Despite problems getting parts and a huge backlog of fulfillment orders, Extreme Networks achieved a record first quarter of FY23 of nearly $300 million, up 11% year-over-year and 7% quarter-on-quarter.

The backlog CEO Ed Meyercord mentioned during the company’s quarterly earnings call this week was $550 million, also a record. To put it into perspective, it’s almost three full quarters on product income in backlog, mostly due to supply chain issues. Concerns about the economy are also in the mix, but Meyerkord said that when it comes to investing in networks, things are looking good.

“The combination of our continued revenue growth and record backlog gives us even greater confidence in our long-term growth prospects,” he said. His optimism stems from what he said is a belief among enterprises that networking is a strategic asset and that Extreme is committed to making it easier to deploy and manage those networks.

“We don’t see networking initiatives being disrupted,” he said. “If enterprise customers need to cut costs, we’re not, we don’t see them deprioritizing networking.”

The wireless connection is strong

One area with big revenue growth but also “significant” lag is wireless, where Extreme is pushing WiFi 6E technology hard.

“If you just think you know how we live and how we work and how we shop and you think about the environment and how much of the environment is wireless versus wired, you know it’s growing and I really think there’s a life cycle for wireless that is also shorter than your traditional wired switches. So as a result, there are more upgrades and I think there’s more volume and turnover in the wireless space,” Meyercord said.

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