EXTR Latest Report

Performance of the Current Financial Report

As of December 31, 2024, Extreme Networks (EXTR) had an operating revenue of $279,355,000, a 5.73% YoY decrease from $296,377,000 in 2023. This revenue decline indicates significant pressure in the market, possibly affected by multiple factors.

Key Data in the Financial Report

1. R&D expenses in 2024 were $54,883,000, up from $52,833,000 in 2023, which may affect short-term profitability.

2. Marketing, sales, and general management expenses were $10,654,000 in 2024, down from $11,104,700 in 2023, showing the company's efforts in controlling costs.

3. The company's net profit was -$8,596,000, a YoY decrease of 210.11%, reflecting serious profitability issues.

Peer Comparison

1. Industry-wide analysis: The overall revenue of the networking technology industry fluctuates, affected by technological updates, changes in market demand, and competition strategies, which may lead to a decrease in traditional network service demand and overall industry pressure.

2. Peer evaluation analysis: Extreme Networks' revenue decline of 5.73% may reflect the industry's weakness if most competitors' revenues are also declining; otherwise, it shows the company's lack of competitiveness in the market.

Summary

Extreme Networks' revenue decline in 2024 is mainly affected by increased competition, weak demand, and product structure adjustments. Although the company has achieved some success in cost control, it has not offset the negative impact of revenue decline.

Opportunities

1. With the rapid development of emerging fields such as 5G and IoT, Extreme Networks can increase its investment in these areas to seek new growth points.

2. Optimize product structure, focusing on high-demand and high-profit product lines, which may improve revenue.

3. Strengthen customer relationship management to enhance customer satisfaction in response to market changes.

Risks

1. Continued weak demand may affect future operating revenue and lead to further losses.

2. Intense competition and price pressure may squeeze the company's profit margin.

3. Failure to adapt to industry changes may lead to further market share decline.