NASDAQ$EXTR

Extreme Networks Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Financial results reported a decrease in revenue and EPS due to COVID-19 impact.

Extreme Networks reported Q3 fiscal year 2020 results with a revenue of $209.5 million, a GAAP EPS of $(0.37), and a non-GAAP EPS of $(0.14). The company focused on strengthening its balance sheet and cloudifying its portfolio amid the COVID-19 pandemic.

  • Revenue was $209.5 million, down 16% year-over-year.
  • GAAP EPS was $(0.37), down from $(0.06) year-over-year.
  • Non-GAAP EPS was $(0.14), down from $0.08 year-over-year.
  • Cash and cash equivalents totaled nearly $200 million.

Headline financials

Total Revenue

$210M

Previous: $251M-16.5%
EPS (adj)

-$0.14

Previous: $0.08-275.0%
GAAP Gross Margin

53.1%

Previous: 55.4%-4.2%
Non-GAAP Gross Margin

56.7%

Previous: 57.6%-1.6%
GAAP Operating Margin

-18.3%

Previous: -0.9%-1933.3%
Non-GAAP Operating Margin

-5.1%

Previous: 5.6%-191.1%
Capital Expenditures

-$12.6M

Previous: -$16.2M+21.9%
Free Cash Flow

-$57M

Previous: -$23.1M-146.5%
Net Income

-$44.4M

Previous: -$6.93M-539.8%
Operating Income

-$38.4M

Previous: -$2.25M-1601.7%
Gross Profit

$111M

Previous: $139M-19.9%
Cash & Equivalents

$196M

Previous: $157M+25.2%
Total Assets

$973M

Previous: $712M+36.8%
Stock-Based Comp

$7.14M

Previous: $8.81M-19.0%

Revenue & EPS history

Extreme Networks · Revenue · Quarterly

$210M

Q3 2020-16.5%vs Q3 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Extreme Networks · $137M total across 1 segment · Q3 2020

  • Product
    $137M

Forward guidance

Due to the fluid market environment and the back-end loaded nature of the business, Extreme Networks is temporarily suspending its Q4 2020 outlook and will reassess providing quarterly guidance at the end of the fourth fiscal quarter.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

+0.2%

Avg return

Earnings day

-0.7%

Avg return

5 days after

+3.9%

Avg return

30 days after

61%

39 / 64 earnings

Positive

+28.2%

Q3 2026

Best reaction

-30.4%

Q4 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026+28.2%+33.9%+55.5%
Q2 2026+2.4%-0.9%-6.9%
Q1 2026-15.4%-11.7%-17.7%
Q3 2025+4.9%+7.8%+19.1%
Q2 2025-3.0%-6.3%-4.9%
Q1 2025+5.0%+6.9%+16.7%
Q4 2024+3.6%+2.7%+5.8%
Q3 2024+2.0%-2.1%-0.4%
Q2 2024-20.6%-25.9%-25.1%
Q1 2024-17.1%-17.6%-20.6%
Q4 2023+6.6%+9.6%-2.5%
Q3 2023+8.4%+10.8%+19.4%
Q2 2023-9.0%-9.4%-2.4%
Q1 2023+13.8%+16.4%+29.4%
Q4 2022+17.4%+16.7%+28.6%
Q3 2022-13.0%-12.1%-10.9%
Q2 2022-1.9%+1.5%-2.5%
Q1 2022+15.5%+11.5%+30.6%
Q4 2021+14.7%+13.5%+12.6%
Q3 2021+16.8%+10.3%+11.3%
Q2 2021+1.7%-3.6%-6.6%
Q1 2021-5.1%-16.3%+22.0%
Q4 2020+4.6%+1.3%-14.5%
Q3 2020-1.5%-13.9%+36.8%
Q2 2020-15.8%-19.3%-30.7%
Q1 2020-14.9%-13.6%-7.1%
Q4 2019+13.7%+10.2%-9.2%
Q3 2019-20.1%-17.0%-29.6%
Q2 2019+9.0%+7.7%+21.1%
Q1 2019+14.7%+11.6%+12.1%
Q4 2018-30.4%-29.1%-33.1%
Q3 2018-23.5%-26.7%-24.3%
Q2 2018-13.5%-21.8%-8.1%
Q1 2018+0.6%-4.7%+10.1%
Q4 2017+20.4%+23.8%+30.7%
Q3 2017+11.1%+19.7%+33.2%
Q2 2017+0.0%+0.9%+11.2%
Q1 2017+2.9%+2.4%+1.9%
Q4 2016+0.8%+4.2%+1.3%
Q3 2016+5.7%
Q2 2016-29.6%
Q1 2016+1.4%
Q4 2015+21.5%
Q3 2015-0.8%
Q2 2015+12.6%
Q1 2015+15.2%
Q4 2014-0.8%
Q3 2014-29.0%
Q2 2014-16.3%
Q1 2014+12.0%
Q4 2013-4.8%
Q3 2013-4.6%
Q2 2013+0.8%
Q1 2013+8.0%
Q4 2012+0.3%
Q3 2011-0.8%
Q3 2012+0.3%
Q2 2011+2.2%
Q2 2012+0.9%
Q1 2012+2.4%
Q1 2011+2.4%
Q4 2011+2.4%
Q4 2010-2.3%
Q3 2010+0.3%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro