ࡱ> xy l \pThe Free Software Foundation B=PF0*8X@"1 Helvetica1Courier1 Courier New1 Courier New1 Helvetica$#,##0_);($#,##0)$#,##0_);[Red]($#,##0)$#,##0.00_);($#,##0.00)$#,##0.00_);[Red]($#,##0.00)-**_($* #,##0_);_($* (#,##0);_($* "-"_);_(@_)*)'_(* #,##0_);_(* (#,##0);_(* "-"_);_(@_)5,2_($* #,##0.00_);_($* (#,##0.00);_($* "-"??_);_(@_)2+/_(* #,##0.00_);_(* (#,##0.00);_(* "-"??_);_(@_)2$#,##0.00;[Red]$#,##0.003$#,##0.00;[Red]($#,##0.00)4$#,##0;[Red]($#,##00)50.00%;[Red](0.00%)6 0%;[Red](0%)7#,##0.00;[Red](#,##0.00)8#,##0;[Red](#,##0)                + ) , *   Ј ~~ ؈ ~~#؈ ~~ ؈ ~~"؈ ~~3#܈ ~~8#܈ ~~7#܈ ~~9#܈ ~~4#܈ ~~83ffff̙̙3f3fff3f3f33333f33 SIGNATURESFOR IMMEDIATE RELEASE&Fiscal Q2 2018 Financial Metric/.Business Outlook; Balance Sheet?TIncome StatementD} Cash FlowsIncome Statement (1)%GAAP TO NONGAAP RECONCILIATION%ͰGAAP TO NONGAAP RECONCILIA (1)%GAAP TO NONGAAP RECONCILIA (2)%GAAP TO NONGAAP RECONCILIA (3) l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/?? FOR IMMEDIATE RELEASE!Fiscal Q2 2018 Financial MetricBusiness Outlook Balance SheetIncome Statement Cash FlowsIncome Statement (1) GAAP TO NONGAAP RECONCILIATION GAAP TO NONGAAP RECONCILIA (1) GAAP TO NONGAAP RECONCILIA (2) GAAP TO NONGAAP RECONCILIA (3)U } } $ } 1      EXTREME NETWORKS INC 8-K 02/06/2018 SIGNATURESEXTREME NETWORKS, INC.    By:  /s/ B. DREW DAVIES   B. Drew Davies  1 )Executive Vice President, Chief Financial  . &Officer (Principal Accounting Officer)$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/*huS/w-!=PF0*8X> @" l  u  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??  SIGNATURES!Fiscal Q2 2018 Financial MetricBusiness Outlook Balance SheetIncome Statement Cash FlowsIncome Statement (1) GAAP TO NONGAAP RECONCILIATION GAAP TO NONGAAP RECONCILIA (1) GAAP TO NONGAAP RECONCILIA (2) GAAP TO NONGAAP RECONCILIA (3)U } $} $ } y#      EXTREME NETWORKS INC 8-K 02/06/2018FOR IMMEDIATE RELEASE   & For more information, contact:      Investor Relations   Media Contact Jean Marie Young   Jen Grabowski 212/481-2050 617/624-3200extreme@tpg-ir.com%ExtremeUS@racepointglobal.com$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/.vj^:P=PF0*8X> @ l  ,  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??  SIGNATURESFOR IMMEDIATE RELEASEBusiness Outlook Balance SheetIncome Statement Cash FlowsIncome Statement (1) GAAP TO NONGAAP RECONCILIATION GAAP TO NONGAAP RECONCILIA (1) GAAP TO NONGAAP RECONCILIA (2) GAAP TO NONGAAP RECONCILIA (3)U } '} $ }  } $} $ }  } $} $ } } $ } $} $      EXTREME NETWORKS INC 8-K 02/06/2018)!Fiscal Q2 2018 Financial Metrics:Q2 FY'18Q2 FY'17  Change        (As adjusted)         " GAAP Results of Operations                 Product  e@   fffff]@   YL@   ~  % Service   fffff&L@    fffff&C@   ~ J   ~  % Total Net Revenue  33333l@   ̌c@   ̬R@   ~  % Gross MarginfffffK@ %33333sI@ %  490bps  ~ * %Operating Margin+ %ffffff %  -1156bps  ~  %Net Lossfffff?  33333;  ~  %( Loss per basic and diluted shareQѿ{Gz  Qο  ~  %&Non-GAAP Results of Operations     Producte@fffff]@  YL@  ~  %Servicefffff&L@fffff&C@  ~  J  ~  %Total Net Revenue33333l@̌c@  ̬R@  ~  % Gross Margin33333M@ %L@ %  220bps  ~  %Operating Margin!