Extreme Networks shares slide 6% following lowered outlook

Extreme Networks shares

edged down 5.9%, to $16.47 in after-hours trading Monday after the company lowered its second-quarter revenue outlook.

The stock, which closed up 2.3%, to $17.52, is down 8.7% over the past 12 months.

The cloud-networking company guided for revenue to be between $294 million and $297 million, down from its previous outlook in the range of $312 million and $327 million.

“Our revised second fiscal quarter outlook reflects industry headwinds of channel digestion and elongated sales cycles,” said Chief Executive Ed Meyercord on Monday. “In late Q2, we saw multiple large deals pushing out to future quarters.”

Extreme Networks also said it expects annualized subscription and support revenue to be about $430 million. Gross margin is expected to be toward the higher end of its prior guidance for the quarter. It previously forecast gross margin in the quarter to be between 60.2% and 62.2%.

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