Extreme Cuts Q2 Forecast, Restructures
SANTA CLARA, Calif. -- Extreme Networks, Inc. (EXTR) today announced a plan to streamline its operations to reduce costs and also provided an updated financial model for Fiscal 2013. The restructuring plan is expected to result in approximately $7.0 million in reduced quarterly costs once the plan is fully implemented. The Company expects to record a charge of approximately $5.5 to $7.0 million in the fiscal quarter ended on December 31, 2012. Net Revenue is estimated to be approximately $75 to $77 million, versus the low end of previously provided guidance of $78 million primarily due to delays in customer expenditures in EMEA and the US. Gross Margin (GAAP and Non-GAAP) for FQ2'12 is expected to be approximately 54% to 55%. Extreme Networks Inc.