Extreme Networks Q1 Results Top Estimates; Sees Q2 Above View - Quick Facts

(RTTNews) - Extreme Networks Inc. (EXTR) reported that net loss for the first quarter of fiscal 2014 ending September 30, 2013 was $35 thousand or break even per share, compared to net income of $12.9 million or $0.14 per share in the first quarter of fiscal 2013.

The latest-quarter result included a $3.7 million expense related to Enterasys Networks acquisition. However, the prior year result included a $11.5 million one-time gain on the sale of facilities.

On a non-GAAP basis, net income for the latest-quarter was $5.3 million, or $0.06 per share, compared to non-GAAP net income of $3.5 million, or $0.04 per share last year. Analysts polled by Thomson Reuters expected the company to report earnings of $0.04 per share for the quarter. Analysts' estimates typically exclude special items.

Quarterly revenue was $75.9 million, down from $76.1 million last year. Three analysts estimated revenues of $74.17 million for the quarter.

For its second quarter of fiscal 2014 ending December 31, 2013, the company expects GAAP revenue to be in a range of $140 million to $155 million with non-GAAP revenue in a range of $145 million to $160 million. GAAP net loss is targeted to be between $6 million to $8 million, or $0.06 to $0.09 per diluted share. Non-GAAP net income is targeted in a range of $13 million to $16 million, or $0.14 to $0.16 per share. Analysts expect the company to report earnings of $0.06 per share and revenues of $78.36 million for the second-quarter.

The company stated that the financial targets for the second fiscal quarter reflect the acquisition of Enterasys Networks on October 31, 2013, and will include Enterasys results for the months of November and December.

The company targets quarterly financial model of operating at a non-GAAP operating income of 10% +/-, by the end of fiscal 2015. The company said that to achieve this goal, it intends to focus on completing the integration of the two companies and growing its revenue with high performing and lower cost products and services.