Extreme Networks, Inc. (EXTR) saw its loss widen to $8.61 million, or $0.08 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $7.23 million, or $0.07 a share. On the other hand, adjusted net income for the quarter stood at $12.74 million, or $0.12 a share compared with $8.96 million or $0.09 a share, a year ago. Revenue during the quarter grew 6.32 percent to $148.11 million from $139.30 million in the previous year period. Gross margin for the quarter expanded 43 basis points over the previous year period to 50.88 percent. Operating margin for the quarter stood at negative 4.97 percent as compared to a negative 3.85 percent for the previous year period.
Operating loss for the quarter was $7.36 million, compared with an operating loss of $5.36 million in the previous year period.
However, the adjusted operating income for the quarter stood at $13.99 million compared to $10.84 million in the prior year period. At the same time, adjusted operating margin improved 167 basis points in the quarter to 9.44 percent from 7.78 percent in the last year period.
"We are pleased to announce solid second quarter results reflecting strong execution of our operating plan to drive higher cash flows,” stated Ed Meyercord, president and chief executive officer of Extreme Networks. "During the quarter, we expanded gross margins and increased profitability through our focused selling strategy to enterprise campus customers across our targeted verticals, while also implementing significant cost savings initiatives. We grew our non-GAAP gross margin by 390 basis points and operating margin by 160 basis points year-over-year, each reaching their highest levels in three years, underscoring the progress we have made both strategically and operationally."
For the third-quarter, Extreme Networks, Inc. expects revenue to be in the range of $151 million to $161 million. Extreme Networks, Inc. forecasts net loss to be in the range of $7.40 million to $12 million for the third-quarter. Extreme Networks, Inc. projects adjusted net income to be in the range of $6.60 million to $11.20 million for the third-quarter. The company projects diluted loss per share to be in the range of $0.07 to $0.11 for the third-quarter. On an adjusted basis, the company projects diluted earnings per share to be in the range of $0.06 to $0.10 for the third-quarter.
Operating cash flow improves significantlyExtreme Networks, Inc. has generated cash of $19.29 million from operating activities during the first half, up 38.10 percent or $5.32 million, when compared with the last year period. The company has spent $55.75 million cash to meet investing activities during the first six months as against cash outgo of $1.41 million in the last year period.
Cash flow from financing activities was $46.24 million for the first six months as against cash outgo of $2.54 million in the last year period.
Cash and cash equivalents stood at stood at $103.79 million as at Dec. 31, 2016.
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