A10 Networks(ATEN)2024-07-30 20:22Financial Performance - Total net revenue for Q2 2024 was 65,817 thousand in Q2 2023[18]. - Net income for Q2 2024 was 11,626 thousand in Q2 2023[20]. - Gross profit for the first half of 2024 was 99,829 thousand in the same period of 2023, reflecting a decrease of 2.5%[18]. - Operating expenses for Q2 2024 totaled 40,088 thousand in Q2 2023[18]. - The company reported a diluted net income per share of 0.15 in Q2 2023[18]. - Comprehensive income for the first half of 2024 was 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 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 123.5 million in the same period of 2023[97]. Assets and Liabilities - Total assets as of June 30, 2024, increased to 389.81 million as of December 31, 2023, representing a growth of approximately 1.4%[16]. - Total current liabilities increased to 111.07 million, reflecting a rise of approximately 3.5%[16]. - Total liabilities rose to 181,933,000 at the end of 2023[16]. - Stockholders' equity grew to 207.88 million, an increase of about 3.6%[16]. - The total stockholders' equity as of June 30, 2024, was 192,938 thousand as of June 30, 2023[24]. - The accumulated deficit reduction from 71.28 million, a decrease of approximately 21.2%[16]. Cash Flow and Investments - Cash and cash equivalents decreased to 97.24 million, a decline of about 20.3%[16]. - Cash provided by operating activities for the six months ended June 30, 2024, was 18,722 in the prior year[30]. - The company reported a net cash used in investing activities of 37,039 in the prior year[30]. - Total cash and cash equivalents at the end of the period decreased to 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 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 7,214 in the same period of 2023[30]. Inventory and Expenses - Total inventory increased to 23,522 thousand as of December 31, 2023, representing an increase of 7.2%[69]. - Research and development expenses increased to 13,965 thousand in Q2 2023, marking a rise of 5.5%[18]. - Total accrued liabilities increased to 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 13,928,000, representing a decline of approximately 14.98%[51]. - Total operating lease liabilities decreased from 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 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].