Delaware |
000-25711 |
77-0430270 | ||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
Exhibit No. |
Description | |
99.1 |
Press Release dated April 17, 2002 regarding financial information for Extreme for the quarter ended March 31, 2002 and forward-looking statements
relating to fiscal 2002. |
EXTREME NETWORKS, INC. | ||
By: |
/s/ HAROLD L. COVERT | |
Harold L. Covert Chief Financial Officer |
Exhibit No. |
Description | |
99.1 |
Press Release dated April 17, 2002 regarding financial information for Extreme for the quarter ended March 31, 2002 and forward-looking statements
relating to fiscal 2002. |
Three Months Ended |
Nine Months Ended |
|||||||||||||||
March 31, 2002 |
March 31, 2001 |
March 31, 2002 |
March 31, 2001 |
|||||||||||||
Net revenue |
$ |
111,132 |
|
$ |
112,106 |
|
$ |
328,487 |
|
$ |
376,163 |
| ||||
Costs and expenses: |
||||||||||||||||
Cost of revenue |
|
47,219 |
|
|
97,864 |
|
|
181,981 |
|
|
225,728 |
| ||||
Research and development |
|
15,396 |
|
|
16,497 |
|
|
46,411 |
|
|
41,193 |
| ||||
Sales, marketing and service |
|
34,281 |
|
|
41,578 |
|
|
106,969 |
|
|
117,192 |
| ||||
General and administrative |
|
6,294 |
|
|
11,284 |
|
|
20,381 |
|
|
20,442 |
| ||||
Impairment of acquired intangible assets |
|
89,752 |
|
|
|
|
|
89,752 |
|
|
|
| ||||
Amortization of goodwill, purchased intangible assets and deferred stock compensation |
|
15,123 |
|
|
8,239 |
|
|
45,084 |
|
|
22,101 |
| ||||
Restructuring and one-time charges |
|
73,570 |
|
|
34,020 |
|
|
73,570 |
|
|
34,020 |
| ||||
Total costs and expenses |
|
281,635 |
|
|
209,482 |
|
|
564,148 |
|
|
460,676 |
| ||||
Operating loss |
|
(170,503 |
) |
|
(97,376 |
) |
|
(235,661 |
) |
|
(84,513 |
) | ||||
Other income, net |
|
(2,856 |
) |
|
2,005 |
|
|
(4,733 |
) |
|
8,519 |
| ||||
Loss before income taxes |
|
(173,359 |
) |
|
(95,371 |
) |
|
(240,394 |
) |
|
(75,994 |
) | ||||
Benefit for income taxes |
|
(33,560 |
) |
|
(25,256 |
) |
|
(53,935 |
) |
|
(18,474 |
) | ||||
Net loss |
$ |
(139,799 |
) |
$ |
(70,115 |
) |
$ |
(186,459 |
) |
$ |
(57,520 |
) | ||||
Net loss per sharebasic |
$ |
(1.23 |
) |
$ |
(0.64 |
) |
$ |
(1.66 |
) |
$ |
(0.54 |
) | ||||
Net loss per sharediluted |
$ |
(1.23 |
) |
$ |
(0.64 |
) |
$ |
(1.66 |
) |
$ |
(0.54 |
) | ||||
Shares used in per share calculationbasic |
|
113,281 |
|
|
109,028 |
|
|
112,638 |
|
|
107,433 |
| ||||
Shares used in per share calculationdiluted |
|
113,281 |
|
|
109,028 |
|
|
112,638 |
|
|
107,433 |
|
Three Months Ended |
Nine Months Ended | ||||||||||||
March 31, 2002 |
March 31, 2001 |
March 31, 2002 |
March 31, 2001 | ||||||||||
Net revenue |
$ |
111,132 |
$ |
112,106 |
|
$ |
328,487 |
$ |
376,163 | ||||
Costs and expenses: |
|||||||||||||
Cost of revenue |
|
51,995 |
|
57,534 |
|
|
155,307 |
|
185,398 | ||||
Research and development |
|
15,396 |
|
16,497 |
|
|
46,411 |
|
41,193 | ||||
Sales, marketing and service |
|
34,281 |
|
41,578 |
|
|
106,969 |
|
117,192 | ||||
General and administrative |
|
6,294 |
|
10,284 |
|
|
17,681 |
|
19,442 | ||||
Total costs and expenses |
|
107,966 |
|
125,893 |
|
|
326,368 |
|
363,225 | ||||
Operating income (loss) |
|
3,166 |
|
(13,787 |
) |
|
2,119 |
|
12,938 | ||||
Other income, net |
|
801 |
|
2,864 |
|
|
4,924 |
|
9,378 | ||||
