Extreme Networks Plans Extreme Makeover in the Next 30 Days
Change is coming and soon, says new CEO of beleaguered networking vendor.
Edward Meyercord didn't become the CEO of Extreme Networks under the best of circumstances. Meyercord was appointed CEO of Extreme on April 21, after the surprise resignation of former CEO Chuck Berger.
Meyercord's first month on the job hasn't been a pleasure cruise, and this week he was tasked with reporting his company's third quarter fiscal 2015 results, which were less than stellar.
"As far as our fiscal Q3 results, clearly, this was not a good quarter for us," Meyercord said during his company's earnings call.
Net revenue for the third quarter was reported at $119.6 million for a 16 percent year-over-year decline. On a dim positive note however, Extreme Networks was able to narrow its losses with net loss for the quarter reported at $23.5 million, down from a net loss in the third quarter of 2014 of $25.1 million.
"It is our intention to quickly adopt a more focused product and go-to-market operating plan that builds on Extreme's strength and competitive position in growth segments of our industry," Meyercord said. "As part of this process, Extreme has to operate more efficiently with tighter execution."
Meyercord commented that the plan is not yet complete, though he expects to make an announcement within the next 30 days.
During Extreme's earnings call, one analyst asked about the impact of the company's 2013 acquisition of Enterasys and its impact on the business.
"I mean, look, if I go back to the Enterasys acquisition with Extreme, if you look at it on paper, you'd say that wasn't a very good deal," Meyercord said. "There's no doubt there were some execution issues, and it was harder for the teams to put the companies together than anticipated."
Overall, though, Meyercord emphasized that the combination of the two companies has been beneficial from a product perspective, adding wireless business and software network analytics to the Extreme Networks portfolio. Additionally, he noted that Extreme Networks picked up a lot of valuable customer relationships.
"We've got a very competent team and I'm really looking forward to wrapping up this plan and sharing it with you around new vision, as well as where we see things settling in from a revenue perspective along with a software and services-led strategy," Meyercord said.
Sean Michael Kerner is a senior editor at Enterprise Networking Planet and InternetNews.com. Follow him on Twitter @TechJournalist.