“It was clearly not a good quarter for us.”
That pretty much sums up Extreme Networks’ third quarter earnings. Ed Meyercord, Extreme’s new CEO, who has only held the position for two and half weeks following an extreme executive makeover, started today’s earnings call acknowledging the setbacks the company has recently experienced.
Extreme Networks’ third quarter ended on March 31, with a non-GAAP net loss of $7.9 million, or 8 cents per share. Total revenue was $119.6 million as opposed to $141.8 million for the same quarter in 2014.
Meyercord pointed to weakness from higher education, lower sales in Europe, and the emergence of competitors in Asian markets as reasons for the dip in earnings.
Extreme had originally predicted revenues of $129 million to $139 million for the quarter. Last month, the company scaled that back to $117 million to $119 million.
For its fourth quarter, ending in June, Extreme expects revenues of $124.2 million to $134.2 million.
It has been a rocky few weeks for Extreme. Last month, three Extreme executives announced their resignation and little was acknowledged around their departure.
Meyercord replaced Chuck Berger as CEO, and Eric Brookman was appointed as the vice president of engineering in addition to his duties as CTO after Edward Carney, vice president of products and customer success, exited. In early April, when Berger was still CEO, he announced short-lived Chief Revenue Officer Jeff White would be leaving Extreme Networks (his appointment was just last October) effective immediately. The position remains open.
Meyercord said his appointment as CEO was meant to accelerate change with urgency. One of the goals will be to adapt Extreme toward a more software-aligned approach, as traditional hardware models have started to lose favor, Meyercord said. He also hinted at a grand plan to create a more efficiently run and operated Extreme Networks, but skimped on details because the plan has yet to be completed. Give him 30 days, he said.
“I’m more optimistic today than I was when I was first appointed CEO,” said Meyercord.
After hours trading had Extreme Networks down 4 cents (1.5%) to $2.55.