@ %ffffff'@ %  290bps  ~  % Net Incomeffffff0@1@  ffffff  ~  %"Earnings per diluted shareQ?{Gz?  {Gz  ~  %$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/BXvj^Yu9OHqeY1=PF0*8X> @#                l  @:  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??  SIGNATURESFOR IMMEDIATE RELEASE!Fiscal Q2 2018 Financial Metric Balance SheetIncome Statement Cash FlowsIncome Statement (1) GAAP TO NONGAAP RECONCILIATION GAAP TO NONGAAP RECONCILIA (1) GAAP TO NONGAAP RECONCILIA (2) GAAP TO NONGAAP RECONCILIA (3)U } a/}  $                          EXTREME NETWORKS INC 8-K 02/06/2018Business Outlook:Gross Margin RateOperating Margin Rate Earnings per Share  GAAP  56.1% - 58.4%    (2.5)% - 0.8%   $(0.09)-$(0.01) " Estimated adjustments for:           + #Amortization of product intangibles 1.7%   0.6%   {Gz?  Stock based compensation 0.2%   3.2%   Q?  Inventory adjustments 0.4%   0.4%   {Gz? /'Amortization of non product intangibles~  1.7% {Gz? "Restructuring charges, net~  1.6% {Gz? )!Acquisition and integration costs 0.5% 4.1%  ףp= ?    Non-GAAP 58.9% - 61.1% 9.2% - 12.2%  $0.17 - $0.24 $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/4 zn1X*m=PF0*8X> @                l  .tLZS  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??  SIGNATURESFOR IMMEDIATE RELEASE!Fiscal Q2 2018 Financial MetricBusiness OutlookIncome Statement Cash FlowsIncome Statement (1) GAAP TO NONGAAP RECONCILIATION GAAP TO NONGAAP RECONCILIA (1) GAAP TO NONGAAP RECONCILIA (2) GAAP TO NONGAAP RECONCILIA (3)U } $4} $ }  } $ }  } $ .                                 EXTREME NETWORKS INC 8-K 02/06/2018 Balance Sheet December 31,June 30,  ~   ~         (As adjusted)  ASSETS         Current assets:        ! Cash and cash equivalents ~   ~ J -%Accounts receivable, net of allowance~ jt ~ 3+for doubtful accounts of $1,382 at December,$31, 2017 and $1,190 at June 30, 2017 Inventories~ ~ 1)Prepaid expenses and other current assets~ ~ nTotal current assets~ N~ j=#Property and equipment, net~ V/~ Intangible assets, net~ ~ Goodwill~ ~ b Other assets~ ~  Total assets~ ],~ ,$LIABILITIES AND STOCKHOLDERS? EQUITYCurrent liabilities:)!Current portion of long-term debt~ j^~ Accounts payable~ F}~ )!Accrued compensation and benefits~ B~ Accrued warranty~ J~ bDeferred revenue, net~ ~ "D)l~r Qd^'|_NZfm\ ! " # $ % & ' ( ) * + , - ! Other accrued liabilities  ~ V   ~ B !!Total current liabilities!!~ !"!!!~ !V !."&Deferred revenue, less current portion""~ "\"""~ "6",#$Long-term debt, less current portion##~ #" ###~ ##$Deferred income taxes$$~ $P$$$~ $f$#%Other long-term liabilities%%~ %n%%%~ %:%%&Commitments and contingencies&& &-&&& &-&'Stockholders? equity''~ ''''~ ''2(*Total liabilities and stockholders? equity(~ (],((~ (()*$+____________________________1,)Created by Morningstar Document Research.0-(http://documentresearch.morningstar.com/ wX?)# =PF0*8X> @--,,++((((      l  3l{  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??  