Extreme Networks EXTR shares,
It fell 5.9% to $16.47 in after-hours trading Monday after the company lowered its second-quarter revenue forecast.
The stock, which closed up 2.3% to $17.52, has fallen 8.7% over the past 12 months.
The cloud networking company directed revenues of between $294 million and $297 million, down from its previous forecast of between $312 million and $327 million.
“Our revised outlook for the fiscal second quarter reflects the industry headwinds of channel digestion and lengthened sales cycles,” CEO Ed Meyercord said Monday. “Late in the second quarter, we saw several large deals roll over into future quarters.”
Extreme Networks also said it expects annual subscription and support revenue to be about $430 million. Gross margin is expected to be toward the high end of its prior guidance for the quarter. It previously expected gross margin in the quarter to be between 60.2% and 62.2%.
