Extreme Networks Forecasts Another Loss - TheStreet

Extreme Networks Forecasts Another Loss

The tech company says 'product constraints' will put it back in the red in the current quarter.
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Shares of

Extreme Networks

(EXTR) - Get Report

plunged 17% in Tuesday's premarket after the networker warned of a second-quarter shortfall.

The Santa Clara, Calif., communications-gear maker said it would slip back into the red in the second quarter, marking its fifth losing quarter in the last six.

In the quarter ending Dec. 28, Extreme Networks expects to lose $3.5 million to $6.5 million, or 2 cents to 6 cents a share, on revenue of $80 million to $85 million. The company blamed the loss on "product constraints."

That compares with a year-ago loss of $19.7 million, or 17 cents a share, on sales of $90.7 million. Analysts' consensus estimate was for a profit of 2 cents a share.

In the first quarter of fiscal 2004, Extreme Networks turned a profit, with net income of $2.6 million, or 2 cents a share, on revenue of $87.4 million.

The company added that new orders in the current quarter will increase from the previous one and its book-to-bill ratio is expected to exceed 1.

The company's shares fell $1.42 before the bell Tuesday to $6.77.