Extreme Networks Up As Sales
Nearly Quadruple
(10/21/99, 7:31 a.m. ET)
By Reuters
Extreme Networks Inc., one of a number of
recently public networking companies that
have seen their share prices soar this year, on
Wednesday reported quarterly profits that
topped expectations as sales surged nearly
four-fold.
A competitor of networking juggernaut Cisco Systems
Inc., Extreme Networks said that for the fiscal first
quarter ended Sept. 30, it had profits of $4.05 million,
or 8 cents a share, compared with a loss of $2.98
million or 8 cents a share, a year ago. Sales soared to
$47.2 million from $12.9 million a year ago.
The results beat analyst forecasts of 6 cents a share,
according to First Call/Thomson Financial, which tracks
company results.
They were also in line with with preliminary estimates
that the company announced On Oct. 11. It said then it
expected net income to be $3.5 million to $4.0 million,
or 7 cents to 8 cents a share, on sales of $46 million to
$47 million.
Extreme Networks, along with rival Foundry Networks
Inc., claims its networking gear is easier to install and
faster than that made by Cisco. Companies are racing
to install the fastest and most reliable gear to speed data
across their corporate networks and the Internet.
Extreme Networks shares rose 3 13/16 to 81 3/8 on
the Nasdaq. The stock has risen more than five-fold
since the company first sold shares to the public in
April.
Foundry stock has quintupled since its Sept. 28 initial
public offering.
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