分组1 - A10 Networks reported quarterly earnings of $0.18 per share, matching the Zacks Consensus Estimate, but down from $0.19 per share a year ago [1] - The company posted revenues of $60.1 million for the quarter ended June 2024, missing the Zacks Consensus Estimate by 4.17% and down from $65.82 million year-over-year [1] - A10 Networks has surpassed consensus EPS estimates two times over the last four quarters and has topped consensus revenue estimates two times as well [1] 分组2 - The stock has added about 7% since the beginning of the year, underperforming the S&P 500's gain of 14.5% [2] - The current consensus EPS estimate for the coming quarter is $0.22 on revenues of $68.97 million, and for the current fiscal year, it is $0.82 on revenues of $265.32 million [4] - The Communication - Network Software industry is currently in the bottom 27% of the Zacks industries, indicating potential challenges for stocks in this sector [5]

Financial Performance - Total net revenue for Q2 2024 was $60,096 thousand, a decrease of 8.3% compared to $65,817 thousand in Q2 2023[18]. - Net income for Q2 2024 was $9,476 thousand, down 18.5% from $11,626 thousand in Q2 2023[20]. - Gross profit for the first half of 2024 was $97,289 thousand, compared to $99,829 thousand in the same period of 2023, reflecting a decrease of 2.5%[18]. - Operating expenses for Q2 2024 totaled $40,142 thousand, slightly up from $40,088 thousand in Q2 2023[18]. - The company reported a diluted net income per share of $0.13 for Q2 2024, down from $0.15 in Q2 2023[18]. - Comprehensive income for the first half of 2024 was $19,738 thousand, compared to $16,852 thousand in the same period of 2023, indicating an increase of 17.3%[20]. - Net income for the six months ended June 30, 2024, was $19,202, compared to $15,584 for the same period in 2023, representing a year-over-year increase of 23%[30]. - Total net revenue for the first half of 2024 was $120.8 million compared to $123.5 million in the same period of 2023[97]. Assets and Liabilities - Total assets as of June 30, 2024, increased to $397.17 million from $389.81 million as of December 31, 2023, representing a growth of approximately 1.4%[16]. - Total current liabilities increased to $115.03 million from $111.07 million, reflecting a rise of approximately 3.5%[16]. - Total liabilities rose to $182,813,000 as of June 30, 2024, compared to $181,933,000 at the end of 2023[16]. - Stockholders' equity grew to $214.36 million from $207.88 million, an increase of about 3.6%[16]. - The total stockholders' equity as of June 30, 2024, was $214,309 thousand, up from $192,938 thousand as of June 30, 2023[24]. - The accumulated deficit reduction from $90.48 million to $71.28 million, a decrease of approximately 21.2%[16]. Cash Flow and Investments - Cash and cash equivalents decreased to $77.46 million from $97.24 million, a decline of about 20.3%[16]. - Cash provided by operating activities for the six months ended June 30, 2024, was $44,650, significantly up from $18,722 in the prior year[30]. - The company reported a net cash used in investing activities of $(42,472) for the six months ended June 30, 2024, compared to a net cash provided of $37,039 in the prior year[30]. - Total cash and cash equivalents at the end of the period decreased to $77,457 thousand as of June 30, 2024, from $111,181 thousand as of June 30, 2023, indicating a decline in liquidity[30]. Market and Product Strategy - The company plans to introduce new products and enhance its market position, focusing on effective management of growth and operations[8]. - Future expectations include maintaining profitability while investing in sales, marketing, and product development[8]. - A10 Networks is committed to monitoring market trends and adapting strategies to ensure competitive positioning in the networking and network security sectors[9]. - The company’s revenue is derived from two sources: products revenue and services revenue, with a significant portion coming from sales through distribution channel partners[35]. - The company has a diverse product portfolio that includes six secure application solutions and two intelligent management tools, addressing various cyber protection challenges[34]. Customer and Revenue Concentration - One customer accounted for 43% of total gross accounts receivable as of June 30, 2024, up from 19% as of December 31, 2023[47]. - For the three months ended June 30, 2024, revenue from significant end-customer A represented 14% of total revenue, down from 25% in the same period of 2023[45]. Stock Repurchase and Compensation - The company repurchased common stock worth $11,837 thousand during the first half of 2024[24]. - The company repurchased 1.1 million shares for a total cost of $14.9 million under the 2023 stock repurchase program during the six months ended June 30, 2024[89]. - Stock-based compensation for the six months ended June 30, 2024, was $8,105, compared to $7,214 in the same period of 2023[30]. Inventory and Expenses - Total inventory increased to $25,212 thousand as of June 30, 2024, compared to $23,522 thousand as of December 31, 2023, representing an increase of 7.2%[69]. - Research and development expenses increased to $14,737 thousand in Q2 2024, compared to $13,965 thousand in Q2 2023, marking a rise of 5.5%[18]. - Total accrued liabilities increased to $27,398 thousand as of June 30, 2024, from $21,388 thousand as of December 31, 2023, representing an increase of 28.1%[75]. Lease and Asset Management - Total right-of-use assets decreased from $16,376,000 to $13,928,000, representing a decline of approximately 14.98%[51]. - Total operating lease liabilities decreased from $16,820,000 to $14,319,000, a reduction of about 11.86%[51]. - The average remaining lease term decreased from 3.84 years to 2.92 years, indicating a shortening of lease commitments[55]. Tax and Regulatory Matters - The company recorded a provision for income tax of $1.5 million for the three months ended June 30, 2024, compared to $3.2 million for the same period in 2023, a decrease of 53.1%[94]. - The company had $8.1 million of unrecognized tax benefits as of June 30, 2024, with no anticipated material change over the next twelve months[94].

