Extreme Networks has said that it needs to make changes to its datacentre business and “bed in” the acquired Brocade’s data centre business.
The outfit has warned that it will need to make some channel changes, so presumably some will be kicked out of the bed or given additional duvets for the cold weather.
The firm released its fourth quarter numbers with an insight into how the business, which had been swelled by acquisitions of Avaya’s networking unit and Brocade’s datacentre operation, has fared over the three months to 30 June.
The headline numbers included a 56 percent increase in revenues to $278.3 million and a GAAP net loss of $5.6 million which was a decrease of $18.8 million.
Ed Meyercord, president and CEO of Extreme Networks, said that its fiscal 2019 would include $98 million of cross-selling opportunities after closing $40 million in FY18.
But there was a note of caution, and indications that there would be some changes to the distribution strategy in the fiscal year to come.
“We are resetting expectations for our data center business, and are taking swift action to rebuild our sales pipeline after a disappointing fiscal fourth quarter, while celebrating some key wins”, said Meyercord.
“Last quarter, we completed a digital transformation initiative within our supply chain and vendor managed inventory systems, allowing us to run a much more responsive operation. We are now undertaking an initiative over the next six months to bring our portfolio together and consolidate distribution to improve channel efficiency”, he added.
