Extreme Networks, Inc. (NASD:EXTR) Builds On Super Bowl Success

Extreme Networks, Inc. (NASD:EXTR)

Extreme Networks, Inc. (NASD:EXTR) was trading under $2.50 a year ago and hit $6.52 in today’s trading. No doubt its involvement in helping Super Bowl LI become the most connected in history got the firm some well-deserved exposure and kudos for pulling it off successfully. A record breaking 11.8 Terabytes of data traversed the Wi-Fi network during Super Bowl LI. Fan engagement at Super Bowl LI was largely driven by social media and streaming video which accounted for 1.7 terabytes of data transferred across the network, an increase of 55% over last year’s Super Bowl.

Also helping the recent price trend was the upgrading of EXTR by two investment firms in 2016. Of the six firms that follow EXTR, three rate the shares as a “Strong Buy”, one rates the shares as a “Buy” and two rate EXTR as a “Hold”.

San Jose, CA-based Extreme Networks, Inc. (NASD:EXTR) develops and manufactures wired and wireless network infrastructure equipment. It also develops software for network management, policy, analytics, security, and access controls. It also offers its proprietary ExtremeAnalytics – an analytics application that assists users in optimizing network performance. The company boasts 20,000 customers worldwide.

Sales for the growth company have been sluggish. It reported $519.6 million in 2014 and just $528.4 million in 2016. That is balanced by an EPS loss in 2016 ($0.31) that was less than half of the reported 2015 loss ($0.72).

Of note is that John Shoemaker was recently appointed Chairman of the Board. Shoemaker previously held senior roles at Xerox and Sun Microsystems.

2/24/2017
Ticker Symbol EXTR
Last Price a/o 1:41 PM EST  $                      6.39
Average Volume                    955,000
Market Cap (mlns)  $                  669.52
Sales (mlns) $535.30
Shares Outstanding (mlns) 107.64
Share Float (mlns) 106.14
Shortable Yes
Optionable Yes
Inside Ownership 1.30%
Short Float 1.76%
Short Interest Ratio 1.96
Quarterly Return 34.63%
YTD Return 23.66%
Year Return 119.00%

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading.

 

Author: Steve Clark

Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

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