EXHIBIT 99.1 A10 Networks Reports Financial Results for the Second Quarter of 2024 Company Maintains Solid Profitability SAN JOSE, Calif., July 30, 2024 -- A10 Networks, Inc. (NYSE: ATEN), a leading provider of cybersecurity and infrastructure solutions, today announced financial results for its second quarter ended June 30, 2024. Second Quarter 2024 Financial Summary • Revenue of $60.1 million, compared to $65.8 million in the second quarter of 2023. Revenue for the first six months of 2024 was $120.8 mill ...

Q2 2024 Financial Results & Commentary July 30, 2024 Cautionary Statements & Disclosures This presentation and the accompanying oral presentation contain "forward-looking" statements that are based on our management's beliefs and assumptions, including statements regarding our future financial performance, strategy, demand, positioning, capital allocation strategy and value creation, and market and technology trends. Forward-looking statements are subject to known and unknown risks and uncertainties and are ...

To use a sports analogy, innovative small-cap stocks are akin to drafting college football players or picking out compelling prospects in baseball. While these players may have performed exceptionally well in the amateur leagues, there’s no guarantee that said performance will translate into the top tier of competition. However, when you do find the next Tom Brady or Aaron Judge, the rewards can be intense.That’s the allure of small-capitalization enterprises. They offer a lot of promise – boy do they ever! ...

Funtap Thesis A10 Networks (NYSE:ATEN) will be on the rise, as by improving cybersecurity features and switching to flexible and scalable models in consumption, it will secure its growth. A10 Networks aspires to gain customer loyalty through innovative and efficient cyber defense techniques, involving not only AI and machine learning for risk analysis but also subscription and cloud solutions. It is A10 Networks' long-term strategy, and on top of that, it aims to attract and keep customers, particularly ...

While advanced technologies will always be celebrated, the reality is that with innovation comes nefarious activity. It’s just the way of the world. With that, cybersecurity stocks present an excellent opportunity. In many ways, they benefit from a permanently relevant narrative.According to Grand View Research, the global cybersecurity market size reached a valuation of $222.66 billion. By 2030, the sector could be worth $500.7 billion, implying a compound annual growth rate (CAGR) of 12.3% from 2023. More ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to | --- | --- | --- | --- | |--------------------------------------------|----------------------------------------------------------------------------------- ...

