Extreme Networks (EXTR): Small Acquisition Should Contribute to Earnings in 2H17 - Needham
- Wall Street rallies as OPEC reaches output deal
- Bernstein's Sacconaghi Sees Stronger Apple (AAPL) iPhone ASPs
- Fed's Yellen defends regulatory role, raises stress test changes
- Pier 1 Imports (PIR) Reports In-Line Q2 EPS; Comps Fall 4.3%
- Redstone's National Amusements to call on CBS, Viacom to explore merger -sources
Get daily under-the-radar research with StreetInsider.com's Stealth Growth Insider Get your 2-Wk Free Trial here.
Needham & Company Buy Extreme Networks (NASDAQ: EXTR) price target of $4.75 (from $4.30) after the company bought Zebra’s wireless business. The transaction should close in CY4Q and based on the change-over from sell-in to sell-out accounting in the channel, it will likely show up in revenues for half of CY4Q.
Zebra was losing money in this business but EXTR is not taking all of the overhead and other costs. EXTR expects the unit to be solidly profitable as configured under the deal metrics. GMs are expected to be in the 45-48% range, at least initially. Wireless now accounts for 30% of revenues and should help drive higher growth rates.
Shares of Extreme Networks closed at $4.23 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Needham & Company Reiterates Hold on NetApp (NTAP) Following Analyst Day and User Conference
- Oppenheimer Reiterates Perform on Factset Research Systems (FDS) Following 4Q Report
- UPDATE: Morgan Stanley Downgrades Shopify (SHOP) to Equalweight Following Recent Gains
Create E-mail Alert Related CategoriesAnalyst Comments
Related EntitiesNeedham & Company, Earnings
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!