About Extreme Networks, Inc.
Extreme Networks keeps devices connected everywhere from data centers to schools and stadiums. The company provides a combined end-to-end solution from the enterprise edge to the cloud and Extreme designs, develops, and manufactures wired and wireless network infrastructure equipment as well as designs, and develops a leading cloud networking platform and application portfolio using cloud management, machine learning, and artificial intelligence to deliver network policy, analytics, security, and access controls. Extreme cloud-driven technologies provide flexibility and scalability in deployment, management, and licensing of networks globally, and the global cloud footprint provides service to over 50,000 customers and over 10 million daily users. Extreme, founded in 1996, generates nearly half of revenue from the US.
Extreme's cloud-driven networking products offer ML and AI powered high-performance networking, granular visibility and control, and strategic intelligence for business innovation and operational simplicity. The company's products include: ExtremeCloud IQ, which is an ML/AI powered, wired and wireless cloud network management solution that offers advanced visibility and control over users, devices, and applications; ExtremeLocation and ExtremeCompliance, which delivers additional analytics, security, access control, and management insights both on-premises and in the cloud; Wireless Access Point portfolio, which includes both indoor and outdoor Wi-Fi 6 and prior generation Access Points; and ExtremeSwitching portfolio, which has Access Edge products offering connection speeds ranging from 100M to 25G – including edge multi-rate 2.5Gbps and 5Gbps capabilities. Manufacturing is done by outside companies including Alpha Networks, Delta Networks Inc, Foxconn, Quanta, Senao Networks, Sercomm Corporation, and Wistron NeWeb Corporation.
Almost 70% of its revenue comes from product sales with the rest generated by service.
Extreme is headquartered in San Jose, California and has additional sites in the US including facilities in Salem, New Hampshire and Morrisville/Raleigh, North Carolina for research and development, sales and marketing and administrative offices. Outside the US, the company also has offices in various other international geographic locations for research and development, sales and service personnel and administration in other Americas, EMEA and APAC, including Bangalore, India, Chennai, India, Markham, Canada, Reading, United Kingdom, and Shannon, Ireland. North Carolina, New Hampshire, Canada and India.
Sales to customers outside the US represent more than 50% of Extreme's total revenue. The EMEA and Asia-Pacific regions account for nearly 40% and around10%, respectively. Sales in the US account for about 50% of revenue.
Sales and Marketing
Extreme sells through distributors, resellers, and OEMs; its largest customers include Tech Data Corporation, Jenne Corporation, and Westcon Group Inc., which accounted for almost 20%, around 15%, and nearly 15%of sales, respectively. Around 50% of the company's sales was through its distributor channel.
Extreme serves various industries including Higher Education, Retail, Federal Government, Healthcare, K-12 Education, State and Local Government, Hospitality, and Manufacturing, among others.
Extreme's revenue has achieved year-over-year growth from 2016 until 2019, then fell in 2020. Revenue increased by 82% from 2016 to 2020. Meanwhile, the company has struggled to generate net income for the past five years, with net losses reaching its five-year high in 2020.
Revenue decreased 5% to $948 million in 2020 from $995.8 million in 2019. This was due to a decrease in products (decreased by 12.6%) and services revenues (decreased by 18.6%).
Net loss increased from $25.9 million in 2019 to $126.8 million in 2020.
Cash and cash equivalents at the end of the year were $193.9 million, 15% higher than the previous year. Cash provided by operations was $35.9 million. Investing activities used $189.5 million primarily for business acquisitions, while financing activities provided $178.5 million primarily from payments on debt obligations.
Extreme is focused on delivering cloud-driven end-to-end networking and software solutions for today's enterprise environments. From wireless and wired access technologies, through the campus, core, and into the datacenter, Extreme is developing solutions to deliver outstanding business outcomes for our customers. Leveraging a unified management approach, both on-premises and in the cloud, it continues to accelerate adoption and delivery of new technologies in support of emerging trends in enterprise networking. It continues to execute on its growth objectives by seeking to maximize customer, partner, and stockholder value. As the company advances its strategy to transition its business to subscription-oriented Cloud solutions, it also plans to change the mix of its revenue to a more recurring basis.
In fiscal 2018, Extreme completed the acquisition of the Campus Fabric Business from Avaya and the Data Center Business from Brocade. In August 2019, it acquired the entire Cloud Networking portfolio from Aerohive. These acquisitions support the company's growth strategy to lead the enterprise network equipment market with end-to-end software-driven cloud and on-premises solutions for enterprise customers from the data center to the wireless edge. After the closing of the acquisitions of the Campus Fabric Business and Data Center Business, Extreme immediately became a networking industry leader with more than 30,000 customers. In addition, the acquisition of Aerohive brought the company another 20,000+ customers and solidified its position as the second ranked cloud networking provider globally.
Mergers and Acquisitions
In mid-2019, Extreme bought Aerohive, a provider of cloud-managed networking based in the US, for $272 million. Aerohive adds cloud management and edge capabilities to Extreme's portfolio as well as provided a stream of subscription revenue. It also strengthened Extreme's position in wireless LAN.
6480 Via Del Oro
San Jose, CA 95119-1208
Phone: 1 (408) 579-2800
Employer Type: Publicly Owned
Stock Symbol: EXTR
Stock Exchange: , NASDAQ
EVP, Operations, Supply Chain, Quality, and IT: Frank Blohm
Chairman: John H. Kispert
President, CEO, and Director: Edward B. Meyercord
Employees (This Location): 400
Employees (All Locations): 2,584
San Jose, CA
El Paso, TX
Liberty Lake, WA
New Taipei City, Taiwan