Showing posts with label Extreme. Show all posts
Showing posts with label Extreme. Show all posts

Thursday, August 15, 2019

Extreme sees SD-WAN opportunities with Aerohive acquisition

Last week, Extreme Networks completed its previously-announced acquisition of Aerohive Networks.

The acquisition of Aerohive adds cloud management and edge capabilities to Extreme's portfolio of end-to-end, edge to cloud software-driven networking solutions.

Aerohive also expands Extreme's position in Wi-Fi and NAC, adding cloud-managed Wi-Fi and NAC solutions to complement its on-premises Wi-Fi and NAC technology, driving Extreme deeper into key verticals and presenting numerous opportunities for cross-sell and up-sell within the combined portfolios.

Extreme said the deal also brings new SD-WAN capabilities to its portfolio.

Ed Meyercord, President and CEO, Extreme Networks, states "Closing our acquisition of Aerohive in just 45 days from initial announcement eliminates many execution risks and better positions us to transition customers smoothly. We are excited to bring Aerohive's market leading cloud management, AI and ML, and SD-WAN capabilities to our customers and partners. We're equally excited to introduce our extensive portfolio of edge-to-cloud solutions to the Aerohive customer and partner base. From a financial perspective, Aerohive's platform is a critical component in our strategy to add subscription-oriented SaaS and cloud-based solutions that will enable us to drive recurring revenue and improved cash flow generation."



Wednesday, June 26, 2019

Extreme to acquire Aerohive for cloud-managed enterprise Wi-Fi

Extreme Networks agreed to acquire Aerohive Networks (NYSE: HIVE) at a price of $4.45 per share in cash, representing an enterprise value of $210 million.

Aerohive, which is based in Milpitas, California, supplies cloud and enterprise Wi-Fi solutions and was among the first companies to offer controller-less Wi-Fi and cloud network management, including cloud-managed Wi-Fi and network access control (NAC). Aerohive recently delivered the industry's first trio of Wi-Fi 6 access points, along with the industry's first pluggable access point. Aerohive has a global footprint of 30,000 cloud wireless LAN customers in verticals including education, healthcare, state and local government, and retail. Aerohive was founded in 2006 by Changming Liu and completed its IPO in March 2014.

Extreme says the acquisition of Aerohive will add critical cloud management and edge capabilities to its portfolio of end-to-end, edge to cloud networking solutions. It will provide a strong subscription revenue stream and strengthen Extreme's position in wireless LAN at a critical technology transition to Wi-Fi 6. Extreme expects the acquisition to be accretive to non-GAAP earnings per share starting in fiscal year 2020.

Extreme also expects to gain new SD-WAN capabilities, in all expanding its total addressable market by a total of $1B in a market with a CAGR of 19% 2019 through 2022.2

Ed Meyercord, President and CEO, Extreme Networks, stated "The acquisition of Aerohive establishes our leadership in cloud, AI, and ML, adding a proven and mature cloud services platform and subscription service model for Extreme's customers and partners. Extreme continues to invest in software and AI to expand the automation capabilities across our portfolio of edge-to-cloud networking solutions. After scaling Extreme's business to $1B in revenue and expanding our portfolio to include end-to-end enterprise networking solutions, we are now taking the next step to transform our business to add sustainable, subscription-oriented cloud-based solutions that will enable us to drive recurring revenue and improved cash flow generation. Extreme expects this deal to be accretive to our FY20 outlook as it accelerates our plans to achieve over 60% gross margin and 15% operating income on an exit run rate."

David Flynn, President and CEO of Aerohive, said "the role that cloud-managed technology plays in modern enterprises is impossible to overstate – it is where digital transformation is won and lost. Aerohive's expertise and excellence in cloud management and edge technology, combined with Extreme's extensive solutions portfolio and continued investment in software and AI for automation, gives our customers the most advanced digital experiences in the market. Together we will push networking into a new era – making infrastructure smarter, more autonomous, and the driver of business value."

https://investor.extremenetworks.com/static-files/16c92f7a-212b-48ae-86bc-aa132251b1af

Extreme to acquire Avaya networking for $100m with winning bid


Extreme Networks announced that, having entered into an asset purchase agreement under which it would serve as primary bidder in a sale under the bankruptcy code to acquire Avaya's networking business for approximately $100 million, it has been approved as the winning bidder to acquire the Avaya business.Under the bidding process, the assets of Avaya's networking business unit will be sold to Extreme for approximately $100 million, in accordance...

