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Profits no help to Extreme
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October 18, 2000: 6:23 p.m. ET
Switch maker Extreme Networks share plunge even as it beats 1Q forecast
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NEW YORK (CNNfn) - Extreme Networks, a maker of Internet router and switch equipment, reported Wednesday record profit for its fiscal first quarter, but saw its stock plunge after-hours before stabilizing.
Santa Clara, Calif.-based Extreme (EXTR: Research, Estimates) earned $9 million, or 8 cents a share, excluding goodwill and special items. Analysts surveyed by earnings tracker First Call forecast a profit of 6 cents a share.
The company earned $4 million, or 4 cents a share, a year earlier.
Shares were off $6.41 to $100.72 in after-hours trading Wednesday following the report, after falling $11.56 in regular-hours activity.
One analyst said the problem for the stock was a so-called "whisper number" that set a higher target of 11 cents a share in profits. Whisper numbers are unofficial estimates of earnings expected by certain investors or money managers. The site JustWhispers.com listed the 11 cents a share target for Extreme.
"I just think it was the whisper number," said Gina Sockolow, analyst with Brean Murray & Co. "We had the high revenue estimate on the Street, and they barely missed that. Pricing was much better than what (competitor) Foundry Networks (FDRY: Research, Estimates) talked about last night. It's clear there's no pricing pressure because of how feature rich Extreme's products are."
Revenue rose to $119.3 million, which compares to $92.4 million in the fourth quarter of fiscal 2000, and $47.2 million in the first quarter a year earlier. 
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