MORRISVILLE – Extreme Networks, which put into play key parts of its wireless services such as advanced Wi-Fi at Major League Baseball’s All-Star Game in Seattle, delivered its own financial all-star performance.
The company (Nasdaq: EXTR), which moved its headquarters to the Triangle two years ago, reported early Wednesday earnings on 33 cents per share, topping Wall Street expectations of 31 cents.
- Shares jumped 5% in pre-market trading to nearly $28.
- Plus, revenues came in at $363 million, $20 million more than expected.
The quarter ending June 30 also marked the end of the company’s fiscal year with more good news in these year-over-year comparisons.
- Revenue $1.3 billion, up 18%
- Earnings of $0.58, up from $0.33
- Adjusted earnings $1.09, up from $0.77
- Operating margin 8.3% compared to 5.8%
- Adjusted operating margin 15.2% compared to 12.2%
An analyst’s view
In a preview of the earnings, Zacks Research outlined growth for Extreme products:
“The company benefits from an expanding clientele that leverage Extreme’s technology to streamline operations and drive business transformation.
“Companies in different verticals have deployed EXTR’s cloud managed network and Wi-Fi 6E ready networks to drive energy savings, improve network performance and fulfil operational needs. These factors are likely to have driven its fiscal fourth-quarter top line.”
The CEO’s view
CEO Ed Meyercord praised the performance.
“Extreme delivered a year of exceptional performance, with revenue growth accelerating to 31% in the fourth quarter and 18% overall for the year,” he said in a statement.
“This marks our second consecutive year of double-digit growth. We’re outgrowing our competitors, gaining share, and winning new logos, which helped drive more than 30% growth in the value of deals over $1 million. We’re breaking the status quo of networking through product innovation with differentiated solutions like universal hardware, end-to-end cloud management, enhanced AI [artificial intelligence], and our unique fabric technology, which greatly simplifies network management and bolsters security.
“Our focus on simplicity, flexibility, and performance continues to fuel our funnel of large opportunities. I remain confident in our growth prospects and am excited about the new innovations and opportunities we have in store for FY24 and beyond.”
Looking ahead, Extreme expects earnings to range from 28 cents to 33 cents and revenues between $342 million to $352 million for the current quarter.
The post Triangle based Extreme Networks beats Street – stock surges 5% first appeared on WRAL TechWire.
Triangle based Extreme Networks beats Street – stock surges 5% first appeared on Web and IT News.
