Extreme Networks, Inc. (EXTR) a networking company that specializes in the commercialization and manufacturing of wired and wireless network equipment, announced its financial results for the third fiscal quarter completed on March 31, 2021. EXTR stock surged adjacent to the news.
At last check in current trading, shares of Extreme Networks Inc. (EXTR) were up 7.95% at $11.54. Extreme Networks Inc.’s stock finished the last trading session at $10.69. Shares of the company were fluctuating between $10.25 and $10.88. In the past 12 months, the company’s stock has advanced 226.91%, and in the last week, the stock has moved up 10.89%.
EXTR Revenue accounted for $253.4 million, which depicted a 21% increase year-over-year and up 5% quarter-over-quarter. Net cash generated through operating activities was $24.7 million with GAAP gross margin 58.7% vs 53.1% in the third quarter previous year.
“TheQ3 results represent the fourth consecutive quarter of sequential revenue growth and double-digit growth year-over-year” stated Ed Meyercord, President and CEO of Extreme.
Extreme was also titled as the Official Wi-Fi Solutions Provider to Major League Baseball (MLB). The company is expected to provide fan-facing Wi-Fi in 16 stadiums. Furthermore, it will bring connectivity in bullpens and dugouts in all 30 league ballparks. The equipment is scheduled to be installed in 2026 with extreme also powering the network at MLB’s Jackie Robinson Training Complex.
Extreme’shas also established a partnership with Verizon, through which it will provide Darlington Raceway with Wi-Fi, and analytics solutions. Extreme has installed high-density Wi-Fi 6 access points at different locations in the venue due to which 60,000 fans may be able to connect simultaneously throughout the game.
Novant Health also used Extreme’s cloud-managed Wi-Fi solutions to power a COVID-19 mass vaccination for the public with2,220 vaccines administered in 24 hours. ExtremeWireless access points allowed quicker access to patient records to simultaneously administer vaccines to 120 patients at a time.
Extreme will also hold its annual Connect User Conference virtually on May 26-27, and will be inclusive of keynote presentations and broadcast 30 unique sessions.
EXTR offered a better-than-expected outlook for the current quarter and is anticipated to produce a decent profit due to its strategic relationship with various companies. Furthermore, a financial report with sequential revenue growth combined with establishing a partnership with MLB has peaked investor interest with EXTR stock rising substantially.