks dominates Layer 3 Gigabit Ethernet port shipments with 39.5% of total
ports shipped for the quarter.
Unprecedented industry recognition:
Extreme Networks was awarded the prestigious "Best of Show" in the
Enterprise Network Infrastructure category at NetWorld+Interop 2000 Las Vegas
for its new Alpine 3808 core switch. Extreme Networks has received the
coveted "Best of Show" honor for an unprecedented four years in a row.
About Extreme Networks
Extreme Networks is a leading provider of high-performance, broadband
networking solutions designed for the Internet economy. Extreme's family of
Summit, Alpine and BlackDiamond switching solutions are built on a unique
combination of ExtremeWare management software and an ASIC-based common
architecture that enables service providers, e-businesses and enterprises to
expand their businesses and be more competitive by speeding traffic through a
simplified, super scalable network infrastructure.
Headquartered in Santa Clara, Calif., Extreme Networks distributes its
solutions in more than 50 countries through direct sales, authorized resellers
and distribution partners. The Company was listed as the "Fastest Growing
Company in Silicon Valley" based on three-year revenue growth by the San Jose
and Silicon Valley Business Journal. For more information, visit
www.extremenetworks.com.
This press release may contain forward-looking statements relating to
future events or future financial performance that involve risks and
uncertainties. Such statements can be identified by terminology such as
"may," "will," "should," "expects," "plans," "anticipates," "believes,"
"estimates," "predicts," "potential" or "continue" or the negative of such
terms or comparable terms. These statement are only predictions and actual
results could differ materially from those anticipated in these statements
based upon a number of factors including future sales, technical development,
product introduction by ourselves and by competitors and those identified in
Extreme' s filings with the SEC.
NOTE: Extreme Networks and BlackDiamond are registered trademarks of
Extreme Networks, Inc. Summit, Alpine and ExtremeWare are trademarks of
Extreme Networks, Inc.
EXTREME NETWORKS, INC.
PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Excluding Amortization of Goodwill and Intangible(i)
(in thousands, except per-share amounts)
Three Months Ended Year Ended
June 30, June 30, June 30, June 30,
2000 1999 2000 1999
(Unaudited)
Net revenue $92,422 $38,124 $261,956 $98,026
Cost of revenue 46,168 18,680 126,916 48,520
Gross profit 46,254 19,444 135,040 49,506
Operating expenses:
Research and development 10,218 5,695 32,998 17,036
Sales and marketing 28,965 9,371 67,146 27,056
General and administrative 3,648 2,257 11,852 6,859
Total operating expenses 42,831 17,323 111,996 50,951
Operating income (loss) 3,423 2,121 23,044 (1,445)
Interest income (expense)
and other, net 4,273 1,415 14,115 1,478
Income before income taxes 7,696 3,536 37,159 33
Provision for income taxes 2,694 650 12,698 1,650
Net income (loss) $5,002 $2,886 $24,461 $(1,617)
Net income (loss) per share:
Basic $0.10 $0.06 $0.49 $(0.04)
Diluted $0.09 $0.05 $0.44 $(0.04)
Shares used in computing
per share calculation:
Basic 52,295 45,356 50,258 38,523
Diluted 56,266 52,661 55,584 38,523
(i) This statement of operations information for the three and twelve
month periods ended June 30, 2000 and 1999 is for illustrative purposes only
and is not prepared in accordance with generally accepted accounting
principles. It shows the operating results of the Company, excluding
amortization of goodwill and intangible related charges of $6.8 million for
the three months ended June 30, 2000.
EXTREME NETWORKS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per-share amounts)
Three Months Ended Year Ended
June 30, June 30, June 30, June 30,
2000 1999 2000 1999
(Unaudited)
Net revenue $92,422 $38,124 $261,956 $98,026
Cost of revenue 46,168 18,680 126,916 48,520
Gross profit 46,254 19,444 135,040 49,506
Operating expenses:
Research and development 10,218 5,695 32,998 17,036
Sales and marketing 28,965 9,371 67,146 27,056
General and administrative 3,648 2,257 11,852 6,859
Amortization of goodwill
and Intangible 6,790 -- 6,790 --
Total operating expenses 49,621 17,323 118,786 50,951
Operating income (loss) (3,367) 2,121 16,254 (1,445)
Interest income (expense)
and other, net 4,273 1,415 14,115 1,478
Income before income taxes 906 3,536 30,369 33
Provision for income taxes 317 650 10,321 1,650
Net income (loss) $589 $2,886 $20,048 $(1,617)
Net income (loss) per share:
Basic $0.01 $0.06 $0.40 $(0.04)
Diluted $0.01 $0.05 $0.36 $(0.04)
Shares used in computing
per share calculation:
Basic 52,295 45,356 50,258 38,523
Diluted 56,266 52,661 55,584 38,523
EXTREME NETWORKS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
June 30, June 30,
2000 1999
Assets
Current assets:
Cash and investments $183,361 $123,565
Accounts receivable, net 60,996 20,797
Inventories, net 23,801 2,626
Other current assets 34,326 1,978
Total current assets 302,484 148,966
Property and equipment, net 26,750 6,506
Investments 124,144 16,097
Goodwill and Intangibles 49,782 --
Other assets 12,770 234
Total assets $515,930 $171,803
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $39,023 $13,418
Deferred revenue 22,042 1,717
Accrued liabilities 32,400 11,494
Income tax liability 3,138 1,650
Capital lease obligations
and notes payable -- 1,648
Total current liabilities 96,603 29,927
Long term liability 306 --
Total stockholders' equity 419,021 141,876
Total liabilities and
stockholders' equity $515,930 $171,803
SOURCE Extreme Networks, Inc.
-0- 07/19/2000
/CONTACT: Vito Palermo, Chief Financial Officer, 408-579-3030, or
investor_relations@extremenetworks.com, or Valerie Bellofatto, 408-579-2963,
or vbellofatto@extremenetworks.com, both of Extreme Networks, Inc./
/Web site: extremenetworks.com
(EXTR)
CO: Extreme Networks, Inc.
ST: California
IN: CPR
SU: ERN
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