10-Gig Drives Extreme Revenues

Extreme Networks Inc. (Nasdaq: EXTR) reported its second-quarter results last night, posting net revenues of $100.3 million, up 20 percent on the same quarter last year, and topping analyst estimates of $98.4 million (see Extreme Reports Q2).

Earnings per share were 8 cents, up from a net loss of 5 cents in the same quarter last year. This also came in above analyst estimates of 4 cents.

Extreme’s CEO Gordon Stitt, speaking on a conference call, explained that clamor for 10-Gigabit Ethernet helped drive sales, particularly for the company’s Black Diamond and Summit products. “We saw 10-Gigabit Ethernet demand grow 50 percent over the last quarter,” he said.

According to Stitt, this proves that Extreme’s network message is getting through. ”It is driven by our two-tier architecture and using 10-Gigabit Ethernet links to tie the core to the access layer."

Read the rest of the story at NDCF.

— James Rogers, Site Editor, Next-Gen Data Center Forum

lilgatsby 12/5/2012 | 3:29:11 AM
re: 10-Gig Drives Extreme Revenues 2 questions for the masses:

1. Does Juniper gain by swallowing one of these Ethernet vendors, or does it lose all revenue gains by constantly eroding, poor Ethernet switch margin?

2. Who is a more attractive 10G buyout for Juniper: Extreme, Foundry, Force10, Enterasys?
- My personal take is F10, lower purchase price and best of breed in true 10G apps. Extreme has had internal technical issues with the BD and has lost many accounts. Enterasys is a sinking Cabletron flop. Foundry has a good product, but is not worth it's cap and plays in the low margin world with Netgear, D-Link, Allied Telesyn, 3Com, etc, etc. For every core switch Foundry sells it sells 8 edge...the edge is a horrible margin world to be in. F10 doesn't play at the edge and can demand higher prices and margins, although their customer base is much smaller.

Curious if there is a clear choice OR if staying out of this segment may be the clearest choice of all.

Iipoed 12/5/2012 | 3:29:10 AM
re: 10-Gig Drives Extreme Revenues First of all FDRY is second to Crisco in gross margins well over 60%. Second of all they sell far more chassis ports than they do stackables. Netgear is low end stuff, Foundry based upon it customer base make up is large enterprise. Your post would be more accurate if you substituted Extreme for Fdry.
If JNPR wants to compete with Csco the only option is EXTR, same VCs. Unfortunately they could have bought them in the 3s and didn't. obviously they did their due diligence on EXTR's technology and passed. FDRY would be a great match technology but their management would not. Jnpr, IMHO, may be waiting for F10 to really nose dive and then will pick them up for a lot less.
truthteller99 12/5/2012 | 3:28:52 AM
re: 10-Gig Drives Extreme Revenues Force10 will not sell, not to Juniper, not to anyone.

They are go public or broke. It is widely known that board will no sell.
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