Key Takeaways
- Extreme Networks cut its second quarter fiscal 2024 outlook because of a pullback in customer purchases.
- CEO Ed Meyercord indicated that the company faced “headwinds,” and has seen buyers pushing back purchases.
- Extreme Networks also announced COO Norman Rice would become chief commercial officer.
Extreme Networks (EXTR) shares tumbled over 7% Tuesday after the networking solutions firm slashed its current quarter guidance as customers held off making new purchases. The company also announced changes in its executive leadership.
Extreme Networks now expects its second quarter fiscal 2024 revenue to be $294 million to $297 million, down from its previous estimate of $312 million to $327 million.
CEO Ed Meyercord said that the revision reflected “industry headwinds of channel digestion and elongated sales cycles. In late Q2, we saw multiple large deals pushing out to future quarters.” The company is set to announce earnings Jan. 31.
Separately, Extreme Networks announced COO Norman Rice would become its chief commercial officer. It explained that in that role, Rice “will focus on driving revenue growth and leading the company’s sales, partner, services and supply chain organizations.”
Extreme Networks added that Chief Revenue Officer Joe Vitalone has resigned, although he will serve in an advisory role with the company “to ensure a smooth transition.”
Shares of Extreme Networks dropped 7.4% to $16.23 per share Tuesday following the news and have lost about 16% of their value over the past year.