What happened

Shares of Extreme Networks (NASDAQ:EXTR) gained 30% in August 2017, according to data from S&P Global Market Intelligence. The maker of enterprise-grade networking equipment and network management software delivered a great second-quarter earnings report in the middle of the month, driving share prices 24% higher over a span of five market days.

So what

In the second quarter, Extreme Networks saw sales rising 28% year over year to $179 million. Adjusted earnings jumped from $0.07 to $0.17 per share, a 142% improvement. Both numbers exceeded Wall Street's consensus estimates, which called for earnings of $0.07 per share on sales near $172 million.

A brightly lit data center with many rows of server racks in silver and black.

Image source: Getty Images.

Now what

And the best is yet to come. Extreme closed the buyout of Avaya's networking operations in late July and is looking to finalize another deal for Brocade's (NASDAQ:BRCD) data center networking assets during the third quarter. Extreme is already the third-largest enterprise networking specialist, and these deals will narrow the gap to larger rivals Cisco Systems (NASDAQ:CSCO) and Juniper Networks (NYSE:JNPR).

All told, Extreme Networks investors have seen their holdings double in 2017 and triple over the last 52 weeks. Juniper and Cisco need to watch out for this hungry competitor because Extreme is on a roll.

Anders Bylund has no position in any of the stocks mentioned. The Motley Fool recommends Cisco Systems. The Motley Fool has a disclosure policy.