Extreme Networks Inc (EXTR) 2025 Q1 法說會逐字稿

Ladies and gentlemen, thank you for standing by. Welcome to the Extreme Networks' first quarter fiscal year '25 financial results. (Operator Instructions) Please be advised that today's conference is being recorded.

女士們先生們，謝謝你們的支持。歡迎閱讀 Extreme Networks '25 財年第一季財務表現。 （操作員指示）請注意，今天的會議正在錄製中。

I would now like to turn the conference over to the Vice President of Corporate Development and Investor Relations, Stan Kovler.

我現在想將會議交給企業發展和投資者關係副總裁 Stan Kovler。

Thank you, Carmen. Good morning and welcome to the Extreme Networks' first quarter fiscal year 2025 earnings conference call. With me today are Extreme Networks' President and CEO, Ed Meyercord; and EVP and CFO, Kevin Rhodes.

謝謝你，卡門。早安，歡迎參加極進網路 2025 財年第一季財報電話會議。今天與我在一起的有 Extreme Networks 總裁兼執行長 Ed Meyercord；執行副總裁兼財務長凱文‧羅茲 (Kevin Rhodes)。

We just distributed a press release and filed an 8-K detailing Extreme's financial results for the quarter. For your convenience, a copy of the press release, which includes our GAAP to non-GAAP reconciliations, is available in the Investor Relations section of our website at extremenetworks.com, along with our earnings presentation.

我們剛剛發布了一份新聞稿並提交了一份 8-K，詳細介紹了 Extreme 本季的財務表現。為了您的方便，您可以在我們網站Extremenetworks.com 的投資者關係部分取得新聞稿的副本，其中包括我們的 GAAP 與非 GAAP 調整表以及我們的收益演示。

Today's call and our discussion may include certain forward-looking statements based on our current expectations about Extreme's future business, financial and operational results, growth expectations and strategies. Our financial disclosures on this call will be on a non-GAAP basis unless stated otherwise. We caution you not to put undue reliance on these forward-looking statements as they involve risks and uncertainties that can cause actual results to differ materially from those anticipated by these statements.

今天的電話會議和我們的討論可能包括基於我們目前對 Extreme 未來業務、財務和營運業績、成長預期和策略的預期的某些前瞻性陳述。除非另有說明，我們在本次電話會議上的財務揭露將基於非公認會計原則（non-GAAP）。我們提醒您不要過度依賴這些前瞻性陳述，因為它們涉及風險和不確定性，可能導致實際結果與這些陳述預期的結果有重大差異。

These risks are described in our risk factors in the 10-K report for the period ended June 30, 2024, filed with the SEC. Any forward-looking statements made on this call may reflect our analysis as of today. And we have no plans or duty to update them, except as required by law. A reconciliation of our GAAP to non-GAAP results can be found in the press release and financial presentation. Following our prepared remarks, we will take questions.

這些風險在我們向 SEC 提交的截至 2024 年 6 月 30 日的 10-K 報告中的風險因素中進行了描述。本次電話會議中所做的任何前瞻性陳述可能反映了我們今天的分析。除非法律要求，否則我們沒有計劃或義務更新它們。我們的公認會計原則與非公認會計原則結果的調節可以在新聞稿和財務演示中找到。在我們準備好的發言之後，我們將回答問題。

And now, I will turn the call over to Extreme's President and CEO, Ed Meyercord.

現在，我將把電話轉給 Extreme 的總裁兼執行長 Ed Meyercord。

Thank you, Stan, and thank you all for joining us this morning. Our results in the first quarter were ahead of plan and reflect what we believe are the early stages of a broad networking market recovery. We also benefited from higher new logo win rates and a few large projects that closed earlier than anticipated. This resulted in sequential growth in what is usually a down quarter.

謝謝斯坦，也謝謝大家今天早上加入我們。我們第一季的業績超出了計劃，反映出我們認為網路市場廣泛復甦的早期階段。我們還受益於更高的新標誌獲勝率和一些比預期更早結束的大型項目。這導致了通常下降的季度的連續增長。

We expect the return of market demand to continue in the second quarter as our funnel of opportunities is growing. SaaS ARR grew 23% year-over-year, demonstrating the value and stickiness of our cloud offering. The differentiation of our enterprise campus solution is the primary driver of our new logo expansion.

隨著我們的機會管道不斷擴大，我們預計第二季市場需求將持續回升。 SaaS ARR 年成長 23%，證明了我們雲端產品的價值和黏性。我們企業園區解決方案的差異化是我們新標誌擴展的主要驅動力。

The combination of our cloud management with integrated AI and security capabilities, campus fabric, licensing simplicity, and number one ranked service are significant competitive advantages for Extreme. We're the only enterprise player that brings end-to-end solutions from the campus data center to the edge across the wide area network from one cloud.

我們的雲端管理與整合人工智慧和安全功能、園區結構、授權簡單性以及排名第一的服務相結合，是 Extreme 的顯著競爭優勢。我們是唯一將端到端解決方案從園區資料中心透過一個雲端跨廣域網路邊緣提供的企業參與者。

We significantly derisk enterprise customer migration to modern networking infrastructure and offer unmatched premier services to ensure customers get the most out of their investment with Extreme. We have the most simple, resilient, and secure enterprise networking solution in the industry. Our end-to-end Zero Touch Provisioning enabled by our campus network fabric is unrivaled by any of our competitors.

我們大幅降低了企業客戶遷移到現代化網路基礎設施的風險，並提供無與倫比的優質服務，以確保客戶從 Extreme 的投資中獲得最大收益。我們擁有業界最簡單、最有彈性、最安全的企業網路解決方案。我們的園區網路結構支援的端到端零接觸配置是任何競爭對手都無法比擬的。

We eliminate the time-intensive process of configuring virtual LANs to deliver services at the edge of the network. Our network fabric also reduces the risk of cyber-attacks by enabling granular micro segmentation, eliminating lateral movement within campus networks and significantly limiting the blast radius of attacks. When customers see the security benefits of our campus fabric, our win rate drastically increases.

我們消除了配置虛擬 LAN 以在網路邊緣提供服務的耗時過程。我們的網路結構還透過實現粒度微分段、消除校園網路內的橫向移動並顯著限制攻擊的爆炸半徑來降低網路攻擊的風險。當客戶看到我們校園結構的安全優勢時，我們的獲勝率就會大幅提高。

And finally, our campus fabric offers unmatched resiliency and sub-second convergence. This means zero downtime during upgrades or maintenance. The network is unbreakable because it heals itself, which means end-users never experience an interruption. None of our competitors can match this. In fact, sub-second convergence was the biggest reason we won a large Fortune 100 manufacturing company this quarter, which is slated to be one of the most significant deals in Extreme's history.

最後，我們的園區結構提供無與倫比的彈性和亞秒收斂。這意味著升級或維護期間的零停機時間。網路牢不可破，因為它可以自我修復，這意味著最終用戶永遠不會遇到中斷。我們的競爭對手都無法匹敵這一點。事實上，亞秒級收斂是我們本季贏得大型財富 100 強製造公司的最大原因，這將成為 Extreme 史上最重要的交易之一。

This week, we extended our security footprint with the availability of ExtremeCloud Universal Zero Trust Network Access, which combines our very mature network access control solution with our Zero Trust remote application access in a single easy-to-use SaaS offering. We're the only networking vendor to offer a single policy engine for cloud-based NAC and ZTNA. This helps boost IT team productivity and reduce troubleshooting time.

