Extreme Networks, Inc. (EXTR) Bundle
A Brief History of Extreme Networks, Inc.
Company Overview
Extreme Networks, Inc. (EXTR) is a network infrastructure company that specializes in providing software-driven networking solutions. Founded in 1996, the company has developed a comprehensive portfolio of products and services designed to support various networking needs across different sectors.
Financial Performance as of 2024
As of the first quarter ending September 30, 2024, Extreme Networks reported the following financial figures:
| Financial Metric | Q1 2024 | Q1 2023 |
|---|---|---|
| Total Net Revenues | $269.2 million | $353.1 million |
| Gross Profit | $169.5 million | $212.9 million |
| Operating Income (Loss) | $(4.7) million | $35.9 million |
| Net Income (Loss) | $(10.5) million | $28.7 million |
| Basic Net Income (Loss) per Share | $(0.08) | $0.22 |
| Diluted Net Income (Loss) per Share | $(0.08) | $0.21 |
Revenue Breakdown
Revenue for Q1 2024 was segmented into product and subscription/support services:
| Revenue Type | Q1 2024 | Q1 2023 |
|---|---|---|
| Product Revenue | $162.3 million | $253.5 million |
| Subscription and Support Revenue | $106.9 million | $99.7 million |
Operating Expenses
For the same quarter, Extreme Networks reported operating expenses as follows:
| Expense Type | Amount (Q1 2024) | Amount (Q1 2023) |
|---|---|---|
| Research and Development | $54.5 million | $58.0 million |
| Sales and Marketing | $81.4 million | $91.9 million |
| General and Administrative | $36.6 million | $23.9 million |
| Total Operating Expenses | $174.2 million | $177.0 million |
Balance Sheet Highlights
As of September 30, 2024, the company's balance sheet showed the following:
| Balance Sheet Item | Amount |
|---|---|
| Total Assets | $1.056 billion |
| Total Liabilities | $1.024 billion |
| Total Stockholders' Equity | $32.7 million |
Market Position and Strategy
Extreme Networks has continuously adapted its strategies to meet the evolving demands of the networking industry. The company focuses on innovation, investing in research and development to enhance its product offerings and maintain a competitive edge in the market.
Recent Developments
In early 2024, Extreme Networks initiated restructuring plans aimed at improving operational efficiency and aligning resources with strategic priorities. These plans include a global reduction-in-force aimed at optimizing the workforce in research and development and sales functions.
Stock Performance
The stock performance of Extreme Networks has seen fluctuations, with a notable decline in stock price correlating with the reported financial losses in recent quarters. As of September 30, 2024, the stock price was impacted by broader market trends and company-specific challenges.
Future Outlook
Looking ahead, Extreme Networks aims to leverage its technological capabilities and market presence to drive growth. The company is focusing on expanding its subscription-based services to stabilize revenue streams and enhance profitability.
A Who Owns Extreme Networks, Inc. (EXTR)
Ownership Structure
As of 2024, Extreme Networks, Inc. (EXTR) has a diverse ownership structure, primarily comprising institutional and individual investors. The largest shareholders include various institutional investors and mutual funds.
| Shareholder Type | Percentage Ownership | Number of Shares |
|---|---|---|
| Institutional Investors | 85.2% | 127,000,000 |
| Individual Investors | 8.3% | 12,500,000 |
| Insider Ownership | 6.5% | 9,000,000 |
Major Institutional Shareholders
The following table lists the major institutional shareholders of Extreme Networks as of September 30, 2024:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 20,000,000 | 13.3% |
| The Vanguard Group, Inc. | 18,000,000 | 12.0% |
| State Street Corporation | 15,500,000 | 10.3% |
| Wellington Management Co. LLP | 12,000,000 | 8.0% |
| Invesco Ltd. | 10,000,000 | 6.7% |
Executive and Insider Ownership
Top executives and board members also hold a significant portion of shares, reflecting their vested interest in the company’s performance:
| Name | Position | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| Ed Meyercord | CEO | 2,000,000 | 1.3% |
| Harrison Smith | CFO | 1,500,000 | 1.0% |
| Board Members | Various | 5,500,000 | 3.7% |
Stock Performance and Market Capitalization
As of September 30, 2024, Extreme Networks has shown fluctuating stock performance:
- Current Stock Price: $3.74
- Market Capitalization: $490 million
- 52-Week Range: $3.00 - $8.00
Recent Financial Performance
In the first quarter of fiscal 2025, Extreme Networks reported the following financial results:
| Metric | Q1 2025 | Q1 2024 |
|---|---|---|
| Net Revenues | $269.2 million | $353.1 million |
| Net Income (Loss) | $(10.5) million | $28.7 million |
| Gross Profit | $169.5 million | $212.9 million |
| Operating Expenses | $174.2 million | $177.0 million |
Conclusion on Ownership Trends
Ownership trends indicate a strong institutional backing, with notable engagement from individual and insider shareholders, reflecting confidence in Extreme Networks' strategic direction.
