Extreme Networks Inc (NASDAQ:EXTR) shares dropped over 6% after the company reduced its Q2 revenue guidance. The new forecast is between $294 million to $297 million, down from the previous range of $312 million to $327 million, and below the consensus estimate of $320.51 million. Despite a projected 41% Y/Y increase in subscription and support revenue, and an expectation for recurring revenue to make up 33% of total revenue, the company cited industry headwinds and longer sales cycles for the revision. The Q2 gross margin is expected to be at the higher end of the 59.5%-61.5% range. EXTR also repurchased $25 million in shares and reported a cash balance of $221.4 million. The Q2 earnings results will be announced on January 31, 2024.