本週，我們透過推出 ExtremeCloud 通用零信任網路存取來擴展我們的安全足跡，它將我們非常成熟的網路存取控制解決方案與零信任遠端應用程式存取結合在一個易於使用的 SaaS 產品中。我們是唯一一家為基於雲端的 NAC 和 ZTNA 提供單一策略引擎的網路供應商。這有助於提高 IT 團隊的工作效率並減少故障排除時間。

This quarter, we reinforced our position as an early adopter of the most innovative technology coming from our chipset vendor. We continue to set new standards for innovation and high-performance connectivity and are the first and only player shipping enterprise-grade Wi-Fi 7 access points. Wi-Fi 7 delivers substantial benefits, including lower latency, enhanced capacity, better data throughput, and reliability. It has crossed the chasm of mission-critical applications.

本季度，我們鞏固了作為晶片組供應商最具創新技術的早期採用者的地位。我們持續為創新和高效能連線制定新標準，並且是第一家也是唯一一家提供企業級 Wi-Fi 7 存取點的公司。 Wi-Fi 7 具有顯著優勢，包括更低的延遲、增強的容量、更好的資料吞吐量和可靠性。它跨越了關鍵任務應用程式的鴻溝。

Demand for our AP 50/20 is being driven from performance improvements across high-density environments and use cases like augmented reality and virtual reality, 4K and 8K streaming, real-time analytics, and automation. We'll continue to expand our Wi-Fi 7 portfolio over the coming months.

高密度環境和擴增實境和虛擬實境、4K 和 8K 串流、即時分析和自動化等用例的效能改進推動了對 AP 50/20 的需求。我們將在未來幾個月繼續擴展我們的 Wi-Fi 7 產品組合。

Finally, our CoPilot AIOps solution is critical for large retailers, universities, manufacturers and health care facilities to identify network issues and detect anomalies before they impact uptime or business continuity. It provides proactive recommendations on how to remediate issues, which helps save customers time and money associated with day-to-day network management.

最後，我們的 CoPilot AIOps 解決方案對於大型零售商、大學、製造商和醫療保健機構至關重要，可以在網路問題影響正常運行時間或業務連續性之前識別網路問題並檢測異常情況。它提供有關如何修復問題的主動建議，這有助於節省客戶與日常網路管理相關的時間和金錢。

This quarter, we had wins at both the National Institutes for Quantum Science and Technology and the Photon Science Innovation Center in Japan. Leveraging Extreme's Universal switches and Fabric Connect, they've built large-scale research facilities with a network that enables users to easily and securely access highly sensitive data and resources.

本季度，我們在日本國立量子科學技術研究所和光子科學創新中心都取得了勝利。利用Extreme的通用交換器和Fabric Connect，他們建立了大規模的研究設施和網絡，使用戶能夠輕鬆、安全地存取高度敏感的資料和資源。

We recently displaced a large competitor at Texas Tech University, where we upgraded their campus data center and Edge Network with Extreme's Universal Hardware, ExtremeCloud IQ, and Campus Fabric. The university benefits from end-to-end simplified management and enhanced security, which helps them to meet the growing demands for online resources, testing, and classroom technology.

我們最近取代了德州理工大學的一個大競爭對手，我們使用 Extreme 的通用硬體、ExtremeCloud IQ 和 Campus Fabric 升級了他們的校園資料中心和邊緣網路。大學受益於端到端的簡化管理和增強的安全性，這有助於他們滿足對線上資源、測驗和課堂技術不斷增長的需求。

27 NFL teams, including new deployments with the LA Chargers, Minnesota Vikings, Green Bay Packers, and Houston Texans are leveraging Extreme's WiFi 6E, ExtremeCloud and business insights for venues to deliver seamless connectivity across stadiums and practice facilities. 2024 marks our 12th consecutive season as the league's official provider of Wi-Fi solutions and Wi-Fi analytics.

27 支NFL 球隊，包括新部署的洛杉磯閃電隊、明尼蘇達維京人隊、綠灣包裝工隊和休士頓德州人隊，正在利用Extreme 的WiFi 6E、ExtremeCloud 和場館業務洞察，在體育場和訓練設施之間提供無縫連接。 2024 年是我們連續 12 個賽季成為聯盟 Wi-Fi 解決方案和 Wi-Fi 分析的官方提供者。

Finally, we displaced our largest competitor in a deal with one of the chief clinical hospitals in the Netherlands, Haaglanden Medisch Centrum. This hospital plans to refresh its aging infrastructure to a more modern cloud-based network and extend the network to one of the new buildings on its campus, an ideal use case for our campus fabric.

最後，我們在與荷蘭主要臨床醫院之一 Haaglanden Medisch Centrum 的交易中取代了最大的競爭對手。該醫院計劃將其老化的基礎設施更新為更現代化的基於雲端的網絡，並將網路擴展到其校園內的一棟新建築，這是我們校園結構的理想用例。

In addition to our technology innovation, we're starting to get traction and seeing positive momentum with two new commercial models we've been working on for the past 18 months. Extreme subscription private offer gives us the flexibility to be more aggressive in supporting service providers and large customers with scalable technology and flexible pricing models.

除了我們的技術創新之外，我們在過去 18 個月裡致力於開發的兩種新商業模式也開始受到關注並看到了積極的勢頭。極端訂閱專屬優惠使我們能夠靈活地透過可擴展的技術和靈活的定價模式更積極地支援服務提供者和大客戶。

We closed our first transaction this quarter, which included a major European retailer and a Fortune 100 company. Our managed services platform is also resonating. We had 32 MSP partners at the end of the first quarter, up from 27 in Q4, and consumption billings doubled sequentially. Partners love the flexibility of this unique consumption-based billing model and poolable licensing. No one else in the industry offers this level of simplicity and licensing economics.

我們本季完成了第一筆交易，其中包括一家歐洲大型零售商和一家財富 100 強公司。我們的託管服務平台也引起了共鳴。截至第一季末，我們擁有 32 個 MSP 合作夥伴，高於第四季的 27 個，消費帳單連續翻倍。合作夥伴喜歡這種獨特的基於消費的計費模式和可共享授權的靈活性。業內沒有其他公司能夠提供如此程度的簡單性和許可經濟性。

Turning to guidance. We expect continued sequential growth in Q2 based on the size and quality of our funnel. We anticipate further market share gains and revenue growth for the full year. And we expect this growth to be accompanied by increased margins and cash flow.

轉向指導。根據我們漏斗的規模和質量，我們預計第二季將繼續實現環比成長。我們預計全年市場份額和收入將進一步增長。我們預計這種成長將伴隨著利潤和現金流的增加。

With that, I'd like to turn the call over to our CFO, Kevin Rhodes, to walk us through the results and guidance.

說到這裡，我想將電話轉給我們的財務長 Kevin Rhodes，讓我們了解結果和指導。

Thank you, Ed. The revenue upside in the first quarter, coupled with the sequential improvement in gross margin demonstrated the operating leverage in our model. We achieved earnings per share of $0.17, which exceeded the midpoint of our initial outlook by $0.05 and exceeded the high end of our guidance range. Customer demand trends continued to improve gradually as we saw in the quarter. First quarter revenue of $269.2 million grew 5% sequentially based on continued recovery in product sales and attached subscription and support contracts.