Extreme Networks, Inc. (EXTR) Mission Statement
Extreme Networks, Inc. aims to deliver innovative and customer-centric networking solutions that empower organizations with the agility and performance needed to succeed in a rapidly evolving digital landscape. The company's mission is to provide high-quality networking products and services that enhance connectivity and drive operational efficiency, while fostering strong relationships with customers and partners.
Financial Overview
As of September 30, 2024, Extreme Networks reported the following financial results:
| Financial Metric | Q1 2025 | Q1 2024 | Change ($) | Change (%) |
|---|---|---|---|---|
| Total Net Revenues | $269,204,000 | $353,137,000 | $(83,933,000) | (23.8%) |
| Product Revenues | $162,284,000 | $253,483,000 | $(91,199,000) | (36.0%) |
| Subscription and Support Revenues | $106,920,000 | $99,654,000 | $7,266,000 | 7.3% |
| Net Income (Loss) | $(10,504,000) | $28,676,000 | $(39,180,000) | (136.7%) |
| Basic Earnings (Loss) per Share | $(0.08) | $0.22 | $(0.30) | (136.4%) |
Revenue Breakdown by Region
Extreme Networks generates revenue from various geographic regions. The following table outlines the revenue generated by region for the three months ended September 30, 2024:
| Region | Q1 2025 Revenue | Q1 2024 Revenue | Change ($) |
|---|---|---|---|
| Americas | $165,435,000 | $195,649,000 | $(30,214,000) |
| EMEA | $84,918,000 | $143,603,000 | $(58,685,000) |
| APAC | $18,851,000 | $13,885,000 | $4,966,000 |
Gross Profit Analysis
The gross profit metrics for the three months ended September 30, 2024, are as follows:
| Category | Q1 2025 Gross Profit | Q1 2024 Gross Profit | Change ($) | Change (%) |
|---|---|---|---|---|
| Product Gross Profit | $92,882,000 | $144,947,000 | $(52,065,000) | (35.9%) |
| Subscription and Support Gross Profit | $76,625,000 | $67,989,000 | $8,636,000 | 12.7% |
| Total Gross Profit | $169,507,000 | $212,936,000 | $(43,429,000) | (20.4%) |
Operating Expenses
Operating expenses for the three months ended September 30, 2024, are detailed below:
| Expense Category | Q1 2025 Expenses | Q1 2024 Expenses | Change ($) | Change (%) |
|---|---|---|---|---|
| Research and Development | $54,451,000 | $58,016,000 | $(3,565,000) | (6.1%) |
| Sales and Marketing | $81,383,000 | $91,920,000 | $(10,537,000) | (11.5%) |
| General and Administrative | $36,601,000 | $23,873,000 | $12,728,000 | 53.3% |
| Total Operating Expenses | $174,224,000 | $177,037,000 | $(2,813,000) | (1.6%) |
Cash Flow Summary
Cash flow from operating activities for the three months ended September 30, 2024:
| Cash Flow Metric | Amount |
|---|---|
| Net Cash Provided by Operating Activities | $18,585,000 |
| Net Cash Used in Investing Activities | $(6,916,000) |
| Net Cash Used in Financing Activities | $(9,100,000) |
Market Position
Extreme Networks continues to focus on expanding its market presence through strategic partnerships and innovative networking solutions. The company maintains a commitment to enhancing customer experiences and optimizing operational efficiencies.
How Extreme Networks, Inc. (EXTR) Works
Business Overview
Extreme Networks, Inc. is a provider of software-driven networking solutions for enterprise customers. The company generates revenue primarily from sales of networking equipment and subscription-based services, including Software as a Service (SaaS) offerings.
Financial Performance
For the three months ended September 30, 2024, Extreme Networks reported the following financial results:
| Metric | September 30, 2024 | September 30, 2023 |
|---|---|---|
| Total Net Revenues | $269,204,000 | $353,137,000 |
| Product Revenues | $162,284,000 | $253,483,000 |
| Subscription and Support Revenues | $106,920,000 | $99,654,000 |
| Gross Profit | $169,507,000 | $212,936,000 |
| Operating Income (Loss) | ($4,717,000) | $35,899,000 |
| Net Income (Loss) | ($10,504,000) | $28,676,000 |
Revenue Breakdown
The revenue composition for the three months ended September 30, 2024, shows a significant reliance on product sales, which accounted for 60.3% of total revenues, while subscription and support services made up 39.7%.
