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Non-Tech : EARNINGS REPORTING - surprises, misses & more -- Ignore unavailable to you. Want to Upgrade?

To: 2MAR$ who wrote (578)	4/19/2001 6:48:14 AM
From: 2MAR$	Read Replies (1) \| Respond to of 762

EXTR (up 1 & $23) Meets Lowered Estimates SANTA CLARA, Calif. (Reuters) - Internet infrastructure company Extreme Networks Inc. (NasdaqNM:EXTR - news) on Wednesday reported a quarterly loss in line with the lowered forecasts it issued earlier this month, citing a slowdown in corporate spending. Extreme Networks posted a third quarter net loss of $7.1 million, or 7 cents a share, excluding one-time charges and amortization. The company had warned on April 5, that both revenues and earnings would fall short of earlier forecasts and said it would cut its cost structure by 10 percent and lay off some staff. In the wake of that warning, analysts had on average expected Santa Clara, Calif.-based Extreme Networks to lose 7 cents a share, the mid-point of the company's own lowered guidance. Before the warning, the average forecast had been for a profit of 12 cents a share. Extreme shares continued to rally in after-hours trade on Wednesday, gaining to $22.61 on the Island system, up from $21.75 at the regular close on Nasdaq. The stock surged more than 20 percent during market hours on Wednesday in line with the powerful gains for the broader U.S. equity market, thanks to the Federal Reserve (news - web sites)'s surprise interest rate cut. As of Wednesday's close, Extreme Network's shares were down about 54 percent since the start of the year. Revenue for the third fiscal quarter rose to $112.1 million, a 67 percent increase over $67.3 million in the year-earlier period, the company said. With charges included, Extreme Networks in the third quarter recorded a loss of $70.1 million, or 64 cents a share, compared with earnings of $9.1 million, or 8 cents a share, in the year-earlier period. ABN-AMRO analyst Kenneth Leon said Extreme had been facing weak demand for its products and services. ``Orders that were expected at the end of this quarter have been pushed out, and there is no visibility on when the delayed orders will be booked,'' Leon said. In a statement, Extreme Networks Chief Executive Gordon Stitt said that the company should ride out the economic slowdown in coming quarters with the help of its recent acquisitions and new clients overseas. In a conference call after Wednesday's market close, Extreme Networks management said the third quarter had been the company's most challenging quarter because customers simply could not afford to spend very much. ``We are taking the necessary steps to manage this current economic downturn,'' Stitt said during the call with analysts. The company recently cut its work force by 11 percent and said it will continue to cut costs where possible while increasing productivity. But at the same time, investments in research and development will increase, the company said. Since the start of the year, Extreme Networks has hired some 100 engineers. Merrill Lynch analyst Samuel Wilson said that Extreme Networks is going through a ``rough patch,'' but that its recent acquisitions and a sales surge this month should help the company's near-term prospects.