Enterasys owner reports 2Q loss
Acquisition-related costs impact Extreme’s earnings
Extreme Networks, the company that acquired Salem-based Enterasys Networks last October, lost $16 million, or 17 cents a share during its second quarter, which ended Dec. 31.
Various acquisition-related costs – nearly totaling $30 million -- hurt Extreme’s bottom line in the quarter. But the acquisition also nearly doubled Extreme’s top line to $146.6 million in revenue. Enterasys was responsible for 48 percent of that total.
“Overall, we have found few surprises since closing the acquisition, reflecting how well [former Enterasys CEO] Chris Crowell, now our chief operating officer, and his team managed Enterasys for the past six years,” said Chuck Berger, Extreme’s CEO, according to an earnings call transcript provided by SeekingAlpha.com. “I would say it’s still in the early stages, although as I mentioned there is a tremendous interest in the wireless product that we purchased as part of the acquisition of Enterasys. And we’re putting a lot of focus on that”
For the third quarter, Extreme said it is targeting revenue in a range of $138 million to $153 million.