謝謝你，艾德。第一季的營收成長，加上毛利率的連續改善，證明了我們模型中的營運槓桿。我們實現每股收益 0.17 美元，比我們最初預期的中點高出 0.05 美元，也超出了我們指導範圍的上限。正如我們在本季看到的那樣，客戶需求趨勢繼續逐步改善。由於產品銷售以及附加訂閱和支援合約的持續復甦，第一季營收為 2.692 億美元，季增 5%。

On a geographic basis, Americas' revenue grew double digits sequentially this quarter with strength across North America. APAC also grew sequentially and year-over-year. The protracted recovery in EMEA reflects gradual recovery in government spending, which has been the case for several quarters. We continue to compete well in the region, however and we are winning our fair share of opportunities.

從地理來看，本季美洲地區的營收季增兩位數，北美地區的營收也表現強勁。亞太地區也實現環比和年成長。歐洲、中東和非洲地區的長期復甦反映出政府支出的逐步復甦，這已經是幾個季度以來的情況了。然而，我們繼續在該地區保持良好的競爭，並且我們正在贏得公平的機會。

Product revenue of $162.3 million grew 6% sequentially. The sequential improvement reflects stronger growth in data center and campus switching. And our wireless revenue was consistent with the prior two quarters. Overall, bookings trends were in line with our revenue during the quarter and product backlog was once again within our expected range. As we continue to gain share with new customers, 27 customers in total spent over $1 million on Extreme solutions this quarter.

產品收入為 1.623 億美元，季增 6%。環比的改善反映了資料中心和園區交換的強勁成長。我們的無線收入與前兩個季度保持一致。總體而言，預訂趨勢與我們本季的收入一致，產品積壓再次處於我們的預期範圍內。隨著我們不斷獲得新客戶的份額，本季共有 27 位客戶在 Extreme 解決方案上花費了超過 100 萬美元。

Looking at our customer segments, we're seeing a more robust recovery in the middle market, where we continue to see share gains and net new customer additions. Total subscription and support revenue was $107 million, up 3% sequentially. Our recurring revenue growth has been driven by the strength of our cloud subscription revenue and sequential growth in support and services revenue. Total recurring revenue was 38% of first quarter revenue and is a highly visible and predictable revenue stream for our business.

看看我們的客戶群，我們看到中間市場的復甦更加強勁，我們繼續看到份額成長和淨新客戶增加。訂閱和支援總收入為 1.07 億美元，比上一季成長 3%。我們的經常性收入成長是由雲端訂閱收入的強勁以及支援和服務收入的連續成長所推動的。經常性總收入佔第一季營收的 38%，對於我們的業務來說是一個高度可見且可預測的收入來源。

Our subscription deferred revenue was up 19% year-over-year to $282 million. And our total deferred revenue was $577 million, up 10% year-over-year. We expect subscription and support revenue to continue to grow throughout the rest of this fiscal year.

我們的訂閱遞延營收年增 19%，達到 2.82 億美元。我們的遞延收入總額為 5.77 億美元，年增 10%。我們預計訂閱和支援收入將在本財年剩餘時間內繼續成長。

Gross margin moved up again to 63.7%, up another 20 basis points sequentially. The combination of higher product revenue to cover fixed overhead costs and more favorable product mix drove the better sequential results. We expect our gross margin to remain in a similar range or better throughout fiscal 2025.

毛利率再次上升至 63.7%，比上一季再上升 20 個基點。更高的產品收入涵蓋了固定管理成本，加上更有利的產品組合，推動了更好的連續績效。我們預計整個 2025 財年的毛利率將維持在類似範圍或更好。

First quarter operating expenses were $138 million, up $10 million sequentially and down $15 million from the year ago quarter. We continue to focus on driving improvement in our operating margin and higher profitability for the year. We expect operating expenses to increase to a range of $143 million to $147 million per quarter throughout the rest of the year, along with the recovery in our business.

第一季營運費用為 1.38 億美元，比上一季增加 1,000 萬美元，比去年同期減少 1,500 萬美元。我們繼續專注於推動今年營業利潤率的改善和更高的獲利能力。我們預計，隨著業務的復甦，今年剩餘時間營運費用將增加至每季 1.43 億美元至 1.47 億美元。

Non-GAAP operating profit for the first quarter was $33.5 million or 12.4% of revenue and first quarter EPS was $0.17, all were above our expected ranges. We ended the quarter with $159.5 million in cash and net debt of $28 million. The $12 million of free cash flow in the quarter reflects higher revenue and solid profitability. We expect a continued recovery in cash flow in fiscal 2025 as we grow revenue, improve profitability and sell out the inventory we have on hand.

第一季非 GAAP 營業利潤為 3,350 萬美元，佔營收的 12.4%，第一季每股收益為 0.17 美元，均高於我們的預期範圍。本季結束時，我們的現金為 1.595 億美元，淨債務為 2,800 萬美元。本季 1,200 萬美元的自由現金流反映了更高的收入和穩健的獲利能力。我們預計，隨著收入成長、獲利能力提高並售出現有庫存，2025 財年現金流將持續復甦。

Now, turning to guidance. We're encouraged by the level of improving customer and new logo activity we are seeing, which should bode well for us heading into the second quarter and the rest of the year. For the second quarter, we expect guidance as follows. Revenue to be in a range of $273 million to $283 million. Gross margin to be in a range of 63% to 64%. Operating margin to be in a range of 11.3% to 13.4% and earnings per share to be in the range of $0.16 to $0.20. Our fully diluted share count is expected to be around 133 million shares. For the full fiscal year '25, we now expect revenue to be in a range of $1.117 billion to $1.137 billion.

現在，轉向指導。我們看到的客戶改善水平和新徽標活動令我們感到鼓舞，這對我們進入第二季度和今年剩餘時間來說應該是個好兆頭。對於第二季度，我們預計指引如下。收入將在 2.73 億美元至 2.83 億美元之間。毛利率在63%至64%之間。營業利潤率將在 11.3% 至 13.4% 之間，每股收益將在 0.16 美元至 0.20 美元之間。我們完全攤薄後的股票數量預計約為 1.33 億股。對於 25 年整個財年，我們目前預計營收將在 11.17 億美元至 11.37 億美元之間。

And with that, I'll now pass the call back over to the operator to begin the question-and-answer session.

這樣，我現在將把電話轉回接線生以開始問答環節。

(Operator Instructions) Mike Genovese, Rosenblatt Securities.

（操作員指示）Mike Genovese，羅森布拉特證券公司。

Great. Thanks. Thanks very much. Guys, can you just regionally, the US versus EMEA? It sounds like the US is obviously driving things here, but just kind of lay out how the US recovery is progressing and whether the recovery in Europe has started. I just want to get the clear message on what's going on by geography. Thank you.

