Sunday, April 10, 2011

Extreme Announces Preliminary Results

Extreme Networks now expects revenue for its 2011 fiscal third quarter ended March 27, 2011 to be $75.5-76.5 million.

"The revenue for the quarter was impacted by the deferral of $2.6 million in product revenue for a large customer and the timing of several large and relatively complex customer transactions," said Oscar Rodriguez, President & CEO of Extreme Networks. "We expect to be able to complete our obligations under these deals in future quarters, which will represent additional revenue for Extreme Networks at that time. In addition, we have begun to execute on our stated strategic company transformation, and have announced new products and are consolidating our product portfolio to reduce expense and eliminate under-performing or obsolete products. As a result, we experienced some customer purchase decision delays, as we worked to transition our customers to new products and architectures. Other factors impacting this quarter's results were a relative slowdown in our EMEA sales and longer sales cycles for business in the U.S., and increased competitive pressures related to customers in the horizontal enterprise IT market."

Overall Asia Pacific performed well, and is expected to show double-digit revenue growth from Q3 FY10. EMEA is expected to show low single digit revenue growth from Q3 FY10. North America is expected to show a decrease in revenue from Q3 FY10. Overall, year-to-date revenue growth is expected to be 9% to 10% vs. the same period in FY2010.

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