| Category | Revenue ($) | Percentage of Total Revenue (%) |
|---|---|---|
| Product | $162,284,000 | 60.3% |
| Subscription and Support | $106,920,000 | 39.7% |
Cost Structure
The company's cost of revenues for the three months ended September 30, 2024, was as follows:
| Cost Category | Cost ($) |
|---|---|
| Cost of Product Revenues | $69,402,000 |
| Cost of Subscription and Support Revenues | $30,295,000 |
| Total Cost of Revenues | $99,697,000 |
Operating Expenses
Operating expenses for the same period were broken down into the following categories:
| Expense Category | Expense ($) |
|---|---|
| Research and Development | $54,451,000 |
| Sales and Marketing | $81,383,000 |
| General and Administrative | $36,601,000 |
| Restructuring and Related Charges | $1,277,000 |
| Amortization of Intangible Assets | $512,000 |
| Total Operating Expenses | $174,224,000 |
Cash Flow and Assets
As of September 30, 2024, Extreme Networks had the following cash flow and asset figures:
| Cash Flow Item | Amount ($) |
|---|---|
| Cash and Cash Equivalents | $159,546,000 |
| Net Cash Provided by Operating Activities | $18,585,000 |
| Capital Expenditures | ($6,916,000) |
Geographical Revenue Distribution
For the three months ended September 30, 2024, the geographical breakdown of revenues was as follows:
| Region | Revenue ($) |
|---|---|
| Americas | $165,435,000 |
| EMEA | $84,918,000 |
| APAC | $18,851,000 |
Stockholder Equity
As of September 30, 2024, the stockholder equity details were:
| Equity Item | Amount ($) |
|---|---|
| Common Stock | $150,000 |
| Additional Paid-In Capital | $1,234,220,000 |
| Accumulated Deficit | ($952,466,000) |
| Total Stockholders' Equity | $32,721,000 |
How Extreme Networks, Inc. (EXTR) Makes Money
Revenue Streams
Extreme Networks generates revenue primarily through two main categories: product sales and subscription and support services.
- Product Revenues: These are derived from the sales of networking equipment.
- Subscription and Support Revenues: This includes software as a service (SaaS), maintenance contracts, professional services, and training associated with their products.
Financial Performance Overview
For the first quarter of fiscal 2025, Extreme Networks reported the following financial metrics:
| Metric | Q1 FY 2025 | Q1 FY 2024 | Change ($) | Change (%) |
|---|---|---|---|---|
| Total Net Revenues | $269,204,000 | $353,137,000 | $(83,933,000) | (23.8%) |
| Product Revenues | $162,284,000 | $253,483,000 | $(91,199,000) | (36.0%) |
| Subscription and Support Revenues | $106,920,000 | $99,654,000 | $7,266,000 | 7.3% |
| Total Gross Profit | $169,507,000 | $212,936,000 | $(43,429,000) | (20.4%) |
| Net Income (Loss) | $(10,504,000) | $28,676,000 | $(39,180,000) | (136.7%) |
Product Revenue Breakdown
As of September 30, 2024, the breakdown of product revenues shows significant changes compared to the previous year:
| Region | Q1 FY 2025 Revenue | Q1 FY 2024 Revenue |
|---|---|---|
| Americas | $165,435,000 | $195,649,000 |
| EMEA | $84,918,000 | $143,603,000 |
| APAC | $18,851,000 | $13,885,000 |
Cost Structure
Extreme Networks' cost structure for the three months ended September 30, 2024, is detailed below:
| Cost Category | Q1 FY 2025 | Q1 FY 2024 |
|---|---|---|
| Cost of Product Revenues | $69,402,000 | $108,536,000 |
| Cost of Subscription and Support Revenues | $30,295,000 | $31,665,000 |
| Total Cost of Revenues | $99,697,000 | $140,201,000 |
Operating Expenses
Operating expenses for the same period are as follows:
| Expense Type | Q1 FY 2025 | Q1 FY 2024 |
|---|---|---|
| Research and Development | $54,451,000 | $58,016,000 |
| Sales and Marketing | $81,383,000 | $91,920,000 |
| General and Administrative | $36,601,000 | $23,873,000 |
| Total Operating Expenses | $174,224,000 | $177,037,000 |
Market Dynamics
Extreme Networks faces challenges in its product revenue due to macroeconomic conditions affecting bookings and shipments. Despite this, subscription and support revenue continues to grow, reflecting a strategic shift towards recurring revenue models.
Cash and Liquidity Position
As of September 30, 2024, Extreme Networks had cash and cash equivalents amounting to:
| Cash Category | Amount |
|---|---|
| Cash and Cash Equivalents | $159,546,000 |
| Accounts Receivable | $97,213,000 |
| Available Borrowings | $135,800,000 |
Customer Concentration
Extreme Networks' revenue is significantly influenced by a few key customers, with the following major clients accounting for 10% or more of net revenues:
| Customer | Q1 FY 2025 Contribution | Q1 FY 2024 Contribution |
|---|---|---|
| TD Synnex Corporation | 22% | 18% |
| Jenne, Inc. | 21% | 27% |
| Westcon Group, Inc. | 15% | 25% |
Future Outlook
Extreme Networks anticipates a focus on expanding its subscription offerings while managing the challenges in product sales amid fluctuating market conditions.
Extreme Networks, Inc. (EXTR) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Article updated on 8 Nov 2024
Resources:
- Extreme Networks, Inc. (EXTR) Financial Statements – Access the full quarterly financial statements for Q1 2025 to get an in-depth view of Extreme Networks, Inc. (EXTR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Extreme Networks, Inc. (EXTR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.