Extreme Networks guidance warns about currency impact; revenue chief out
Extreme Networks is the latest tech brand to push out a conservative earnings outlook, not to mention an unexpected executive shuffle.
Tech Earnings
The networking solutions provider offered a new third quarter revenue guidance of $129 million to $139 million.
Non-GAAP earnings per share are a much more uneven bet with a guidance range between a loss of three cents a share to earnings of two cents a share.
Dropped in quietly amid all of the revised forecasts is the departure of chief revenue officer Jeff White.
No specific reason was given as to why White is leaving except that he "is no longer with the Company," effective immediately.
Extreme Networks said it is currently on the hunt for White's successor.
Attributing the preliminary results to "a number of challenges this quarter," Extreme Networks CEO and president Chuck Berger also hinted in prepared remarks at one of the larger economic shifts affecting everyone from tourists in Europe to Oracle: the rise of the U.S. Dollar.
"In the U.S. and Canada, we experienced deferred spending at several key accounts in the higher education market as well as several stadium and venue deals pushing out of the March quarter," explained Berger. "Currency impacts in Europe and Latin America resulted in customers delaying or cancelling purchases."
Shareholders should brace themselves for a stormy tech earnings seasons in light of the shifting currency tides.
Citrix also cut its next quarter earnings report on Thursday, citing multiple moving parts including strategic changes, restructuring, channel turbulence, customer demand, and last but not least, currency fluctuations.
Extreme Networks is scheduled to release official and final third quarter financial results as well as fourth quarter guidance on Wednesday, May 6.