SIGNATURESFOR IMMEDIATE RELEASE!Fiscal Q2 2018 Financial MetricBusiness Outlook Balance Sheet Cash FlowsIncome Statement (1) GAAP TO NONGAAP RECONCILIATION GAAP TO NONGAAP RECONCILIA (1) GAAP TO NONGAAP RECONCILIA (2) GAAP TO NONGAAP RECONCILIA (3)U } 7} $ }  } $ }  }  $ }  } $ }  } $ 3     EXTREME NETWORKS INC 8-K 02/06/2018Income StatementThree Months Ended  Six Months Ended    December 31,    December 31,    December 31,    December 31,   ~   ~   ~   ~         (As adjusted)        (As adjusted)   Net revenues:                 Product ~    ~ 4  ~   ~ R  Service~ Fo~ V  ~  L  ~ RTotal net revenues~ N~ f   ~  Z  ~ Cost of revenues:     Product~ "~   ~  ֬   ~ Service~ q~ J  ~  *  ~ Total cost of revenues~ ;~ ֮  ~  K   ~ % Gross profit:     Product~ ~ b  ~     ~ b.Service~ ~ z  ~    ~ Total gross profit~ j~   ~  ^  ~  Operating expenses:      Research and development~ N~ 6w  ~    ~ "Sales and marketing~ ~   ~  f  ~ "General and administrative~ V~ ֒  ~  t  ~ R.&Acquisition and integration costs, net~ ~ &A  ~  ^W  ~ je of bargain purchase gain.&Restructuring and related charges, net -~     -  ~  of reversalsDl{o-Ch,Qv !"#$%&'()*+,-./012# Amortization of intangibles  ~ *   ~ !   ~ "D   ~ b  !Total operating expenses!!~ ! !!!~ !" !! ! ~ ! F[! ! !~ !rO !"Operating loss""~ """"~ "r"" " ~ " `" " "~ ""#Interest income##~ #6 ###~ #F## # ~ # R# # #~ #*#$Interest expense$$~ $$$$~ $$$ $ ~ $ F$ $ $~ $$#%Other income (expense), net%%~ %%%%~ %%% % ~ % &% % %~ % % &Loss before income taxes&&~ &&&&~ &Z&& & ~ & ~R& & &~ &΄&,'$Provision (benefit) for income taxes''~ ''''~ 'n'' ' ~ ' ' ' '~ ' '(Net loss(~ (6 ((~ ((( ~ ( Q( ( ~ (6d(-)%Basic and diluted net loss per share:))))))))) ) ) ) ) )))"*Net loss per share - basic**Qѿ***{Gz** * Qο* * * ףp= *$+Net loss per share - diluted++Qѿ+++{Gz++ + Qο+ + + ףp= +4,,Shares used in per share calculation - basic,,~ ,V,,,~ ,,, , ~ , , , ,~ , ,6-.Shares used in per share calculation - diluted--~ -V---~ --- - ~ - - - -~ - -./$0____________________________11)Created by Morningstar Document Research.02(http://documentresearch.morningstar.com/*h%C`| >nnl`T,=PF0*8X> @221100++++++ ++****** **(((((( ((             l  'э  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??  SIGNATURESFOR IMMEDIATE RELEASE!Fiscal Q2 2018 Financial MetricBusiness Outlook Balance SheetIncome StatementIncome Statement (1) GAAP TO NONGAAP RECONCILIATION GAAP TO NONGAAP RECONCILIA (1) GAAP TO NONGAAP RECONCILIA (2) GAAP TO NONGAAP RECONCILIA (3)U } $4} $ }  } $ }  } $ '                                 EXTREME NETWORKS INC 8-K 02/06/2018 Cash FlowsSix Months Ended    December 31,    December 31,   ~   ~ 1 )Net cash provided by operating activities ~   ~ b- - %Cash flows from investing activities:         Capital expenditures  ~ 0   ~ *  Acquisitions~ N ~ 3+Proceeds from sale of non-marketable equity~ L - investment-%Net cash used in investing activities~ B~ -%Cash flows from financing activities:"Borrowings under Term Loan~ ~ Loan fees on borrowings~ ~ FRepayments of debt~ Jx~ ީ/'Proceeds from issuance of common stock,~ ~ ~Knet of tax withholding1)Net cash provided by financing activities~ rc~ 'Foreign currency effect on cash~ z~ 60(Net (decrease) increase in cash and cash~ ~  equivalents.