SAN JOSE, Calif., May 20, 2015 /PRNewswire/ -- Extreme
Networks, Inc. (NASDAQ: EXTR), announced that it is implementing
its new solutions-based go-to-market strategy. The company
will leverage its portfolio of network management, policy,
BYOD and application analytics, integrated with its
high-performance wired and wireless platforms, to deliver
networking solutions that are designed to be flexible, scalable and
easy to manage. Coupled with its focus on high quality service,
Extreme's software-driven solutions are expected to enable
businesses, schools and agencies to adapt quickly to meet and
exceed business objectives.
"I'm pleased with how quickly our leadership team transformed
our market vision into a tangible, executable plan," said
Ed Meyercord, president and CEO of
Extreme Networks. "The changes we are making today put us in a
position to leverage our deep portfolio of technology, talented
resources and unique position in the market. Our focus will be to
build on our strong customer relationships with a solutions-based
approach and the highest level of customer support in the
industry."
To develop the new strategy, the company initiated a
comprehensive review process in January that included input from
analysts, customers and partners. The resulting feedback pointed to
a clear cut strategy centered on software and service led solutions
and a definitive transformation in how the company goes to market.
"Our strategy and execution of this new operating plan will enhance
customer satisfaction, improve the competitiveness of the company
and increase shareholder value," said Meyercord. "There are very
few competitors offering a complete bundle of networking solutions
with acceptable levels of customer service in our target market.
This is our opportunity."
The company will continue to evolve its SDN capability and
expand its investments in cloud solutions to deliver services that
allow customers the ability to access application services
seamlessly through the networking layer. In addition, the
company will continue to invest in its EOS software and hardware
platforms as well as aggressively accelerate its EXOS platforms to
better take advantage of market advancements in networking
technology. The combination of management software,
analytics and new software-enabled services will transform
traditional networks into strategic assets giving unique
capabilities for interacting with edge devices at one end and the
hyper-scale cloud on the other.
As a first step to implementing the new operating plan, the
company has begun to restructure its global workforce and implement
other operating cost reductions. The company expects to incur
a restructuring charge of $13-15
million for employee related termination benefits including
severance payments and continuation of medical insurance
benefits. These actions are expected to yield approximately
$40 million in reduction to operating
costs in fiscal 2016 including employee related expenses,
professional and contractor fees and other discretionary
spending.
Conference Call:
Extreme Networks will host a conference call on Thursday, May 21, 2015 at 8:30 a.m. Eastern (5:30
a.m. Pacific) to discuss this announcement. The conference
call will be available to the public through a live audio web
broadcast via the Internet at
http://investor.extremenetworks.com and a replay of the call
will be available on the website through May 20, 2016.
The conference call may also be heard by
dialing 1-877-303-9826 (international callers dial
1-224-357-2194). The encore recording can be accessed by dialing
1-855-859-2056 /or international 1-404-537-3406; Conference ID
52029585.
About Extreme Networks
Extreme Networks, Inc. (EXTR) is a software and
service led solutions company with advanced networking technology
solutions and platforms. Extreme Networks offers award-winning
customer support and has achieved one of the highest Net Promoter
Scores in the industry. Extreme Networks is headquartered in
San Jose, CA and has more than
14,000 customers in over 80 countries. For more information, visit
Extreme's website.
Extreme Networks and the Extreme Networks logo are either
trademarks or registered trademarks of Extreme Networks, Inc. in
the United States and/or other
countries. All other names are the property of their respective
owners.
Forward Looking Statements:
Statements in this release concerning the company's business
prospects, future financial and operating results, and overall
future prospects are forward-looking statements that involve a
number of uncertainties and risks. Actual results or events could
differ materially from those anticipated in those forward-looking
statements as a result of certain factors, including: failure to
achieve targeted revenues, failure of customers to accept the
company's solutions-based go-to-market strategy, increased price
competition, product technology developments, ongoing uncertainty
in global economic conditions, infrastructure development or
customer demand, collectability of receivables, the ability
to meet current financial covenants, inability to anticipate
demand from end customers, dependencies on third parties to
manufacture our products, delays in development and
commercialization of products under development, and ongoing
litigation.
The matters set forth in this press release are forward-looking
statements within the meaning of the "safe harbor" provisions of
the Private Securities Litigation Reform Act of 1995. These
forward-looking statements speak only as of the date of this
release. Because such statements deal with future events, they are
subject to risks and uncertainties. Other important factors that
could cause actual results to differ materially are contained in
the company's 10-Qs and 10-Ks that are on file with the Securities
and Exchange Commission. http://www.sec.gov. More information
about potential factors that could affect the company's business
and financial results is included in its filings with
the Securities and Exchange Commission, including, without
limitation, under the captions: "Management's Discussion and
Analysis of Financial Condition and Results of Operations," and
"Risk Factors," which are on file with the Securities and
Exchange Commission. Except as required under the U.S.
federal securities laws and the rules and regulations of
the SEC, Extreme Networks disclaims any obligation
to update any forward-looking statements after the date of this
release, whether as a result of new information, future events,
developments, changes in assumptions or otherwise.
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SOURCE Extreme Networks, Inc.