Why Extreme Networks Stock Took a Dive Today
Shares of Extreme Networks (NASDAQ: EXTR) fell as much as 24.2% lower on Wednesday, following a solid earnings report, with next-quarter guidance slightly above the analyst consensus. At the same time, the maker of cloud-scale networking equipment saw some turnover in the executive offices. The chart showed a slow climb throughout the day, leading up to a 14.63% total price drop as the closing bell chimed.
Let's start with the management change. Extreme Networks CFO Remi Thomas is taking a high-level job at a private and undisclosed software company, handing the financial baton to senior VP Cristina Tate on an interim basis. The change will take effect on Feb. 16, ensuring a smooth transition. The search for a permanent replacement is already underway.
In the second-quarter earnings report, Extreme Networks saw revenues rise 13% year over year to $318 million. Annual recurring revenue (ARR) from software-as-a-service (SaaS) operations increased by 29% over the same time span, while adjusted earnings jumped from $0.20 to $0.27 per diluted share.
Source Fool.com
