About Extreme Networks, Inc.

Extreme Networks keeps devices connected everywhere from data centers to schools and stadiums. The company designs and markets Ethernet switches to address the networking needs of enterprises, cloud data centers, mobile operators, and service providers. Its switches are marketed primarily under the BlackDiamond and Summit brands. The company also offers RidgeLine software for central configuration, among other functions, the ExtremeXOS operating system, and IdentiFi, a family of wireless access points. It serves some 20,000 customers - including businesses, schools, and hospitals -- more than 80 countries.

Operations

Extreme Networks develops its products at facilities at its headquarters in California and in North Carolina, New Hampshire, Canada and India. Manufacturing is done by outside companies including Alpha Networks, Benchmark Electronics, Flextronics, Senao Electronics, and Symbol Technologies, Inc., a subsidiary of Motorola Solutions.

Moe than three-quarters of its revenue comes from  product sales with the rest generated by service.

Geographic Reach

Sales to customers outside the US represent about 57% of Extreme Networks' total revenue. The EMEA and Asia-Pacific regions account for nearly 40% and more than 11%. Sales in the US account for 43% of revenue.

Sales and Marketing

Extreme sells through distributors, resellers, and OEMs; its largest customers include  Westcon Group and Tech Data, both 15% of sales. About 47% of the company’s sales was through its distributor channel. The company operates in a crowded networking sector where it faces competition from Brocade, Cisco, Hewlett-Packard, Dell, Juniper Networks, and Huawei Technologies.

End user customers include Intel, Volkswagen, Samsung, the National Football League, Abbott Labs, the University of Southern California, and Galaxy Entertainment.

Financial Analysis

In 2015 (ended June), revenue reach $553 million, a 6% increase from 2014. Extreme Networks shipped more products and provided more services, abetted by the 20145 acquisition of Enterasys. The company did see an increase in customer discounts.

Extreme Networks posted a $75 million loss in 2015, which was deeper than the $57 million loss of 2014. The company had sharp increases in sales and marketing expenses as well as continuing acquisition expenses. Extreme Networks also has spent more on research and development in the past two years.

The company generated $37 million in cash in 2015, a switch from negative cash flow the previous year. Extreme Networks had decreases in accounts receivables and increases in deferred revenue.

Strategy

The 2014 acquisition of Enterasys has led to changes at Extreme Networks. In 2015 the company made executive leadership changes and restructured operations to eliminate more than $40 million in operating.

The big change was a switch to emphasizing software rather than hardware in providing networking services. Extreme Networks is focusing R&D on software services delivered through cloud-managed and software defined network platforms. Those methods enable the company to be more flexible and responsive in providing products. Those  platforms run on the company's portfolio of fixed and modular switches and ultra-high density wireless and unified management platforms.

Mergers and Acquisitions

Extreme Networks’ strategy in 2014 was all about the acquisition of Enterasys for $180 million. Enterasys, operating as a wholly owned subsidiary of Extreme Networks, brought a portfolio of WiFi networking technologies that supplement and expand the offerings of Extreme Networks. With the Enterasys-developed IdentiFi technology, Extreme Networks had added capability to keep multiple kinds of devices such as smart phones, tablets, wearables, and laptop computers connected to a network. It has quickly moved to provide WiFi capabilities for crowded spaces such as hospitals, hotels, and sports arenas. Extreme Networks has signed to provide WiFi hardware and software to several stadiums of teams in the National Football League as well as college football stadiums and basketball arenas. Extreme Networks plans to integrate its products with those from Extreme into a common platform.

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Extreme Networks, Inc.

145 Rio Robles
San Jose, CA 95134-1860
Phone: 1 (408) 579-2800
Fax: 1 (408) 579-3000
www.extremenetworks.com

Stats

  • Employer Type: Public
  • Stock Symbol: EXTR
  • Stock Exchange: NASDAQ
  • President, CEO, and Director: Edward B. Meyercord
  • Chairman: John H. Kispert
  • President, CEO, and Director: Edward B. Meyercord

Major Office Locations

  • San Jose, CA

Other Locations

  • Tampa, FL
  • Burlington, MA
  • Columbia, MD
  • Morrisville, NC
  • Salem, NH
  • Summit, NJ
  • Akron, OH
  • Columbus, OH
  • Tulsa, OK
  • Portland, OR
  • Philadelphia, PA
  • Pittsburgh, PA
  • Herndon, VA
  • Vienna, VA
  • Bellevue, WA
  • Liberty Lake, WA
  • Brasilia, Brazil
  • Rio De Janeiro, Brazil
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