偉大的。謝謝。非常感謝。夥伴們，您能從區域角度來看，美國與歐洲、中東和非洲地區嗎？聽起來美國顯然是這裡的推動者，但只是列出了美國復甦的進展以及歐洲的復甦是否已經開始。我只是想清楚地了解地理上正在發生的事情。謝謝。

Thanks, Mike. This is Ed and I'll jump in and then Kevin and Stan, feel free to follow up. You're absolutely right, Mike, that US is leading the charge in terms of the recovery and we're seeing -- we're encouraged by what we're seeing in Europe, but we still have some macro trends that are causing project delays. And I think that's what gives us caution as we look out at Q2 with our guide.

謝謝，麥克。我是艾德，我會插話，然後凱文和史坦，請隨時跟進。麥克，你說得完全正確，美國在復甦方面處於領先地位，我們看到歐洲的情況令我們感到鼓舞，但我們仍然有一些宏觀趨勢導致專案延誤。我認為這就是讓我們在根據指南展望第二季度時保持謹慎的原因。

We're seeing Germany that doesn't have an official budget yet and a coalition with a very narrow majority there. We have a new government in the UK putting together its budget. I think they're presenting the budget today as we speak. And so with a lot of our business being in the public sector, what it means is that some of our projects, which are going to happen, are being delayed. And so that's what we see.

我們看到德國還沒有官方預算，聯盟以微弱多數獲勝。英國新政府正在製定預算。我想他們今天正在我們講話的時候提交預算。因此，由於我們的許多業務都在公共部門，這意味著我們即將進行的一些項目將被推遲。這就是我們所看到的。

And we've seen a lot of -- as we look at our funnel, we're confident in the funnel of opportunities we have. But we are seeing a lot of important projects, particularly in EMEA, slide into the second half of our fiscal year and that's the impact. I don't know, Kevin, or Stan, if you want to add anything else.

當我們審視我們的漏斗時，我們看到了很多，我們對我們擁有的機會漏斗充滿信心。但我們看到許多重要項目，特別是在歐洲、中東和非洲地區，滑入了我們財年的下半年，這就是影響。我不知道凱文或史丹是否還想補充什麼。

I think you're right, Ed. We're seeing some strength in North America, which is good. Obviously, as interest rates come down, that's starting to help CapEx spending in North America. And we see some improvement here on IT spending in North America, but EMEA is the one that would help us greatly in the second half. And we do believe in the second half, it will start to come back.

我認為你是對的，艾德。我們看到北美有一些實力，這是好事。顯然，隨著利率下降，這開始有助於北美的資本支出。我們看到北美的 IT 支出有所改善，但歐洲、中東和非洲地區將在下半年為我們帶來巨大幫助。我們確實相信下半年，它會開始恢復。

Great. That was very helpful. And then my other question, just in terms of -- talk to us about share gain versus the Cisco, the Juniper, the HPs of the world. What metrics are you looking at? What are you seeing out there? Who do you think you're gaining share from right now? Just any comments about the competitive environment and share gain would be helpful.

偉大的。這非常有幫助。然後我的另一個問題是——與我們談談與思科、瞻博網路、世界各地的惠普相比的份額增益。您關注哪些指標？你在外面看到什麼？您認為您現在正在從誰那裡獲得份額？任何有關競爭環境和份額收益的評論都會有所幫助。

Thank you. Sure. And I think, Mike, the way to think about share gain is just the way to think about the distribution of the industry and competitive share. So first and foremost, we are taking share from Cisco. And then you'll see -- and then we're also -- some of the wins we referenced are from Juniper and HPE.

謝謝。當然。麥克，我認為，考慮份額增益的方法就是考慮產業分佈和競爭份額的方法。因此，首先也是最重要的是，我們正在從思科手中奪取份額。然後您會看到——我們也看到——我們提到的一些勝利來自瞻博網路和慧與。

But I think the way to think about it is commensurate with share positions with most coming from Cisco. I will say that we are anticipating with the closing of the HP Juniper deal. They have some tough decisions to make. They have tough news to break to the market in terms of their road maps. What it means for stranding investments for customers, what does it mean for partners in the new landscape?

但我認為思考這個問題的方式與大多數來自思科的股票部位相稱。我想說的是，我們預計 HP Juniper 交易將會完成。他們需要做出一些艱難的決定。他們有關於路線圖的艱難消息要向市場通報。這對客戶的擱淺投資意味著什麼，對於新格局中的合作夥伴意味著什麼？

And we would expect there that disruption to create some opportunities for us. But we don't expect that to truly take place until that transaction closes. The reason why we're winning is we have -- I mentioned the end-to-end cloud capability from the campus data center through aggregation, through the edge out to the wireless edge of the network across the wide area network on one cloud. And that's one of the differences that we bring as we have the complete visibility of the entire network in one cloud.

我們預計這種顛覆將為我們創造一些機會。但我們預計在交易結束之前這不會真正發生。我們獲勝的原因是我們擁有——我提到了從園區資料中心透過聚合，透過一個雲端上的廣域網路從邊緣到無線邊緣的端到端雲能力。這就是我們帶來的差異之一，因為我們在一個雲端中擁有整個網路的完整可見性。

The second thing we do is we combined that with our unique campus fabric technology. Every single player will say that they have campus fabric technology. They'll say, you can check the box. But they have very different technology than ours. Ours is SPB, theirs is IP-based. Their fabrics are not designed for campus and all the things that go on in the campus.

我們做的第二件事是將其與我們獨特的校園布料技術結合。每個玩家都會說他們擁有校園布料技術。他們會說，你可以勾選這個框。但他們擁有與我們截然不同的技術。我們的是SPB，他們的是基於IP的。他們的布料不是為校園和校園裡發生的所有事情而設計的。

So in one of the -- I mentioned the Fortune 100 win. We were able to demonstrate sub-second convergence, which is when you make a change to the network or you add a switch or if you take down a link, it disrupts the network. And in our case, we have unique convergence capabilities with our fabric that bring unmatched resiliency. This is something that really mattered to that customer.

因此，在其中一篇文章中，我提到了財富 100 強的勝利。我們能夠示範亞秒收斂，即當您對網路進行變更或新增交換器或斷開連結時，就會中斷網路。就我們而言，我們的結構具有獨特的融合能力，可以帶來無與倫比的彈性。這對該客戶來說確實很重要。

And quite frankly, our largest competitors could not replicate this capability trying for two weeks on the customer site. So it was a big deal and very helpful to us. We talk about hyper-segmentation and the ability to create networks within a physical network with our fabric. We can do that very easily. And that means a lot to our customers. And our competitors can't replicate that capability.

坦白說，我們最大的競爭對手無法在客戶網站上嘗試兩週來複製此功能。所以這是一件大事，對我們很有幫助。我們討論超分段以及使用我們的結構在實體網路內創建網路的能力。我們可以很容易地做到這一點。這對我們的客戶來說意義重大。我們的競爭對手無法複製這種能力。

We talk about zero-touch provisioning; one of the health care clients I mentioned is adding a site. When you turn up a new site and you start turning up switches and turning up access points. And they automatically connect to the fabric. And they automatic request services, it means your teams don't have to build services out to every port on every switch that you're building in the new environment.

