Extreme Networks Inc. (NASDAQ:EXTR) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.
Extreme Networks Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share were the same at $0.04 in the quarter as EPS of $0.04 in the year-earlier quarter.
Revenue: Decreased 7.05% to $68.2 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Extreme Networks Inc. reported adjusted EPS income of $0.04 per share. By that measure, the company missed the mean analyst estimate of $0.06. It missed the average revenue estimate of $71.91 million.
Quoting Management: “Q3 non-GAAP earnings were in-line with the Company’s targets even though revenue was slightly below the target range. During the quarter we moved aggressively on our restructuring and the benefits are beginning to show in the workflow within the company as well as a $3.8M reduction in non-GAAP operating expenses and improved gross margins,” stated John Kurtzweil, chief financial officer of Extreme Networks. “We are glad to have Chuck Berger join Extreme Networks as our CEO and look forward to his leadership to focus on expanding our market positioning and growing our business. He will be instrumental in driving the delivery of technology for our customers as well as increasing shareholder value.”
Key Stats (on next page)…