Extreme Networks Inc (EXTR) 2025 Q3 法說會逐字稿

Thank you for standing by. My name is Ian, and I will be your conference operator today. At this time, I would like to welcome everyone to the Extreme Networks Q3 FY25 financial results conference call. (Operator Instructions)

感謝您的支持。我叫伊恩，今天我將擔任您的會議主持人。現在，我歡迎大家參加 Extreme Networks 2025 財年第三季財務業績電話會議。（操作員指示）

I would like to hand the call over to Stan Kovler, Senior Vice President, Corporate Development and Investor Relations. Stan, you may begin your conference.

我想把電話交給企業發展和投資者關係高級副總裁 Stan Kovler。史丹，你可以開始你的會議了。

Thank you, Ian. Good morning and welcome, everyone, to Extreme's third quarter fiscal 2025 earnings conference call. With me today are Extreme Networks' President and CEO, Ed Meyercord; and Executive Vice President and CFO, Kevin Rhodes.

謝謝你，伊恩。早安，歡迎大家參加 Extreme 2025 財年第三季財報電話會議。今天與我一起的還有 Extreme Networks 總裁兼執行長 Ed Meyercord 和執行副總裁兼財務長 Kevin Rhodes。

We just distributed a press release and filed an 8-K detailing Extreme Networks financial results for fiscal Q3. A copy of the press release, which includes our GAAP to non-GAAP reconciliation, and our earnings presentation are available in the IR section at extremenetworks.com.

我們剛剛發布了一份新聞稿並提交了一份 8-K 報告，詳細介紹了 Extreme Networks 第三財季的財務表現。新聞稿副本（包括我們的 GAAP 與非 GAAP 對帳以及我們的收益介紹）可在 extremenetworks.com 的 IR 部分找到。

Today's call and Q&A may include certain forward-looking statements based on our current expectations about Extreme's future financial and operational results, growth expectations and strategies. Our financial disclosures made on this call will be on a non-GAAP basis unless stated otherwise.

今天的電話會議和問答可能包含某些前瞻性陳述，這些陳述是基於我們對 Extreme 未來財務和營運績效、成長預期和策略的當前預期。除非另有說明，我們在本次電話會議上所作的財務揭露將採用非公認會計準則 (non-GAAP) 基礎。

We caution you not to put undue reliance on these forward-looking statements as they involve risks that can cause actual results to differ materially from those anticipated by these statements. These risks are described in our risk factors in our 10-K and 10-Q filings and any forward-looking statements made on this call reflect our analysis as of today. We have no plans to update them except as required by law. Following our prepared remarks, we will take questions.

我們提醒您不要過度依賴這些前瞻性陳述，因為它們涉及的風險可能導致實際結果與這些陳述預期的結果有重大差異。這些風險在我們的 10-K 和 10-Q 文件中的風險因素中有描述，本次電話會議中做出的任何前瞻性陳述均反映了我們截至今天的分析。除非法律要求，否則我們沒有計劃更新它們。在我們準備好發言之後，我們將回答問題。

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

現在我將電話轉給 Extreme 總裁兼執行長 Ed Meyercord。

Thank you, Stan, and thank you all for joining us this morning. Revenue in the quarter reached $284.5 million representing a 35% increase year over year, growing sharply in EMEA and Americas regions with a particularly strong performance in the Americas sequentially up 21% from the prior quarter.

謝謝你，史丹，也謝謝大家今天早上加入我們。本季營收達 2.845 億美元，年增 35%，其中 EMEA 和美洲地區成長迅猛，美洲地區表現尤為強勁，季增 21%。

We're seeing robust demand across both our wired and wireless network solutions. Revenue grew sequentially for the fourth quarter in a row driven largely by product revenues and we achieved our best quarter of product bookings in six quarters. We're encouraged by new logo wins and the growth in average deal sizes.

我們發現有線和無線網路解決方案的需求都很強勁。營收連續第四個季度環比增長，主要得益於產品收入，並且我們實現了六個季度以來最好的產品預訂量。新標誌的勝利和平均交易規模的成長令我們感到鼓舞。

This quarter we had 40 customers generating over $1 million in bookings, up from 36 last quarter. This highlights our move up market with success penetrating larger enterprise customers across all our industry verticals.

本季度，我們有 40 位客戶，訂單額超過 100 萬美元，比上一季的 36 位有所增加。這凸顯了我們向上發展的市場，成功滲透到所有垂直行業的大型企業客戶。

Our competitive position continues to strengthen with significant wins against major players in key accounts such as City of Everett, Washington, West London NHS Hospital and the United Soccer League and two major government agencies in Japan. We're seeing customer behavior patterns shift towards larger, more comprehensive deployments.

我們的競爭地位不斷增強，在埃弗里特市、華盛頓、西倫敦 NHS 醫院和美國足球大聯盟以及日本的兩個主要政府機構等重要客戶中擊敗了主要競爭對手。我們看到客戶的行為模式正在朝向更大、更全面的部署轉變。

And looking ahead, we have strong confidence in sustained customer demand based on our Q3 funnel generation and with continued strong growth in our pipeline. Our competitive win rates are on the rise across a variety of verticals.

展望未來，基於我們第三季的漏斗生成以及我們通路的持續強勁成長，我們對持續的客戶需求充滿信心。我們在各個垂直領域的競爭成功率都在上升。

We're displacing major players like Cisco, HPE and Juniper largely due to our highly differentiated campus fabric solution, the simplicity of our cloud solution and our flexible licensing. When customers see the impact of fabric's unique features like sub second convergence, the unmatched security benefits of micro segmentation and the ease of deployment with automated Zero Touch Provisioning, Extreme becomes an easy choice.

我們正在取代思科、HPE 和瞻博網路等主要參與者，這主要歸功於我們高度差異化的校園結構解決方案、我們的雲端解決方案的簡單性以及我們靈活的授權。當客戶看到 fabric 的獨特功能（如亞秒融合、微分段無與倫比的安全優勢以及自動化零接觸配置的易於部署）的影響時，Extreme 就成為了一個顯而易見的選擇。

One higher education customer recently told us with Zero Touch Provisioning, automatic configuration and unified network management across 14 locations, they've been able to reduce IT workloads by almost 50%. If enterprise customers spec our technology, competitors cannot match these features with their limited IP data center fabric and it causes them to drop out of the competitive pitch.

一位高等教育客戶最近告訴我們，透過零接觸配置、自動配置和跨 14 個地點的統一網路管理，他們能夠將 IT 工作量減少近 50%。如果企業客戶指定我們的技術，競爭對手就無法利用其有限的 IP 資料中心結構來匹配這些功能，導致他們退出競爭。

In the quarter, customers such as Ferrovienord, an Italian transport company overseeing 120 regional railway stations covering provinces such as Milan, Varese and Como chose ExtremeCloud and Extreme Fabric to streamline network management, ensure consistent performance and low latency and create secure network segmentation across its sites.

本季度，義大利運輸公司 Ferrovienord（負責管理米蘭、瓦雷澤和科莫等省份的 120 個區域火車站）等客戶選擇了 ExtremeCloud 和 Extreme Fabric 來簡化網路管理、確保一致的效能和低延遲，並在其站點之間創建安全的網路分段。

The City of Everett, the seventh largest city in Washington State, upgraded its network and moved to a flexible cost effective network infrastructure as a service model from Extreme. During the upgrade, they continue to manage aging third-party devices with ExtremeCloud IQ while automating and provisioning new devices with Extreme Fabric, making it fast and easy to upgrade with no downtime.

埃弗里特市是華盛頓州第七大城市，它對網路進行了升級，並轉向了 Extreme 提供的靈活且經濟高效的網路基礎設施即服務模式。在升級期間，他們繼續使用 ExtremeCloud IQ 管理老化的第三方設備，同時使用 Extreme Fabric 自動化和配置新設備，從而快速輕鬆地進行升級，且無需停機。

Also Duquesne University chose Extreme Fabric and ExtremeCloud IQ because of the streamlined way fabric will help minimize some of the IT team's most arduous tasks. HP Hood, a large dairy company in the US, recently upgraded to ExtremeCloud to manage operations across its 20 manufacturing and distribution centers. Extreme's seamless integration with Zebra devices was a significant factor in winning that deal.

杜肯大學也選擇了 Extreme Fabric 和 ExtremeCloud IQ，因為其簡化的方式將有助於最大限度地減少 IT 團隊的一些最艱鉅的任務。美國大型乳製品公司 HP Hood 最近升級到 ExtremeCloud 來管理其 20 個製造和配送中心的營運。Extreme 與 Zebra 裝置的無縫整合是贏得交易的重要因素。

We continue to expand our footprint in the Six Flags theme parks with new deals in Six Flags Magic Mountain and Fiesta Texas. Each deployed ExtremeCloud alongside a new 6 gigahertz wireless network, which will create real-time monitoring and management of rides to reduce downtime, deliver more efficiency in park infrastructure and reduce operating costs. They're also receiving Extreme's premier white glove professional services for installation.

