Extreme Networks Inc. (EXTR, Financial) filed Quarterly Report for the period ended 2012-04-01.
Extreme Netwrks has a market cap of $363.4 million; its shares were traded at around $3.85 with a P/E ratio of 48.5 and P/S ratio of 1.1.
Product gross profit increased by $3.4 million and product gross margin increased to 54% from 46% in the three months ended April 1, 2012 compared to the corresponding period of fiscal 2011. In the nine months ended April 1, 2012, product gross profit decreased by $3.4 million and product gross margin increased to 54% from 53%, compared to the corresponding period of fiscal 2011.
Sales and marketing expenses consist of salaries, commissions and related expenses for personnel engaged in marketing and sales functions, as well as trade shows and promotional expenses. Sales and marketing expenses in the three months ended April 1, 2012 decreased by $4.2 million, or 17%, compared to the corresponding period of fiscal 2011. The decrease in sales and marketing expenses was primarily due to a decrease of $1.1 million in employee-related expenses and a decrease of $1.4 million in commission expense. Other significant decreases in the third quarter primarily reflected the effects of cost-cutting measures, including a decrease of $0.4 million in IT expenses and a combined decrease of approximately $1.0 million in professional services, supplies, and travel expenses.
Sales and marketing expenses for the nine months ended April 1, 2012 decreased by $9.3 million, or 12%, compared to the corresponding period of fiscal 2011. The decrease in sales and marketing expenses was primarily due to a decrease of $2.6 million in employee-related expenses resulting from headcount reduction and a decrease of $2.4 million in commission expense due to the combined impact of headcount reduction and lower revenue. Other significant decreases in sales and marketing expenses in the nine months April 1, 2012, included a decrease of $1.3 million in professional fees, a decrease of $1.0 million in IT expenses, and a decrease of $0.9 million in both travel supplies expenses.
million and net accounts receivable of $45.7 million. Historically, our principal uses of cash have consisted of the purchase of finished goods inventory from our contract manufacturers, payroll and other operating expenses related to the development and marketing of our products and purchases of property and equipment. We believe that our $147.2 million of cash and cash equivalents and investments at April 1, 2012 will be sufficient to fund our operating requirements for at least the next 12 months. Our future capital requirements will depend on many factors, including our rate of revenue growth, the expansion of our sales and marketing activities, the timing and extent of our expansion into new territories, the timing of introductions of new products and enhancements to existing products and the continuing market acceptance of our products. In the future, we may seek additional equity or debt financing, however, such additional funds may not be available on terms favorable to us or at all.
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Extreme Netwrks has a market cap of $363.4 million; its shares were traded at around $3.85 with a P/E ratio of 48.5 and P/S ratio of 1.1.
Highlight of Business Operations:
Total gross margin of 56% of net revenues compared to 54% in the first nine months of fiscal 2011.Product gross profit increased by $3.4 million and product gross margin increased to 54% from 46% in the three months ended April 1, 2012 compared to the corresponding period of fiscal 2011. In the nine months ended April 1, 2012, product gross profit decreased by $3.4 million and product gross margin increased to 54% from 53%, compared to the corresponding period of fiscal 2011.
Sales and marketing expenses consist of salaries, commissions and related expenses for personnel engaged in marketing and sales functions, as well as trade shows and promotional expenses. Sales and marketing expenses in the three months ended April 1, 2012 decreased by $4.2 million, or 17%, compared to the corresponding period of fiscal 2011. The decrease in sales and marketing expenses was primarily due to a decrease of $1.1 million in employee-related expenses and a decrease of $1.4 million in commission expense. Other significant decreases in the third quarter primarily reflected the effects of cost-cutting measures, including a decrease of $0.4 million in IT expenses and a combined decrease of approximately $1.0 million in professional services, supplies, and travel expenses.
Sales and marketing expenses for the nine months ended April 1, 2012 decreased by $9.3 million, or 12%, compared to the corresponding period of fiscal 2011. The decrease in sales and marketing expenses was primarily due to a decrease of $2.6 million in employee-related expenses resulting from headcount reduction and a decrease of $2.4 million in commission expense due to the combined impact of headcount reduction and lower revenue. Other significant decreases in sales and marketing expenses in the nine months April 1, 2012, included a decrease of $1.3 million in professional fees, a decrease of $1.0 million in IT expenses, and a decrease of $0.9 million in both travel supplies expenses.
million and net accounts receivable of $45.7 million. Historically, our principal uses of cash have consisted of the purchase of finished goods inventory from our contract manufacturers, payroll and other operating expenses related to the development and marketing of our products and purchases of property and equipment. We believe that our $147.2 million of cash and cash equivalents and investments at April 1, 2012 will be sufficient to fund our operating requirements for at least the next 12 months. Our future capital requirements will depend on many factors, including our rate of revenue growth, the expansion of our sales and marketing activities, the timing and extent of our expansion into new territories, the timing of introductions of new products and enhancements to existing products and the continuing market acceptance of our products. In the future, we may seek additional equity or debt financing, however, such additional funds may not be available on terms favorable to us or at all.
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