&Cash and cash equivalents at beginning~ J~ D lu5}kk& kIDI ! " # $ % &   of period2!*Cash and cash equivalents at end of period!~ !!!~ !U!"#$$____________________________1%)Created by Morningstar Document Research.0&(http://documentresearch.morningstar.com/xi]Q)=PF0*8X> @b &&%%$$!!!!       l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??  SIGNATURESFOR IMMEDIATE RELEASE!Fiscal Q2 2018 Financial MetricBusiness Outlook Balance SheetIncome Statement Cash Flows GAAP TO NONGAAP RECONCILIATION GAAP TO NONGAAP RECONCILIA (1) GAAP TO NONGAAP RECONCILIA (2) GAAP TO NONGAAP RECONCILIA (3)U } $} $ } $} $ } $}  $ } $} $ } U} $      EXTREME NETWORKS INC 8-K 02/06/2018Income StatementNon-GAAP RevenueThree Months Ended Six Months Ended   December 31,    December 31,    December 31,    December 31,  ~   ~   ~   ~        (As adjusted)        (As adjusted)  Revenue - GAAP Basis~ N  ~ f   ~ Z  ~    Adjustments:               &Purchase accounting adjustment - -   -   ~  Revenue - Non-GAAP Basis~ N~ f ~  Z  ~  * $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/.q{o5;o=PF0*8X> @               l  t  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??  SIGNATURESFOR IMMEDIATE RELEASE!Fiscal Q2 2018 Financial MetricBusiness Outlook Balance SheetIncome Statement Cash FlowsIncome Statement (1) GAAP TO NONGAAP RECONCILIA (1) GAAP TO NONGAAP RECONCILIA (2) GAAP TO NONGAAP RECONCILIA (3)U } 0.} $ }  } $} $ }  } $}  $ } } $} $ }  } $      EXTREME NETWORKS INC 8-K 02/06/2018'GAAP TO NON-GAAP RECONCILIATIONNon-GAAP Gross MarginThree Months Ended Six Months Ended   December 31,    December 31,    December 31,    December 31,  ~   ~   ~   ~        (As adjusted)        (As adjusted) ! Gross profit - GAAP Basis~ j  ~   ~ ^  ~   , $Gross margin - GAAP Basis percentage  fffffK@ %   33333sI@ %   @K@ %   J@ % Adjustments:     ( Stock based compensation expense~ ~  ~  >    ~  'Purchase accounting adjustments - -   -   ~ &Acquired inventory adjustments~ ~ # ~  nA   ~ #)!Acquisition and integration costs~ )~ 6V ~  F   ~ 6V#Amortization of intangibles~ =~  ~  f   ~ BP.&Total adjustments to GAAP gross profit~ ~ ҙ~  B  ~  Gross profit - Non-GAAP~ Va~ bv~    ~   *"Gross margin - Non-GAAP percentage33333M@ %L@ %   M@  %  ~  %$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/<hxl`!""VnkqeY1=PF0*8X> @                 l   U  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??  SIGNATURESFOR IMMEDIATE RELEASE!Fiscal Q2 2018 Financial MetricBusiness Outlook Balance SheetIncome Statement Cash FlowsIncome Statement (1) GAAP TO NONGAAP RECONCILIATION GAAP TO NONGAAP RECONCILIA (2) GAAP TO NONGAAP RECONCILIA (3)U } 2} $ }  } $} $ }  } $}  $ } } $} $ }  } $      EXTREME NETWORKS INC 8-K 02/06/2018'GAAP TO NON-GAAP RECONCILIATION!Non-GAAP Operating IncomeThree Months Ended Six Months Ended   December 31,    December 31,    December 31,    December 31,  ~   ~   ~   ~        (As adjusted)        (As adjusted) $ GAAP operating income (loss)~   ~ r  ~ `  ~  / 'GAAP operating income (loss) percentage  + %   ffffff %  ~  %    % Adjustments:     ( Stock based compensation expense~ m~ 4 ~  Ҹ   ~ "k.