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Extreme Networks, Inc. (EXTR)

  • Fri, Oct. 30, 3:07 PM
    • With shares still down over 50% from their early-2014 highs, an FQ1 EPS beat (paired with a slight revenue miss) and solid guidance is enough for Extreme Networks (NASDAQ:EXTR) to rally. The Ethernet/Wi-Fi hardware vendor expects FQ2 revenue of $130M-$140M and EPS of $0.06-$0.10 vs. a consensus of $132.2M and $0.06.
    • Product revenue (drives future service revenue) fell 11% Y/Y in FQ1; service revenue fell 2% to $33.6M. Gross margin (non-GAAP) fell 40 bps Y/Y to 55.2%. Boosting EPS: Job cuts led operating expenses to drop 18% Y/Y to $61.5M. FQ2 GM and opex guidance is respectively at 54.7%-55.7% and $62.5M-$65M.
    • FQ1 results, PR
    | Fri, Oct. 30, 3:07 PM | Comment!
  • Wed, Sep. 23, 5:40 PM
    • Top gainers, as of 5.25 p.m.: CNAT +39.0%. BTE +14.0%. SXC +12.0%. VHI +11.0%. CNX +9.0%.
    • Top losers, as of 5.25p.m.: RNWK -7.0%. FUL -6.0%. EXTR -5.9%. CCXI -4.9%. ONTY -4.7%.
    | Wed, Sep. 23, 5:40 PM | Comment!
  • Thu, Sep. 10, 9:54 AM
    • Wunderlich has upgraded Extreme Networks (NASDAQ:EXTR) to Buy, and hiked its target by $1.50 to $4.50.
    • The Ethernet switch/Wi-Fi access point maker is continuing the strong rally it has seen from its late-July lows. Shares jumped in early August following an FQ4 beat and solid FQ1 guidance.
    • Extreme saw a spate of insider buying in late August. Purchasers included CEO Ed Meyercord, EVPs Norman Rice and Kelley Steven-Waiss, and directors John Shoemaker and Ed Kennedy.
    | Thu, Sep. 10, 9:54 AM | Comment!
  • Fri, Aug. 7, 5:40 PM
    | Fri, Aug. 7, 5:40 PM | 7 Comments
  • Thu, Aug. 6, 2:43 PM
    • In addition to beating FQ4 estimates, Extreme Networks (NASDAQ:EXTR) is guiding for FQ1 revenue of $120M-$130M and EPS of $0.01-$0.05, favorable to a consensus of $123.2M and $0.01 at the midpoints.
    • CEO Ed Meyercord, discussing FQ4: "We saw a nice recovery across all geographies except Latin America where we are transitioning from direct sales to channel distribution.  Our US sales team performed particularly well with several notable deals with entertainment venues and K-12 education customers as the latter began to benefit from [FCC] E-Rate funding. "
    • He cautions the pace at which E-Rate funds are provided will impact the speed at which Extreme benefits (via Wi-Fi hardware sales), and that the company continues to "see currency, pricing and competition as headwinds" in EMEA and Asia-Pac.
    • Product revenue fell 5% Y/Y to $116.3M, and service revenue 2% to $34.3M. Gross margin fell 250 bps Y/Y to 54.4%, but op. margin rose 100 bps to 8.2% thanks to major job cuts.
    • FQ4 results, PR
    | Thu, Aug. 6, 2:43 PM | Comment!
  • Thu, Aug. 6, 9:15 AM
    | Thu, Aug. 6, 9:15 AM | 9 Comments
  • Thu, May 21, 9:16 AM
    | Thu, May 21, 9:16 AM | Comment!
  • Fri, Apr. 10, 5:36 PM
    | Fri, Apr. 10, 5:36 PM | Comment!
  • Fri, Apr. 10, 12:45 PM
    | Fri, Apr. 10, 12:45 PM | 3 Comments
  • Fri, Apr. 10, 9:12 AM
    | Fri, Apr. 10, 9:12 AM | 4 Comments
  • Thu, Apr. 9, 5:35 PM
    | Thu, Apr. 9, 5:35 PM | Comment!
  • Thu, Apr. 9, 4:38 PM
    • Extreme (NASDAQ:EXTR) has tumbled to $2.51 after issuing an FQ3 warning, taking out its 52-week lows in the process.
