Wednesday, April 27, 2022

Extreme Networks: Supply chain-woes, backlogs, higher prices

Supply chain issues continue to drive networking equipment prices up and impact delivery schedules but despite them, Extreme Networks reported solid product revenue this week.

Extreme said its Q3 results were its fifth consecutive quarter of double-digit product revenue growth—$285.5 million, up 13% year-over-year—driven by sales in its cloud, universal-switching platforms, and Wi-Fi 6E access points. Competitor Juniper Networks reported solid results this week, too, saying it had a fourth consecutive quarter of double-digit year over year growth in cloud, but also enterprise business growth of nearly 20% year over year.

While Extreme's results are solid, its backlog of orders is growing substantially, up $130 million just in Q3, with a total backlog of $425 million, largely due to industry-wide semiconductor supply-chain issues. More than half of that consists of the company's latest generation products, according to Extreme's presideint and CEO Ed Meyercord.

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Thanks to Michael Cooney (see source)

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