UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of report (date of earliest event reported):
April 6, 2006
EXTREME NETWORKS, INC.
(Exact name of registrant as specified in its charter)
| Delaware | 000-25711 | 77-0430270 | ||
| (State or other jurisdiction of incorporation) |
(Commission File No.) | (I.R.S. Employer Identification No.) |
3585 Monroe Street
Santa Clara, California 95051
(Address of principal executive offices)
Registrant’s telephone number, including area code:
(408) 579-2800
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 Results of Operations and Financial Condition.
On April 6, 2006, Extreme Networks, Inc. issued a press release announcing its preliminary financial results for the fiscal quarter ended April 2, 2006.
The press release announcing the preliminary results for the fiscal quarter ended April 2, 2006 is attached hereto as Exhibit 99.1 and incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit No. | Description | |
| 99.1 | Press release dated April 6, 2006 announcing the preliminary financial results for the fiscal quarter ended April 2, 2006 |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: April 7, 2006
| EXTREME NETWORKS, INC. | ||
| By: | /s/ William R. Slakey | |
| William R. Slakey | ||
| Chief Financial Officer | ||
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Exhibit 99.1
FOR IMMEDIATE RELEASE
For more information, contact:
| Extreme Networks | ||
| Investor Relations | Public Relations | |
| 408/579-3030 | 650-201-8810 | |
| Investor_relations@extremenetworks.com | tyankey@arpartners.com |
EXTREME NETWORKS REPORTS PRELIMINARY THIRD QUARTER RESULTS
SANTA CLARA, Calif., April 6, 2006 – Extreme Networks, Inc. (Nasdaq: EXTR), the leader in open converged networks, today announced preliminary financial results for its fiscal third quarter ended April 2, 2006.
The Company expects net revenue for the quarter of $84 million to $85 million. This is below the company’s previous expectations of $90 million to $95 million, due primarily to lower than anticipated revenues in the U.S. and Japan, which offset revenue growth in the Company’s European markets.
Based on preliminary information, the Company expects earnings per diluted share for the third quarter to be between a profit of $0.01 and a loss of ($0.01) on a GAAP basis. Excluding stock-based compensation expense, non-GAAP earnings per diluted share for the quarter is expected to be between a profit of $0.02 and $0.00.
Extreme Networks management will report additional information and share additional details on the results of operations when the Company announces its final results for the third quarter on April 25, 2006.
Extreme Networks
Extreme Networks is a leader in open converged networks. Its innovative network architecture provides Enterprises and Metro Service Providers with the resiliency, adaptability and simplicity required for a true converged network that supports voice, video and data, over a wired and wireless infrastructure, while delivering high-performance and advanced security features. For more information, please visit www.extremenetworks.com
Non-GAAP Financial Measures
Extreme Networks provides all financial information required in accordance with generally accepted accounting principles (GAAP). In the first fiscal quarter of 2006, the Company adopted Financial Accounting Standards Board Statement No. 123(R), which requires companies to recognize the compensation cost associated with share-based payments in their financial statements. As a result, the financial statements for fiscal 2006 include the new stock-based compensation expense; however, comparable prior year periods are not required to be restated. Therefore, to supplement Extreme Networks’ consolidated financial statements presented in accordance with GAAP, the Company has provided non-GAAP financial information and expectations, which are adjusted to exclude all stock-based compensation expense. This non-GAAP reporting provides for comparable financial information and can enhance the understanding of the Company’s ongoing performance as a business. Therefore, Extreme Networks plans to use both GAAP and non-GAAP reporting internally to evaluate and manage its operations.
# # #
Extreme Networks is a registered trademark of Extreme Networks, Inc., in the United States and other countries. All other marks are the property of their respective holders.
This announcement contains forward-looking statements that involve risks and uncertainties, including statements regarding our expectations for future operating results and expectations for financial results following a normal review by management. Actual results could differ materially from those projected in the forward-looking statements as a result of certain risk factors, including, but not limited to changes that occur as a result of management and external auditor review of the Company’s results of operations and actual financial statements for the fiscal third quarter. We undertake no obligation to update the forward-looking information in this release. More information about potential factors that could affect our business and financial results is included in our filings with the Securities and Exchange Commission, including, without limitation, under the captions: “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and “Risk Factors,” which is on file with the Securities and Exchange Commission (http://www.sec.gov).
EXTREME NETWORKS, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Unaudited)
| Third Quarter 2006 | |||||||
| Low | High | ||||||
| Estimated GAAP earnings (loss) per diluted share |
$ | (0.01 | ) | $ | 0.01 | ||
| Adjustments: |
|||||||
| Estimated stock-based compensation |
0.01 | 0.01 | |||||
| Estimated non-GAAP earnings per diluted share |
$ | 0.00 | $ | 0.02 | |||