Extreme Networks Shares Nosedive On Q3 Warning

Extreme Networks, Inc EXTR shares nose-dived Wednesday when the company warned that third-quarter results would miss expectations.

Shares traded recently at $2.80, down more than 25 percent.

The San Jose, California-based maker of network routers and switches blamed the shortfall on political turmoil in its Eastern Europe markets, as well as delays in completing deals in North America.

Extreme expects to post an adjusted operating loss between $0.21 and $0.19 per share, versus Wall Street's expectation for profits of $0.07 per share.

The company also sees third-quarter revenue between $149 million and $154 million, compared with analyst's forecast of $152.26 million, with full results expected October 28.

Chief Executive Charles W. Berger said the company "faced a number of headwinds" in the recent period but its integration of Enterasys is on track.

Extreme's travails follow earlier outlook cuts from Juniper Networks, Inc. and Procera Networks Inc. Analysts have said the market for routers is getting hurt by virtualization technology.

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Posted In: EarningsNewsGuidance
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