Extreme Networks, Inc (NASDAQ:EXTR) raised its outlook for the first quarter. The company said it now expects Q1 earnings of $0.05 to $0.08 per share on sales of $233 million to $236 million.
Based on better-than-expected preliminary results across geographies and major market segments, Extreme now expects to report first quarter 2021 revenue of $233 to $236 million , up 9% sequentially at the midpoint from $215.5 million last quarter. As a result, the company now expects a GAAP loss per share of $0.11 to $0.08, and a non-GAAP EPS of $0.05 to $0.08.
This compares to initial first quarter guidance for revenue of $220 to $230 million, GAAP loss per share of $0.14 to $0.11 and Non-GAAP EPS of $0.01 to $0.04. EXTR expects GAAP and Non-GAAP Gross Margin to be slightly better than original guidance, while we expect GAAP and Non-GAAP Operating Expenses to be in-line with Extreme's prior guidance.
As a result of preliminary financial results in Q1, on September 29, Extreme repaid $20 million of the $55 million previously drawn from its revolving credit facility on March 24, 2020 . Extreme also maintains a $361 million Term Loan A that matures in 2024, along with the remaining revolver balance of $35 million; cash and cash equivalents at the end of the quarter were $193 million, and net debt was $203 million.
The company will review the updates in full detail on its first fiscal quarter earnings results call, set for October 28.
EXTR shares galloped 65 cents, or 15.8%, to $4.76.
