In an indication that neither enterprise networking nor residential real estate in Silicon Valley is hitting on all cylinders, Extreme Networks has disclosed that Pulte Homes Inc. has withdrawn from a $70-million deal to buy the networking firm’s Santa Clara, Calif.-based headquarters.
During the company’s latest conference call, Extreme’s executives informed market analysts and investors that a contract to sell its 16-acre site to the homebuilder expired "under its own terms without the buyer proceeding forward."
Explained Mike Palu, Extreme’s acting chief financial officer:
We are in discussions regarding the possibility of entering into a new agreement, but will also explore other alternatives.
Well, good luck, Mike! Market readings indicate that a slowdown in national and regional home sales could have severe impact in Silicon Valley.