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New CEO for Extreme Networks

FRAMINGHAM, Mass. – Extreme Networks Inc. has named Oscar Rodriguez, a 20-year industry veteran, as its new president and CEO. Rodriguez replaces CFO and acting president and CEO Bob Corey, who will continue as CFO.

Rodriguez will take the Santa Clara, Calif., Ethernet switch company reins on Aug. 23. Extreme replaced President and CEO Mark Canepa with Corey last fall and laid off 10 per cent of its workforce after coming up 18 per cent short on its first quarter revenue targets.

Rodriguez is currently CEO of Movius Interactive, a privately held developer of messaging, collaboration and mobile media products for service providers. Rodriguez was appointed Movius CEO in 2007.

Before joining Movius, Rodriguez was chief marketing officer for Alcatel-Lucent’s Enterprise Business Group. He also served as president and CEO of Riverstone Networks, a maker of Ethernet routers that was acquired by Lucent Technologies in 2006.

Rodriguez was also president of Nortel Networks’ Enterprise Solutions division and Intelligent Internet division.

“We need someone with his background and relationships to help us explore new avenues to accelerate growth for Extreme Networks,” said Gordon Stitt, Extreme chairman, in a statement.

Extreme just reported fourth quarter results in-line with Wall Street expectations: revenue of US$85.5 million and earnings of US$6.3 million. Extreme had a 1.5 per cent share of the US$16 billion Ethernet switch market in 2009 according to Dell’Oro Group, placing it about sixth behind Cisco Systems Inc., HP/3Com, Brocade Communications Systems Inc., Avaya Inc. and Huawei Technologies.

Operating income on a GAAP basis for the fourth quarter was US$2.8 million, compared to US$3.0 million in the previous quarter and US$1.7 million for the fourth quarter of last year. Net income on a GAAP basis for the fourth quarter was US$3.4 million, which included restructuring and stock based compensation charges and settlement cost related to patent litigation of US$1.0 million. That compares to net income on a GAAP basis of $3.7 million or $0.04 per diluted share in the previous quarter, and net income of $0.9 million or $0.01 per diluted share in the fourth quarter of last year.

Net North American revenue in the quarter was US$36.3 million, revenue in EMEA was US$36.8 million, and revenue in Asia-Pacific countries was US$12.4 million.

Product revenue in North America increased by 17 percent to $28 million, product revenue in EMEA increased by 22 percent to $32 million, and product revenue in APAC declined by 18 percent to $10.6 million.
 
(From Network World U.S.)

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