Extreme Sales Beat Target

Extreme Networks (EXTR Quote) posted partial results for its fiscal second quarter, showing stronger-than-expected sales.

The Santa Clara, Calif., data network equipment maker, which is conducting a review of its books as part of a stock option backdating probe, says it recorded sales for the quarter ended in December of $87 million.

That number compares with $83.8 million in the prior quarter and is below the $93 million level in the year-ago period. Analysts were expecting $86 million in revenue for the fiscal second quarter.

In August, in the wake of a stock option accounting review, Extreme co-founder Gordon Stitt took the chairman seat and relinquished his CEO job to former Sun Microsystems (SUNW Quote) executive Mark Canepa.

"We are making progress on our organization changes," the company said Thursday. "We are focused on improving the productivity of our North American sales force, and the development of our product portfolio."

The bookcleaning exercise has caused the company to miss its financial filing deadlines, a violation of Nasdaq trading guidelines. But the company says it has received a waiver from the Nasdaq to continue its listing as long as the company can file its reports by March 21.

The company says it is seeking an extension to that deadline in the event it can't file on time.

Extreme shares were flat in after-hours trading.