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Extreme Networks (EXTR)

Extreme Networks, Inc. (EXTR) creates effortless networking experiences that enable all of us to advance. It pushes the boundaries of technology leveraging the powers of machine learning, artificial intelligence, analytics, and automation. Over 50,000 customers globally trust its end-to-end, cloud-driven networking solutions and rely on its top-rated services and support to accelerate their digital transformation efforts and deliver progress like never before.

Company profile

Ticker
EXTR
Exchange
CEO
Edward Meyercord
Employees
Incorporated
Location
Fiscal year end
SEC CIK
Subsidiaries
Extreme Networks IHC, Inc. • Enterasys Networks, Inc. • Extreme Networks Delaware LLC • Extreme Networks Canada Inc. • Extreme Networks International Ltd. • Extreme Networks EMEA Ltd. • Extreme Networks Australia • Extreme Networks Singapore Pte. Ltd. • Extreme Networks Korea Ltd. • Extreme Networks India Private Ltd. ...
IRS number
770430270

EXTR stock data

Analyst ratings and price targets

Last 3 months
Current price
Average target
$14.75
Low target
$14.50
High target
$15.00
Rosenblatt
Maintains
Buy
$15.00
28 Jul 22
Needham
Maintains
Buy
$14.50
28 Jul 22

Calendar

26 Aug 22
4 Oct 22
30 Jun 23
Quarter (USD) Jun 22 Mar 22 Dec 21 Sep 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Jun 22 Jun 21 Jun 20 Jun 19
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
1 Sep 22 Remi Thomas Common Stock Sell Dispose S No Yes 14.0511 10,000 140.51K 126,342
31 Aug 22 Edward Meyercord Common Stock Payment of exercise Dispose F No No 14.33 10,776 154.42K 1,008,759
31 Aug 22 Edward Meyercord Common Stock Option exercise Acquire M No No 0 22,286 0 1,019,535
31 Aug 22 Edward Meyercord RSU Common stock Option exercise Dispose M No No 0 22,286 0 0
31 Aug 22 Remi Thomas Common Stock Payment of exercise Dispose F No No 14.33 6,175 88.49K 136,342
31 Aug 22 Remi Thomas Common Stock Option exercise Acquire M No No 0 12,454 0 142,517
31 Aug 22 Remi Thomas RSU Award Common Stock Option exercise Dispose M No No 0 12,454 0 0
29 Aug 22 Khanna Raj Common Stock Sell Dispose S Yes Yes 15 20,000 300K 230,746
29 Aug 22 Joseph A Vitalone Common Stock Sell Dispose S No Yes 15.0015 35,372 530.63K 41,298
16 Aug 22 Edward Meyercord Common Stock Payment of exercise Dispose F No No 13.63 50,315 685.79K 997,249

