Fri, Aug 16, 9:05 PM (151 days ago)
Extreme Networks, Inc. reported a significant decline in financial performance for the fiscal year ending June 30, 2024, with net revenues of $1,117.2 million, down 14.9% from $1,312.5 million in 2023. Product revenues fell 25% to $699.3 million, while subscription and support revenues increased by 10% to $417.9 million. The gross margin slightly decreased to 56.5%, and the company recorded an operating loss of $65.2 million compared to an operating income of $108.3 million the previous year. The net loss was $86.0 million, contrasting with a net income of $78.1 million in 2023. Cash flow from operations also decreased substantially, dropping to $55.5 million from $249.2 million. The company faces various risks, including intense competition, supply chain disruptions, and cybersecurity threats. Future outlook remains uncertain, but Extreme Networks is focusing on cloud networking solutions to drive growth. The company has initiated restructuring plans, resulting in a $36.3 million charge in 2024. Overall, the financial condition reflects challenges in revenue generation and profitability, necessitating strategic adjustments.