Extreme Networks, Inc.

Good morning, and thank you for standing by. Welcome to the Xtreme Network's second quarter fiscal year 2022 financial results. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during this session, you'll need to press star 1 on your telephone. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Stan Kovler, Vice President of Corporate Strategy and Investor Relations. Please go ahead.

Thank you, Operator, and welcome to the Xtreme Network's second fiscal quarter 2022 earnings conference call. I'm Stan Kobler, Vice President of Corporate Strategy and Investor Relations. With me today are Xtreme Network's President and CEO, Admire Cord, CFO, Rami Talma, and Chief Technology and Product Officer, Nabil Bukhari. We just distributed a press release and filed an 8K detailing Xtreme Network'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. I would like to remind you that during today's call, our discussion may include forward-looking statements about Xtreme's future business, financial operational results, growth expectations and strategies, go-to-market planning related to our acquisition of Ipanema, the impact of the COVID pandemic, and continued challenges of our supply chain as they relate to chip shortages and other materials. 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, as described in our risk factors in our 10-K report for the period ending June 30th, 2021, filed with the SEC. 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. Now, I will turn the call over to Xtreme's President and CEO, Ed Myercord.

Thank you, Stan, and thank you all for joining us this morning. Q2 was characterized by double-digit bookings and revenue growth that led to an all-time high quarterly record revenue and net income. We achieved these record results despite the challenging environment and built an incremental $90 million in backlog, which now sits at approximately 300 million in total. We see strong demand as we turn the corner into calendar 22 for both our enterprise and 5G solutions. This marks the fourth consecutive quarter of double-digit bookings and revenue growth, including the fourth consecutive quarter of double-digit product revenue growth led by wireless adoption since our first market introduction of Wi-Fi 6E and the highly successful launches of our universal hardware switching platforms. In this calendar year, we continue to expect double-digit organic revenue growth, given the strength of demand and the size of our backlog. SAS annual recurring revenue is $88 million this quarter, up 55% year-over-year and 11% quarter-over-quarter, driven by significant interest in our cloud technology, which is also reflected in our 13% market share and number two position in cloud networking. We're larger than number three and four competitors combined. We believe this puts Xtreme in a very strong position as the secular trend toward cloud networking continues to gain momentum with enterprise customers. This is the second quarter we're disclosing the ARR for our subscription business. We will be reporting on ARR as we diversify our business by adding new software subscriptions. I've asked Nabeel Buhari to join us on the call today to provide an update on the highly successful adoption of our cloud management platform and the introduction of our new cloud-based WANedge subscription services. For the fourth year in a row, we were named a leader in the Gartner Magic Quadrant for wired and wireless networking. We surpassed the largest competitor in the industry in both execution and vision and strengthened our relative position to the rest of the field. This is meaningful third-party validation from the number one enterprise IT industry analyst firm. In our service provider business, we're in the early stages of 5G network deployments, and this is just the beginning of a multi-year investment cycle. We're on pace to exceed our goal of attaining 20 million of incremental business in 5G for fiscal 22 in line with our expectations. Both of our 5G solutions, Packet Broker and Cloud Native Infrastructure, create attractive new growth opportunities for Xtreme. Nabil will provide more color on this growth opportunity as well. The consistency of our execution, the growth opportunities that we have, the level of innovation we produce, and the record results are enabling us to attract the highest levels of talent in the industry. At the same time, our employee retention continues, to be among the best in the industry. Net-net, we're leveling up our game, and it's also evident in the quality and the magnitude of our customer engagement. I'm also proud to say we completed the systems integration of Ipanema ahead of schedule, and we integrated Ipanema technology into our product portfolio in record time, within a quarter. We're on pace to introduce our extreme cloud-branded SD-WAN solutions this quarter. We view these very strong quarterly results in the context of the Infinite Enterprise. And what do we mean by the Infinite Enterprise? It's the future for our enterprise customers in a post-pandemic world. The Infinite Enterprise delivers three main outcomes for our customers. Infinite distribution, consumer or user centricity, and unlimited scale as we operate through the cloud. We deliver this through our portfolio that brings all our enterprise networking and WAN edge products and services into a single framework. Data is becoming increasingly critical for our customers in delivering better business outcomes across all our verticals. For example, retailers connecting supermarkets, warehouses, corporate offices are relying on cloud analytics to deliver contextual insights that drive operational efficiencies, inform sales strategies, and drive business growth. Our government customers are creating smart roads and highways to deploy advanced transportation technology, digital speed signs that improve motorist safety. And there's no better example of the value of our data analytics than in our sports and entertainment vertical. As we announced today, we've just added Manchester United and the NHL to our list of valued customers who've named Xtreme their exclusive Wi-Fi data analytics provider. We already have this designation in Major League Baseball, NASCAR, and the NFL, and we'll power the analytics for the ninth consecutive Super Bowl in a few weeks. Our analytics solution provides real-time visibility into network data, giving customers instant business intelligence and insights regarding fan preferences, foot traffic flow, mobile sports betting trends, application usage, and network security. These are but a few examples of how our customers are leveraging our intuitive insights from networking data to drive better business outcomes. And with that, I'll turn the call over to our Chief Technology and Product Officer, Nabeel Buhari, to elaborate on our vision on the innovations in our cloud, our infrastructure, WAN edge, and 5G.