Financial report summary

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Risks
  • We purchase several key components for products from single or limited sources and could lose sales if these suppliers fail to meet our needs. Supply chain constraints have exacerbated this situation.
  • The coronavirus outbreak has had, and continues to have, a materially disruptive effect on our business.
  • We depend upon international sales for a significant portion of our revenues which imposes a number of risks on our business.
  • To successfully manage our business or achieve our goals, we must attract, retain, train, motivate, develop and promote key employees, and a failure to do so can harm us.
  • If we fail to anticipate technological shifts, market needs and opportunities, and develop products, product enhancements and business strategies that meet those technological shifts, needs and opportunities in a timely manner or if they do not gain market acceptance, we may not be able to compete effectively and our ability to generate revenues will suffer.
  • If our products do not effectively inter-operate with our customers’ networks and result in cancellations and delays of installations, our business, financial condition and results of operations could be harmed.
  • Industry consolidation may lead to stronger competition and may harm our business, financial condition, and operating results.
  • The cloud networking market is rapidly evolving. If this market does not evolve as we anticipate or our target end customers do not adopt our cloud networking solutions, we may not be able to compete effectively, and our ability to generate revenues will suffer.
  • When our products contain undetected errors, we may incur significant unexpected expenses and could lose sales.
  • We must continue to develop and increase the productivity of our indirect distribution channels to increase net revenues and improve our operating results.
  • The sales cycle for our products is long and we may incur substantial non-recoverable expenses or devote significant resources to sales that do not occur when anticipated.
  • We rely on third-party providers for services needed to deliver our cloud solutions and other third-party providers for our internal operations. Any disruption in the services provided by such third-party providers could adversely affect our business and subject us to liability.
  • System security risks, data breaches, and cyber-attacks could compromise our proprietary information, disrupt our internal operations, impact services to customers, and harm public perception of our products, which could adversely affect our business, financial condition and results of operations.
  • We cannot assure future profitability, and our financial results may fluctuate significantly from period to period.
  • We may not realize anticipated benefits of past or future acquisitions, divestitures and strategic investments, and the integration of acquired companies or technologies may negatively impact our business, financial condition and results of operations or dilute the ownership interests of our stockholders.
  • We may not fully realize the anticipated positive impacts to future financial results from our restructuring efforts.
  • Our stock price has been volatile in the past and may significantly fluctuate in the future.
  • Intense competition in the market for networking equipment and cloud platform companies could prevent us from increasing revenues and attaining profitability.
  • We intend to invest in engineering, sales, services, marketing and manufacturing on a long-term basis, and delays or inability to attain the expected benefits may result in unfavorable operating results.
  • Our credit facilities impose financial and operating restrictions on us and if we fail to meet our payment or other obligations under our 2019 Credit Agreement (as defined in Item 7, “Liquidity and Capital Resources”), the lenders under such 2019 Credit Agreement, as amended, could foreclose on, and acquire control of, substantially all of our assets.
  • Our cash requirements may require us to seek additional debt or equity financing and we may not be able to obtain such financing on favorable terms, or at all.
  • Uncertainty about the future of the London Interbank Offered Rate (“LIBOR”) could impact the cost of our borrowing and ability to mitigate interest rate risk.
  • If we do not adequately manage and evolve our financial reporting and managerial systems and processes, our ability to manage and grow our business may be harmed.
  • We are required to evaluate the effectiveness of our internal control over financial reporting on an annual basis and publicly disclose any material weaknesses in our controls. Any adverse results from such evaluation could result in a loss of investor confidence in our financial reports and significant expense to remediate, and ultimately could have an adverse effect on our stock price.
  • Our revenues may decline as a result of changes in public funding of educational institutions.
  • Our operating results may be negatively affected by legal proceedings.
  • Claims of infringement by others may increase and the resolution of such claims may adversely affect our business, financial condition, and operating results.
  • We rely on the availability of third-party licenses.
  • Failure to protect our intellectual property could affect our business.
  • Failure of our products to comply with evolving industry standards and complex government regulations may adversely impact our business.
  • Our provision for income taxes and overall cash tax costs are affected by a number of factors, including reorganizations or restructurings of our business, jurisdictional revenue mix and changes in tax regulations or policy, all of which could materially adversely affect our business, financial condition and results of operations.
  • Provisions in our charter documents and Delaware law and our adoption of a stockholder rights plan may delay or prevent an acquisition of Extreme, which could decrease the value of our common stock.
  • Compliance with laws, rules and regulations relating to corporate governance and public disclosure may result in additional expenses.
  • Natural or man-made disasters, acts of war or terrorism, pandemics, technological disruptions or other events beyond our control could disrupt our operations and harm our business, financial condition and results of operations.
Management Discussion
  • During fiscal 2022, the Company recorded $1.7 million of restructuring charges which primarily comprised of facility related charges. The facility restructuring charges included some impairment charges and additional facilities expenses related to previously impaired facilities. During fiscal 2022, the Company completed the reduction-in-force action initiated in the third quarter of fiscal 2020.

Content analysis

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