Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Obviously, we're hoping that as we see the recovery, we can do better than that. First off, I also want to say thank you to our employees, customers and partners in the front line of COVID, who continue to face heightened risks in keeping our vital networking infrastructure up and running. Because of the impact of COVID-19 on its business, Extreme now expects to report revenue for Q3 2020 of … Remi, would you like to add anything? A global infrastructure-as-a-service provider offers compute, storage and data centers located in the U.S., Europe, Hong Kong and Singapore, continue to invest in Extreme data center products, reducing provisioning times from hours to minutes as well as support OpenStack development and SDN initiatives. These non-GAAP measures include non-GAAP net income, non-GAAP gross … Great. Our cash conversion cycle stood at 59 days, down from 69 days in Q2 and similar to the 60 days in the year ago quarter. Your line is now open. We're also automating capabilities of partners and cloud users to manage the network for ordering and licensing, expanding touchless orders that aligns with more of our volume motion, particularly around cloud-based networking. And we talked about how we created a strategic motion in the field. Remi, do you want to add anything to that? We are on track to list in 1,000 attendees and we're going to offer investor track as well. So we don't have any accelerated buying baked into our plan. Your line is now open. Thank you. In the end, these customers will see lower capex, lower subscription costs, lower cost of ownership and get higher flexibility, along with a more resilient network. Extreme Networks (EXTR) came out with quarterly earnings of $0.09 per share, beating the Zacks Consensus Estimate of $0.07 per share. What I would highlight, Ed, is that we're seeing increased freight cost because there is obviously less capacity. And then you talked about your cloud service. And your next question comes from the line of Eric Martinuzzi with Lake Street. Literally overnight. So that's what's giving us confidence to me. That's smaller as a percentage of our overall business. So what I would say is as far as the effect on Q4, we don't feel that the Q4 had a material -- was materially impacted by, kind of, the spillover from Q3, as we consider deals that pushed into Q4. Thanks, Ed. OK, thanks, Gigi. Yes. Great, thank you for taking my question. I want to shout out to Extreme employees who are listening in here for the job well done during what are unprecedented times for us. Our customers are experiencing a shift in use cases. We have our own SD-WAN solution. There were outreach initiatives to customers to ensure that customers can have networking priorities that they get in front of the line and that they accelerate, maybe, their buying process in the early part of the quarter. So you can have a distributed network in multiple locations that you can manage from our ExtremeCloud IQ. Our automated device discovery and provisioning eliminated the need for any physical IT resources at each of the locations and allowed us to complete these 18 offices in a day. So that means that you should be expecting our sales in and sales out revenue to be tightly correlated, i.e. And we have no questions in queue at this time. Extreme Networks (NASDAQ:EXTR) will announce its earnings results before the market opens on Wednesday, October 28th. Do you think it's reasonable to think that you are in the middle of that range? We do expect the benefits of reaching the end of our product refresh. And then, for investors, I encourage all of you to attend our upcoming Connect Conference, which is September 16 and 17. The evolving market for the secure applications and services at the edge is where this is going. Our universal hardware platforms from the wireless edge to the wired core, managed entirely from the cloud with machine learning insights and new AI tools to drive IT automation, allow us to make it very easy to deploy and manage distributed networks. And it would to your point about moving target, that will evolve as we enter in Q1 because we'll get the full benefit of some of the cost reduction actions that we're taking today. Although many carpeted enterprise customers are likely to consider shrinking their real estate footprint and shifting investment to improve their work-from-home and Zoom footprint, campus investments and edge for IoT, edge computing and security are likely to increase and drive growth for networking. I don't know if, Remi, you want to come back in or, Stan, you want to come back in with... No. So is that to say that your June quarter should not be adversely affected by the supply chain? We had several large deals in Q4 that got pushed into our Q1. That, too, has been growing, and demand has been strong. However, because a lot of it gets deferred in terms of revenue recognition, the impact will be spread over the coming eight quarters, but that bodes well in terms of continuing to increase our subscription revenue as a percentage of total revenue. So that's the high level answer. Is there still a lot of interest in continuing with the strategic projects? Our next question comes from the line of Erik Suppiger from JMP Securities. Or does that $220 million breakeven level, does that apply to the first quarter because that's when you get the full benefit of the cuts? I'm Stan Kovler, vice president of corporate strategy and investor relations. Christian Schwab -- Craig-Hallum Capital Group -- Analyst. Our teams haven't missed a step, and they're doing great work. To help our partners and customers, Extreme introduce LEAP, Lending Enablement & Assistance Program, to provide preferential financial terms for qualified channel partners across the Americas and Europe through September 30, 2020. Do you foresee an opportunity in monetizing this kind of use case? So we do think that we will benefit when it comes back. We just distributed a press release and filed an 8-K detailing Extreme Networks' third quarter fiscal 2020 financial results. Any forward-looking statements made on this call reflect our analysis as of today, and we have no plans or duty to update them, except as required by law. Thank you. Our webinar attendance was up five times, and we generated three times as many marketing qualified leads during the quarter than we did during the first three quarters. So I think your insights are spot on, and we have the cloud tools to deliver and to support our customers during this transition. Or what is the health of the supply chain? As we pivoted the fiscal-year '21, we got off to a solid start with strong July linearity and funnel visibility that gives us confidence in our ability to deliver 4% sequential growth in what is typically a seasonally down quarter. We made significant progress in our 70% portfolio refresh that is approaching completion. Just when the pre-release and where revenue came in, I thought some color might be helpful there. And then in your prepared remarks, you had mentioned something along the lines of the potential for a shrinking corporate enterprise still being an opportunity for the campus switching market. Ed Meyercord -- President and Chief Executive Officer. I mean the flow is effectively 0. Thank you. And how do we do it? Thank you, operator. And so I think cloud for us is giving us more weapons and more tools and the ability to up level our conversations where Extreme is a much stronger competitor in these discussions with higher education customers and I think our position for next year's e-Rate is going to be even stronger. Thanks, Federica. And I also want to shout out to Extreme employees who are listening in for what was an incredible and is an ongoing incredible effort during these times. This resulted in an operating margin of 5.2% versus an operating margin loss of 5.1% in Q3 and up from an operating margin of 4.9% in the year-ago quarter. And so what gives us confidence is all the opportunities that we see in our funnel. I'm Stan Kovler, Vice President of Corporate Strategy and Investor Relations. So we can -- we are clearly up-leveling our conversation. So the fact that we can provide the insights into what's going on in the data and we can provide the network elements and what's happening to the network and how the network is being managed, what's happening with clients. Well, at a high level, when you get a sense to read out 10-Q, which has just been posted about half an hour ago, you'll see that as part of the amendment we agreed to LIBOR plus 450 basis points. In cloud, new subscription bookings grew 7% year-over-year but were flat quarter-over-quarter, owing to seasonality and the impact of COVID. ET Prepared … And that's where cloud comes into play. So with all three of the revamps on display conducted significant edge migration of its network using a range of Extreme edge switches. Your line is now open. The whole exercise took less than an hour. Based on our Q4 bookings, our cloud-managed subscription business just reached nearly $60 million in annual run rate. Yeah. This resulted in an operating margin loss of 5.1%, down from an operating margin of 9% in Q2. And then, as for my follow-up, a little bit of a longer-term strategic question. This has enabled us to lower our quarterly non-GAAP net income breakeven points to approximately $220 million in revenue as early as fiscal Q4 2020, all while further enhancing our financial flexibility. We've experienced unprecedented attendance of participation in customer events. Our ability to bring enhanced flexibility and effortless is up-leveling our competitive position in dialogue with customers. Thank you. So that's what we're talking about, which is a new kind of enterprise that is more distributed and that we have a platform and we have the software and the platform to support that solution. This program is enabled by financial solutions partner, leaving credit risk off Extreme's balance sheet. I think it's fair that the majority of the long-term actions are done and if anything, spend is going to go up as a result of higher commissions as the bookings recover and higher T&E, although I would say, Alex, that we're going to keep T&E and most discretionary expenses under very tight control, as you can imagine. So we feel like it's going to be a gradual recovery. So if anything, that would support that the business should be sort of stable going forward but certainly not picking up strongly in q4. Yes. So we're happy in a follow-up call to help out fine-tune this number. Q3 ending inventory of $66.2 million fell $13.5 million from Q2 and grew $8.6 million from the year ago quarter. And the they've come back. Total revenue of $215.5 million grew 3% quarter over quarter, mainly driven by product revenue up 4%, while services revenue edged up 1%. So good to hear. And this is again on a one month basis, we need to think about the fourth quarter and not just the month of April. In manufacturing -- risky manufacturing where that convert. Great. This is our channel self-service environment with volume-based promotions to enable zero-touch discount authorizations to our distributors and partners. So when we went into this, we had concerns about China and what was going on over there, and it wasn't just our primary ODMs, but it was secondary and tertiary suppliers. But they are taking somewhat longer to close. We have -- when you go into our cloud, we can actually follow a device. So thank you, now more than ever, for our customers and our partners who are tuning in, we are here with our cloud and what we're able to deliver, we can provide, now more than ever, resources, solutions and flexibility to navigate during COVID. Challenges in certain countries due to border closures, also contributed to the channel is actually healthy. Just a couple of environment or sales environment questions great work again, you guys would be the bulk it! 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2020 extreme networks earnings call