Markets & Finance

T. Weisel Keeps 'Peer Perform' on Extreme Networks

Thomas Weisel keeps peer perform on Extreme Networks (EXTR).

Analyst Jason Ader sees the news that vice president and CFO Harold Covert has resigned as a near-term negative because Covert was a leading proponent of streamlining Extreme, and was the company's main conduit to Wall Street. He says he can't help but believe Covert's resignation was the direct result of an internal struggle between him and CEO Gordon Stitt over the potential size of a corporate restructuring that was widely anticipated by Wall Street.

Ader thinks the Street may view the departure as a sign that Covert lost the battle with Stitt over a large restructuring, which Ader thinks is needed in order to improve profitability relative to competition.

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