[Financial Highlights](index=1&type=section&id=Financial%20Highlights) A10 Networks reported Q1 2024 revenue of $60.7 million, a 5.2% YoY increase, with significant growth in GAAP and Non-GAAP net income and EPS Q1 2024 Key Financial Metrics (YoY Comparison) | Financial Metric | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | **Revenue** | $60.7M | $57.7M | +5.2% YoY | | **GAAP Gross Margin** | 81.1% | 82.3% | -1.2 p.p. | | **Non-GAAP Gross Margin** | 81.9% | 83.1% | -1.2 p.p. | | **GAAP Net Income** | $9.7M | $4.0M | +142.5% YoY | | **Non-GAAP Net Income** | $12.7M | $9.9M | +28.3% YoY | | **GAAP Diluted EPS** | $0.13 | $0.05 | +160.0% YoY | | **Non-GAAP Diluted EPS** | $0.17 | $0.13 | +30.8% YoY | [Management Commentary](index=1&type=section&id=Management%20Commentary) CEO Dhrupad Trivedi emphasized successful market navigation through diversification, enterprise growth, and continued focus on security and R&D investments - Successfully navigated market volatility, with diversification enabling the company to address near-term fluctuations in the Service Provider segment[3](index=3&type=chunk) - Investments in the enterprise market are yielding results, with deferred revenue growing faster than overall revenue, indicating positive buying behavior from enterprise customers[3](index=3&type=chunk) - Security solutions remain a strategic focus, accounting for **61% of consolidated revenue** in the quarter[3](index=3&type=chunk) - The company maintains solid profitability while increasing R&D investments to address evolving customer needs, including AI solutions[3](index=3&type=chunk) [Shareholder Returns](index=1&type=section&id=Shareholder%20Returns) A10 Networks returned **$7.5 million** to shareholders in Q1 2024 through share repurchases and cash dividends, with a **$0.06 per share** dividend approved Q1 2024 Capital Return Summary | Activity | Amount | Details | | :--- | :--- | :--- | | **Share Repurchases** | $3.0M | 230,500 shares at an average price of $13.19 | | **Cash Dividends Paid** | $4.5M | - | | **Total Returned** | $7.5M | - | - The Board of Directors approved a quarterly cash dividend of **$0.06 per share**, payable on June 3, 2024[2](index=2&type=chunk) [Financial Statements (GAAP)](index=5&type=section&id=Financial%20Statements%20(GAAP)) GAAP financial statements for Q1 2024 show increased revenue and net income, stable balance sheet assets and liabilities, and improved operating cash flow [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) Q1 2024 total net revenue increased to **$60.7 million**, with gross profit at **$49.2 million** and net income significantly rising to **$9.7 million** Q1 2024 vs Q1 2023 Income Statement Highlights (in thousands) | Line Item | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **Total net revenue** | $60,675 | $57,691 | | Products Revenue | $30,069 | $31,182 | | Services Revenue | $30,606 | $26,509 | | **Gross profit** | $49,231 | $47,475 | | **Income from operations** | $7,213 | $6,167 | | **Net income** | $9,726 | $3,958 | | **Diluted EPS** | $0.13 | $0.05 | [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2024, total assets reached **$395.7 million**, with **$122.9 million** in cash, stable liabilities, and increased stockholders' equity Balance Sheet Highlights (in thousands) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $122,909 | $97,244 | | **Total current assets** | $276,098 | $271,824 | | **Total assets** | $395,658 | $389,809 | | **Total current liabilities** | $112,860 | $111,069 | | **Total liabilities** | $181,349 | $181,933 | | **Total stockholders' equity** | $214,309 | $207,876 | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Q1 2024 net cash from operations significantly improved to **$32.4 million**, with **$7.4 million** used in financing, ending with **$122.9 million** cash Q1 2024 vs Q1 2023 Cash Flow Summary (in thousands) | Cash Flow Activity | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **Net cash provided by (used in) operating activities** | $32,444 | $(846) | | **Net cash provided by investing activities** | $643 | $5,367 | | **Net cash used in financing activities** | $(7,422) | $(3,973) | | **Net increase in cash and cash equivalents** | $25,665 | $548 | | **Cash and cash equivalents—end of period** | $122,909 | $68,519 | [Reconciliation of GAAP to Non-GAAP Measures](index=6&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) Non-GAAP measures provide a clearer view of core operating performance by excluding specific items, with detailed reconciliations for key financial metrics - The company uses non-GAAP measures to provide a view of operating performance exclusive of unusual events or factors not directly affecting core operations[7](index=7&type=chunk) - Key adjustments to GAAP figures include stock-based compensation, restructuring expenses, cyber incident remediation expenses, and their income tax effects[9](index=9&type=chunk) [Net Income Reconciliation](index=6&type=section&id=Net%20Income%20Reconciliation) Q1 2024 Non-GAAP net income was **$12.7 million** (**$0.17 per diluted share**), adjusted primarily for stock-based compensation and tax effects GAAP to Non-GAAP Net Income Reconciliation (in thousands) | Line Item | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **GAAP net income** | $9,726 | $3,958 | | Stock-based compensation | $3,989 | $3,970 | | Restructuring expense | $— | $1,861 | | Cyber incident remediation | $— | $1,353 | | Income tax-effect | $(970) | $(1,215) | | **Non-GAAP net income** | $12,745 | $9,927 | [Gross Profit and Operating Expenses Reconciliation](index=9&type=section&id=Gross%20Profit%20and%20Operating%20Expenses%20Reconciliation) Q1 2024 Non-GAAP gross profit was **$49.7 million** (**81.9% margin**), while Non-GAAP operating expenses increased to **$38.5 million** GAAP to Non-GAAP Gross Profit Reconciliation (in thousands) | Line Item | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **GAAP gross profit** | $49,231 | $47,475 | | **Non-GAAP gross profit** | $49,702 | $47,964 | | **Non-GAAP gross margin** | 81.9% | 83.1% | GAAP to Non-GAAP Operating Expenses Reconciliation (in thousands) | Line Item | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **GAAP total operating expenses** | $42,018 | $41,308 | | **Non-GAAP total operating expenses** | $38,500 | $34,613 | [Operating Income Reconciliation](index=10&type=section&id=Operating%20Income%20Reconciliation) Q1 2024 Non-GAAP operating income was **$11.2 million** (**18.5% margin**), a decrease from Q1 2023 due to higher expenses GAAP to Non-GAAP Operating Income Reconciliation (in thousands) | Line Item | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **GAAP income from operations** | $7,213 | $6,167 | | **Non-GAAP operating income** | $11,202 | $13,351 | | **Non-GAAP operating margin** | 18.5% | 23.1% | [EBITDA and Adjusted EBITDA Reconciliation](index=11&type=section&id=EBITDA%20and%20Adjusted%20EBITDA%20Reconciliation) Q1 2024 Adjusted EBITDA was **$13.9 million**, reconciled from GAAP net income with standard and non-GAAP adjustments GAAP Net Income to Adjusted EBITDA Reconciliation (in thousands) | Line Item | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **GAAP net income** | $9,726 | $3,958 | | EBITDA | $9,905 | $8,273 | | **Adjusted EBITDA** | $13,894 | $15,457 | [Other Information](index=1&type=section&id=Other%20Information) This section provides supplementary information including conference call details, forward-looking statement disclaimers, and a business overview [Conference Call Information](index=1&type=section&id=Conference%20Call%20Information) Details for the April 30, 2024, investor conference call, including dial-in and webcast information, are provided for results discussion - Management hosted a conference call on April 30, 2024, to discuss the financial results, with details provided for live access and replay[4](index=4&type=chunk) [Forward-Looking Statements](index=1&type=section&id=Forward-Looking%20Statements) The report contains forward-looking statements on strategy and growth, subject to risks detailed in the company's SEC filings - The report contains forward-looking statements regarding strategy, growth, and profitability, which are subject to known and unknown risks and uncertainties[5](index=5&type=chunk) - Readers are advised to consult the "Risk Factors" section in the company's periodic SEC filings for a comprehensive list of potential risks[6](index=6&type=chunk)

