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|Extreme Networks Unveils New Solutions-Based Strategy|
|Posted: Wed May 20, 2015 01:55:11 PM|
Go-to-Market Plan and Company Realignment to Deliver Bundled Software and Services-Driven Networking Solutions Combined with the Highest Level of Customer Support
SAN JOSE, Calif., May 20, 2015 /PRNewswire/ -- Extreme Networks, Inc. (NASDAQ: EXTR), announced that it is implementing its new solutions-based go-to-market strategy. The company will leverage its portfolio of network management, policy, BYOD and application analytics, integrated with its high-performance wired and wireless platforms, to deliver networking solutions that are designed to be flexible, scalable and easy to manage. Coupled with its focus on high quality service, Extreme's software-driven solutions are expected to enable businesses, schools and agencies to adapt quickly to meet and exceed business objectives.
"I'm pleased with how quickly our leadership team transformed our market vision into a tangible, executable plan," said Ed Meyercord, president and CEO of Extreme Networks. "The changes we are making today put us in a position to leverage our deep portfolio of technology, talented resources and unique position in the market. Our focus will be to build on our strong customer relationships with a solutions-based approach and the highest level of customer support in the industry."
To develop the new strategy, the company initiated a comprehensive review process in January that included input from analysts, customers and partners. The resulting feedback pointed to a clear cut strategy centered on software and service led solutions and a definitive transformation in how the company goes to market. "Our strategy and execution of this new operating plan will enhance customer satisfaction, improve the competitiveness of the company and increase shareholder value," said Meyercord. "There are very few competitors offering a complete bundle of networking solutions with acceptable levels of customer service in our target market. This is our opportunity."
The company will continue to evolve its SDN capability and expand its investments in cloud solutions to deliver services that allow customers the ability to access application services seamlessly through the networking layer. In addition, the company will continue to invest in its EOS software and hardware platforms as well as aggressively accelerate its EXOS platforms to better take advantage of market advancements in networking technology. The combination of management software, analytics and new software-enabled services will transform traditional networks into strategic assets giving unique capabilities for interacting with edge devices at one end and the hyper-scale cloud on the other.
As a first step to implementing the new operating plan, the company has begun to restructure its global workforce and implement other operating cost reductions. The company expects to incur a restructuring charge of $13-15 million for employee related termination benefits including severance payments and continuation of medical insurance benefits. These actions are expected to yield approximately $40 million in reduction to operating costs in fiscal 2016 including employee related expenses, professional and contractor fees and other discretionary spending.