我們繼續擴大在六旗主題樂園的影響力，並與六旗魔術山和德州嘉年華達成了新協議。每個園區都部署了 ExtremeCloud 和新的 6 千兆赫無線網絡，這將對遊樂設施進行即時監控和管理，以減少停機時間、提高園區基礎設施效率並降低營運成本。他們還將獲得 Extreme 一流的白手套專業安裝服務。

We also had a nice win with a large law firm in North Carolina, which has 24 offices and more than 450 employees. They were using legacy HPE infrastructure, which made it very difficult for their team to manage the network across several locations.

我們還與北卡羅來納州一家大型律師事務所取得了勝利，該事務所擁有 24 個辦事處和 450 多名員工。他們使用的是傳統的 HPE 基礎設施，這使得他們的團隊很難管理跨多個地點的網路。

With ExtremeCloud and Universal ZTNA, they'll be moving operations to the cloud, simplifying the IT and employee experience and increasing security of their network. Extreme's UZTNA SaaS solution is gaining momentum with strong interest from customers in education, manufacturing, health care and financial services.

借助 ExtremeCloud 和 Universal ZTNA，他們將把營運轉移到雲端，簡化 IT 和員工體驗並提高網路的安全性。Extreme 的 UZTNA SaaS 解決方案正受到教育、製造、醫療保健和金融服務領域客戶的濃厚興趣。

It combines mature network access control with zero trust remote application access. We're also seeing strong momentum with our commercial models. We added 11 new partners to our MSP program this quarter bringing the total to 48.

它將成熟的網路存取控制與零信任遠端應用程式存取相結合。我們的商業模式也呈現出強勁的發展動能。本季度，我們的 MSP 計畫新增了 11 位合作夥伴，總數達到 48 位。

We offer the industry's first consumption-based billing model, eliminating upfront cost and ensuring cost predictability. Our unique poolable licensing lets MSPs flexibly allocate licenses across devices, locations and customers making it easier than ever to scale.

我們提供業界首個基於消費的計費模式，消除前期成本並確保成本的可預測性。我們獨特的可池化許可讓 MSP 能夠靈活地在設備、位置和客戶之間分配許可證，從而比以往更輕鬆地擴展。

In the quarter, we made Extreme Platform ONE available for MSPs. With everything centralized, Platform ONE helps MSPs gain a comprehensive view of each client's network health, performance and security status. The VP of Technology Alliances at our partner Logicalis said with Extreme Platform ONE, we can efficiently manage all of our clients under 1 platform, which will significantly reduce the time and IT staff required to maintain operations.

在本季度，我們向 MSP 推出了 Extreme Platform ONE。透過一切集中化，Platform ONE 可協助 MSP 全面了解每位客戶的網路健康狀況、效能和安全狀態。我們的合作夥伴 Logicalis 的技術聯盟副總裁表示，借助 Extreme Platform ONE，我們可以在一個平台下有效地管理所有客戶，這將大大減少維護營運所需的時間和 IT 人員。

On the innovation front, early indications from customers and partners reinforce that Extreme Platform ONE will be a game changer. It's the first solution that offers holistic AI for networking. It drives significant automation by leveraging AI agents that assist in tasks across the entire network life cycle from planning and deployment to management and remediation, reducing the time to complete complex tasks from hours to minutes.

在創新方面，來自客戶和合作夥伴的早期跡象表明，Extreme Platform ONE 將改變遊戲規則。這是第一個為網路提供整體人工智慧的解決方案。它利用人工智慧代理來協助完成從規劃和部署到管理和修復的整個網路生命週期中的任務，從而實現顯著的自動化，將完成複雜任務的時間從幾小時縮短到幾分鐘。

As enterprise teams feel pressure from executive leadership and their Boards to leverage AI to drive operating efficiencies, Extreme Platform ONE will provide the most modern tools to achieve this objective. According to a survey we conducted with 200 C-level executives earlier this year, 89% are ready to invest in a platform for AI networking and security.

當企業團隊感受到來自高階主管和董事會的壓力，要求他們利用人工智慧來提高營運效率時，Extreme Platform ONE 將提供最現代化的工具來實現這一目標。根據我們今年稍早對 200 名 C 級主管進行的調查，89% 的人準備投資 AI 網路和安全平台。

Earlier this month, we made Extreme Platform ONE available to E-Rate customers. To date, we have approximately 100 customers that have subscribed to the platform. And we're excited to share more details about Extreme Platform ONE at our oversubscribed Connect user conference in Paris, which is happening next month.

本月初，我們向 E-Rate 客戶推出了 Extreme Platform ONE。到目前為止，我們已有大約 100 名客戶訂閱了該平台。我們很高興在下個月於巴黎舉行的超額訂閱 Connect 用戶會議上分享更多有關 Extreme Platform ONE 的詳細資訊。

Our customers are enjoying the best quality products in Extreme's history. We see this in our data and our financial results as well as service costs, which are running at record lows and customer satisfaction, which runs consistently at high levels.

我們的客戶正在享受 Extreme 史上最優質的產品。我們從數據、財務結果以及服務成本（處於歷史最低水平）和客戶滿意度（持續處於高水準）中看到了這一點。

We anticipate further market share gains and revenue growth for the full year and continued strength in Q4. We expect this growth to be accompanied by increased margins and cash flow for the full year.

我們預計全年市場份額和收入將進一步增長，並在第四季度繼續保持強勁勢頭。我們預計這一成長將伴隨全年利潤率和現金流的增加。

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

接下來，我想將電話轉給我們的財務長 Kevin Rhodes，請他向我們介紹結果和指導。

Thank you, Ed. This quarter marked the fourth quarter in a row of sequential growth and our strong gross margins coupled with operating expense control demonstrated the significant operating leverage in our model.

謝謝你，埃德。本季是我們連續第四個季度實現成長，我們強勁的毛利率加上營運費用的控制，充分體現了我們模式中顯著的營運槓桿作用。

We achieved earnings per share of $0.21, in line with the prior quarter, up significantly year over year as well as exceeding the high end of our guidance range. Customer demand trends continue to improve, particularly with large customers. I'm happy with our financial results for the third quarter defying normal seasonality and demonstrating continued momentum across our business.

我們實現了每股收益 0.21 美元，與上一季持平，同比大幅增長，同時也超過了我們預期範圍的高端。客戶需求趨勢持續改善，尤其是大客戶。我對我們第三季的財務表現感到滿意，它突破了正常的季節性因素，並展現了我們業務的持續發展勢頭。

Total revenue for the third quarter reached $284.5 million, up 2% sequentially and an impressive 35% year over year. Product revenue increased to $178.1 million, up 3% quarter over quarter and 67% year over year with wireless solutions showing particular strength growing 12% sequentially.

第三季總營收達到 2.845 億美元，季增 2%，年增 35%。產品營收增至 1.781 億美元，季增 3%，年增 67%，其中無線解決方案表現尤為強勁，季增 12%。

Our subscription business continues to grow double digits with SaaS annual recurring revenue reaching $184 million, up 13.4% year over year. Total deferred recurring revenue grew 7% year over year to $578 million reflecting the strong momentum in our recurring revenue model.

我們的訂閱業務持續保持兩位數成長，SaaS 年度經常性收入達到 1.84 億美元，較去年同期成長 13.4%。總遞延經常性營收年增 7% 至 5.78 億美元，反映了我們經常性收入模式的強勁勢頭。

Overall, recurring revenue was relatively stable at 35% of total revenue in the quarter as a result of rising product revenue. The strength of our execution is evident in our financial results with particularly strong performance in the Americas region, which grew 19% year over year.

整體而言，由於產品收入的成長，經常性收入相對穩定，佔本季總收入的 35%。我們的執行力在我們的財務表現中得到了充分體現，美洲地區的表現尤為強勁，同比增長了 19%。

EMEA revenue grew 81% year over year due to improved macro and channel inventory. APAC was flat year over year in revenue, however, bookings were up double digits. Overall, this is the best bookings quarter in the past six quarters. Product bookings grew high single digits similar to what we called in our long-term range and we see continued strength in our pipeline this year.

由於宏觀和通路庫存的改善，EMEA 收入年增 81%。亞太地區營收與去年同期持平，但預訂量卻成長了兩位數。總體而言，這是過去六個季度以來預訂量最好的季度。產品預訂量成長了高個位數，與我們所說的長期範圍相似，我們預計今年我們的產品線將繼續保持強勁成長。

Trends were in line with our revenue during the quarter and the product backlog was once again within our expected range. I'm particularly pleased with our performance in new subscription bookings, which bodes well for an acceleration of SaaS ARR going forward as new subscription bookings will continue to grow with the adoption of Platform ONE going forward.

