No mercy for Extreme Networks following FQ2 miss, soft guidance

Feb. 05, 2014 2:48 PM ETExtreme Networks, Inc. (EXTR) StockBy: Eric Jhonsa, SA News Editor
  • In addition to missing FQ2 estimates, Extreme Networks (NASDAQ:EXTR -15.1%) has guided for FQ3 revenue of $140M-$155M and EPS of $0.01-$0.06, largely below a consensus of $153.9M.
  • Extreme also says it aims to have a ~10% op. margin by the end of FY15 (ends June '15). The company posted an ``% op. margin in seasonally strong FQ2.
  • FQ3 represents the first quarter during which recently-acquired Ethernet switch/Wi-Fi access point vendor Enterasys will be on the books from start to finish (the acquisition closed at the end of October).
  • Extreme is contending with the challenges of integrating Enterasys, whose product line has a decent amount of overlap with that of Extreme proper, as well as a hotly competitive Ethernet switch market whose contestants include Cisco, H-P, Huawei, and Dell.
  • FQ2 results, PR

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