Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?

To: 200ma who wrote (74808)	1/28/2002 11:12:13 AM
From: Tassi	Respond to of 122087

EXTR long to 24...large accumulations ( ML pumped on TV) and Duple bottoms..Chart looks fine.. should be a nice rebound as soon as the NAS internal and visibility improve ========================================================== =DJ Extreme Networks CEO:Signs Worst Is Behind Company In US -------------------------------------------------------------------------------- 08:15 ET =DJ Extreme Networks CEO:Signs Worst Is Behind Company In US 17 Jan 08:15 By Anne Brady Of DOW JONES NEWSWIRES (This report was first published late Wednesday.) PHOENIX (Dow Jones)--Extreme Networks Inc. (EXTR) Chief Executive Gordon Stitt said Wednesday that he is "cautiously optimistic" that the North American market has stabilized, but he did not provide any specific financial guidance going forward in conjunction with releasing second-quarter earnings information. The company reported after the market closed a net loss of $10.7 million, or 9 cents per share, on revenue of $109.1 million for the quarter ended Dec. 31, compared with net income of $8.1 million, or 7 cents per share, on revenue of $144.7 million in the same quarter a year ago. The company's pro forma quarterly earnings of $2 million, or 2 cents per share, excluding expenses for amortization of goodwill and intangible assets and deferred compensation, beat the consensus estimate of analysts polled by Thomson Financial/First Call of a penny per share. Stitt and Chief Financial Officer Hal Covert, in a conference call with stock analysts, cited limited visibility and the uncertain economic environment as reasons for their lack of guidance, but said they are optimistic the company will see revenue growth and gross margin growth in coming months. There are signs "the worst is now behind us in North America," said Stitt. Covert said the percentage of company sales coming from North America is growing, but he predicted it would take several quarters before it would return to peak levels. In the second quarter, Extreme Networks met its goals of returning to operating profitability, being cash positive and ending with a strong backlog, executives said. The network equipment maker's goal going forward is to continue improving in those areas, they said. "We are optimistic there will be some sequencial growth," CEO Stitt added. Extreme Networks' percentage of business in the enterprise segment (corporate and government networks), which is now seen as stronger than the telecommunications carrier market, remains at historical levels of about two-thirds, Covert said. However, Stitt said the two markets are converging. CEO Stitt noted, for example, that his Santa Clara, Calif., company already is creating networks that serve elaborate corporate campuses that span large distances. "In the future, (these networks) will have no geographic limits at all," he predicted. In an interview with Dow Jones Newswires after the conference call, Stitt said that although enterprise business is currently stronger than carrier business, he sees carriers gradually implementing technology on their networks that rivals and works seamlessly with technology now used on corporate networks. He said the company has not taken its "eye off the ball" in either the declining carrier market or the U.S. market, which has been declining relative to foreign sales, because he doesn't want to become overly dependent on any one market. When a declining market recovers, he wants to be positioned to take advantage, he said. CFO Covert said in the conference call that sales in North America had grown to account for 34% of total sales in the second quarter, up from 31% in the first quarter. But that's still off from the 50/50 split that is the company's goal, Stitt said. "We really want to be balanced," he said in the interview, explaining that the company's solid footing abroad helped it to weather the economic storm in the United States. -Anne Brady, Dow Jones Newswires, 602-258-2003; anne.brady@dowjones.com (END) DOW JONES NEWS 01-17-02 08:15 AM