Extreme Networks: Cloud focus will keep earnings on track for year

Extreme Networks (Nasdaq: EXTR) missed its second quarter earnings mark, reporting EPS of 6 cents on revenue of $82.8 million, down from $85.1 million a year ago; analysts had expected the company to earn 7 cents per share on revenue of $83.49 million.

But, the network infrastructure vendor stood behind its full-year guidance, and said it expects third quarter earnings to be $80 million to $85 million, or 6-8 cents a share, shy of Wall Street's expected $83.14 million and 8 cents per share. Shares were up in after hours trading.

"These results show the initial positive effect of our company transformation with product revenue up 8 percent and non-GAAP operating income up 25 percent from Q1," said chief executive Oscar Rodriguez. "We are now focused on driving the success of our new products for the cloud, data center and mobile markets, which will begin shipping this quarter."

Rodriguez said the company had seen strong interest in new cloud-scale products including the Black Diamond X8 and its new mobile backhaul products, the E4G cell-site routers.

Total net revenue for the Americas was $36.8 million, revenue in EMEA was $32.4 million and revenue in APAC was $13.6 million. That compares to revenue in the Americas of $30.8 million, revenue in EMEA of $37.2 million and revenue in APAC of $17.1 million for the same period last year.

Earlier this year, the company announced the general release of its newest Ethernet switch, the BlackDiamond X8, which it said was the "industry's highest density 40 GbE and 10 GbE switch for enterprise core and cloud-based data centers." The company said it expects to begin shipping the product in February.

For more:
- see this release

Special Report: Enterprise Communications earnings in the fourth quarter 2011

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