On Jan. 6, 2020, Extreme Networks, Inc (NASDAQ:EXTR) a cloud-driven networking company, released that the Board of Directors authorized an increase to Extreme’s share repurchase authorization to $100 million over a three-year period. In October 2018, the Board authorized a share repurchase of $60 million over a two-year period. To date, the Company has repurchased $45 million and is now replacing the remaining $15 million authorization with the increased amount.
John Shoemaker, Extreme’s Chairman stated, The action we are taking reflects the confidence the Board has in management’s ability to execute on the long-term strategy in place. Disciplined capital allocation remains fundamental to that strategy. After completing a number of M&A transactions over the past several years aimed at enhancing our market leadership, we now believe that the best use of free cash flow is to deleverage our balance sheet, offset dilution from our equity programs, and to opportunistically return capital to shareholders. We believe this approach will enable us to maximize shareholder returns.
Extreme CEO Ed Meyercord, added, We have transformed Extreme over the past five years, establishing a market-leading end-to-end networking portfolio, doubling the size of our business and significantly expanding our reach. In turn, we have created meaningful franchise value in the enterprise networking market, while improving both our gross and operating margins. Looking ahead, we are capitalizing on a unique opportunity to lead the enterprise migration to cloud networking with our best-in-class ExtremeCloud IQ application and cloud platform. As we advance this strategy, we will change the mix of revenue to a more recurring basis that will drive steadier topline performance and drive additional growth in free cash flow. Ultimately, we believe ‘s adoption of this repurchase program will further strengthen our ability to return value to our shareholders without diminishing our ability to grow and scale our business.
The USA based company Extreme Networks moved with change of 0.50% to $6.08 with the total traded volume of 1179533 shares in recent session versus to an average volume of 1.48M. The stock was observed in the 5 days activity at -0.49%. The one month performance of stock was -16.94%. EXTR’s shares are at -10.06% for the quarter and driving a -18.06% return over the course of the past year and is now at -17.50% since this point in 2018. Right now the stock beta is 1.57. The average volatility for the week and month was at 4.75% and 4.26% respectively. There are 122.61M shares outstanding and 112.82M shares are floated in market.