Extreme's CEO says overseas business growing
SANTA CLARA, Calif., Oct 17 (Reuters) - Extreme Networks Inc. (NasdaqNM:EXTR -
news), a broadband network equipment maker, on Wednesday reported fiscal first-quarter
financial results beating analysts' expectations, a result of keeping existing customers and
gaining new ones, especially in Japan and China.
Shortly after the after-market hours announcement, Gordon Stitt,
Extreme's chief executive, told Reuters that Korea also is a proving to be a
growing market for the Santa Clara, Calif.-based manufacturer of Ethernet
switches for networks.
Also, Europe in general, but especially Germany, is providing Extreme
with solid business, Stitt said.
``As we look out six, twelve months, people are doing a lot more
communicating, not less,'' Stitt said. ``Infrastructure is a critical part of the
world economy.''
In the United States, Extreme's business remains stable, though the
company did feel some pressure from the deadly Sept. 11 attacks, Stitt
said, adding, however, ``We were able to effectively manage in the storm.''
Excluding one-time charges, Extreme said it broke even in its fiscal first quarter, compared with earnings of $9 million, or 8
cents per share, a year earlier and a loss of 1 cent per share that analysts polled by Thomson Financial/First Call on average
expected.
Net revenues for the quarter ended Sept. 30 totaled $108.3 million compared with $119.3 million a year ago and the $107.4
million to $118 million range forecast by analysts.
Extreme shares on Wednesday fell $1.67, or 12 percent, to close at $12.20, marking a 109 percent gain from their all-time low
of $5.85 on Sept. 27. As of Wednesday's closing price, Extreme shares were off 91 percent from their record high of $128.88
on Oct. 17, 2000.
Extreme said its actual net loss for its fiscal first quarter was $36 million, or 32 cents a share, including a $40.1 million charge,
amortization of goodwill and intangible assets, and $14.7 million in deferred compensation.
That compares to net income in the same quarter last year of $4.5 million, or 4 cents per share.
Extreme in July forecast that for the fiscal year ending June 2002, its revenues would grow 10 to 11 percent to between $540
million to $545 million from $491 million in its most recent fiscal year. |
