Extreme faces challenges, girds for future networking battles

Extreme Networks is contending for greater influence from the data center to the network edge, but it has some obstacles to overcome.

The company is still grappling with how to best integrate, use and effectively sell the technologies it has acquired from Avaya and Brocade in the past year, as well as incorporate and develop its own products to do battle in the cloud, mobile and edge computing environments of the future. Remember, too, that Extreme bought wireless player Zebra Technologies in 2016 for $55 million.

In terms of results that Wall Street watches, Extreme Networks grew revenue 76% to $262 million in its recent fiscal third quarter. According to Extreme, those gains were fueled mostly by growth from its acquisitions and around an 8% growth in its own products. 

Analyst expectations were higher about – $266 million – so there was some stock market consternation earlier this year. There have been some layoffs at the company, but most experts say integrating the technologies Extreme has purchased in the past two years is no small feat, and they expect the network vendor to continue growing.   

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