Extreme Reports Q4

SANTA CLARA, Calif. -- Extreme Networks, Inc. (NASDAQ:EXTR) , the leader in open converged networks, today announced financial results for its fiscal fourth quarter and year ended July 2, 2006.

For the quarter, net revenue was $82.4 million, compared to $96.1 million in the fourth quarter of fiscal 2005. Net loss for the quarter was $1.8 million or a loss of $0.02 per diluted share on a GAAP basis. Excluding stock-based compensation expense of $2.2 million, non-GAAP net income for the quarter was $0.4 million or $0.00 per diluted share, compared to non-GAAP net income of $0.3 million or $0.00 per diluted share in the fourth fiscal quarter of 2005.

For the fiscal year, the Company recorded net revenue of $358.6 million, down from $383.3 million in fiscal 2005. Net income for fiscal 2006 was $11.0 million. Excluding stock-based compensation expense of $7.0 million, non-GAAP net income for the fiscal year was $18.0 million, or $0.15 per share, up from $13.3 million or $0.11 per fully diluted share in fiscal 2005.

"We are pleased with the year-over-year improvement in our non-GAAP profitability," said Gordon L. Stitt, CEO of Extreme Networks. "Our goal in the coming fiscal year is to expand our sales force in order to take greater advantage of the revenue opportunities made possible by our expanding ExtremeXOS-based product line."

Revenues in the U.S. were $35.0 million in the quarter, representing 42.4 percent of total consolidated revenue, compared to $43.1 million or 44.9 percent of revenue in the same quarter a year ago. International revenues were $47.4 million or 57.6% percent of total revenues, compared to $53.0 million or 55.2 percent of total revenues in the fourth quarter of last fiscal year.

Extreme Networks Inc. (Nasdaq: EXTR)