The Zacks Communication-Network Software industry players like Frontier Communications (FYBR) , A10 Networks (ATEN) and Weave Communications (WEAV) are gaining from the ongoing digitalization efforts that include a shift to cloud computing and the rapid deployment of 5G-based networks. The strong demand for network security benefits industry participants as a secure environment is required to run cloud-based applications. Industry players are leveraging AI and machine learning to develop security solutions, ...

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UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 OR ☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | --- | |----------------------------------------------------------------|------------------------------------------------------------------------------------------------------------- ...

A10 Networks (ATEN) came out with quarterly earnings of $0.25 per share, missing the Zacks Consensus Estimate of $0.27 per share. This compares to earnings of $0.24 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -7.41%. A quarter ago, it was expected that this provider of networking technologies would post earnings of $0.13 per share when it actually produced earnings of $0.16, delivering a surprise of 23.08%.Over the last fo ...

A10 Networks, Inc. (NYSE:ATEN) Q4 2023 Results Conference Call February 6, 2024 4:30 PM ET Company Participants Tom Bauman - FNK Investor Relations Dhrupad Trivedi - President and CEO Brian Becker - Chief Financial Officer Conference Call Participants Christian Schwab - Craig-Hallum Capital Anja Soderstrom - Sidoti Hamed Khorsand - BWS Financial Hendi Susanto - Gabelli Funds Operator Good afternoon, and thank you all for joining. I would like to welcome you all to the A10 Networks Fourth Quarter and Full Ye ...

SAN JOSE, Calif.--(BUSINESS WIRE)--A10 Networks, Inc. (NYSE: ATEN), a leading provider of cybersecurity and infrastructure solutions, today announced financial results for its fourth quarter ended December 31, 2023. Fourth Quarter 2023 Financial Summary Revenue of $70.4 million, in-line with guidance and down $7.2 million (9.3%) year-over-year due to market conditions related to North American service provider customers’ capital expenditures. Sequentially, revenue increased 21.9%, reflecting delayed or ...

Q3 2023 Performance - Q3 revenue decreased by 20% year-over-year[7] - Adjusted EBITDA was $14.4 million, representing 24.9% of revenue[8] - GAAP EPS stood at $0.09[8] - Non-GAAP EPS reached $0.16[8] Financial Trends - Q3 2023 revenue was $57.8 million[21] - Non-GAAP gross margin for Q3 2023 was 81.8%[21] - Non-GAAP operating margin for Q3 2023 was 20.6%[21] - Adjusted EBITDA for Q3 2023 was $14.4 million[21] Strategic Outlook - Diversification in revenues and customers mitigates impact of macroeconomic headwinds[9] - Security solutions remain in high demand[9] - The company is positioned to achieve full-year profitability targets[9]

Financial Data and Key Metrics Changes - Revenue for Q3 2023 was $57.8 million, a decrease of 20% year-over-year, reflecting industry headwinds [6][13] - Non-GAAP EPS for Q3 2023 was $0.16, down from $0.20 in the same quarter last year [15] - Year-to-date revenue was $181.2 million, down 10.6% year-over-year, with product revenue down 18.7% [16] - Gross margin for Q3 was 81.8%, consistent with expectations, while adjusted EBITDA was $14.4 million, reflecting 24.9% of revenue [14][15] Business Line Data and Key Metrics Changes - Product revenue for Q3 was $30.3 million, representing 52.4% of total revenue, while services revenue was $27.5 million, or 47.6% of total revenue [13] - Year-to-date, product revenue represented approximately 55.5% of total revenue, while services revenue accounted for about 44.5% [16] Market Data and Key Metrics Changes - Revenue from the Americas, including Latin America, was $25.8 million, down 28% year-over-year, primarily due to reduced spending from Tier 1 Service Providers [13][14] - Deferred revenue as of September 30, 2023, was $135.7 million, up 8% year-over-year [14] Company Strategy and Development Direction - The company emphasizes a diversified business model and structural profitability, which has allowed it to outperform the market and support a buyback program and cash dividends [6][9] - A10 launched a new security product, A10 Defend Detector, aimed at enhancing DDoS attack defenses, indicating a focus on innovation in security solutions [10][11] Management's Comments on Operating Environment and Future Outlook - Management noted that while market conditions have deteriorated, the company remains confident in its ability to navigate challenges and expects a rebound as the market normalizes [9][12] - The company anticipates Q4 2023 revenue to be between $70 million and $80 million, with expectations for year-over-year growth in full-year 2023 non-GAAP EPS [17] Other Important Information - The company returned $95.2 million to shareholders in the past 12 months through dividends and share repurchases [10] - A quarterly cash dividend of $0.06 per share has been approved, to be paid on December 1, 2023 [17] Q&A Session Summary Question: How long do you think the digestion phase will last? - Management indicated that the challenges faced in Q3 were not primarily due to supply chain issues but rather market conditions affecting purchasing decisions [21][24] Question: How much more room is there to control OpEx and grow EBITDA and EPS? - Management stated that while temporary cost changes are expected due to revenue impacts, they continue to seek efficiencies in G&A and expect OpEx to grow slower than revenue growth [27][29] Question: What is the outlook for Service Provider demand recovery? - Management noted that conversations with Service Provider customers indicate projects are being postponed rather than canceled, and they expect demand to resume as economic conditions normalize [32][34] Question: How is the company expanding its presence in the Enterprise segment? - Management highlighted that the Enterprise segment is growing 5% to 7% year-to-date, driven by the demand for hybrid solutions that integrate on-prem and cloud capabilities [35][36] Question: What factors could trigger the resumption of demand from telco Service Providers? - Management mentioned that network traffic growth and the need for capacity expansion are key drivers for resuming demand, alongside the ability to sell more categories to existing customers [49][51]