Extreme Networks Slides 18% Despite Upbeat Results

(RTTNews) - Shares of networking company Extreme Networks, Inc. (EXTR) are falling more than 18% Wednesday morning despite reporting improved quarterly results, better than analysts' view.

The company posted net income of $12.8 million or $0.10 per share in the third quarter compared with $3.5 million or $0.03 per share in the same quarter a year ago.

Excluding one-time items, earnings were$0.21 per share, that beat the average estimate of analysts polled by Thomson Reuters of $0.18 per share.

Revenue for the quarter was $285.51 million, up 13% year-over-year from $253.4 million. The consensus estimate was for $280.76 million.

"As we turn towards the next several years, we believe sustained demand for our cloud solutions and record backlog will fuel accelerated long-term growth. We expect FY23 revenue growth of 10-15%, accelerating to a mid-teens range, and a non-GAAP gross margin of 64-66% through FY25," commented Remi Thomas, Extreme's Chief Financial Officer.

EXTR, currently at $9.17, touched a new low of $9.02 this morning.