Income (loss) before income taxes |
|
3,967 |
|
(10,923 |
) |
|
7,043 |
|
22,316 | ||||
Provision (benefit) for income taxes |
|
1,388 |
|
(3,823 |
) |
|
2,465 |
|
7,782 | ||||
Net income (loss) |
$ |
2,579 |
$ |
(7,100 |
) |
$ |
4,578 |
$ |
14,534 | ||||
Net income (loss) per sharebasic |
$ |
0.02 |
$ |
(0.07 |
) |
$ |
0.04 |
$ |
0.14 | ||||
Net income (loss) per sharediluted |
$ |
0.02 |
$ |
(0.07 |
) |
$ |
0.04 |
$ |
0.12 | ||||
Shares used in per share calculationbasic |
|
113,281 |
|
109,028 |
|
|
112,638 |
|
107,433 | ||||
Shares used in per share calculationdiluted |
|
117,411 |
|
109,028 |
|
|
117,655 |
|
118,091 |
(i) |
This statement of operations information for the three and nine months ended March 31, 2001 and 2002 is for illustrative purposes only and is not prepared in accordance with
generally accepted accounting principles.The following table reconciles our GAAP net loss from Table A to our pro forma net income in Table B: |
Three Months Ended |
Nine Months Ended |
|||||||||||||||
March 31, 2002 |
March 31, 2001 |
March 31, 2002 |
March 31, 2001 |
|||||||||||||
GAAP net loss |
$ |
(139,799 |
) |
$ |
(70,115 |
) |
$ |
(186,459 |
) |
$ |
(57,520 |
) | ||||
Pro forma adjustments: |
||||||||||||||||
Charges related to contract manufacturers and other costs associated with carrying value of inventory |
|
(4,776 |
) |
|
40,330 |
|
|
26,674 |
|
|
40,330 |
| ||||
Impairment of acquired intangible assets |
|
89,752 |
|
|
|
|
|
89,752 |
|
|
|
| ||||
Amortization of goodwill, purchased intangible assets and deferred stock compensation |
|
15,123 |
|
|
8,239 |
|
|
45,084 |
|
|
22,101 |
| ||||
In-process research and development |
|
|
|
|
30,142 |
|
|
|
|
|
30,142 |
| ||||
Restructuring and one-time |
charges |
|
77,227 |
|
|
5,737 |
|
|
85,927 |
|
|
5,737 |
| ||||
Income tax benefit |
|
(34,948 |
) |
|
(21,433 |
) |
|
(56,400 |
) |
|
(26,256 |
) | ||||
Pro forma net income (loss) |
$ |
2,579 |
|
$ |
(7,100 |
) |
$ |
4,578 |
|
$ |
14,534 |
|
March 31, 2002 |
June 30, 2001 | |||||
ASSETS |
||||||
Current assets: |
||||||
Cash, cash equivalents and investments |
$ |
218,225 |
$ |
157,096 | ||
Accounts receivable, net |
|
55,765 |
|
63,211 | ||
Inventories, net |
|
35,889 |
|
60,529 | ||
Deferred taxes |
|
34,458 |
|
35,855 | ||
Other current assets |
|
11,813 |
|
12,061 | ||
|
|
|
| |||
Total current assets |
|
356,150 |
|
328,752 | ||
Property and equipment, net |
|
54,807 |
|
57,251 | ||
Restricted investments |
|
80,000 |
|
80,000 | ||
Marketable securities |
|
179,212 |
|
34,406 | ||
Goodwill and purchased intangible assets, net |
|
1,090 |
|
113,886 | ||
Deferred taxes |
|
97,347 |
|
40,028 | ||
Other assets |
|
12,830 |
|
12,025 | ||
|
|
|
| |||
Total assets |
$ |
781,436 |
$ |
666,348 | ||
|
|
|
| |||
LIABILITIES AND STOCKHOLDERS' EQUITY |
||||||
Current liabilities: |
||||||
Accounts payable |
$ |
36,740 |
$ |
35,890 | ||
Deferred revenue |
|
41,412 |
|
25,537 | ||
Other accrued liabilities |
|
124,899 |
|
55,893 | ||
|
|
|
| |||
Total current liabilities |
|
203,051 |
|
117,320 | ||
Convertible subordinated notes and other long-term deposit |
|
200,333 |
|
266 | ||
Total stockholders' equity |
|
378,052 |
|
548,762 | ||
|
|
|
| |||
Total liabilities and stockholders' equity |
$ |
781,436 |
$ |
666,348 | ||
|
|
|
|