Extreme Networks boosts stackable GigE switches
Stack 'em up
Revenues on the rise
In addition to announcing a new switch, Extreme Networks also reported its financial results for the first quarter of fiscal 2011 ended in September. Like other networking equipment providers, Extreme Networks is benefiting from a rebound in IT spending. In the quarter, the company booked $69.2m in product sales, up 36.4 per cent from the year-ago period, while services sales were $14.6m, down 6 per cent. Total sales were $83.8m, hitting the high-side of the company's guidance for the quarter. Extreme Networks also swing to a profit of $2.7m in the quarter, better than the $5.5m loss it inked in Q1 of fiscal 2010.
Extreme Networks said that sales in the EMEA and APAC regions were solid. EMEA did well in particular because of channel sales to service providers, explained Oscar Rodriguez, the company's president and chief executive officer, and that APAC had a large order for gear in Korea. North American sales were $29.5m (down 18.7 per cent) after a sales force reorganization. EMEA sales were flat at $36.5m and APAC sales were $17.9m (up 44.4 per cent). Enterprise customers represented 76 per cent of the revenue pie for Extreme Networks in fiscal Q1, while service providers accounted for 24 per cent. The majority of the company's sales come from stackable switches, although the modular products hover around 30 per cent of the revenue pie, wiggling up and down from quarter to quarter.
Looking ahead to Q2 of fiscal 2011 ending in December, Extreme Networks said it expects sales to keep growing and will push up to between $85m and $88m, with non-GAAP net income on the order of 5 to 7 cents per share. That works out to product revenue growth of between 9 and 14 per cent and overall revenue growth of 7 to 11 per cent. Extreme Networks has $132.7m in cash and equivalents and no debt, and doesn't seem inclined to burn any of its cash. The company has some pretty big foes to take on in the networking racket. ®