本季的趨勢與我們的收入一致，產品積壓再次處於我們的預期範圍內。我對我們在新訂閱預訂方面的表現特別滿意，這預示著未來 SaaS ARR 將會加速成長，因為隨著 Platform ONE 的採用，新訂閱預訂將繼續成長。

On a product basis, bookings were ahead of the previous five quarters driven by continued strength in wired. By industry, government, transportation and logistics, manufacturing and sports and entertainment verticals all grew strong double digits both year over year and sequentially. Within education, K-12 bookings including E-Rate also grew double digits over both periods.

從產品來看，由於有線產品持續強勁，預訂量高於前五季。從行業來看，政府、運輸和物流、製造業以及體育和娛樂等垂直行業均實現了同比和環比兩位數的強勁增長。在教育領域，包括 E-Rate 在內的 K-12 預訂量在兩個時期也實現了兩位數成長。

In fact our E-Rate filings were up double digits from the prior year and we believe we are gaining market share in this segment even though it accounted for less than 5% of total bookings in the quarter. All-in, we are well diversified across a variety of other verticals.

事實上，我們的 E-Rate 申請量比上年增長了兩位數，我們相信，儘管該領域的預訂量在本季度佔總預訂量的不到 5%，但我們的市場份額正在不斷擴大。總而言之，我們已在其他多個垂直領域實現了多元化發展。

Total subscription and support revenue was $106.4 million, similar to the second quarter. Our recurring revenue growth has been driven by the strength of our cloud subscription revenue in the past. Gross margin for the quarter was 62.3%. While this represents a 110 basis point sequential decrease, it is up 470 basis points year over year on a reported basis or 120 basis points on an adjusted basis for [E&L].

總訂閱和支援收入為 1.064 億美元，與第二季持平。過去，我們的經常性收入成長一直受到雲端訂閱收入強勁的推動。本季毛利率為62.3%。雖然這代表著連續下降 110 個基點，但按報告基礎計算，年比上升 470 個基點，按調整後基礎計算，比去年同期上升 120 個基點。[E&L]。

Product margin came in at 58% and subscription and support margin remained strong. These margins reflect our continued focus on operational efficiency and product mix optimization along with lower freight costs. We are also buying less inventory and have reduced the overall inventory quarter over quarter yet we still have ample supply of finished goods and raw materials to mitigate against any potential tariff risk.

產品利潤率為 58%，訂閱和支援利潤率依然強勁。這些利潤率反映了我們對營運效率和產品組合優化以及降低運費的持續關注。我們購買的庫存也減少了，並且總庫存量環比有所減少，但我們仍然有充足的成品和原材料供應，可以減輕任何潛在的關稅風險。

The structural improvements we've made to our portfolio within our Universal Platform have resulted in improvements in the product quality, lower service costs and lower remediation costs that are also benefiting our customers.

我們對通用平台內的產品組合進行的結構性改進提高了產品質量，降低了服務成本和補救成本，這也使我們的客戶受益。

The combination of higher product revenue versus subscription and support did have a small impact on sequential results. We also expect our gross margin to be in a range of 61.8% to 62.8% in the fourth quarter of fiscal '25 also owing to higher product revenue mix expectations.

較高的產品收入與訂閱和支援的結合確實對連續結果產生了小的影響。由於產品收入組合預期較高，我們也預期 25 財年第四季的毛利率將在 61.8% 至 62.8% 之間。

Non-GAAP operating income was $40 million in the quarter representing a 14.1% operating margin. Operating expenses were well managed at $137.3 million. This demonstrates our commitment to operational discipline while continuing to invest in growth initiatives.

本季非公認會計準則營業收入為 4,000 萬美元，營業利益率為 14.1%。營運費用控制在 1.373 億美元，並得到良好管理。這顯示我們在繼續投資於成長計畫的同時，也致力於遵守營運紀律。

During the quarter, we maintained our strategic investments in R&D and marketing to support our product innovation and market expansion efforts. We expect operating expenses to increase to a range of $143 million to $145 million in the fourth quarter of fiscal '25.

本季度，我們保持對研發和行銷的策略性投資，以支持我們的產品創新和市場擴張工作。我們預計 2025 財年第四季的營運費用將增至 1.43 億美元至 1.45 億美元。

Sales productivity and better efficiency from our new commercial models are driving some of this updated outlook. We continued our commitment to returning value to shareholders through our recent share repurchase program as we repurchased $13 million worth of shares during the quarter. In addition to our remaining authorization for fiscal '25, the Board recently authorized another $200 million of buybacks for the next three years starting in fiscal '26.

我們的新商業模式帶來的銷售生產力和更高的效率正在推動這一更新前景的部分發展。我們繼續致力於透過最近的股票回購計劃向股東回報價值，我們在本季度回購了價值 1,300 萬美元的股票。除了我們對 25 財年的剩餘授權外，董事會最近還授權從 26 財年開始的未來三年內再進行 2 億美元的回購。

Turning to our balance sheet and cash flow metrics. I'm pleased to report significant improvements in our financial position. We've successfully transitioned to a net cash position of $3 million as of March 31, a notable improvement from our net debt position of $15 million at the end of the year -- end of December. Our disciplined financial management improved our cash conversion cycle by a remarkable 29 days. This reduction demonstrates our enhanced operational efficiency and working capital management.

轉向我們的資產負債表和現金流量指標。我很高興地報告我們的財務狀況有了顯著改善。截至 3 月 31 日，我們已成功實現 300 萬美元淨現金狀況，較去年年底（12 月底）的 1,500 萬美元淨債務狀況有顯著改善。我們嚴格的財務管理將現金轉換週期顯著縮短了 29 天。此次減少顯示我們的營運效率和營運資本管理得到了提高。

As a result, we generated robust operating cash flow of $30 million during the quarter contributing to our strengthened liquidity position. We expect a continued improvement in cash flow in the fourth quarter as we continue to grow revenue again and also improve profitability. The combination of strong cash generation, improved working capital management and disciplined cost control positions us well for sustained financial performance and continued investment in growth opportunities.

因此，我們在本季產生了 3000 萬美元的強勁經營現金流，這有助於增強我們的流動性狀況。隨著收入持續成長並提高獲利能力，我們預計第四季度現金流將繼續改善。強勁的現金產生能力、改善的營運資本管理和嚴格的成本控制相結合，使我們擁有持續的財務表現和對成長機會的持續投資。

Now turning to guidance. We are encouraged by the level of customer engagement and growth in the funnel that we are seeing, which should bode well for us heading into the final quarter of this fiscal year. As a result of our improved visibility, we are increasing our full year guidance and providing a slightly narrower revenue range for the next quarter.

現在轉向指導。我們看到的客戶參與度和通路成長水準令我們感到鼓舞，這對我們進入本財年最後一個季度來說是一個好兆頭。由於我們的知名度提高，我們提高了全年指導，並為下一季提供了略微縮小的收入範圍。

Our supply chain optimization efforts are paying off and strategic pricing adjustments can be made to mitigate any potential tariff impacts. To date, we have not seen any negative impact on the demand side of the equation related to tariffs. Therefore, we believe we are well positioned to capitalize on the trends that we are seeing and deliver sustained growth in the coming quarters.

我們的供應鏈優化工作正在取得成效，並且可以進行策略性價格調整以減輕任何潛在的關稅影響。到目前為止，我們還沒有看到關稅對需求方產生任何負面影響。因此，我們相信我們已做好準備，利用我們所看到的趨勢，在未來幾季實現持續成長。

For the fourth quarter, we expect improved guidance as follows. Revenue to be in a range of $295 million to $305 million. Gross margin to be in a range of 61.8% to 62.8%. At this point in time, we estimate the impact of tariffs on our P&L will be fairly negligible at approximately $1.5 million in the fourth quarter and a similar amount going forward. This expectation is currently included in our guidance.

對於第四季度，我們預期業績指引將有所改善，具體如下。營收在 2.95 億美元至 3.05 億美元之間。毛利率預計在61.8%至62.8%之間。目前，我們估計關稅對我們的損益的影響相當小，第四季約為 150 萬美元，未來也大致相同。這項預期目前已包含在我們的指導中。

Operating margin is expected to be in a range of 13.3% to 15.3%. And earnings per share is expected to be in a range of $0.21 to $0.25. Our fully diluted share count is expected to be around 134.2 million shares. For the full year fiscal '25, we expect revenue to be in a range of $1,128 million to $1,138 million.

預計營業利益率介於13.3%至15.3%之間。每股收益預計在0.21美元至0.25美元之間。我們的完全稀釋股份數量預計約為1.342億股。對於 25 財年全年，我們預計營收將在 11.28 億美元至 11.38 億美元之間。

And with that, I'll now turn the call over to the operator to begin the Q&A session.

現在，我將把電話轉給接線員，開始問答環節。

(Operator Instructions)

（操作員指示）

David Vogt, UBS.

