Wireless and cloud gains temper record backlogs at Extreme Networks

Ed Meyercord (Extreme Networks)

Credit: Extreme Networks

Despite problems sourcing spare parts and a gargantuan backlog of orders to fill, Extreme Networks earned a record FY23 first quarter of nearly $300 million, up 11 percent year-over-year and seven percent quarter-on-quarter. after trimester.

The backlog CEO Ed Meyercord alluded to during the vendor’s quarterly earnings call this week is $550 million, also a record.

To put it in perspective, that’s almost Three complete quarters of product income in backlog, mainly due to supply chain issues. Concerns about the economy are also present, but Meyercord said that when it comes to investing in networks, things are looking bright.

“The combination of our continued revenue growth and record order book gives us even greater confidence in our long-term growth outlook,” he said. to simplify the deployment and management of those networks.

“We’re not seeing networking initiatives being deprioritized,” he said. “If enterprise customers have to cut back on spending, we’re not seeing it, we’re not seeing them stop prioritizing networks.”

Wireless connection is strong

An area of ​​great revenue growth but also “significant” delays is wireless, where Extreme is pushing WiFi 6E technology hard.

“If you just think about you know how we live and how we work and how we shop and you think about environments and how much of the environment is wireless versus wired, you know it’s growing, and I think there’s a life cycle for wireless that’s also shorter than their traditional hardwired switches,” Meyercord said.

“So as a result there are more upgrades and I think there’s more volume and churn in the wireless space.”

That includes cellular wireless technology, including 5G for environments where Wi-Fi isn’t the best option. “[A]”As you look at things like smart cities, longer range, lower latency, private cellular networks, driverless car support, these kinds of things, they’re not your traditional Wi-Fi solution,” Meyercord said. “So I think you’ll see the rise of some of these other technologies…”

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