我們談論零接觸配置；我提到的一個醫療保健客戶正在新增一個網站。當您開啟新網站時，您開始開啟交換器和存取點。它們會自動連接到結構。它們會自動要求服務，這意味著您的團隊不必在新環境中建置的每個交換器上的每個連接埠上建置服務。

These are massive savings in time and energy, security, resiliency. And quite frankly, we're the only player that has this campus fabric that brings all these advantages. And so the combination of fabric and cloud is what's allowing us to win out in the marketplace today. And that distribution is consistent, as I mentioned before, with kind of competitive share. And it could change when we see the closing of HP Juniper.

這些都節省了大量的時間和精力、安全性和彈性。坦白說，我們是唯一一家擁有能夠帶來所有這些優勢的校園結構的公司。因此，結構和雲端的結合使我們能夠在當今的市場中獲勝。正如我之前提到的，這種分配是一致的，具有一定的競爭性份額。當我們看到惠普瞻博網路關閉時，情況可能會改變。

Eric Martinuzzi, Lake Street Capital Markets.

馬丁努齊 (Eric Martinuzzi)，湖街資本市場。

Yeah. I took note of your comment regarding robust demand or a better recovery in middle market. And just wondering if that is kind of a near-term event. And does the full year outlook anticipate a recovery in more of the enterprise or the larger customer segment?

是的。我注意到您關於強勁需求或中間市場更好復甦的評論。只是想知道這是否是近期的事件。全年展望是否預期更多企業或更大的客戶群會復甦？

Thanks, Eric. Thanks for the question. And the answer is yes. We are anticipating a return of more, larger projects. And our intelligence around that answer is all based on opportunities we have in the funnel and the confidence of the team as we're scrubbing the timing of projects.

謝謝，埃里克。謝謝你的提問。答案是肯定的。我們預計會有更多、更大的項目回歸。我們圍繞這個答案的情報完全基於我們在漏斗中擁有的機會以及團隊在我們取消專案時間表時的信心。

Okay. And then you also talked about still being seeing challenges in the European market, particularly on the public sector, Germany and UK, you mentioned. Just curious to know like what is the -- I guess, the lag time from having a budget to that trickling down to actually impacting procurement processes that would balance out with the guide that you have?

好的。然後您也談到歐洲市場仍然面臨挑戰，特別是在公共部門、德國和英國。我只是想知道，我想，從制定預算到實際影響採購流程的延遲時間會與您現有的指南相平衡？

Yeah. Eric, it's not the same across the board. Not all government agencies are created equal. And in some cases, I would say, in all cases, networks. They have to modernize their networking technology. And they have to bring kind of modern networking technology along with modern security capabilities and new modern tools like AI tools. They have to make the investments. It's just a question of timing.

是的。埃里克，整體情況並不相同。並非所有政府機構都是平等的。在某些情況下，我會說，在所有情況下，網路。他們必須實現網路技術的現代化。他們必須帶來現代網路技術、現代安全功能和人工智慧工具等新的現代工具。他們必須進行投資。這只是時間問題。

And so in the case of Germany, they have a temporary budget by the end of November. They're expected to have completed their budget, which should release funds. We'll see how that happens and how that plays out. The labor government in the UK is coming out with their budget. Their plan, their agenda is to spend. And that means spending on infrastructure. Their new fiscal year starts on March 1. But we would expect the first strings to be released prior to that.

因此，就德國而言，他們將在 11 月底之前製定臨時預算。預計他們將完成預算，從而釋放資金。我們將看看這是如何發生以及結果如何。英國工黨政府即將公佈預算。他們的計劃、議程就是花錢。這意味著基礎設施方面的支出。他們的新財政年度將於 3 月 1 日開始。

Got it. Thanks for taking my question.

知道了。感謝您提出我的問題。

Dave Kang, B. Riley.

戴夫·康，B.萊利。

Yeah. Good morning.

是的。早安.

Hi, Dave.

嗨，戴夫。

First question is regarding AI. Some of your competitors have been touting their AI capability. Just wanted to get an update on your strategy -- AI strategy.

第一個問題是關於人工智慧的。你的一些競爭對手一直在吹捧他們的人工智慧能力。只是想了解您的策略的最新資訊——人工智慧策略。

Yeah. Dave, thanks. I think the AI that -- what we would call first-generation AI, some people would call it precision AI around our ability to harness machine learning to provide intelligent insights to customers in a networking environment. And we are out with our Copilot product. I mentioned in some of my remarks, some of the capabilities, looking at anomalous network traffic, unusual behavior in the network, predicting network failures, suggesting fixes or remedies or remediations to networking issues.

是的。戴夫，謝謝。我認為人工智慧——我們稱之為第一代人工智慧，有些人會稱之為精準人工智慧，圍繞著我們利用機器學習為網路環境中的客戶提供智慧見解的能力。我們已經推出了 Copilot 產品。我在一些演講中提到了一些功能，例如查看異常網路流量、網路中的異常行為、預測網路故障、對網路問題提出修復或補救措施或補救措施。

These are the kinds of things that are falling into the category of AIOps. And we have our AIOps capabilities. There's another one of our larger competitors that has really done well, taking share, leveraging and marketing AIOps, which we would call first-generation AIOps. And then I would say stay tuned. We're going to be making some announcements in the future about -- we've talked about platforms. And we've talked about generative AI, AI experts and the idea of building AI into a platform that effectively you interact with at every step of your networking journey, including all the different types of personas that interface with the network.

這些都是屬於 AIOps 類別的事物。我們擁有 AIOps 能力。我們的另一個較大的競爭對手確實做得很好，佔據了份額，利用並行銷了 AIOps，我們將其稱為第一代 AIOps。然後我想說請繼續關注。我們將在未來發布一些關於——我們已經討論過平台的公告。我們討論了生成式人工智慧、人工智慧專家以及將人工智慧建構到一個平台的想法，可以讓您在網路旅程的每一步中有效地進行交互，包括與網路交互的所有不同類型的角色。

At Extreme, we're using AI internally. We have a lot of different applications in terms of sales assistance and accessing information. We're using it in marketing. We're using it in service. We've seen a lot of efficiency in service. That's more internal. What you're going to see and stay tuned and what you'll hear about is how we're bringing generative AI and kind of this next-generation AI into our platform that will create a very different experience for users.

在 Extreme，我們在內部使用人工智慧。我們在銷售協助和存取資訊方面有很多不同的應用程式。我們在行銷中使用它。我們正在服務中使用它。我們看到服務效率很高。那是更內在的。您將看到並保持關注，您將聽到的是我們如何將生成式人工智慧和下一代人工智慧引入我們的平台，這將為用戶創造非常不同的體驗。

I think I'm going to hold right here because I don't want to front-run any future announcements. But suffice it to say that our AI partners are AWS and Microsoft. We have been doing a lot of work with them. And we have a very innovative solution to provide very accurate information, knowledge around stream, information about your network and enhanced capabilities as far as visibility, reporting, et cetera. So fundamentally, we think it's going to change the networking experience.

我想我會在這裡堅持下去，因為我不想搶先發布任何未來的公告。但只要說我們的人工智慧合作夥伴是 AWS 和 Microsoft 就夠了。我們與他們一起做了很多工作。我們有一個非常創新的解決方案，可以提供非常準確的資訊、有關流的知識、有關您的網路的資訊以及可見性、報告等方面的增強功能。所以從根本上來說，我們認為它將改變網路體驗。

Got it. And my follow-up is, regarding -- you have some -- you have a table regarding major verticals. Just wanted to get an update on your major vertical, the health of your major verticals, starting with government education.