    • Shares are down 58% from a 52-week high of $5.97. They now trade for less than 0.5x a FY14 (ended June '14) sales of $572.1M.
    | Thu, Apr. 9, 4:38 PM | 2 Comments
  • Thu, Apr. 9, 4:20 PM
    • Extreme Networks (NASDAQ:EXTR) now expects to report FQ3 (March quarter) revenue of $118M-$120M and EPS of -$0.07 to -$0.09; prior guidance was at $130M-$140M and -$0.03 to $0.02, and consensus at $135.3M and $0.00.
    • Gross margin guidance has been cut by 200 bps to 53%-54%, and opex guidance to $69M-$70M from $72.5M-$74.5M.
    • CEO Chuck Berger: "In the U.S. and Canada, we experienced deferred spending at several key accounts in the higher education market as well as several stadium and venue deals pushing out of the March quarter.  Currency impacts in Europe and Latin America resulted in customers delaying or cancelling purchases.  Operating expenses came in below the low end of guidance due to tighter expense management throughout the quarter which we plan to continue going forward."
    • He adds Extreme plans to cut its debt by $20.6M, bringing its cash balance to $74M-$76M.
    • Chief revenue officer/Cisco vet Jeff White, hired only last October, is "no longer with the company." A search has begun for a successor. Full FQ3 results will arrive on May 6.
    • Shares are halted. Raymond James' March 20 downgrade appears well-timed.
    | Thu, Apr. 9, 4:20 PM | Comment!
  • Fri, Mar. 20, 9:55 AM
    • Raymond James has downgraded Extreme Networks (NASDAQ:EXTR) to Market Perform.
    • The downgrade comes with Extreme trading well below last summer's levels. Shares bounced a little after the Ethernet/Wi-Fi hardware vendor posted an FQ2 beat on Jan. 28.
    | Fri, Mar. 20, 9:55 AM | Comment!
  • Fri, Feb. 27, 2:59 PM
    • Today's notable tech gainers include IP licensing firm VirnetX (VHC +8.1%), ultracapacitor maker Maxwell (MXWL +4.7%), local services marketplace Angie's List (ANGI +5.9%), voice processor developer Audience (ADNC +5.4%), Ethernet/Wi-Fi hardware maker Extreme Networks (EXTR +3.5%), Chinese polysilicon vendor Daqo (DQ +8.3%), Chinese mobile game published Sky-mobi (MOBI +9.8%), professional video hardware/software maker Avid (AVID +5.2%), and optical component vendors NeoPhotonics (NPTN +11%) and Oclaro (OCLR +5.2%).
    • Notable decliners include cloud HR/financials software leader Workday (WDAY -3.5%), cloud IT service desk software leader ServiceNow (NOW -3.7%), industrial laser maker IPG Photonics (IPGP -3.1%), FPGA/mobile sensor hub maker QuickLogic (QUIK -4.5%), and NAND controller/4G transceiver vendor Silicon Motion (SIMO -4%). The Nasdaq is down 0.5%.
    • Initially up post-earnings, Workday is now down 9% since beating FQ4 revenue estimates and offering in-line FY16 revenue guidance on Wednesday afternoon. Heavily-shorted VirnetX is up 33% since announcing on Feb. 18 the USPTO had denied five Apple patent review petitions. Maxwell (also heavily shorted) is up 17% since an insider buy was disclosed a week ago. Sky-mobi is up 20% since Rosenblatt Securities provided bullish coverage yesterday.
    • Previously covered: Chinese Web/mobile stocks, SanDisk, Autobytel, DigitalGlobe, GoPro, Immersion, MoSys, Resonant, Infoblox, Aruba, UniPixel, Autodesk, Universal Display, TubeMogul, Nimble Storage
    | Fri, Feb. 27, 2:59 PM | Comment!
  • Thu, Feb. 19, 3:57 PM
    • Extreme Networks (NASDAQ:EXTR) discloses it has determined the purchase of additional shares by institutional investors Paradigm Capital and BlackRock will be exempt from restrictions placed by a 2012 rights agreement.
    • The company concluded Paradigm/BlackRock's purchase of additional shares wouldn't jeopardize tax benefits provided through the rights agreement, provided neither firm takes its stake above 10%.
    • Paradigm owned 4.86M Extreme shares (4.9% stake) at the end of 2014, making it the company's largest institutional investor. BlackRock owned 2.72M shares (2.7% stake).
    | Thu, Feb. 19, 3:57 PM | Comment!
Company Description
Extreme Networks Inc together with its subsidiaries provides wired and wireless network infrastructure equipment, software and services for enterprises, data centers, and service providers. Its customers include businesses, hospitals, and hotels.