Extreme Sales Shortfall

Shares decline.
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Extreme Networks' (EXTR) - Get Report shares dipped as the company reports a fiscal first quarter sales shortfall.

Due to a stock options backdating investigation, the Santa Clara, Calif. computer networking shop released only a partial financial report. Extreme says sales for the quarter ended Oct. 1 were $83.8 million, slightly above the $82.4 million in the prior quarter, but well below the $97.9 million top line recorded a year ago.

Analysts had been looking for fiscal first quarter sales of $89.4 million, according to Reuters Research.

"We maintain a diverse geographical balance in our business and we will continue to make the necessary investments to increase the reach of our sales force," CEO Mark Canepa said in a press release Thursday.

The company says it is reviewing its stock option grant dates and as a result, will miss its filing deadlines to stay current with Nasdaq guidelines. Extreme says it has scheduled a meeting with Nasdaq to seek a waiver from the exchange's delisting rules.

Extreme shares fell 9 cents to $3.90 in postclose trading Thursday.