EXTREME NETWORKS INC Segments Disclosure
12. Information about Segments and Geographic Areas
The Company has one reportable segment, the development, marketing, and sale of network infrastructure equipment and related software. The Company conducts business globally and is managed geographically. Revenues are attributed to a geographical area. The Company operates in three geographical areas: Americas, EMEA, and APAC. See Note 3, Revenues, for additional information on the Company's revenues by geographic region.
Measure of segment profit or loss:
The Company’s chief operating decision maker (“CODM”), who is its , reviews financial information presented on a consolidated basis and uses consolidated non-GAAP net income to measure segment profit or loss and to monitor period-over-period results to decide where to allocate and invest additional resources within the business.
Consolidated non-GAAP net income is exclusive of certain items that are non-recurring or not consistent with the Company's operations. The CODM reviews and utilizes functional expenses (costs of revenue, research and development, sales and marketing, and general and administrative) at the consolidated level to manage and assess the Company's operations. Other segment items included in consolidated non-GAAP net income are interest income, interest expense, other income (expense), net, and the provision for (benefit from) income taxes, which are reflected in the consolidated statements of operations.
A reconciliation of consolidated GAAP net income (loss) to consolidated non-GAAP net income is shown in the table below:
|
|
Year Ended |
|
|||||||||
|
|
June 30, |
|
|
June 30, |
|
|
June 30, |
|
|||
GAAP net income (loss) |
|
$ |
(7,467 |
) |
|
$ |
(85,964 |
) |
|
$ |
78,074 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|||
Share-based compensation expense |
|
|
82,314 |
|
|
|
76,763 |
|
|
|
63,472 |
|
Acquisition and integration costs |
|
|
— |
|
|
|
— |
|
|
|
390 |
|
Restructuring and related charges |
|
|
1,492 |
|
|
|
36,321 |
|
|
|
2,860 |
|
Litigation charges(1) |
|
|
34,722 |
|
|
|
10,545 |
|
|
|
8,026 |
|
System transition costs |
|
|
21,550 |
|
|
|
5,262 |
|
|
|
957 |
|
Amortization of intangibles |
|
|
4,443 |
|
|
|
5,243 |
|
|
|
14,916 |
|
Debt refinancing charges, Other income (expense) |
|
|
79 |
|
|
|
— |
|
|
|
1,543 |
|
Tax effect of non-GAAP adjustments |
|
|
(24,709 |
) |
|
|
(4,815 |
) |
|
|
(23,933 |
) |
Total adjustments to GAAP net income (loss) |
|
$ |
119,891 |
|
|
$ |
129,319 |
|
|
$ |
68,231 |
|
Non-GAAP net income |
|
$ |
112,424 |
|
|
$ |
43,355 |
|
|
$ |
146,305 |
|
(1)Litigation charges consist of estimated settlement and related legal expenses for non-recurring litigation offset by any proceeds received or expected to be received from insurance.
Measure of segment assets:
The measure of segment assets that is reviewed by the CODM is reported within the consolidated balance sheets as “Total assets”. Depreciation expense recorded for fiscal years ended June 30, 2025, 2024, and 2023 was $14.5 million, $23.9 million and $19.5 million, respectively. Total expenditures for additions to property, plant and equipment recorded for fiscal years ended June 30, 2025, 2024 and 2023 were $24.7 million, $18.1 million, and $13.8 million respectively.
The Company’s long-lived assets are attributed to the geographic regions as follows (in thousands):
|
|
Year Ended |
|
|||||
|
|
June 30, |
|
|
June 30, |
|
||
Segment long-lived assets: |
|
|
|
|
|
|
||
Americas |
|
$ |
167,499 |
|
|
$ |
136,745 |
|
EMEA |
|
|
40,299 |
|
|
|
33,715 |
|
APAC |
|
|
10,550 |
|
|
|
11,499 |
|
Total segment long-lived assets |
|
$ |
218,348 |
|
|
$ |
181,959 |
|
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Aug 18, 2025 | Showing above |
| 2024 | Aug 16, 2024 | |
| 2023 | Aug 24, 2023 | |
| 2022 | Aug 29, 2022 | |
| 2018 | Aug 29, 2018 | |
| 2017 | Sep 13, 2017 | |
| 2016 | Sep 6, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.