瑞銀的戴維·沃格特。

Great. Thanks, guys and thanks for taking my question. So Ed and Kevin, you mentioned you're not seeing any weakness or any impact from the tariffs. Can you maybe walk through some of the feedback that you're getting from customers to date, what they're thinking, how they're thinking about the next 6 to 12 months?

偉大的。謝謝大家，也謝謝你們回答我的問題。所以 Ed 和 Kevin，你們提到你們沒有看到關稅帶來的任何弱點或影響。您能否介紹一下迄今為止從客戶那裡得到的一些回饋，他們的想法是什麼，以及他們對未來 6 到 12 個月的看法？

And then on the tariff impact that Kevin referenced, that [$1.5 million] in the fourth quarter and going forward, it sounds like that's going to be the run rate next year. Should we think about that as being sort of just a gross margin headwind as we go into fiscal '26 next year? And what are the offsets that you could potentially use to mitigate that incremental $6 million of hit to COGS? Thanks.

然後關於凱文提到的關稅影響，第四季及以後的 [150 萬美元] 聽起來這將是明年的運行率。當我們進入明年 26 財年時，我們是否應該將其視為一種毛利率阻力？那麼，您可以使用哪些補償措施來減輕對 COGS 造成的 600 萬美元的增量衝擊呢？謝謝。

Yeah. Let me, thanks, David, for the question. And Kevin, I'll kick it off and then I'll let you pick it up. Mario, but of an echo here on the line. Yeah, so David, the tariff situation is very dynamic I think as everybody knows and can appreciate and it's kind of hard to call. There was concern initially given the magnitude of tariffs. Keep in mind that our manufacturing on the cost side of the equation, we have Taiwanese ODMs and historically, factories were in China.

是的。謝謝大衛提出這個問題。凱文，我先把它踢開，然後讓你把它撿起來。馬裡奧，但在這裡卻有迴響。是的，大衛，我認為關稅情況非常動態，每個人都知道並且可以理解，而且很難判斷。鑑於關稅的幅度，人們最初感到擔憂。請記住，就製造成本而言，我們有台灣的 ODM，而且從歷史上看，工廠都在中國。

We moved out of China to Taiwan, Vietnam, Philippines and Malaysia in partnership with our manufacturers and obviously they were slapped with very large tariffs that look pretty scary. They were put on hold. Our category was exempt.

我們與製造商合作，將業務從中國轉移到台灣、越南、菲律賓和馬來西亞，顯然這些國家被徵收了非常高的關稅，這看起來相當可怕。他們被擱置了。我們的類別是豁免的。

And so currently, there's minimal impact to our business. At the same time, all of these countries are in active negotiations with the Trump administration and our understanding is that they're going to strike a deal and the indication is that it's going to be somewhat status quo.

因此目前對我們的業務影響很小。同時，所有這些國家都在與川普政府進行積極談判，我們的理解是，他們將達成協議，而且有跡象表明，協議將維持現狀。

We won't know for sure until this 90-day window in the beginning of July ends and we have finality to that. So one of the things that we've done as a company is we've come out and we've guaranteed customers current pricing through the end of the quarter.

直到 7 月初的 90 天期限結束之前，我們無法確定，而且我們對此有最終決定權。因此，我們公司所做的事情之一就是向客戶保證在本季末之前保持當前價格。

We're the only player in the industry that's done that, but it's been very well received by partners and customers. We have seen, I would say, minor early buying for customers that want to get ahead of tariffs and mitigate risk of potential price increases and so it's somewhat of a fluid situation there. The larger question is will all of the changes globally in trade and tariff policy have an impact on demand?

我們是業內唯一一家這樣做的公司，但卻受到了合作夥伴和客戶的一致好評。我想說，我們看到一些客戶為了搶在關稅之前購買並降低潛在價格上漲的風險而進行了少量的早期購買，因此那裡的情況有點不穩定。更大的問題是，全球貿易和關稅政策的所有變化是否會對需求產生影響？

And that's hard to call at this point and we're going to hold as far as providing guidance or judgment on that until we have finality come July. Kevin, do you want to add to that?

目前還很難下結論，我們將盡力提供指導或判斷，直到 7 月最終確定。凱文，你想補充一下嗎？

Yeah. Sure, Ed. I think on the latter part of the question around the $1.5 million and any mitigation there, right, David. So yes, we baked that into the fourth quarter guidance. As Ed said, we're holding on the price increases right now.

是的。當然，埃德。我認為問題的後半部分是關於150萬美元以及任何緩解措施，對吧，大衛。是的，我們將其納入了第四季的指導中。正如艾德所說，我們目前暫停漲價。

Obviously the most obvious mitigation strategy there would be as we get more color, more visibility into whether they might be permanent or not, we can always raise price and it would be a small price to raise to offset that $1.5 million per quarter.

顯然，最明顯的緩解策略是，隨著我們獲得更多細節，更加清楚它們是否是永久性的，我們可以隨時提高價格，而且只需提高很小的價格就可以抵消每季 150 萬美元的價格。

But right now in the fourth quarter, we kind of took the adjustment, if you will, in the fourth quarter. I would say in general, we're feeling good about where we are right now and we're not seeing a lot of impact on the demand, which is what we commented on. And then obviously we have plenty of levers to pull if we need to in order to offset tariffs.

但現在是第四季度，如果你願意的話，我們在第四季度做出了調整。我想說，總的來說，我們對目前的狀況感到滿意，我們沒有看到對需求產生太大的影響，這就是我們所評論的。顯然，如果需要的話，我們可以採取多種手段來抵消關稅。

And Kevin, just to clarify. So do you think in the fourth quarter, gross margins would be basically flat sequentially ex the tariff impact?

凱文，我只是想澄清一下。那麼，您是否認為第四季度的毛利率在扣除關稅影響後會與上一季基本持平？

That's correct, David. Yes, it's about 50 basis point impact on the quarter that we've baked into our guidance, which obviously with EPS being higher than Q3, we're still showing continued improved profitability there.

沒錯，大衛。是的，這對我們已納入指引的本季度產生了約 50 個基點的影響，顯然由於每股收益高於第三季度，我們仍顯示出盈利能力持續改善。

Great. Thanks for the color guys.

偉大的。謝謝你們的顏色。

Michael Genovese, Rosenblatt Securities.

羅森布拉特證券公司的麥可‧吉諾維斯 (Michael Genovese)。

Great. Thanks. I guess any more color on sort of competitive trends broken out between Cisco, Juniper, HPE, anything involved in the last quarter that was different than before?

偉大的。謝謝。我想問思科、瞻博網路、HPE 之間的競爭趨勢還有什麼特別之處嗎？上個季度與以前相比有什麼不同嗎？

Yeah. Thanks, Mike. I can take this, Kevin. Yeah, I think you've seen HPE is I think struggling quite frankly and I think if we had to provide commentary, we'd say that they're probably losing share in the marketplace. The fact that their deal is held up, the fact that they had to pay such a high price for Juniper on an inflated demand curve and I think now that they're well over a year into the process and have a trial coming up in July has created some issues for them in the market and in the channel. They still very much want to get the deal done.

是的。謝謝，麥克。我可以接受這個，凱文。是的，我認為你已經看到 HPE 正在苦苦掙扎，如果我們必須發表評論，我們會說他們可能正在失去市場份額。事實上，他們的交易被擱置，他們不得不在需求曲線膨脹的情況下為瞻博網路支付如此高的價格，我認為現在他們已經進行了一年多的流程，並將於 7 月進行試驗，這給他們在市場和通路中帶來了一些問題。他們仍然非常希望達成這筆交易。

We've seen Juniper get a little more aggressive in pricing to win business. They're somewhat in the same situation as HPE because they're stagnant. They can't provide real guidance to the channel or customers as to the future of the product road map, the technology, the solutions. They don't know. So that's helpful to us. I think we would expect if the deal goes through, there to be a lot of changes that take place and either way, our view is that it's a positive for Extreme.

我們發現瞻博網路為了贏得業務在定價上採取了更激進的措施。他們的情況和 HPE 有點相似，因為他們停滯不前。他們無法為通路或客戶提供有關產品路線圖、技術和解決方案未來的真正指導。他們不知道。這對我們有幫助。我認為，如果交易成功，我們預計會發生很多變化，無論如何，我們認為這對 Extreme 來說是一件好事。

Cisco has actually been pretty strong and competitive in the marketplace, hanging on to their market share. And I don't really have a lot to report on that front except for the fact that with their focus as it relates to Splunk and driving SaaS revenue, observability, security, they seem to be moving away from or less focused on enterprise networking and there are solutions there. This is what we hear from customers and partners. They remain the most complicated, unintegrated and expensive solution in the marketplace.

