A10 Networks(US:ATEN)2025-11-04 21:15Revenue Performance - Total net revenue for the three months ended September 30, 2025, was $74.7 million, an increase of 11.9% compared to $66.7 million in the same period of 2024[137]. - Products revenue for the nine months ended September 30, 2025, was $118.3 million, representing a 22.6% increase from $96.5 million in the same period of 2024[138]. - Services revenue for the three months ended September 30, 2025, was $31.6 million, a 5.7% increase from $29.9 million in the same period of 2024[137]. - For the nine months ended September 30, 2025, total net revenue increased by $22.7 million, or 12%, to $210.2 million compared to the same period in 2024[149]. - Products revenue for the nine months ended September 30, 2025, increased by $21.8 million, or 23%, to $118.3 million, primarily due to demand from service provider customers in the Americas and EMEA regions[150]. - Services revenue for the nine months ended September 30, 2025, increased by $0.9 million, or 1%, to $91.9 million, driven by demand from enterprise customers in the Americas and EMEA regions[150]. Profitability and Margins - Gross profit for the three months ended September 30, 2025, was $59.9 million, with a gross margin of 80.1%, compared to $53.7 million and 80.5% in the same period of 2024[137]. - For the three months ended September 30, 2025, total gross profit was $59.9 million with a gross margin of 80.1%, compared to $53.7 million and 80.5% in the same period of 2024, reflecting a decrease of 0.4% in gross margin[162]. - Products gross profit increased by $5.7 million, or 19.4%, to $35.0 million, while services gross profit increased by $0.5 million, or 2.0%, to $24.8 million for the same period[162]. Operating Expenses - Operating expenses for the three months ended September 30, 2025, were $46.9 million, representing 62.7% of total revenue, compared to $43.2 million and 64.8% in the same period of 2024[137]. - Operating expenses for the three months ended September 30, 2025, totaled $46.9 million, an increase of $3.6 million, or 8.4%, compared to $43.2 million in 2024[166]. - Research and development expenses rose by $2.6 million, or 16.8%, to $18.4 million for the three months ended September 30, 2025, driven by increased personnel costs[171]. Cash Flow and Liquidity - Cash provided by operating activities was $62.2 million during the nine months ended September 30, 2025, compared to $64.8 million in the same period of 2024[134]. - Cash provided by operating activities was $62.2 million for the nine months ended September 30, 2025, consisting of net income of $32.3 million and non-cash charges of $28.3 million[190]. - As of September 30, 2025, the company had $86.6 million in cash and cash equivalents and $284.3 million in marketable securities[134]. - The company repurchased 3.3 million shares for a total cost of $62.0 million under the 2024 and 2025 stock repurchase programs during the nine months ended September 30, 2025[185]. - The company anticipates continuing to pay quarterly cash dividends of $0.06 per share, totaling $4.3 million for the three months ended September 30, 2025[186]. Regional Performance - The Americas region accounted for 65% of total revenue for the three months ended September 30, 2025, up from 51% in the same period of 2024[132]. - The Americas region generated $48.8 million, or 65% of total revenue, for the three months ended September 30, 2025, representing a 43% increase compared to the same period in 2024[146]. - The APJ region contributed $16.7 million, or 22% of total revenue, for the three months ended September 30, 2025, reflecting a 27% decrease compared to the same period in 2024[147]. Investments and Acquisitions - The company acquired ThreatX Protect in February 2025, enhancing its cybersecurity portfolio with WAAP protection[128]. - The company plans to continue investing in growth priorities, including cybersecurity and artificial intelligence technologies, with an expected increase in research and development expenses[172]. Marketable Securities and Investments - As of September 30, 2025, the investment portfolio included marketable securities with an aggregate amortized cost basis of $283.7 million and a fair value of $284.3 million[205]. - The fair value of marketable securities as of September 30, 2025, was $284.3 million, with hypothetical fair values varying based on interest rate shifts[206].