Q1 2024 Financial Results & Commentary April 30, 2024 Cautionary Statements & Disclosures This presentation and the accompanying oral presentation contain “forward-looking” statements that are based on our management’s beliefs and assumptions, including statements regardingour future financial performance, strategy, demand, positioning, capital allocation strategy and value creation, and market and technology trends. Forward-looking statements are subject to known and unknown risks and uncertainties and are ...

Financial Data and Key Metrics Changes - First quarter revenue was $60.7 million, an increase of 5.2% year-over-year [15] - Gross margin in the first quarter was 81.9%, in line with the stated goals of 80% to 82% [16] - Non-GAAP net income for the quarter was $12.7 million, or $0.17 per diluted share, compared to $9.9 million, or $0.13 per diluted share in the year-ago quarter [17] - Adjusted EBITDA was $13.9 million for the quarter, representing 22.9% of revenue [16] Business Line Data and Key Metrics Changes - Product revenue for the quarter was $30.1 million, representing 50% of total revenue, while services revenue was $30.6 million, also 50% of total revenue [15] - First quarter recurring revenue increased 13% compared to the first quarter last year, and deferred revenue increased nearly 10% [15] - Revenue from service providers was up 16% year-over-year in the quarter [10] Market Data and Key Metrics Changes - Strong growth was observed in the APJ region, indicating a positive trend in that market [10] - Enterprise revenue growth continues to outpace overall revenue growth on a trailing 12-month basis [10] Company Strategy and Development Direction - The company is focusing on enhancing cybersecurity capabilities and developing more flexible consumption models for enterprise customers [12] - Investments are being made in both enterprise-facing sales and marketing teams and R&D to strengthen capabilities targeting the enterprise segment [11] - The company aims to maintain gross margins of 80% to 82% and adjusted EBITDA margins of 26% to 28% [13][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining profitability and delivering value to shareholders while investing in innovation [14] - The company anticipates that enterprise sales in the second quarter will be better than the first quarter, with meaningful improvement expected in the second half of the year [11] - Management noted that while sales cycles have elongated, they are not seeing deterioration in business conditions compared to previous quarters [30] Other Important Information - The company continues to buy back stock and has a cash flow that more than funds buybacks and dividends [14][18] - The Board approved a quarterly cash dividend of $0.6 per share to be paid on June 3, 2024 [18] Q&A Session Summary Question: What inning is the company in regarding changes in the sales team? - Management indicated they are in the second or third inning of seeing results from changes made to the sales team [22] Question: How are conversations regarding pricing power going? - Management stated that while there are inflationary cost pressures, they focus on operational efficiency rather than driving margins through price increases [24] Question: What are the capital allocation priorities? - The first priority is investing in organic growth, followed by balancing dividends and buybacks, and finally considering inorganic opportunities [26][27] Question: Is the business at an inflection point? - Management noted that while they are cautious about using the term "inflection point," they see trends improving compared to the previous year [30] Question: What happened in Q1 regarding service provider and enterprise revenue? - Management explained that enterprise revenue faced a tough comparison due to a strong Q1 last year, while service provider revenue showed recovery after delayed spending [33] Question: What is the investment focus in the sales process? - The focus is on technical capabilities for service providers and hiring experienced sales personnel for the enterprise segment [39] Question: What percentage of revenue comes from new customers? - Approximately 20% of revenue comes from new customers, with the majority being from existing customers [41] Question: What are the priorities for service provider investments? - Investments related to capacity and security are top priorities, while modernization projects are more likely to be delayed [52] Question: What is the penetration rate of security solutions among the customer base? - Management indicated that while they do not have specific data, there is significant opportunity for growth in security solutions among existing customers [54] Question: How has the exchange rate impacted Q1 results? - There was a modest impact from the Japanese yen exchange rate, but it was not significant enough to disclose [59]