思科實際上在市場上表現得相當強大且具有競爭力，並保住了自己的市場份額。在這方面我並沒有太多要報告的內容，除了他們專注於 Splunk 以及推動 SaaS 收入、可觀察性和安全性，他們似乎正在遠離或減少對企業網路的關注，並且那裡有解決方案。這是我們從客戶和合作夥伴那裡聽到的。它們仍然是市場上最複雜、最不整合且最昂貴的解決方案。

And so the chorus of dissatisfaction from Cisco continues to grow and the larger deals that we're talking about, in most cases these are competitive wins from Cisco. And the final comment I'll make is that Cisco has said that they're overhauling their partner program. Keep in mind, we sell and the industry sells through the partner channel 85% of our business.

因此，思科的不滿情緒不斷高漲，而我們所談論的大型交易，在大多數情況下都是思科在競爭中獲勝。我最後要說的是，思科表示他們正在徹底改革其合作夥伴計畫。請記住，我們和業界 85% 的業務都是透過合作夥伴管道銷售的。

And any time you go through a massive restructuring of your channel program, there are going to be winners and losers in that. And any kind of disruption, Extreme will be right there around the edges to pick up new partner relationships to drive share gain.

每當您對通路計畫進行大規模重組時，都會有贏家和輸家。無論發生什麼情況，Extreme 都會及時出現，建立新的合作夥伴關係，以推動市場份額的成長。

Great. That's a lot of great color. Very helpful. And Kevin, I guess I just have to ask. I mean it's great that SaaS ARR is in the double digits. But to see bigger numbers going forward -- bigger double-digit numbers year over year growth in SaaS ARR potentially in the fourth quarter and going into next year, what should we be looking for to drive that?

偉大的。色彩真漂亮。非常有幫助。凱文，我想我必須要問一下。我的意思是，SaaS ARR 達到兩位數真是太好了。但是，要看到未來更大的數字——SaaS ARR 在第四季度以及明年可能實現更大的兩位數同比增長，我們應該尋找什麼來推動這一增長？

Yeah. Mike, a couple of things here, right? One, we actually had very good bookings on our SaaS subscription in the quarter. Of course that will take a little bit of time to work itself into revenue, but that was up 29% year over year. So we were happy about that.

是的。麥克，這裡有幾件事，對吧？首先，本季我們的 SaaS 訂閱預訂量實際上非常好。當然，這需要一點時間才能轉化為收入，但與去年同期相比增長了 29%。所以我們對此感到高興。

The second thing is as we talked about Platform ONE, it has a combination of subscription and support in it. It's got a higher ASP, it also has expected higher attach rate to it as well. That's going to start to drive more subscription overall and that's a combined just a reminder, that's support and subscription along with AI.

第二件事是，正如我們談到的 Platform ONE，它結合了訂閱和支援。它具有更高的平均售價，預期的附加率也更高。這將開始推動更多的整體訂閱，這只是一個組合提醒，這是支援和訂閱以及人工智慧。

So all those features all combined in one subscription model and so that's going to drive subscription ARR over time too. So I'm optimistic about what that growth rate looks like in the future. I know it's been somewhat flattish overall as a revenue line item, but I think it will grow over time.

因此，所有這些功能都結合在訂閱模式中，因此隨著時間的推移，這也將推動訂閱 ARR 的成長。因此，我對未來的成長率持樂觀態度。我知道作為一項收入，它總體來說有些平穩，但我認為它會隨著時間的推移而增長。

Perfect. I'll pass it on, but nice to see the performance and please keep it up.

完美的。我會傳達的，但很高興看到表演，請繼續保持。

Thanks, Mike.

謝謝，麥克。

Thanks, Mike.

謝謝，麥克。

Christian Schwab, Craig-Hallum Capital.

克里斯蒂安·施瓦布，克雷格·哈勒姆資本。

Great. Thanks for taking my question. Great quarter. Just Ed, thank you so much for the additional color on the competitive position in Cisco and HPE and Juniper and how you're positioning there. I'm just wondering if you could just elaborate one step further. Given your stronger success with larger customers in competitive wins versus your three top competitors.

偉大的。感謝您回答我的問題。很棒的一個季度。艾德，非常感謝您對思科、HPE 和瞻博網路的競爭地位以及您在那裡的定位的補充說明。我只是想知道您是否可以進一步詳細說明。鑑於您在與三大競爭對手的競爭中贏得了更大的客戶，取得了更大的成功。

I'm wondering if you could just give us some further color on what you believe or what your customers are seeing regarding the total cost of operation and your competitive advantage versus them. I imagine you have some color there and why you're seeing success with large customers in particular.

我想知道您是否可以進一步說明您認為或您的客戶對總營運成本的看法以及您相對於他們的競爭優勢。我想您一定對此有所了解，並且知道為什麼您會特別在大型客戶中取得成功。

Sure, Christian. Thanks for the question and for joining us. Yeah, the big differentiator for us today is our fabric technology, which is unique in the industry it's novel. Most fabrics in the networking industry are designed for data centers and managing all the traffic flows inside of the walled secure data center.

當然，克里斯蒂安。感謝您的提問並加入我們。是的，今天我們最大的區別在於我們的布料技術，它在業界是獨一無二的，是新穎的。網路產業中的大多數結構都是為資料中心設計的，用於管理有圍牆的安全資料中心內的所有流量。

When we acquired Avaya, which had sort of the Nortel technology, they had invested heavily in and since we have invested heavily in a campus fabric which is very different and it's designed specifically for these large enterprise campuses.

當我們收購擁有某種北電技術的 Avaya 時，他們投入了大量資金，並且我們也在園區網路結構上投入了大量資金，這種結構非常不同，並且是專門為這些大型企業園區設計的。

So when we win Washington University, when we win John Deere, when we win Wynn Resorts and Casino, when we win these larger deals, this fabric gives us the capability to provide significant advantages in automation and deployment, Zero Touch Provisioning, the elimination of constructing and building VLANs in deployment environments.

因此，當我們贏得華盛頓大學、贏得約翰迪爾、贏得永利度假村和賭場以及贏得這些更大的交易時，這種結構使我們能夠在自動化和部署、零接觸配置、消除在部署環境中構建和構建 VLAN 方面提供顯著優勢。

We're also able to segment the network into -- take a single physical network and you can slice it into literally thousands of networks and each network can have its own SLA. And importantly, because of the way the technology works with the segmentation capability, we hide IP addresses and effectively it brings significant security benefits.

我們還能夠將網絡細分為 - 以單一實體網絡為例，您可以將其切分成數千個網絡，每個網絡都可以擁有自己的 SLA。重要的是，由於該技術與分段功能的協同作用，我們可以隱藏 IP 位址，從而有效地帶來顯著的安全優勢。

So speed to provisioning, the security benefits and the ease of deployment and creating networks within a network, which is so valuable. And then finally, the resilience of our fabric, we talk about sub second convergence, our competitors can't do it.

因此，配置速度、安全優勢、部署的簡易性以及在網路內創建網路都非常有價值。最後，關於我們結構的彈性，我們談論亞秒融合，我們的競爭對手做不到。

So if we get in and if we can convince customers to spec the performance, just the performance of our fabric technology, we win every time. And customers that buy our fabric are very loyal. Most people don't believe the benefits that we talk about in terms of what we're pitching. When they see and they try and they test our technology physically hands-on, they're kind of blown away and then they become very religious about it and so this is a primary differentiator for us. When we get into competitor processes, if we can convince customers to try out our fabric, they're kind of blown away and that's what's driving larger deals and higher win rates.

因此，如果我們能夠進入這個領域，並且能夠說服客戶指定性能，也就是我們織物技術的性能，那麼我們每次都會獲勝。購買我們布料的顧客都非常忠誠。大多數人不相信我們所宣傳的好處。當他們看到、嘗試並親身測試我們的技術時，他們會感到震驚，然後變得非常虔誠，所以這是我們的主要區別所在。當我們進入競爭對手的流程時，如果我們能夠說服客戶嘗試我們的布料，他們就會感到震驚，這就是推動更大交易和更高中標率的原因。

The simplicity of our cloud solution is also a big factor. And as we look at Platform ONE, as you know, Christian, we were not investing in networking for AI. That strategically was not where we've been investing, but we have been investing heavily in AI for networking.

我們的雲端解決方案的簡單性也是一個重要因素。當我們看 Platform ONE 時，如你所知，克里斯蒂安，我們並沒有投資人工智慧網路。從策略上來說這不是我們一直在投資的領域，但我們一直在大力投資網路人工智慧。

And today, there's not a single organization where leadership, boards, management are not pressuring saying how are you using AI to drive efficiency in the organization? Well, we are positioned to be that player to provide the tools and the platform for all the enterprise customers out there to leverage our tools to answer that question and say yes, we're leveraging AI, we're using Extreme and we're going to be that go-to provider for AI and networking.

