Extreme Networks sees revenue fall 11%
Extreme Networks (Nasdaq: EXTR) saw net revenue fall 11 percent in its third fiscal quarter, but earnings of $3.8 million, or 4 cents per share, were in line with estimates from analysts.
Revenue for Q3 2012 totaled $73.4 million, down 3 percent from $75.7 million a year ago, but slightly ahead of the $73.24 million expected by analysts.
Total net revenue for the third quarter was $29.7 million in the Americas, $31.5 million in EMEA and $12.1 million in APAC.
During the earnings call, the network equipment maker's CEO, Juan Oscar Rodriguez, said the company's move to become a pure-play networking vendor was continuing.
"We are focused on structuring our business with a goal of consistently achieving double-digit operating income without the need for significant revenue growth," he said, noting that the combination of "products, the increased market awareness and our reduced cost structure will enable Extreme to drive growth in both revenue and market share. Now, we are focused on driving the sales execution needed to enable us to deliver revenue growth."
Rodriguez said he expects the revenue growth to "provide increasing leverage to the bottom line and increasing free cash flow" into fiscal year 2013.
The company said it expects its fourth quarter of 2012 to show net revenue of between $82 million and $90 million, with non-GAAP net income of 7- to 11-cents per diluted share. Full-year revenue should total $317 million to $325 million, with EPS of 22- to 26-cents per diluted share.
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