Shares in Extreme Networks Inc. rose almost 9% today after the networking company reported solid earnings and revenue beats in its fiscal fourth quarter, bucking a swoon in the tech-heavy Nasdaq index.

For its fiscal fourth quarter that ended June 30, the company reported adjusted earnings per share of 33 cents, up from 15 cents in the same quarter of last year. Revenue rose 31% from a year ago, to $363.9 million. Analysts had expected adjusted earnings of 31 cents per share on revenue of $344.69 million.

Extreme’s software-as-a-service annual recurring revenue rose 25% from a year ago, to $129 million, and rose 10% from the previous quarter. Net cash flows in the operations came in at $80.7 million and free cash flow hit $75.5 million. The company ended the quarter and its full fiscal year with a cash balance of $234.9 million, up by $31.8 million over the previous quarter and $40.3 million at the end of the previous fiscal year.

Highlights in the quarter included the launch of Extreme Cloud Edge, the “network cloud continuum” that gives organizations increased choice and flexibility in running networking applications, including management, analytics and artificial intelligence from any location. It also launched AP3000, an energy-efficient Wi-Fi 6E access point, the 7520 and 7720 switches for enterprise core and aggregation use cases, and the 8820 switches for large data center networks.

For its full fiscal year 2023, Extreme Networks reported adjusted earnings per sahre of $1.09, up from 77 cents the year prior, on revenue of $1.3 billion, up 18% year-over-year.

“Extreme delivered a year of exceptional performance, with revenue growth accelerating to 31% in the fourth quarter and 18% overall for the year,” Ed Meyercord, president and chief executive of Extreme Networks, said in the company’s earnings release. “This marks our second consecutive year of double-digit growth. We’re outgrowing our competitors, gaining share and winning new logos, which helped drive more than 30% growth in the value of deals over $1 million.”

Looking ahead, Extreme Networks expects revenue of $342 million to $352 million in its first quarter of fiscal 2024 on adjusted earnings per share of 28 to 33 cents. The company did not give a full-year outlook.

Photo: Extreme Networks