如今，沒有一個組織的領導階層、董事會和管理階層不在向你施壓，詢問你如何利用人工智慧來提高組織的效率？好吧，我們的定位是成為這樣的參與者，為所有企業客戶提供工具和平台，讓他們利用我們的工具來回答這個問題，並且說是的，我們正在利用人工智慧，我們正在使用 Extreme，我們將成為人工智慧和網路的首選提供者。

So I'd say it's those two trends. It's the differentiation of our fabric and by the way, that fabric technology will be available to be managed and visualized from Extreme Platform ONE, which is also a game changer. So it's fabric and then AI for networking and our differentiation and what we believe will be a significant leadership position ahead of our competition in enterprise. So these are the big drivers right now in the marketplace and I'd say our competitive position, we feel very good about our competitive position.

所以我認為是這兩種趨勢。這是我們架構的差異化，順便說一句，該架構技術可以透過 Extreme Platform ONE 進行管理和視覺化，這也是一個遊戲規則的改變者。因此，它是結構，然後是網路人工智慧和我們的差異化，我們相信這將使我們在企業競爭中佔據重要的領導地位。因此，這些是目前市場上的主要驅動力，我想說的是我們的競爭地位，我們對我們的競爭地位感到非常滿意。

Fantastic. Thank you. And just one quick follow-up question or a second question is do you have any update on customer adoption and what you're seeing regarding Wi-Fi 7?

極好的。謝謝。還有一個快速的後續問題或第二個問題是，您是否有關於客戶採用情況的最新消息以及您對 Wi-Fi 7 的看法？

I would say it's according to -- I'd say it's moving according to plan. Wi-Fi 7, the advantages of Wi-Fi 7 are around performance -- I'd say bandwidth and performance. Years ago, Christian, there was a lot of discussion about public -- private cellular networks and 5G.

我想說這是按照——我想說這是按照計劃進行的。Wi-Fi 7，Wi-Fi 7的優勢在於效能－我會說頻寬和效能。克里斯蒂安，幾年前，人們對公共私人蜂窩網絡和 5G 進行了大量討論。

The performance and the quality of Wi-Fi 7 has kind of obviated that discussion because the performance is so strong, we're seeing enterprises adopt Wi-Fi 7 for mission-critical solutions that historically they might not have been confident using Wi-Fi. So I'd say it's progressing.

Wi-Fi 7 的效能和品質在某種程度上避免了這種討論，因為其效能非常強大，我們看到企業採用 Wi-Fi 7 來實現關鍵任務解決方案，而過去他們可能不太相信使用 Wi-Fi。所以我想說它正在進步。

Kevin, you can jump in if you want to add commentary here, but I think the adoption is strong. The quality is a lot higher in terms of the user experience. For us, I'd say it's according to plan.

凱文，如果你想在這裡添加評論，你可以加入，但我認為採用率很高。就用戶體驗而言，品質要高得多。對我們來說，我認為這是按照計劃進行的。

Yeah, I agree. It's tracking in line and I would say the adoption is in the teens. So that's good.

是的，我同意。它正在按計劃進行，我想說採用率在十幾歲左右。這很好。

Great. No other questions. Thanks guys.

偉大的。沒有其他問題。謝謝大家。

Thanks, Christian.

謝謝，克里斯蒂安。

(Operator Instructions)

（操作員指示）

Ryan Koontz, Needham.

瑞安·孔茨，尼德姆。

Great. Thanks for the question and all the great color here post prepared remarks. Maybe double-clicking here on your channels and kind of your view from a regional perspective, Europe versus North America inventory and kind of enterprise versus public. What kind of feedback are you getting from channels and what kind of demand are you seeing? You mentioned a little bit of a pull forward perhaps in third quarter. Any more color that you can give us would be appreciated. Thank you.

偉大的。感謝您的提問以及這裡所有精彩的準備好的評論。也許雙擊這裡的管道，從區域角度來看您的觀點，歐洲與北美的庫存以及企業與公眾的庫存。您從管道獲得了什麼樣的回饋？您看到了什麼樣的需求？您提到第三季可能會出現一些提前。如果您能提供更多顏色，我們將非常感激。謝謝。

Yeah. Thanks, Ryan. I guess I should reiterate that the pull forward in Q3 was very minor. There wasn't a big move there and I would say across all of our geos. But -- and so I wouldn't say that's a major factor yet. It could be depending on how the tariff situation evolves. The macro situation in the industry has improved. A year ago the whole industry was correcting an oversupply situation and we had to let product drain out of the channel.

是的。謝謝，瑞安。我想我應該重申，第三季的拉力非常小。我想說，在我們所有的地理位置上，那裡沒有什麼大的動作。但是——所以我還不會說這是一個主要因素。這可能取決於關稅情況如何發展。產業宏觀情勢有所改善。一年前，整個產業都在糾正供應過剩的局面，我們必須讓產品從通路中流出。

We feel like we've worked all the way through that now and you can see that in the year over year compares quarter over quarter. So as the channel has drained, we've seen kind of real demand return back into the marketplace, which has been very helpful and positive to the business. We've had strength in Americas. On the Extreme side, a lot of this has to do with the quality of our execution as a company in taking share.

我們感覺我們已經完全解決了這個問題，並且你可以看到同比和季度環比的變化。因此，隨著通路枯竭，我們看到真正的需求重新回到市場，這對業務非常有幫助和積極作用。我們在美洲擁有實力。從 Extreme 的角度來看，這很大程度上與我們作為一家公司在搶佔市場份額方面的執行品質有關。

We've reorganized a year ago. We have new leadership in sales and new processes that we're driving. We have enhanced programs that we're going to be rolling out for the channel and significantly improved and enhanced marketing and the alignment between our sales and marketing is really an execution-driven improvement in performance from the Extreme perspective.

我們一年前就進行了重組。我們在銷售方面擁有新的領導層，並且正在推動新的流程。我們已經增強了即將為通路推出的計劃，並顯著改善和增強了行銷，從 Extreme 的角度來看，我們的銷售和行銷之間的協調實際上是執行驅動的績效改進。

The macro here has continued to be solid for networking. If you survey CIOs, demand for networking and demand for AI is very high and consistent. When you think about it, everything runs on the network so people have to continue to modernize and invest there.

這裡的宏觀環境對於網路而言依然十分穩固。如果你對 CIO 進行調查，你會發現對網路的需求和對 AI 的需求非常高且一致。想想看，一切都在網路上運行，所以人們必須繼續在那裡進行現代化和投資。

We believe we're going to have tailwinds going forward from Europe. We're heavily concentrated in the DACH region which is Germany, Austria and Switzerland, primarily Germany. Germany has been a major headwind over the past year because of their own issues. The government issues there, they couldn't form a coalition, they dissolved the government, they froze government spending. They had snap elections. They've reformed the government, they have a coalition. They've raised the deficit spending ceiling and they have a budget.

我們相信，我們將會從歐洲獲得順風。我們的業務主要集中在 DACH 地區，即德國、奧地利和瑞士，主要是德國。過去一年，德國因其自身問題而成為一大阻力。那裡的政府問題，他們無法組成聯盟，他們解散了政府，他們凍結了政府開支。他們提前舉行了選舉。他們改革了政府，並成立了聯盟。他們提高了赤字支出上限，並且有預算。

And so now we're going to see a resumption of spend in that market. That is our largest market and it's where we have the highest market share in the world. So we're very encouraged by what we expect to see coming out of Germany. We'd like to see it happen faster, but it is a tailwind that's coming out of Germany.

所以現在我們將看到該市場支出的恢復。這是我們最大的市場，也是我們在全球擁有最高市場份額的地方。因此，我們對德國的預期表現感到非常鼓舞。我們希望看到它更快發生，但這是來自德國的順風。

The other thing that we've done is we have some unique wins. We highlighted in Japan, the government ministries there. We're having some of the largest wins in our company history in that market. And our unique fabric deployments and the solution that we built for the government there is creating some really interesting opportunities and growth opportunities there.

我們所做的另一件事是取得了一些獨特的勝利。我們重點介紹了日本的政府部門。我們在該市場取得了公司歷史上最大的勝利。我們獨特的結構部署和為政府構建的解決方案正在那裡創造一些非常有趣的機會和成長機會。

So we've seen a resurgence in Asia Pacific being led through Japan and we expect to see EMEA, nice tailwinds in Europe in general. I'll also mention in the US. The E-Rate business, we had a very strong E-Rate cycle up double digits in terms of our wins and the funding cycles are continuing unabated and we just had our largest funding wave in company history last week. So we're feeling good about the macro trends here as we go into Q4.

因此，我們看到了以日本為主導的亞太地區的復甦，我們預計歐洲、中東和非洲地區以及整個歐洲也將出現良好的順風。我還會提到美國。E-Rate 業務，我們的 E-Rate 週期非常強勁，在獲勝方面增長了兩位數，並且融資週期仍在持續，上週我們剛剛經歷了公司歷史上最大的融資浪潮。因此，隨著進入第四季度，我們對這裡的宏觀趨勢感到樂觀。

That's great. Thanks for the color, Ed. Platform ONE, are you seeing early traction there across any particular geos?

