EXTR earnings call for the period ending September 30, 2020.

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Prepared Remarks: Operator Ladies and gentlemen, thank you for standing by.

Stan Kovler, you may begin. Welcome to the Extreme Networks first fiscal quarter earnings conference call.

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I'm Stan Kovler, vice president of corporate strategy and investor relations. We just distributed a press release and filed an 8-K detailing Extreme Networks' financial results for the quarter.

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For your convenience, a copy of the press release, network and earnings includes our GAAP to non-GAAP reconciliations and our financial results presentation, are both available in the investor relations section of our website at extremenetworks. I would like to remind you that during today's call, our alignment delta options may include forward-looking statements about Extreme Networks' network and earnings business, financial and operational results, growth expectations and strategies, the impact of COVID pandemic, acquired technologies, how to quickly earn 1000 and new product introductions, operations, pricing, changes to our supply chain the impact of tariffs, acquisition and integration of Aerohive Networks and digital transformation initiatives.

We caution you not to put undue reliance on these forward-looking statements as they involve risks and uncertainties that could cause actual results to differ materially from those anticipated by these statements as network and earnings in our risk factors in our K report for the period ending June 30,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, network and earnings as required by law.

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I also wanted to make you aware that beginning with our first quarter of fiscalwe are changing how we calculate our non-GAAP provision for income taxes in accordance with the SEC guidance on non-GAAP financial measures compliance and disclosure interpretation.

We have adjusted the fiscal non-GAAP tax provision, and the impact on EPS for all 4 quarters of fiscal is provided in our investor relations deck on our website on Page There is no impact to the cash flow of the company.

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Our Q1 results marked the second straight quarter of sequential growth and reflects continued improvements in customer demand and our team's execution.

We achieved this despite Q1 typically being a seasonally weaker quarter. We're seeing customers accelerate their migration to ExtremeCloud IQ.

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Daily traffic in our cloud grew from three petabytes per day in Q4 to five petabytes per day in Q1. Momentum continues to build as evidenced by the numbers. People are always surprised to learn that it's Extreme Networks that supports the critical infrastructure vital to the fabric of our daily lives, and this was the driving force to find our ability to overcome the challenges.

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These customers all rely on Extreme for their mission-critical infrastructure. And we recently won Major League Baseball, a big win against our largest competitor. This is the beginning of a long-term relationship with MLB, where you will begin to notice Extreme in all ballparks in the future. You can put a stamp on the fact that Extreme is clearly playing in the major leagues.

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We also took important actions to streamline our go-to-market organization to better support both large strategic customer accounts, as well as our smaller enterprise customers working with newly formed field teams tightly aligned with partners. At the same time, we've streamlined our engineering organization to drive feature velocity and deliver what we call our universal experience. Both of these actions are allowing us to drive greater efficiencies and minimum deposit on options productivity.

It's an exciting time to be in networking. If there's anything we've learned over the past seven months, it's that networking has never been more critical or strategic. And we're in the dawn of a new area where data is king, and this bodes well for Extreme.

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Today's networks are much more complex with multiple applications running across hybrid environments and data being stored in multi-cloud environments, the proliferation of edge devices and distributed architectures, it's about intelligence and insights into customers, employees, connected devices, network and application performance.

Today, more than ever before, it's about data, data from the network that can be used to drive improved business outcomes in ways that were never contemplated when Extreme developed the very first gigabit Ethernet switch nearly 25 years ago. So here we are at another one of those inflection points in the networking industry that creates a significant new opportunity for all players.

At Extreme, we're committed to winning with what we're calling effortless networking. And this is about bringing simplicity to complexity, enabling our customers to do more with less by leveraging data and automation.

And how are we doing this? There are three main tenets of effortless: the user experience, the buying experience, and the selling and go-to-market experience.

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Our strategy and our operating plan is to make all of these easy. As far as user experience, we're aggressively investing in end-to-end innovative solutions from our core fabric technology to our wired and wireless edge applications, all running on universal hardware that can be managed from a single cloud. And from the cloud, we bring simplicity, complete visibility of the entire network and the intelligence and insights that come with unlimited data, machine learning and cloud choice.

As for the buying experience, our universal hardware platforms will become available in the middle of this quarter. These platforms provide simpler configurations that support choice of our use cases and multiple OSs, fewer SKUs to manage and allow customers to have maximum flexibility to change their network configuration.

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As for the selling and go-to-market experience, our universal platforms will come with ExtremeCloud IQ licenses for connectivity to cloud management out of the box. Our customers can still network and earnings the power of our XMC on-prem software and add additional capabilities from the cloud innovation we bring.

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Our cloud strategy is not about rip and replace.