Rumors of Layoffs and CEO Departure at Extreme Networks

A couple rumors are intensifying regarding Extreme Networks, a company I’ve identified as a potential candidate for acquisition.

One rumor involves layoffs at the company. The other involves the potential departure of president and CEO Mark Canepa. Formerly an executive VP at Sun Microsystems’ Network Storage Products Group, Canepa has been in the big chair at Extreme since the summer of 2006.

A couple weeks back, Extreme warned that financial results for its first quarter, which wrapped up on September 27, would fall short of expectations. Instead of revenue of $80.4 million, which is what analysts had been forecasting, Extreme expects to report revenue of $66 million.

The company blamed its first-quarter woes on “supply-chain constraints,” but some analysts thought Extreme was victimized by its own poor execution as well as intensifying competition.

In a press release that accompanied the revenue warning, Canepa said:

“. . . . We and our Board of Directors are committed to addressing the issues that produced these results. I look forward to giving a complete update on our earning release conference call. Further, we are anticipating giving guidance for our second quarter on the call.”

That call is slated for October 26. We’ll have to see whether the company uses the occasion to address not only second-quarter guidance, but also layoffs and a potential CEO departure.

2 responses to “Rumors of Layoffs and CEO Departure at Extreme Networks

  1. Hi,
    How is the company status now. Is there any layoff still. Is it a wise decision to join in extreme networks.. Please guide me if anybody is having idea………

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