那太棒了。感謝 Ed 的介紹。 Platform ONE，您是否看到它在特定地區取得了早期的進展？

I'd say it's across the board, Ryan. It's -- we made Platform ONE available for early quoting. We had to do that for the E-Rate cycle and that's giving us an early indication of demand for Platform One. And there as we said, we have approximately 100 customers that have signed up for Platform ONE and we've opened up the Platform ONE workspace for MSPs and the feedback we're getting there is encouraging.

我想說這是全面的，瑞安。這是—我們讓 Platform ONE 可供早期報價。我們必須為E-Rate週期做到這一點，這讓我們提前預示了對Platform One的需求。正如我們所說，大約有100位客戶註冊了Platform One，我們也向MSP開放了Platform One的工作空間，我們收到的回饋令人鼓舞。

Our MSP business is weighted more heavily in Europe and then -- so I'd say it's across the board from a geo perspective. And where we've rolled out Extreme Platform ONE early, we've had very favorable response both again that E-Rate segment and as well as MSPs. We're targeting our fiscal Q1 for the official launch of the platform.

我們的 MSP 業務在歐洲的比重更大 - 所以從地理角度來看，它是全面的。我們早期推出的 Extreme Platform ONE 得到了 E-Rate 部門和 MSP 的正面回應。我們計劃在第一財季正式推出平台。

Perfect. Thanks for the color.

完美的。謝謝你的顏色。

Dave Kang, B. Riley.

戴夫康、B.萊利。

Thank you. Good morning. First, a clarification. So regarding this tariff impact of $1.5 million, I guess that's about 50 bps hit on gross margin. I assume that's in your fiscal fourth quarter outlook. Is that correct?

謝謝。早安.首先澄清一下。因此，關於這 150 萬美元的關稅影響，我估計這會對毛利率造成約 50 個基點的打擊。我認為這是你們對第四季財務狀況的展望。對嗎？

That's correct, David. That's what I said, yeah. That's included.

沒錯，大衛。我就是這麼說的，是的。那是包括在內。

Okay. Got it. Thank you. And then regarding manufacturing, I think you went over it already. But just regarding your contract manufacturers, I assume they have a global footprint and wondering if they have any US manufacturing facilities. For example, Sanmina said the other day that they are planning to expand their US footprint. Just wondering what your [CM's] situations or plans are.

好的。知道了。謝謝。關於製造業，我想你已經討論過了。但就您的合約製造商而言，我認為他們擁有全球影響力，並想知道他們是否在美國擁有任何製造工廠。例如，Sanmina 前幾天表示，他們正計劃擴大在美國的業務。只是想知道你的 [CM] 的情況或計劃是什麼。

Yeah. Good question, Dave. And the answer is no. Our ODMs do not have plans to open manufacturing here in the US. I will say our expectation is that from a tariff perspective, we are expecting that they will get resolved with the Trump administration. The supply chain for our technology and it's not just Extreme, it's the entire industry, it's going to be very hard to replicate that supply chain in the US at prices and costs that are competitive. We would expect that to take a long time and would not impact near-term results.

是的。問得好，戴夫。答案是否定的。我們的 ODM 沒有計劃在美國開設製造工廠。我想說的是，從關稅角度來看，我們期望這些問題能與川普政府解決。我們的技術的供應鏈不僅僅是 Extreme，而是整個產業，在美國以具有競爭力的價格和成本複製該供應鏈將非常困難。我們預計這將需要很長時間，並且不會影響近期結果。

Got it. And my last question is regarding the government vertical. I know government, you're more of a state and local, but do you have any US federal programs and can you provide any update or color?

知道了。我的最後一個問題是關於政府垂直領域的。我知道政府，你們更像州和地方政府，但是你們有任何美國聯邦計劃嗎？你們能提供任何更新或資訊嗎？

Yeah. Our federal business is -- we view federal as an opportunity. One of the things we didn't highlight on the call is that we've invested in certifications so that we qualify for federal government projects. And we've completed some of these certifications, which is opening up new opportunities for us in the federal space. But if you look at our results for the quarter and for the last year, our federal business is really immaterial.

是的。我們的聯邦業務是－我們將聯邦視為一個機會。我們在電話中沒有強調的一件事是，我們已經投資了認證，以便有資格參與聯邦政府計畫。我們已經完成了一些認證，這為我們在聯邦領域開闢了新的機會。但如果你看看我們本季和去年的業績，我們的聯邦業務確實無關緊要。

So this for us is more of a growth opportunity where we're looking at cloud, we're looking at our fabric differentiation. And with new certifications, we're creating new opportunities. So for us, it's more of a growth vector.

因此，對我們來說，這更像是一個成長機會，我們正在關注雲端運算，我們正在關注我們的結構差異化。透過新的認證，我們正在創造新的機會。所以對我們來說，它更像是一個成長載體。

One of our federal -- we have partners that we work with. And as the government is looking for new ways to drive better outcomes and to change current practices with new vendors to drive savings and efficiencies, that puts Extreme in a pretty good position. So we're kind of excited about the potential growth that we have in federal despite what's going on from a macro perspective vis-a-vis gross spend perhaps.

我們的一個聯邦政府—我們有合作夥伴。由於政府正在尋找新的方法來取得更好的結果，並透過新的供應商改變當前的做法來推動節省和提高效率，這使得 Extreme 處於非常有利的地位。因此，儘管從宏觀角度來看總支出情況如何，但我們對聯邦政府的潛在成長感到興奮。

Got it. Thank you.

知道了。謝謝。

Eric Martinuzzi, Lake Street Capital Markets.

Eric Martinuzzi，Lake Street Capital Markets。

Yeah. I appreciate the insight on the early buying, the small amount of early buying by your customers. What about your own inventory planning? Are you buying ahead? I realize it might not be something that runs through the P&L in Q4, but might impact cash.

是的。我很欣賞您對早期購買的見解，以及客戶早期少量的購買。您自己的庫存計劃怎麼樣？你要提前買嗎？我意識到這可能不會影響第四季的損益表，但可能會影響現金。

Yeah. Eric, I'll cover this one. The good news is you're starting to see our inventory levels, our own inventory levels come down. We've already normalized at the channel level. But even our own inventory, we're starting to get better working capital optimization there.

是的。艾瑞克，我來負責這個。好消息是，您開始看到我們的庫存水平，我們自己的庫存水平下降。我們已經在通路層面實現了規範化。但即使是我們自己的庫存，我們也開始在那裡實現更好的營運資金優化。

I think I said in my prepared remarks, we have kind of curtailed some of the buying that we had because we had a lot of finished goods and raw materials that we were still working through. But the reality is that's obviously a working capital improvement story for us going into the fourth quarter as we continue to work to normalize that.

我想我在準備好的發言中說過，我們已經減少了部分購買量，因為我們還有很多成品和原料需要處理。但實際情況是，隨著我們繼續努力使其正常化，這顯然是我們進入第四季後營運資本改善的故事。

So I would say we're still doing well there and we've got plenty of inventory that's non-tariff that we can continue to sell into the market. That's what gave us confidence to not raise price in the fourth quarter and then we'll assess again when things at the tariff level start to normalize and we'll figure out what that looks in July.

所以我想說我們在那裡仍然做得很好，我們有大量非關稅庫存可以繼續向市場銷售。這使得我們有信心在第四季度不提高價格，然後當關稅水準開始正常化時，我們會再次評估，並在 7 月確定情況。

Okay. And then on the OpEx side, you mentioned $137 million was the non-GAAP OpEx number in Q3. That's going up to $143 million to $145 million. In Q3, I had you for a little bit more than that. I was higher than where you guys actually came in. Is there an expectation that $143 million to $145 million that you're going to be investing in R&D personnel or sales personnel or is that just all tied to kind of fiscal year-end variable comp?

好的。然後在營運支出方面，您提到第三季的非 GAAP 營運支出數字為 1.37 億美元。這將上升至 1.43 億美元至 1.45 億美元。在 Q3 中，我比你表現得更好一些。我的實際水平比你們要高。您是否預計在研發人員或銷售人員上投資 1.43 億至 1.45 億美元，或者這些投資是否都與財政年度結束時的浮動薪酬掛鉤？

There's a couple of things in there, right? The Connect conference, which Ed mentioned, the oversubscribed Connect conference in Paris, we're going to have 1,000 attendees there. That's one of our larger marketing events and customer events for the year. So that's baked into the $143 million to $145 million numbers. And that's a good, I'll say, a couple of million to a few million dollars of expense that we have in the fourth quarter.