知道了。我的後續行動是，關於——你有一些——你有一個關於主要垂直領域的表格。只是想了解您的主要垂直領域的最新情況，您的主要垂直領域的健康狀況，從政府教育開始。

Yeah. Maybe, Ed, I'll comment. And they're very similar. There's no major shift in what we've seen this quarter versus last quarter. So we just decided, David, at this point, it's basically the same percentages that we've shown over the last several quarters. And so we'll probably update it more annually at this point as opposed to quarterly, but it's very similar.

是的。艾德，也許我會發表評論。而且它們非常相似。本季與上季相比，我們看到的情況沒有重大變化。所以我們決定，大衛，在這一點上，我們在過去幾個季度所顯示的百分比基本上相同。因此，我們可能會每年更新一次，而不是每季更新一次，但它非常相似。

Got it. Thank you.

知道了。謝謝。

Sure.

當然。

Timothy Horan, Oppenheimer.

提摩西霍蘭，奧本海默。

Thanks, guys. Do you have a sense of when the industry gets kind of a normal run rate? Or what is the correct kind of upgrade rate for the industry? Do you think budgets are still being spent on AI? Or are they freeing back up to upgrade networks at this point?

謝謝，夥計們。您是否知道該行業何時達到正常運作率？或者說對產業來說，什麼樣的升級速度才是正確的呢？您認為預算仍然花在人工智慧上嗎？或者他們現在正在釋放備份來升級網路？

And I guess kind of related to this, if I'm an enterprise, why am I going to upgrade now? Why don't I maybe wait a year or two for the AI platforms to be much more robust or six or seven to be much more mature? I guess what's the pitch upgrade now versus waiting a year or two from now? Thanks.

我想與此相關的是，如果我是一家企業，為什麼我現在要升級？為什麼我不等一兩年讓人工智慧平台更強大，或是等六、七年讓人工智慧平台更成熟呢？我想現在與等待一兩年相比，現在的宣傳升級會怎麼樣？謝謝。

Thanks, Tim. Yeah, I mean, right now, what we're seeing in the marketplace is this convergence of networking and security and the presence of both kind of the Gen 1 AI tools for AIOps and managing the network and then new capabilities from AI that are coming out. Underlying security, networking is a baseline for security. Security has so many different elements to it.

謝謝，蒂姆。是的，我的意思是，現在我們在市場上看到的是網路和安全的融合，以及用於AIOps 和管理網路的第一代人工智慧工具的存在，以及即將到來的人工智慧新功能出去。作為安全的基礎，網路是安全的基線。安全有很多不同的要素。

And whether or not you're trying to solve for remote workers or you're trying to solve for campus, either way, you have to -- you've got to solve for security. So whether or not that's a single vendor or a multi-vendor, there's not a single vendor that really provides the best-in-class solutions across the entire security landscape. And so we're picking our spots with how we partner with kind of the full security stack, if you will. And -- but I don't think customers really have a choice today to just decide to wait. So we're -- other than budgetary constraints, we're seeing people moving forward.

無論您是要解決遠端工作人員的問題還是要解決校園問題，無論哪種方式，您都必須解決安全問題。因此，無論是單一供應商還是多供應商，都沒有一個供應商能夠真正在整個安全領域提供一流的解決方案。因此，如果您願意的話，我們正在根據如何與完整的安全堆疊合作來選擇我們的位置。而且 - 但我認為客戶今天確實沒有選擇只是決定等待。因此，除了預算限制之外，我們還看到人們在前進。

As it relates to sort of -- as it relates to future AI and what you're hearing about platforms? All of the existing networks and all of the existing customer environments will just become part of the platform and will flow into and be beneficiaries of the platform. So there's not really a networking decision or investment decision in our minds from a networking perspective that has to be made from a timing perspective because all of your investments today will flow naturally into the new platform that we're talking about.

因為它與未來的人工智慧以及您所聽到的有關平台的內容有關？所有現有的網路和所有現有的客戶環境都將成為平台的一部分，並將流入平台並成為平台的受益者。因此，從網路角度來看，我們心中並沒有真正的網路決策或投資決策必須從時間角度做出，因為今天所有的投資都會自然地流入我們正在討論的新平台。

Because your platform is backward compatible and it will work with other network.

因為您的平台是向後相容的，並且可以與其他網路一起使用。

Exactly.

確切地。

Does anyone else out there have that capability?

還有人有這個能力嗎？

No, not in networking, no.

不，不是在網路領域，不是。

And so when do you think -- what is the correct run rate for the industry? Like are we below trend, above trend?

那麼您什麼時候認為該行業的正確運行率是多少？例如我們是低於趨勢還是高於趨勢？

I think what people are saying -- and look, I mean, you have to listen to the larger players as well. We -- coming into our fiscal '25, we were expecting the rebound. We see a lot of encouragement from what we call run rate business, which is just our channel doing business, placing orders through distribution. These are smaller orders. But we've seen those volumes start to tick up, which is kind of an indication for us of overall activity.

我認為人們所說的話——我的意思是，你也必須傾聽更大的參與者的意見。進入 25 財年，我們預計會反彈。我們從所謂的運行率業務中看到了很多鼓勵，這只是我們做生意的管道，透過分銷下訂單。這些都是較小的訂單。但我們已經看到這些交易量開始增加，這在某種程度上表明了我們的整體活動。

I mentioned the projects that we've seen. We've seen -- we were encouraged by a lot of projects that we saw in the second quarter for this year. We have seen some of these projects slip out into next year. So our view on this is that the first half of '25 is when we'll see a more healthy recovery. And we're expecting to see kind of budgets returning to some of these governments. This is consistent with what larger competitors are saying in the market.

我提到了我們見過的項目。我們已經看到——今年第二季的許多項目讓我們深受鼓舞。我們已經看到其中一些項目推遲到明年。因此，我們對此的看法是，25 年上半年我們將看到更健康的復甦。我們預計一些預算將返回其中一些政府。這與市場上較大競爭對手的說法一致。

Thank you.

謝謝。

(Operator Instructions) Christian Schwab, Craig-Hallum.

（操作員說明）Christian Schwab，Craig-Hallum。

Hey. Congrats, Ed and Kevin, on good quarterly performance. As we look at your competitive product positioning, gaining share, middle market recovery, positive run rate, budget resolution in EMEA. It seems to me that as we get into fiscal year '26, somewhat on the lines of your comment to the last question. We should be operating at kind of the 10% to 12% top line CAGR that you think this business in a normalized market should be running at. Is that fair?

嘿。恭喜 Ed 和 Kevin 取得了良好的季度業績。當我們專注於您在歐洲、中東和非洲地區的競爭產品定位、份額成長、中間市場復甦、積極的運行率、預算解決方案。在我看來，當我們進入 26 財年時，有點類似於您對最後一個問題的評論。我們應該以 10% 到 12% 的複合年增長率運營，您認為正常市場中的這項業務應該以這種速度運營。這樣公平嗎？

Kevin, I'm going to let you jump in and take that one.

