A10 Networks(ATEN)2025-05-06 20:06Revenue Performance - Total net revenue for the three months ended March 31, 2025, was $66.1 million, representing a 9% increase from $60.7 million in the same period of 2024[146]. - Products revenue increased by $5.9 million, or 19.7%, to $36.0 million, while services revenue decreased by $0.4 million, or 1.5%, to $30.2 million[142]. - Revenue from the Americas region accounted for 51% of total revenue, with the United States contributing 46% and showing a 30% increase from the previous year[136][146]. - The EMEA region saw a significant revenue increase of 71%, rising to $14.0 million, while the APJ region experienced a decrease of 26% to $18.6 million[146][147]. - Total revenue from the Americas region was $33.5 million, or 51% of total revenue, representing a 22% increase compared to the same period in 2024[149]. - Revenue from the APJ region was $18.6 million, or 28% of total revenue, reflecting a 26% decrease compared to the same period in 2024[150]. - Revenue from the EMEA region was $14.0 million, or 21% of total revenue, showing a 71% increase compared to the same period in 2024[151]. Financial Position - The company had $243.8 million in cash and cash equivalents and $112.0 million in marketable securities as of March 31, 2025[138]. - As of March 31, 2025, the company had cash and cash equivalents of $243.8 million and total stockholders' equity of $195.9 million[176]. - The company’s investment portfolio included marketable securities with an aggregate amortized cost basis of $111.7 million and a fair value of $112.0 million[200]. Operating Performance - Operating income for the three months ended March 31, 2025, was $8.8 million, a 21.7% increase from $7.2 million in the same period of 2024[142]. - Total cost of net revenue increased by $1.998 million, or 17.5%, during the three months ended March 31, 2025, compared to the same period in 2024[154]. - Gross profit for products was $28.716 million with a gross margin of 79.8%, an increase of 2.4% compared to the same period in 2024[160]. - Total operating expenses increased by $1.899 million, or 4.5%, during the three months ended March 31, 2025, compared to the same period in 2024[163]. Cash Flow - Cash provided by operating activities was $17.2 million for the three months ended March 31, 2025, compared to $32.4 million in the same period of 2024[138]. - Cash provided by operating activities for the three months ended March 31, 2025, was $17.2 million, consisting of net income of $9.5 million and non-cash charges of $10.7 million[185]. - Cash used in investing activities during the same period was $34.7 million, primarily due to purchases of marketable securities totaling $41.9 million and cash paid for the acquisition of ThreatX Protect amounting to $19.1 million[189]. - Cash provided by financing activities for the three months ended March 31, 2025, was $166.3 million, mainly from net proceeds of $217.7 million from the issuance of the 2030 Notes[191]. Strategic Initiatives - The company acquired ThreatX Protect in February 2025, enhancing its cybersecurity portfolio with WAAP protection[132]. - The company plans to continue investing in product development and expanding its global sales and marketing efforts, which may impact short-term profitability[139]. Customer Concentration - The ten largest end-customers accounted for 44% of total revenue for both the three months ended March 31, 2025, and 2024[137]. Other Financial Metrics - The company recorded a net foreign exchange gain of $0.2 million during the three months ended March 31, 2025[199]. - The company experienced a favorable change in accounts receivable of $10.5 million due to the timing of billing and cash collections for the three months ended March 31, 2025[185]. - The unfavorable change in accrued liabilities was primarily due to a decrease in accrued variable compensation[186]. - Total contractual obligations as of March 31, 2025, amounted to $10.7 million, related to non-cancellable operating lease arrangements[193]. - The company’s non-cash charges for the three months ended March 31, 2025, included depreciation and amortization expenses of $3.4 million and stock-based compensation expense of $6.0 million[185]. - The effect of a hypothetical 10% change in interest rates would not have a material impact on the company's interest expense[200].