Tuesday, July 30, 2013

Extreme Networks Reports $79.5 Million in Revenues

Extreme Networks reported quarterly revenue of $79.5 million, representing a 16.5% increase compared to the prior quarter's revenues of $68.2 million and a 9.4% decrease compared to revenues of $87.7 million in the same period a year ago. GAAP net income for Q4 was $3.2 million, or $0.03 per diluted share, an increase of $5.4 million, or $0.05 per diluted share compared to the previous quarter.

"We are pleased with the significant sequential quarter over quarter growth in revenues and operating income, which is indicative of the strength of our product offering," said Chuck Berger, president and chief executive officer of Extreme Networks. "Our extensive line of Ethernet switches, reaching from the edge of the campus to data centers, all running on the most robust network operating system in the industry, have strong appeal to customers and partners.  That said, we continued to report year over year declines in revenues, which clearly indicates there is much to be done to improve our execution across the board.  We have identified the areas where changes are needed and are making solid progress, but it will take several quarters to realize the full benefit of these efforts.  Additionally, as in our third fiscal quarter, we were unable to fulfill a significant amount of orders due to reduced inventory levels and lengthening component lead times.  We will continue to face these shortages for the first half of the first quarter, but believe we will have caught up with demand as we go into September."