3 Takeaways From Extreme Networks' Earnings
Extreme Networks (NASDAQ: EXTR) recently reported solid numbers for the first quarter of its 2018 fiscal year, showing continuing progress on the company's transformation over the past year. The company is in the process of doing a rare thing for a small-cap tech company: growing by acquisition How is the company managing it?
The networking world is being turned on its head by software-defined networking, causing many smaller players to either be acquired or go bankrupt. Extreme has been on the winning side. Over the past year, the company bought the wireless networking unit of Zebra Technologies for $51.1 million, the networking assets of bankrupt Avaya Technologies for $100 million, and data center networking assets from Brocade, which is in the process of being bought by Broadcom, for about $55 million.
Since these assets came from business unit divestitures or via bankruptcy, it seems that Extreme Networks got extreme discounts, having bought each for a less than half of the asset's annual sales. Now, Extreme has patched together a much more complete end-to-end networking platform. But can the company cobble together a bunch of random networking assets into a premiere enterprise platform?
Source: Fool.com
Extreme Networks Stock
The stock is an absolute favorite of our community with 22 Buy predictions and no Sell predictions.
With a target price of 21 € there is a hugely positive potential of 98.39% for Extreme Networks compared to the current price of 10.59 €.
