Why Extreme Networks (EXTR) Shares Are Plunging Today - Extreme Networks (NASDAQ:EXTR)

Extreme Networks, Inc EXTR reported a second-quarter FY23 revenue growth of 13% year-on-year to $318.3 million, beating the consensus of $304.4 million.
Product revenue grew by 17% Y/Y to $223.4 million. Service and subscription revenue grew 6% Y/Y to $94.9 million.
SaaS ARR was $115 million, up 29% Y/Y.
Non-GAAP EPS of $0.27 beat the consensus of $0.24.
Non-GAAP gross margin expanded by 30 bps to 58.5%. Non-GAAP operating margin expanded by 180 bps to 14.9%.
EXTR generated $70.6 million in operating cash flow and held $202.5 million in cash and equivalents.
President and CEO Ed Meyercord stated: "We are raising our FY23 revenue growth outlook to the high-end of our 10-15% range and expect this momentum to continue into FY24 as the supply chain environment continues to improve."
Outlook: EXTR sees Q3 revenue of $315 million - $325 million, above the consensus of $313.88 million.
It sees Q3 Non-GAAP EPS of $0.23 - $0.29 compared to the consensus of $0.26.
EXTR anticipates FY23 revenue of $1.279 billion, above the consensus of $1.250 billion.
CFO Transition: CFO Rémi Thomas resigned after accepting a position at a privately held software company. Thomas will remain with Extreme until February 16. The company has initiated a search for a CFO.
Senior Vice President and head of Financial Planning & Analysis Cristina Tate will take over as interim CFO.
Price Action: EXTR shares traded lower by 19.9% at $15.47 on the last check Wednesday.

Extreme Networks Clocks 13% Revenue Growth In Q2; Initiates Search For New CFO After Rémi Thomas Resigns