Courtesy of Benzinga
Extreme Networks, Inc., (Nasdaq: EXTR) today announced the next step in its strategic transformation with a restructuring plan that will lower operating costs in FY’12 by approximately $20 million with the goal of enabling the company to achieve consistent double digit operating income.
The restructuring plan will affect approximately 110 people or 16% of its worldwide workforce, and the company will take a pretax restructuring charge of approximately $3.5 million in its fiscal Q4 which ended July 3, 2011.
In addition to announcing the restructuring plan, the company also announced that it anticipates that Fiscal Q4 2011 revenue will be above prior guidance of $80-$85 million, and will be in the range of $88 – $90 million. In addition, non-GAAP EPS for the quarter should be $0.01 to $0.02 per share, compared to prior guidance of $0.03 – $0.05 per share.
EPS on a GAAP basis is anticipated to be a loss in the range of $0.02 – $0.04 per share, and includes estimated charges of approximately $1.5 million for stock-based compensation expense and $ 3.1 million for restructuring charges, net of reversals.