Extreme to Acquire Brocade's Switching Business for $55 Million


Extreme Networks agreed to acquire Brocade Communications Systems' data center switching, routing, and analytics business from Broadcom following Broadcom's acquisition of Brocade. The deal is valued at $55 million in cash, consisting of $35 million at closing and $20 million in deferred payments, as well as additional potential performance based payments to Broadcom, to be paid over a five-year term. The sale is contingent on Broadcom closing its...


Sunday, November 4, 2018

Extreme Networks posts strong sales, raises pricing 5-7%

Extreme Networks reported revenue of $239.9 million for its first quarter of fiscal 2019.

GAAP net loss for the first fiscal quarter was $9.1 million, or $0.08 per basic share, a decrease of $13.5 million or $0.12 per basic share, respectively, year-over-year. Non-GAAP net income was $9.4 million, or $0.08 per diluted share, a decrease of $9.2 million or $0.08 per diluted share, respectively, year-over-year.

"We reported results towards the high-end of our guidance. We made considerable progress to consolidate our distributors, and we stabilized our data center business.  With new products on the horizon and new hires focused on key verticals such as Service Provider and Federal, we are improving our execution and go to market activities," stated Ed Meyercord, President and CEO of Extreme Networks.

Extreme's Board of Directors authorized a $60 million share repurchase.

"Beginning on November 1, we instituted a 5% global price increase on our products after four years of not raising prices, and a 7% price increase on products sold in the US. These increases reflect rising component costs, with an incremental amount related to US tariffs on goods produced in China. We are transitioning a significant portion of our manufacturing outside of China over the next several quarters and expect additional pricing actions in the US in January to mitigate our exposure to tariffs.  We are committed to continuous supply chain optimization to provide the highest value products and services to our customers."

Meyercord added, "Finally, in late fiscal Q1 we observed a slight uptick in customer orders ahead of tariffs being implemented in the US, in anticipation of rising prices.  Looking ahead, we believe our strong product roadmap and improved execution, combined with our digital transformation initiatives to make it easier for customers to do business with Extreme, will drive continued growth into the second half of fiscal '19."

Tuesday, May 8, 2018

With its acquired product lines, Extreme hits revenue of $262 million

Extreme Networks reported revenue of $262.0 million for its fiscal third quarter ended March 31, 2018. GAAP gross margin for the third fiscal quarter was 54.6%, a decrease of 90 basis points year-over-year, and non-GAAP gross margin was 57.9% year-over-year, an increase of 70 basis points year-over-year.  GAAP net loss for the third fiscal quarter was $13.6 million, or $0.12 per basic share, a decrease of $8.6 million and $0.07 per basic share, respectively, year-over-year. Non-GAAP net income was $19.0 million, or $0.16 per diluted share,

"We made significant progress continuing to build the 'new' Extreme in the third fiscal quarter with year-over-year revenue growth and non-GAAP gross margin improvement, hitting all of our critical milestones associated with the systems integration of our newly acquired assets," stated Ed Meyercord, President and CEO of Extreme Networks.

"We achieved organic growth of 8% in core Extreme revenue, driven by strength in our wireless business, and 10% sequential growth in our acquired Campus Fabric revenue. Given strong demand, we built our order backlog by over $7M during the quarter. We expect improvement in our gross margins in our last fiscal quarter of 2018 as we continue to approach our 60% target, in addition to significant sequential and year-over-year quarterly revenue growth."

Extreme's recent acquisitions include Avaya's networking business and Brocade Communications Systems' data center switching, routing, and analytics businesses.


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