Extreme Networks reported revenue of $239.9 million for its first quarter of fiscal 2019.
GAAP net loss for the first fiscal quarter was $9.1 million, or $0.08 per basic share, a decrease of $13.5 million or $0.12 per basic share, respectively, year-over-year. Non-GAAP net income was $9.4 million, or $0.08 per diluted share, a decrease of $9.2 million or $0.08 per diluted share, respectively, year-over-year.
“We reported results towards the high-end of our guidance. We made considerable progress to consolidate our distributors, and we stabilized our data center business. With new products on the horizon and new hires focused on key verticals such as Service Provider and Federal, we are improving our execution and go to market activities,” stated Ed Meyercord, President and CEO of Extreme Networks.
Extreme’s Board of Directors authorized a $60 million share repurchase.
“Beginning on November 1, we instituted a 5% global price increase on our products after four years of not raising prices, and a 7% price increase on products sold in the US. These increases reflect rising component costs, with an incremental amount related to US tariffs on goods produced in China. We are transitioning a significant portion of our manufacturing outside of China over the next several quarters and expect additional pricing actions in the US in January to mitigate our exposure to tariffs. We are committed to continuous supply chain optimization to provide the highest value products and services to our customers.”
Meyercord added, “Finally, in late fiscal Q1 we observed a slight uptick in customer orders ahead of tariffs being implemented in the US, in anticipation of rising prices. Looking ahead, we believe our strong product roadmap and improved execution, combined with our digital transformation initiatives to make it easier for customers to do business with Extreme, will drive continued growth into the second half of fiscal ’19.”
