Extreme Networks Posts Big Loss

Investors are encouraged, though, sending the stock up 17%.
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Extreme Networks

(EXTR) - Get Report

said fourth-quarter revenue rose sequentially, but fell from a year ago, and the company took a big loss for the period after factoring in a large charge.

Still, shares of Extreme were gaining 81 cents, or 17%, to $5.48 in


trading after the company raised its guidance for fiscal 2004.

For the fiscal fourth quarter ended June 29, revenue was $87.3 million, an increase from the third-quarter revenue of $85.2 million, but down from $113.1 million a year ago.

The company recorded a noncash charge of $154 million for the quarter to establish a valuation allowance against its deferred tax assets. Including the charge, Extreme lost $170.4 million, or $1.47 a share.

Excluding items, the company would have lost 6 cents a share. In the year-ago fourth quarter, Extreme earned $2.5 million, or 2 cents a share.

Analysts polled by Thomson First Call were expecting a loss of 5 cents in the fourth quarter with revenue of $87.4 million.

For fiscal 2004, Extreme is projecting that sales could be $400 million. Wall Street is looking for a top line of $376 million.