Shares of Extreme Networks Inc. surged more than 28% today after the company reported better-than-expected fiscal third-quarter results and raised its full-year guidance.
The network equipment maker posted revenue of $316.9 million for the quarter ending March 31, an 11% increase year-over-year, slightly above analyst expectations. Net income reached $10.6 million, triple the amount from the same period last year, translating to adjusted earnings of $0.26 per share, beating the $0.24 consensus.
Growth was fueled by the company's subscription software business. Extreme Networks' SaaS Annual Recurring Revenue (ARR) hit $236.4 million, up 28.6% year-over-year-more than double the pace of overall revenue. This marks a significant acceleration from 13% growth a year ago and 25% last quarter.
Flagship products include Extreme Platform ONE, an AI-powered network management platform launched last July, and ExtremeCloud IQ, a cloud-based tool that monitors network health across multiple hardware vendors and detects malicious wireless traffic.
CEO Ed Meyercord highlighted strategic supply chain moves, including targeted sourcing and product redesign, positioning the company for continued growth. Extreme Networks raised its full-year revenue guidance to a range of $1.275 billion to $1.28 billion, with adjusted earnings per share forecast between $1.02 and $1.04.