After enduring a rout in its already beaten-down stock,

Extreme

(EXTR) - Get Report

met first-quarter targets Wednesday while providing some more ammunition for skeptics.

The networking equipment maker met recently lowered quarterly targets, posting an expected loss on an 11% sequential decline in sales.

In keeping with the guidance it revised late last month, the Santa Clara-based gearmaker posted a net loss -- not including one-time items -- of 3 cents per share on $100 million in revenue. That marked an 8% drop from sales levels a year ago, when the company reported breakeven earnings.

Extreme's net loss for the fiscal first quarter was $4.7 million, or 4 cents per share, on a GAAP basis. That compares to a loss of $36 million, or 32 cents per share, in the same period a year ago.

"We continue to generate positive cash flow from operations and are taking steps to restore profitability in the near future," CEO Gordon Stitt said in a press release Wednesday.

The company is expected to give details on its financial performance and at least a limited business outlook on a conference call with analysts later Wednesday. The release came after Extreme stock dropped 18% during regular trading Wednesday to $3.19, putting it more than 80% below its 52-week high.

While the first-quarter numbers came in as expected, the balance sheet offered some signs that business may have dropped off toward the end of the quarter. Notably, inventories jumped 38% over levels from the previous quarter, suggesting orders slowed suddenly, says CIBC World Markets analyst Steve Kamman.

"With

Cisco

selling $4.5 billion in this market and Extreme hoping to lower their breakeven to $90 million, that shows they aren't exactly heading in the right direction," says Kamman.