Extreme Networks to focus on management realignments in Latin America

Tuesday, August 2, 2011

US softswitch manufacturer Extreme Networks (Nasdaq: EXTR) plans to realign management in certain areas of Latin America, company president and CEO Oscar Rodríguez told a conference call with investors.

"In Q1, we are focused on management realignment in selected portions of EMEA and Latin America," Rodríguez said. "We believe these changes will also serve to enhance performance while lowering overall sales costs."

The executive said that realigning management in the North America operation was finish in Q4. "By reducing corporate marketing spend and shifting those resources to field marketing, we expect to expand customer awareness for our solutions, thereby enhancing brand awareness and lead generation in our targeted vertical markets to enable revenue growth," he said.

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Revenues in the Americas totaled US$40mn in the fiscal fourth quarter, ended July 3, compared to US$36.3mn in the year-ago period. Extreme Networks' global net revenue amounted to US$89.8mn in the period, up from US$85.5mn in the same period last fiscal year. "Fourth quarter showed a significant rebound in revenue from a soft Q3, especially in our Americas geography," Rodríguez said.

The company recorded a US$2.1mn net loss in fiscal Q4, compared to a US$3.4mn net profit in the year-ago quarter, the company said in a statement.

For its fiscal 2012 first quarter, ending September 30, the company expects net revenue to be in the range of US$74mn-80mn.

In Latin America, Extreme Networks has sales offices in Mexico, Chile and Brazil. It provides converged ethernet networks that support data, voice and video for enterprises and service providers.