EXTREME NETWORKS INC

Current report

Geopolitical changes are creating uncertainty regarding economic matters.

Current report

Recent political changes such as the new U.S. presidential administration have created an environment of uncertainty in economic matters, particularly with regard to tariffs and taxes. We do not manufacture products in Canada or Mexico and have only immaterial manufacturing in China; therefore we do not expect direct impacts due to proposed U.S. tariffs on goods from these countries. However, electronic and semiconductor components integral to our products are sourced from these regions. Consequently, the proposed tariffs could lead to increased costs and potential supply chain disruptions for these critical components. Additionally, other tariff-related actions have been speculated, such as U.S. tariffs on imports from other countries such as Vietnam and the Philippines, where we do have manufacturing operations, or reciprocal tariffs imposed by non-U.S. countries. If such actions occur, they could create supply chain disruptions and could further escalate our production costs and render our products less competitive, thereby adversely affecting our business, financial condition, and operating results. We are closely monitoring these developments and evaluating strategies to mitigate potential impacts.

Current report

Any significant changes enacted by the new administration to the Tax Code, or specifically to the Tax Cuts and Jobs Act (the “U.S. Tax Act”) enacted in 2017, or to regulatory guidance associated with the U.S. Tax Act, could materially adversely affect our tax liabilities and effective tax rate.