裡面有幾樣東西，對吧？Ed 提到的 Connect 會議，即在巴黎舉行的超額認購的 Connect 會議，我們將在那裡有 1,000 名與會者。這是我們今年規模較大的行銷活動和客戶活動之一。因此，這已包含在 1.43 億美元至 1.45 億美元的數字中。我想說，這是我們第四季幾百萬到幾百萬美元的支出。

And then naturally in our fourth quarter we've got higher revenue coming through that we're expecting right now, we'll have higher commissions in the fourth quarter that we're also baking into our guidance there. So those are probably the two major reasons for the increased OpEx.

那麼自然而然地，在第四季度，我們的收入將會比我們現在預期的更高，我們在第四季度的佣金也會更高，這也將納入我們的預期中。所以這可能是營運支出增加的兩個主要原因。

We are continuing to make growth investments in areas, both sales, marketing as well as innovation. But as you know, we've been very prudent throughout the year on that to try and drive more and more profitability. And I think just happy where we are from a contribution to the bottom line and seeing the top line kind of contribute to the bottom line because we've kind of maintained a lot of our OpEx to be fairly flat even though we're driving more revenue growth and more innovation as a company. So we've done a good job there.

我們將繼續在銷售、行銷和創新領域進行成長投資。但正如您所知，我們全年都對此非常謹慎，試圖提高盈利能力。我認為，我們對利潤的貢獻以及收入對利潤的貢獻讓我們感到高興，因為儘管我們作為一家公司正在推動更多的收入成長和更多的創新，但我們的大部分營運支出仍然保持相當穩定。所以我們在這方面做得很好。

Got it. Thank you.

知道了。謝謝。

Tim Horan, Oppenheimer.

提姆霍蘭，奧本海默。

Thanks, guys. Can you give us a sense of how big your data center business is now and kind of how that's trending? And then secondly, on the go-to-market, are you seeing actual improvements per salesperson at this point in terms of bookings and productivity? Thanks.

謝謝大家。您能否向我們介紹一下您的資料中心業務現在的規模以及發展趨勢？其次，在上市過程中，您是否看到目前每位銷售人員在訂單量和生產力方面都有實際的提升？謝謝。

Yeah. Thanks, Tim. Well, and if you want to come from behind, our data center business is -- Tim, it depends on what your definition of a data center is. So for enterprise data centers on-prem in terms of how we look at that business, that's probably -- and I'm going to provide a range, Kevin, and you can back me up, but I'm going to say kind of 10% to 15% of our overall business.

是的。謝謝，蒂姆。好吧，如果你想從後面趕上來，我們的資料中心業務是－提姆，這取決於你對資料中心的定義是什麼。因此，就我們如何看待該業務而言，對於企業內部資料中心而言，這可能是 - 我將提供一個範圍，凱文，你可以支持我，但我要說的是，它占我們整體業務的 10％ 到 15％。

As I said before, we're playing more on that on-prem data center for enterprise customers in general for the broader market. We have specific applications. We have with Ericsson, with Verizon. We have a unique high end and we had our first 400-gig sale, which is a very specific use case for Ericsson and what we would consider more of the service provider category, which for us is just a very targeted kind of niche opportunities.

正如我之前所說，我們更多是在為企業客戶提供內部資料中心，以服務更廣泛的市場。我們有具體的應用。我們與愛立信、Verizon 都有合作。我們擁有獨特的高端產品，並且首次完成了 400 千兆的銷售，這對於愛立信來說是一個非常具體的用例，我們認為這更多的屬於服務提供者類別，對我們來說，這只是一種非常有針對性的利基機會。

More broadly, we are refocusing on the evolution of the enterprise data center and the requirements and what we believe how that will evolve. From a productivity perspective, look, we're expecting as we move upmarket and we sell larger deals, that brings productivity to us.

更廣泛地說，我們正在重新關注企業資料中心的發展和需求，以及我們認為它將如何發展。從生產力的角度來看，我們期望隨著我們進入高端市場並達成更大的交易，這將為我們帶來生產力。

As we improve our partner programs and we drive business through the channel and the channel generates business for Extreme that drives productivity. So I think we believe that we have an opportunity for productivity gains as we go forward.

隨著我們改進合作夥伴計劃並透過管道推動業務，管道為 Extreme 創造業務，從而提高生產力。因此，我認為我們相信，隨著我們不斷前進，我們有機會提高生產力。

Great. And then just any more clarification on that?

偉大的。還有什麼可以進一步澄清的嗎？

Kevin, I don't know, Kevin, if you want to comment or provide any more specificity on the data center side.

凱文，我不知道，凱文，你是否想對資料中心方面發表評論或提供更多具體資訊。

No. Ed, I think you nailed it. That's the range. I think you're right. It's a little less than 15%, but it's between 10% and 15%.

不。艾德，我認為你成功了。這就是範圍。我認為你是對的。略低於15%，但在10%到15%之間。

And I guess do you expect that business to grow faster than the overall company? It seems like data center space is pretty hot right now.

我想您是否預期該業務的成長速度會比整個公司更快？看起來資料中心領域現在相當熱門。

For us, our -- yeah, our success has really been driven, as I mentioned before, Tim, by our fabric technology and cloud and that tends to be more campus-oriented. Where it gets a little fuzzy is that campuses have data centers and then the question is what's your definition of a data center. So clearly it's not hyperscale.

對我們來說，是的，正如我之前提到的，蒂姆，我們的成功實際上是由我們的結構技術和雲端推動的，而且這往往更以校園為導向。有點模糊的是，校園有資料中心，那麼問題就是你對資料中心的定義是什麼。所以顯然它不是超大規模的。

And then one of the nice things about our fabric technology is it extends from the enterprise data center and the core of a network all the way out to the edge. And actually for the application that we built for the Japanese government, across the wide area network across SD-WAN.

我們的結構技術的優點之一是它從企業資料中心和網路核心一直延伸到邊緣。實際上，我們為日本政府建立的應用程式是透過 SD-WAN 的廣域網路建構的。

So the fabric is a great campus technology from the data center all the way out to the edge, again that our competitors don't have. It gets a little fuzzy when you start trying to define what is that data center because some can be smaller and some might consider it to be more of kind of a campus core network, which is a little bit different. So we're looking at the campus enterprise and to the extent that the data center is on campus, that would be included and where we're expecting growth.

因此，該結構是一種從資料中心一直到邊緣的偉大園區技術，而這是我們的競爭對手所不具備的。當你開始嘗試定義什麼是資料中心時，它會變得有點模糊，因為有些資料中心可能較小，有些資料中心可能認為它更像是一種校園核心網絡，這有點不同。因此，我們正在關注校園企業，並且只要資料中心位於校園內，它就會被包括在內，我們預計會有成長。

Very helpful. Thank you.

非常有幫助。謝謝。

And Ed, you might just want to add that we're coming out with a 400 gigahertz switch at the end of the summer that that will actually be part of data center for enterprises as well.

艾德，你可能還想補充一點，我們將在夏末推出一款 400 千兆赫的交換機，它實際上也將成為企業資料中心的一部分。

Yes.

是的。

And there are no further questions at this time. I'd like to hand the call back over to Ed Meyercord, President and CEO, for closing remarks.

目前沒有其他問題。我想將電話轉回給總裁兼執行長 Ed Meyercord，請他做最後發言。

Ian, thank you and thanks, everybody, for attending the call. I want to shout out to employees, customers, partners who may be listening in, our employees especially for their hard work at Extreme. We fight above our weight class and that's really due to all the hard work of the employees at the company.

伊恩，謝謝你，也謝謝大家參加這場電話會議。我想向員工、客戶、可能正在聆聽的合作夥伴致以謝意，尤其是我們的員工，感謝他們在 Extreme 的辛勤工作。我們超水平發揮，這要歸功於公司全體員工的辛勤工作。

I'll also mention that we -- I'll encourage people to tune in to Connect. We're less than three weeks away. We're in Paris. We have over 1,000 people in attendance. This is by far our largest user conference and it's fueled by interest in Extreme Platform ONE as well as fabric. But there's a lot of content there. It's going to be a very full session, but we are going to record and broadcast some of the main stage presentations.

我還要提到，我們——我會鼓勵人們關注 Connect。距離結束還有不到三週的時間。我們在巴黎。我們有超過 1,000 人參加。這是迄今為止我們規模最大的使用者會議，會議的焦點在於對 Extreme Platform ONE 以及 fabric 的興趣。但那裡有很多內容。這將是一場非常盛大的會議，但我們將錄製並播放一些主要舞台上的演示。

So I would encourage investors to tune in. There's going to be some really interesting reveals as far as our technology innovation as it relates to Extreme Platform ONE.

因此我鼓勵投資者關注。就與 Extreme Platform ONE 相關的技術創新而言，我們將會揭示一些非常有趣的內容。

So with that, thank you for participation and have a great day.

因此，感謝您的參與並祝您有美好的一天。

This concludes today's conference call. You may now just disconnect.

今天的電話會議到此結束。您現在就可以斷開連線。