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.
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.
More than three-quarters of its revenue comes from product sales with the rest generated by service.
Sales to customers outside the US represent about 60% of Extreme Networks' total revenue. The EMEA and Asia-Pacific regions account for nearly 40% and more than 10%. Sales in the US account for more than 40% 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 50% 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.
In 2015 (ended June), revenue reached $553 million, a 6% increase from 2014. Extreme Networks shipped more products and provided more services, abetted by the 2015 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.
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
In 2017 Extreme Networks added significant heft to its networking expertise and portfolio with two acquisitions.
It acquired the data center business of Brocade Communications. The addition of the data center networking operations reinforces Extreme's position in that market and its strategy of software-driven network products and services.
Extreme also bought the networking business of Avaya Inc. in 2017. The acquisition strengthens Extreme in the education, healthcare and government markets with Avaya's technology for secure, simplified access, management, and control. It also adds to Extreme's switching portfolio with Avaya's modular switches, software tools, and Internet of Things technology.