Extreme Networks (Nasdaq: EXTR) saw its revenue jump 94% year-over-year in its most recent quarter, which included two full months of ownership of networking company Enterasys, which Extreme acquired in October.
Chuck Berger, president and CEO of Extreme, noted that the acquisition of Enterasys made Extreme the fifth-largest Ethernet switching company in the market, and that the quarter’s results “demonstrate the scale we have achieved as a result of the acquisition.”
Revenue for Extreme’s second fiscal quarter was $146.6 million, compared to $75.6 million in the year-ago quarter. However, the company still reported a net loss of $16 million, which it said included $26.2 million in expenses related to the Enterasys acquisition: $11 million in purchase accounting expenses, $8.7 million in acquisition and integration costs and $6.5 million of amortization of intangibles. Extreme has reported a net loss of $4.2 million in the same period last year, and its outlook included another $15 million to $20 million loss for next quarter, which led investors to a sell-off that put the stock down more than 6% Wednesday.
Berger also noted that the company had a recent joint announcement with the National Football League that it has been selected as the “official Wi-Fi analytics provider” for the NFL. That partnership means that Extreme’s new Purview analytics solution is available to all NFL teams, and four have already started using it. Purview was also used to determine some Wi-Fi usage statistics from last weekend’s SuperBowl XLVIII, including:
- The heaviest use of Wi-Fi was during the halftime show.
- Eighteen percent of Wi-Fi connected devices were running software updates at the SuperBowl.
- More than 90,000 photos were uploaded to Instagram from Wi-Fi-connected fans during the game, or more than five per second.
Get more details from RCR’s conversation with Mike Leibovitz, Extreme Networks’ director of mobility and application. Extreme’s infographic is available below the video.
Graphic from Extreme Networks
