- Extreme Networks, Inc (NASDAQ: EXTR) reported a flat fourth-quarter FY22 revenue growth year-on-year to $278.2 million, beating the consensus of $268.96 million.
- Product revenue declined 8.7% Y/Y to $187.1 million. Service and subscription revenue grew 8.8% Y/Y to $91.1 million.
- SaaS ARR was $103 million, up 47% Y/Y and 8% quarter-over-quarter.
- Non-GAAP EPS of $0.15 beat the consensus of $0.14.
- Non-GAAP gross margin contracted 350 bps to 57.0%. Non-GAAP operating margin contracted 380 bps to 9.6%.
- EXTR generated $64.1 million in operating cash flow and held $194.5 million in cash and equivalents.
- CFO Remi Thomas added, "After another quarter of solid execution, we achieved double-digit growth for the year and improved operating margins, even in the current supply chain environment."
- "As we enter FY23, our record backlog, combined with the expected improvement in the supply chain environment through the course of the year gives us further confidence that we can grow the topline between 10-15%, improve our gross margin to exit the year above 60%, and deliver an operating margin between 10-15%," concluded Thomas.
- Outlook: EXTR sees Q1 revenue of $279 million - $289 million, above the consensus of $278.5 million.
- Non-GAAP EPS of $0.15 - $0.20 compared to the consensus of $0.17.
- Price Action: EXTR shares traded higher by 6.43% at $11.76 in the premarket on the last check Wednesday.
Read at Benzinga