凱文，我會讓你跳進去拿那個。

Yeah. I mean, Christian, I think we will -- I would say that, obviously, coming out of the challenges of 2024, right? We're starting to get back to -- we're not quite there with like EMEA with the full-scale IT spending coming back yet with these budgets in the wake and whatnot. But we do believe that when things come back and when people are spending normally, we do believe that our opportunity here is to hit double-digits again from a growth perspective. That's still our long-term view.

是的。我的意思是，克里斯蒂安，我想我們會——我想說，顯然，我們會擺脫 2024 年的挑戰，對吧？我們開始回過頭來——我們還沒有像歐洲、中東和非洲那樣全面恢復 IT 支出，但這些預算也隨之而來。但我們確實相信，當情況好轉，當人們正常消費時，我們確實相信，從成長的角度來看，我們的機會是再次達到兩位數。這仍然是我們的長期觀點。

We would think that the product growth rate would probably be in the high single digits. But then we would drive more subscription and support revenue at a higher percentage of growth, probably in the low teens that would blend you out to a mid to a double-digit number, a low double-digit number.

我們認為產品成長率可能會達到較高的個位數。但隨後我們會推動更多的訂閱，並以更高的成長率支持收入，可能是在十幾歲以下，這會將你混合到中位數到兩位數的數字，一個低兩位數的數字。

Great. And then on a follow-up to that question, should the world and the economy hang in here on a sustainable basis from here. I guess it's just math. But at a 10% top line growth then in fiscal year '27, it doesn't seem heroic to us for you to achieve your long-term target of approaching 20% operating margins. Is that fair?

偉大的。然後，關於這個問題的後續問題是，世界和經濟是否應該在可持續的基礎上堅持下去。我想這只是數學。但在 27 財年的營收成長率為 10% 的情況下，您實現接近 20% 營業利潤率的長期目標對我們來說似乎並不英雄。這樣公平嗎？

That's right, Christian. I mean I think that we will continue to see leverage in our model. I mean we saw a little bit of that leverage here just in the first quarter, as I identified, just the overage on the revenue fell to the bottom line. We think we will continue to see that operating leverage tick up over time. And that we could get to an operating margin of around 20%.

沒錯，克里斯蒂安。我的意思是，我認為我們將繼續在我們的模型中看到槓桿作用。我的意思是，正如我所指出的，我們在第一季就看到了一點槓桿作用，只是收入的超額部分降至了底線。我們認為，隨著時間的推移，我們將繼續看到經營槓桿上升。我們的營業利益率可以達到 20% 左右。

We do believe that, by the way, even by the fourth quarter of this year, we're going to get up -- improve sequentially throughout the year. And in our fourth quarter, we're not going to quite be at 20%. But we're certainly going to continue to drive higher gross operating margins throughout the rest of the year.

順便說一句，我們確實相信，即使到今年第四季度，我們也會在全年中持續改善。在第四季度，我們不會達到 20%。但我們肯定會在今年剩餘時間內繼續提高毛營業利潤率。

Great. And then lastly, I'll just comment that it was hard not to see your logo inside the dugouts at the World Series yesterday. Congrats on that as well.

偉大的。最後，我想說的是，昨天在世界職棒大賽的休息室裡很難不看到你們的標誌。對此也表示祝賀。

Thank you.

謝謝。

Thanks, Christian.

謝謝，克里斯蒂安。

Ryan Koontz, Needham & Company.

瑞恩‧孔茨 (Ryan Koontz)，李約瑟公司。

Good morning, gentlemen. Thanks for the questions. I was hoping you could update us on some of the progress from your go-to-market motion changes you've made over the past few quarters. And what impacts you're seeing on bookings and pipeline from any changes you've made in your sales efforts? Thanks.

早安，先生們。感謝您的提問。我希望您能向我們介紹過去幾季的上市動議變更的一些進展。您在銷售工作中所做的任何改變對預訂和管道產生了哪些影響？謝謝。

Thanks, Ryan. And yeah, we have made changes from a year ago. We have Norman Rice is our Chief Commercial Officer with sales and the sales organization reporting up to him in general. And we have made a lot of changes there. Importantly, we've recruited a new Chief Marketing Officer. And we've made a lot of changes within that organization. And I'd say we have much better alignment.

謝謝，瑞安。是的，我們比一年前做出了一些改變。諾曼·賴斯 (Norman Rice) 是我們的首席商務官，銷售和銷售組織總體上向他匯報。我們在那裡做了很多改變。重要的是，我們招募了一位新的首席行銷長。我們在組織內部做出了許多改變。我想說我們有更好的一致性。

We've gotten a lot more detailed in terms of very specific selling motions, talked about our differentiation as it relates to end-to-end cloud and fabric, how we bring that to bear in the marketplace. We have some upcoming disruptions in the market as it relates to number two and number three of our competitors that are going to create some opportunities that we're going to be going after.

我們已經在非常具體的銷售動作方面獲得了更多詳細信息，討論了我們與端到端雲和結構相關的差異化，以及我們如何將其應用於市場。我們的市場即將出現一些混亂，因為這與我們的第二和第三競爭對手有關，這些競爭對手將創造一些我們將要追求的機會。

And I'd say we're going to be very organized. And we're doing it in what we're calling marketing pods, where we have very specific marketing motions and sales playbooks, if you will, in different parts of the world.

我想說我們將會非常有組織。我們正在所謂的行銷小組中進行這項工作，如果您願意的話，我們在世界不同地區都有非常具體的行銷行動和銷售手冊。

And now this year, what's different from last year is that our teams have very specific targets for not just this quarter and not just next quarter. But they're targeting funnel creation in future quarters looking out further than we have before. And we feel confident with our plays and with our differentiation that we're going to be able to build that funnel.

今年與去年不同的是，我們的團隊不僅為本季、下季制定了非常具體的目標。但他們的目標是在未來幾季創建漏斗，比我們之前看得更遠。我們對我們的策略和差異化充滿信心，我們將能夠建立這個管道。

The other element to that is how we convert. And I mentioned in my remarks that we're seeing higher conversion rates and that's also giving us confidence. So in general, I think the changes are leading to our ability to generate higher quality -- higher volume and higher quality funnel. It's a combination of our technology differentiation as well as our go-to-market motions and some of the channel incentives that we're putting in place. And we're seeing higher conversion rates, and I think that has a lot to do with the changes that we've made in the sales organization.

另一個因素是我們如何轉換。我在演講中提到，我們看到更高的轉換率，這也給了我們信心。因此，總的來說，我認為這些變化使我們有能力產生更高品質的漏斗，即更高數量和更高品質的漏斗。這是我們的技術差異化、市場進入行動以及我們正在實施的一些管道激勵措施的結合。我們看到更高的轉換率，我認為這與我們在銷售組織中所做的改變有很大關係。

That's really great. Thank you for that. And just a quick follow-up. I hear your competitive differentiation, and your gross margin is obviously on a strong trajectory here. But how would you characterize the overall pricing environment right now versus your top-tier competitors?

那真是太棒了。謝謝你。只是快速跟進。我聽說你們的競爭優勢很明顯，而且你們的毛利率顯然處於強勁的軌道上。但是，與您的頂級競爭對手相比，您如何描述目前的整體定價環境？

We've been -- obviously, when you look at our gross margin, we've been hanging in there. We've been holding the line. But our discounting this quarter was actually better. What we hear from our distributors is that our inventory in the channel is maybe in better shape than some of our larger competitors, which says that there's more inventory to move.

