Extreme Networks Inc. (NASDAQ: EXTR) hit a 52-week low on Thursday after a large gap down. This is mainly due to releasing an earnings warning after the market closed on Wednesday.
In its preliminary earnings release, Extreme said it expects revenue in the range of $135.0 million to $136.5 million, down from its previous guidance of $150 million to $155 million. Thomson Reuters had a consensus estimate of $149.96 million in revenue.
Extreme also updated its guidance on earnings per share to the range of -$0.02 to $0.00 from the previous level of $0.06 to $0.08. Thomson Reuters had a consensus estimate of $0.07 in earnings per share.
Charles Berger, president and CEO of Extreme Networks, said:
Extreme faced a number of headwinds that affected our revenue this quarter. Our EMEA business was impacted by the weakening of the Euro and the political and economic conditions in the Eastern part of these markets. In North America, we experienced significant delays in closing deals.
At the beginning of October, Extreme announced that Jeff White would be the chief revenue officer. White has 20 years of experience in the networking market, most recently at Cisco.
Looking ahead on the year, the company believes that the finalization of its Lenovo acquisition will position Extreme well for the remainder of its fiscal year.
The company plans to release its first quarter earnings on Tuesday, October 28, 2014.
Shares of Extreme plummeted to its 52-week low of $2.76, down roughly 27% from the previous close of $3.76. Shares were trading at $3.04, down about 19%, in early afternoon trading.
The stock has a consensus analyst price target of $7.67 and a 52-week trading range of $2.76 to $8.14. The company has a market cap of about $300 million.
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