During Extreme Networks’ third quarter 2017 earnings call yesterday, company executives enthused about all the new customers they’re going to pick up after Extreme closes on its acquisitions of assets from Avaya and Brocade. Those assets combined with assets it recently acquired from Zebra Technologies will result in more than 10,000 new enterprise customers, said Ed Meyercord, president and CEO of Extreme Networks, in the company’s earnings call.

Extreme reported third fiscal quarter revenue of $148.7 million, an increase of 19 percent year-over-year. Non-GAAP net income for the quarter was $11.6 million, or $0.10 per share, an increase of $0.07 year-over-year.

The third quarter results beat Extreme’s guidance of $0.08 per share and more than tripled its earnings per share from the same quarter a year ago. “The results underscore the success of our accretive acquisition of the Wing wireless business from Zebra,” said Meyercord.

Extreme picked up Zebra Technology’s wireless LAN (WLAN) business in late 2016. The company said Zebra’s technology has already been successfully consolidated into its business operations. When announcing the Zebra acquisition in September 2016, Meyercord said Zebra's assets together with Extreme’s would make the company “the industry's number three WLAN enterprise campus powerhouse." Extreme also projected the Zebra assets would generate over $115 million in annual revenue.

During the third fiscal quarter 2017, Extreme signed agreements to purchase networking assets from both Avaya and Brocade.

Extreme is the primary bidder for Avaya’s networking business in a bankruptcy auction. If Extreme’s bid prevails, it will acquire the assets for about $100 million, and Extreme believes the assets will generate a minimum of $200 million in revenue in fiscal 2018. If the deal is approved, Extreme expects to close it sometime in July.

Extreme is also buying Brocade’s data center networking assets for $55 million, and it expects those assets to generate over $230 million in annual revenue. That deal will probably happen in the August/September time frame. With the purchases, Extreme not only gets new software, but it also picks up bunches of new customers.

"Both companies have blue chip enterprise customers across our target verticals,” said Meyercord. "Moving forward, we are well-positioned to take share in the enterprise networking industry.”

Extreme will gain over 6,000 Brocade enterprise customers mostly on the VDX switching and MLX routing platform.

Meyercord said Extreme is already working with people from both Avaya and Brocade. “We have conference rooms filled with Brocade, Avaya, and Extreme teams, hammering through our technology vision, our product roadmap, and how this is all going to come together over the next three years,” he said. “We're very excited about the amazing customers that these companies have and how they're going to fold in and how it fits into our enterprise vision.”

For its fourth quarter of fiscal 2017 ending June 30, 2017, the company is targeting revenue in the range of $168.0 million to $178.0 million. Non-GAAP net income is targeted in the range of $16.2 million to $19.6 million, or $0.14 to $0.17 per share.