顯然，當你看看我們的毛利率時，我們一直堅持下去。我們一直堅守陣線。但本季我們的折扣實際上更好。我們從經銷商那裡聽到的是，我們在通路中的庫存狀況可能比一些較大的競爭對手更好，這表明有更多的庫存需要轉移。

It's always been the case in our industry that we've seen certain situations or certain markets where it looks like larger competitors are doing something uneconomic. I think that's just kind of the nature of the beast. But there's -- I think I would expect that Extreme is maybe a little further out of the woods as far as that inventory issue than maybe some of our competitors based on feedback from distribution.

在我們的行業中，我們經常看到某些情況或某些市場看起來更大的競爭對手在做一些不經濟的事情。我認為這就是野獸的本性。但是，根據分銷的反饋，我認為就庫存問題而言，我認為 Extreme 可能比我們的一些競爭對手更能擺脫困境。

And on the largers there, you said they can behave irrationally. Are you seeing a lot of that with this inventory there or?

對於較大的公司，你說他們可能會表現得不理性。你在這個庫存中看到很多這樣的東西嗎？

I think it's -- I mean, I think that's a normal part of the industry, depending on the geo, depending on the timing, depending on strategies. If we have some really large wins in certain markets, maybe inventory builds up, maybe there's a lot of pressure and maybe they decide they might want to make a statement. But given that Extreme is a 5% market share, 6% market share player, we tend to fly below the radar. And we don't quite get as much attention as the larger players do going back and forth with each other.

我認為這是——我的意思是，我認為這是這個行業的正常部分，取決於地理位置、取決於時機、取決於策略。如果我們在某些​​市場取得了一些非常大的勝利，也許庫存會增加，也許會有很大的壓力，也許他們決定發表聲明。但考慮到 Extreme 的市佔率為 5%、6%，我們往往會低調行事。而且我們並沒有像大公司那樣得到那麼多的關注，彼此之間來來回回。

Got it. No problem. Thanks for the questions.

知道了。沒問題。感謝您的提問。

David Vogt, UBS.

大衛‧沃格特，瑞銀集團。

Thanks for the question. This is Brian on for David. So first, can you provide detail on the projects that closed earlier? Can you quantify the revenue and gross margin impact of those projects that closed earlier than expected? And then I have a follow-up. Thanks.

謝謝你的提問。這是布萊恩替大衛發言。首先，您能否提供有關較早結束的項目的詳細資訊？您能否量化那些早於預期結束的項目對收入和毛利率的影響？然後我有一個後續行動。謝謝。

Kevin, do you want to take that?

凱文，你想接受這個嗎？

Yeah. I wouldn't -- I would -- first of all, I'd say gross margin profile of anything that closed a little earlier than we expected, I would say, it was very, very normal for us. I wouldn't say those projects tipped us up sequentially quarter-over-quarter and that's the reason why we went up. That would be a false narrative if that were to be the case.

是的。我不會——我會——首先，我想說的是，任何比我們預期早一點結束的事情的毛利率狀況，我想說，這對我們來說非常非常正常。我不會說這些項目使我們逐季上漲，這就是我們上漲的原因。如果情況確實如此，那將是一個錯誤的敘述。

I would say we just had a couple of deals in our pipeline that we had anticipated closing in Q2 that, in fact, actually closed in Q1. That's where we got a little bit extra revenue, but the margin profile was very similar to normal.

我想說的是，我們的管道中只有幾筆交易，我們預計將在第二季完成，而事實上，實際上是在第一季完成的。這就是我們獲得一點額外收入的地方，但利潤狀況與正常情況非常相似。

And in terms of size, we had $269 million, obviously. And we were at the midpoint of our range at $260 million. And so and at the high point of our range was $265 million. So call it $4 million to $9 million, a little bit more than we expected.

就規模而言，我們顯然擁有 2.69 億美元。我們處於 2.6 億美元區間的中點。因此，我們的區間最高點為 2.65 億美元。所以稱之為 400 萬到 900 萬美元，比我們預期的要多一點。

Got it. That's helpful. And then for my follow-up, I'm curious about the balance sheet. So at the end of last year, receivables outstanding, was highly concentrated at one customer. Where would you say the balance is today? And what is the outlook for receivables to come down in the coming quarters? Thanks.

知道了。這很有幫助。然後，對於我的後續行動，我對資產負債表很好奇。所以去年底，應收帳款的未清償，高度集中在一個客戶身上。您認為今天的餘額在哪裡？未來幾季應收帳款下降的前景如何？謝謝。

Sure. Yeah, I'd say from a balance sheet perspective, first of all, we've got good DSO. I think our DSO typically ranges in the 35 to 40 days range. So we are not concerned at all about what we have from a receivable's perspective outstanding right now.

當然。是的，我想說，從資產負債表的角度來看，首先，我們擁有良好的 DSO。我認為我們的 DSO 通常在 35 到 40 天範圍內。因此，從應收帳款的角度來看，我們現在根本不關心未清償的情況。

We did have a little concentration last year from one of our larger distribution partners. Just a reminder about 80% of our revenue probably comes from about 10 to 15 large distributors. So that's not abnormal for us.

去年，我們確實從一家較大的分銷合作夥伴那裡獲得了一些關注。請提醒一下，我們大約 80% 的收入可能來自大約 10 到 15 家大型經銷商。所以這對我們來說並不反常。

Our quarter-over-quarter, we had $90 million of receivable last quarter. We had $97 million of receivables this quarter. I wouldn't call it anything different from normal. I think it's certainly reasonable enough. And we will collect all of that cash on the receivable side probably within the next 90 days. So we feel pretty good about that.

與上一季相比，上一季我們的應收帳款為 9,000 萬美元。本季我們的應收帳款為 9,700 萬美元。我不會稱其為與正常情況不同的任何東西。我認為這當然是夠合理的。我們可能會在接下來的 90 天內收回所有應收款方面的現金。所以我們對此感覺很好。

Thank you. And as I see no further questions in the queue, I will turn the call back to Ed Meyercord for his closing comments.

謝謝。由於我在隊列中沒有看到更多問題，我將把電話轉回埃德·邁耶科德（Ed Meyercord）以徵求他的結束語。

Thank you, Carmen, and thanks, everybody, for participating on the call. We appreciate your interest in Extreme. We put up a strong quarter. And as always, I want to thank our employees for their hard work and customers and the channel for their partnership.

謝謝卡門，也謝謝大家參與這次電話會議。我們感謝您對 Extreme 的興趣。我們度過了一個強勁的季度。一如既往，我要感謝我們的員工的辛勤工作、客戶以及他們的合作夥伴關係的管道。

And we're really excited about what's to come here in the future this quarter and into '25. And we have some exciting news that I mentioned earlier to stay tuned for on the product front and stay tuned for that. Thanks, everybody, and have a great day.

我們對本季以及 25 年的未來感到非常興奮。我們有一些我之前提到的令人興奮的消息，請繼續關注產品方面並繼續關注。謝謝大家，祝你有美好的一天。

And thank you all for participating in today's conference. You may now disconnect.

感謝大家參加今天的會議。您現在可以斷開連線。