&Acquisition and integration costs, net~ >~ Z ~     ~  of bargain purchase gain-%Restructuring charge, net of reversal -~    -   ~ &Acquired inventory adjustments~ ~ # ~  nA   ~ ##Amortization of intangibles~ h~ < ~  "   ~ 'Purchase accounting adjustments - -   -   ~ "Executive transition costs - -   -   ~  Litigation~ N~  ~  N   ~ 2*Total adjustments to GAAP operating income~ :#~ M~  <  ~  N!!Non-GAAP operating income~ "=~  ~    ~  ,$Non-GAAP operating income percentage!@ %ffffff'@ %  ffffff#@  %  ~ * %$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/Dlxl`PhzVk K^=PF0*8X> @                 l  &_  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??  SIGNATURESFOR IMMEDIATE RELEASE!Fiscal Q2 2018 Financial MetricBusiness Outlook Balance SheetIncome Statement Cash FlowsIncome Statement (1) GAAP TO NONGAAP RECONCILIATION GAAP TO NONGAAP RECONCILIA (1) GAAP TO NONGAAP RECONCILIA (3)U } :} $ }  } $ }  }  $ } } $ }  } $ &     EXTREME NETWORKS INC 8-K 02/06/2018'GAAP TO NON-GAAP RECONCILIATIONNon-GAAP Net IncomeThree Months Ended Six Months Ended   December 31,    December 31,    December 31,    December 31,  ~   ~   ~   ~        (As adjusted)        (As adjusted)   GAAP net loss~ 6   ~   ~ Q  ~ 6d   Adjustments:               ( Stock based compensation expense~ m~ 4 ~  Ҹ   ~ "k.&Acquisition and integration costs, net~ >~ Z ~     ~  of bargain purchase gain-%Restructuring charge, net of reversal -~    -   ~ &Acquired inventory adjustments~ ~ # ~  nA   ~ ##Amortization of intangibles~ h~ < ~  "   ~ 'Purchase accounting adjustments - -   -   ~ "Executive transition costs - -   -   ~  Litigation~ N~  ~  N   ~ 80Gain on sale of non-marketable equity investment - - ~  N    - Income tax~  - ~      -*"Total adjustments to GAAP net loss~ ~ M~  r  ~  N!Non-GAAP net income~ ~  ~  #  ~       Earnings per share     -%Non-GAAP net income per share-dilutedQ?{Gz? (\?   q= ףp?     3+Shares used in net income per share-diluted     Dlxl`#0d|j!,\7e !"#$% Non-GAAP shares used ~ zM   ~ "   ~ C   ~ J !"$#____________________________1$)Created by Morningstar Document Research.0%(http://documentresearch.morningstar.com/d$ =PF0*8X> @%%$$##                   l  Q  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??  SIGNATURESFOR IMMEDIATE RELEASE!Fiscal Q2 2018 Financial MetricBusiness Outlook Balance SheetIncome Statement Cash FlowsIncome Statement (1) GAAP TO NONGAAP RECONCILIATION GAAP TO NONGAAP RECONCILIA (1) GAAP TO NONGAAP RECONCILIA (2)U } 2} $ }  } $ }  }  $ }  } $ }  } $      EXTREME NETWORKS INC 8-K 02/06/2018'GAAP TO NON-GAAP RECONCILIATIONFree Cash FlowThree Months Ended Six Months Ended   December 31,    December 31,    December 31,    December 31,  ~   ~   ~   ~ 2 *Cash flow (used in) provided by operations~    ~ ʗ  ~   ~ b- ! Less: PP&E CapEx spending ~    ~    ~ 0   ~ *  Total free cash flow~  `  ~ ~h  ~   ~  $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/*hxl`(MA5 =PF0*8X> @              Root Entry FBook  h  !"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvw