EXTR ($12-$10) P/E what pe?..EPS -.6....in line..rev's in line...
Extreme Networks breaks even
By Barbara C. Costanza, CBS.MarketWatch.com
Last Update: 5:04 PM ET Oct. 17, 2001
SANTA CLARA, Calif. (CBS.MW) -- Internet infrastructure company Extreme Networks broke even for its first quarter, noting signs of stability in the U.S. and slight growth in Europe and Asia.
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The company (EXTR: news, chart, profile) posted loss of $36 million, or 32 cents a share, which included amortization of goodwill and intangible assets, and deferred compensation.
On a pro forma basis, the company broke even for the latest quarter compared with the year-ago total of $9 million, or 8 cents a share.
The per-share range from analysts polled by Thomson Financial/First Call was a loss of 5 cents to a profit of 3 cents a share. On average, the analysts expected a 1 cent loss for the quarter.
As for revenue, analysts were looking for the first-quarter top line to come in at about $107.4 million. The company posted first-quarter revenue of $108.3 million, down compared with the year-ago total of $119.3 million.
"We are pleased with the small amount growth in Europe and Asia, since typically the summer tends to be flat," said Gordon Stitt, president and chief executive officer.
Forge ahead
As for an outlook going forward, Stitt once again remained silent with no specific targets, although he noted that the company continues to invest in its business despite the economic environment. "We will be well-positioned when the sector returns to more normal conditions," said Stitt.
With the rapid and increasingly severe downturn in the economy and the events of Sept. 11, the biggest concern for Extreme Networks at this point is recognizing revenue. While the company does not book revenue until a distributor sells product, Stitt said he hasn't seen a pullback from Extreme's two largest distributor clients, which contribute about 10 percent each to the top line.
Shares of Extreme Networks closed down $1.67 to $12.20 Wednesday.
Barbara C. Costanza is earnings editor of CBS.MarketWatch.com, based in Los Angeles. |
