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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: Boplicity who wrote (25901)	12/19/2000 6:55:14 PM
From: Sully-	Read Replies (1) \| Respond to of 65232

Gee Greg, Interesting perspective on EXTR...... prior to FDRY's little pile of poo poo.....Hope you are still right about EXTR......... My understanding was that EXTR was eating FDRY's lunch as indicated here...... Foundry is benefiting from surging demand for Internet capacity as customers like America Online buy its switches. Recent sales growth has lagged some rivals, though, including Extreme Networks, Foundry's most comparable competitor. Extreme shares have more than doubled this year to give the company a higher market value than Foundry's. Message 14603040 EXTR guided analyst estimates upward for the next 4 Qtr's in their CC after announcing earnings 2¢ above consensus on 10/18....... Wednesday October 18, 4:20 pm Eastern Time Press Release SOURCE: Extreme Networks, Inc. Extreme Announces Record First Quarter Revenues 153% Annual Revenue Growth, Quarterly Revenues Increase 29% .....Revenue for the first quarter of fiscal 2001 increased to $119.3 million, which compares to $92.4 million in the fourth quarter of fiscal 2000, and to $47.2 million in the first quarter of fiscal 2000, an increase of 29% and 153%, respectively...... Message 14611311 Extreme Networks (EXTR) 107 1/8 -11 9/16: -- Update -- Company guides FY01 revenue estimates higher to $615-635 mln range from previous guidance of $560 mln; all news on call has been good thus far; stock has rebounded to 94-95 range after earlier plunge. Message 14612074 I guess it's just too easy to take 'em all out & shoot 'em first though. IMO, that is a pile of poo poo too..... I've been away.... still got snow to finish shoveling..... Hope EXTR gives some kinda PR with some guidance before open tomorrow..... if not, there will be a big sale :-( FWIW, here are some excellent notes from EXTR's CC......... From: Bruce Brown CC notes.... My notes are not well gathered this time around as I was late to log on and trying to do two things at once. • $119.3 Million sales • 29% sequential growth • 153% y/y growth • 52 - 54% gross margin target going forward with expansion in the future as product line expands. • book to bill over 1.x • Revenue forecast upped to $615 - 630 Million for 2001 and up to a Billion in 2002 • tax rate 35% should remain around 35 to 36 going forward • 51% modular revenues • 29% direct revenues Geographic... • 24.5% European sales • 26.6% Asia sales • 49% North America sales Strong European growth. • DSO down from 58 to 56 flat going forward and then going down after that • 26 Million in deferred revenue, up from the previous Q • 112 employees added - total work force on a global basis is 792 • 500K Layer 3 ports shipped in Q • Paul Johnson asked about the competition in the market. Extreme's products are now considered stronger viable products in the market place. Cisco is the primary competitor. Many others have pulled out. • Demand environment remains strong and optimistic. • 10 GE product revenue shipments during this quarter (October/November/December) • 4-7 switches percentage of sales were flat from the previous quarter. Not dollar wise, but percentage of sales wise. • 35% revenues from carriers • Metro market - Extreme remains conservative and does not do financing for carriers. Third party financing companies handle that and it goes on the third party books - not Extreme's • Backlog mix - demand is strong across all product categories • Rich feature mix on switches is gaining traction in the ISP market • pricing environment remains benign • Data Center environment infrastructure (routers/switches) - Extreme has been strong in providing the routers and switches for data centers • Raised inventory to avoid component shortages and meet demand - continuing to scale supply chain • OC 3 and OC 12 in Q 1 will ship in volume • direct sales will uptick over time, but Extreme will remain with a balanced reseller and direct mix throughout the globe • Alpine switches strong growth and demand. Increased shipments in Q. Strong penetration. WDM modules are not shipped in the Alpine. • Stackable ASP's were up for the Q • 3 Coms employees should ramp well this quarter due to the 6 month lag of sales reps to take two quarters to come up to speed. The 3 Com sales force came on April 3, so now the 6 months have passed. Should bode well for the Q. • Alpine is meeting and exceeding expectations. • Standards process is on track for the GE. Should be ratified after the lengthy process and by middle of next year should see compatible products in the industry. • Strong growth in the metro area segment. Inter-pop, carrier segment hosting, enterprise. Success across all areas. • 4 - 7 layer is a relatively new market for them (since April). They are investing in that space. More product coming in that space. • Large enterprise, metro market growing well. • Metro accounts won during the Q in the low 20's - up from 15 previous Q Message 14612303 Ö¿Ö