Extreme Networks Inc. (NASDAQ: EXTR) shares took a dive on Wednesday keeping up with the firm’s performance thus far in 2018. Year to date, the stock is down 28%. This devastating blow came after the company released its fiscal fourth-quarter earnings report before the markets opened on Wednesday.
The company said that it had $0.20 in earnings per share (EPS) and $278.3 million in revenue, while consensus estimates had called for $0.19 in EPS and $279.22 million in revenue. In the same period of last year, Extreme Networks said it had EPS $0.17 and revenue of $178.7 million.
Looking ahead to the fiscal first quarter, the company expects to see EPS in the range of flat to $0.07 and revenues between $230 million and $240 million. The consensus analyst estimates are $0.21 in EPS and $268.74 million in revenue.
On the books, Extreme Networks cash and cash equivalents totaled $121.1 million at the end of the quarter, down from $130.5 million at the end of the previous fiscal year.
Ed Meyercord, president and CEO of Extreme Networks, commented:
Looking out into fiscal 2019, we are entering the year with $98 million of cross-sell opportunities after closing $40 million in FY18. However, we are resetting expectations for our data center business, and are taking swift action to rebuild our sales pipeline after a disappointing fiscal fourth quarter, while celebrating some key wins. Last quarter, we completed a digital transformation initiative within our supply chain and vendor managed inventory systems, allowing us to run a much more responsive operation. We are now undertaking an initiative over the next six months to bring our portfolio together and consolidate distribution to improve channel efficiency.
Shares of Extreme Networks were last seen down about 33% at $6.00, with a consensus analyst price target of $14.10 and a 52-week trading range of $6.03 to $15.55.