Extreme Networks climbs on strong 2Q outlook

Extreme Networks posts strong 1st-quarter adjusted profit and rises on 2nd-quarter guidance

Associated Press

NEW YORK (AP) -- NEWS: Extreme Networks said Monday it took a loss in its fiscal first quarter, but shares climbed after the Ethernet networking technology company gave a strong forecast for the current quarter.

DETAILS: On Thursday Extreme Networks Inc. completed the purchase of computer networking company Enterasys for $180 million in cash. Extreme Networks said the deal doubles its revenue to about $600 million a year.

NUMBERS: The company said it lost $35,000 and broke even on a per-share basis, for the quarter ended in September. A year ago it earned $12.9 million, or 14 cents per share. Excluding one-time items Extreme Networks said it turned a profit of 6 cents per share, up from 4 cents per share. Its revenue slipped to $75.9 million from $76.1 million.

Analysts expected income of 4 cents per share and $74.2 million in revenue, according to FactSet.

FUTURE: The San Jose, Calif., company forecast an adjusted profit of 14 to 16 cents per share in the second quarter on reported revenue of $140 million to $155 million. Including deferred service revenue, Extreme Networks expects adjusted quarterly revenue of $145 million to $160 million.

Analysts expect 6 cents per share and $78.4 million in revenue.

STOCK: In midday trading shares jumped $1.03, or 19 percent, to $6.41 and reached an eight-year high of $6.65.

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