Extreme Networks (Nasdaq: EXTR) reported earnings May 2. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended April 1 (Q3), Extreme Networks met expectations on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue contracted and GAAP earnings per share expanded.

Margins improved across the board.

Revenue details
Extreme Networks chalked up revenue of $73.4 million. The three analysts polled by S&P Capital IQ predicted net sales of $73.2 million on the same basis. GAAP reported sales were 3.1% lower than the prior-year quarter's $75.7 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.04. The three earnings estimates compiled by S&P Capital IQ averaged $0.04 per share. GAAP EPS were $0.03 for Q3 versus -$0.07 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 56.2%, 80 basis points better than the prior-year quarter. Operating margin was 3.5%, 370 basis points better than the prior-year quarter. Net margin was 3.2%, 1,220 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $84.7 million. On the bottom line, the average EPS estimate is $0.08.

Next year's average estimate for revenue is $319.6 million. The average EPS estimate is $0.23.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 116 members out of 125 rating the stock outperform, and nine members rating it underperform. Among 27 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 24 give Extreme Networks a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Extreme Networks is outperform, with an average price target of $4.00.

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