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Technology Stocks : Extreme Networks, Inc. (EXTR) -- Ignore unavailable to you. Want to Upgrade?

To: MCF who wrote (363)	10/19/2000 12:03:58 PM
From: Boplicity	Respond to of 770

Extreme Networks Falls as Fiscal 1st-Qtr Sales Growth Slows Santa Clara, California, Oct. 19 (Bloomberg) -- Extreme Networks Inc. shares fell as much as 18 percent after the computer- network switch maker's sales growth in the latest quarter slowed to the pace of rival Foundry Networks Inc. Foundry shares surged as much as 21 percent as investors sold Extreme to buy Foundry, analysts said. Extreme dropped $13 to $94.13 in midday trading after earlier touching $88, and Foundry rose $13.63 to $80 and earlier today reached $80.31. Extreme stock has more than doubled this year, while Foundry is down 48 percent. The companies, both founded in 1996, compete with Cisco Systems Inc. but are considered close rivals because of their similar product lines and revenue levels. Yesterday, Extreme reported sales in its fiscal first quarter rose 29 percent from the prior quarter, down from the previous 37 percent pace from its fiscal third to fiscal fourth quarter. On Tuesday, Foundry said third-quarter sales rose 28 percent from the second quarter. ``Given the addition of the 3Com sales force for Extreme, I think investors had been anticipating that Extreme would be performing at a considerably higher level than Foundry did,'' said Erik Suppiger, a Chase H&Q analyst who rates both companies a ``buy.'' Extreme is betting that it will gain an edge by boosting its hiring pace, adding as many as 200 employees from the former 3Com Corp. business unit that made network gear for large organizations. Foundry has been more profitable in part because it uses the same custom chips in different products. Foundry had third-quarter sales of $113.2 million, compared with Extreme's $119.3 million.