A10 Networks (ATEN) IPO Prices at Top End of Range

March 20, 2014 6:04 PM EDT Send to a Friend
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A10 Networks, Inc. (NYSE: ATEN) priced its initial public offering of 12,500,000 shares of its common stock at a price to the public of $15 per share, the top end of the expected $13-$15 range. The shares are expected to begin trading on the New York Stock Exchange on March 21, 2014 under the symbol "ATEN."

Of the 12,500,000 shares of A10 Networks common stock offered, 9,000,000 shares are offered by A10 Networks and 3,500,000 shares are offered by selling stockholders.

Morgan Stanley, BofA Merrill Lynch, J.P. Morgan and RBC Capital Markets are acting as joint book runners for the offering, and Pacific Crest Securities and Oppenheimer & Co. are acting as co-managers for the offering.

A10 Networks is a leading provider of advanced application networking technologies. Our solutions enable enterprises, service providers, Web giants and government organizations to accelerate, secure and optimize the performance of their data center applications and networks. A10's products are built on our Advanced Core Operating System, or ACOS, platform of advanced networking technologies, which is designed to enable their products to deliver substantially greater performance and security relative to prior generation application networking products. The company's software based ACOS architecture also provides the flexibility that enables us to expand our business to offer additional products to solve a growing array of networking and security challenges arising from increased Internet cloud and mobile computing.

Financial Information: For the years ended December 31, 2010, 2011, 2012 and 2013, our total revenue was $55.3 million, $91.3 million, $120.1 million and $141.7 million, representing a compound annual growth rate of approximately 37% from 2010 to 2013. Our total revenue grew 32% from 2011 to 2012 and 18% from 2012 to 2013. For the years ended December 31, 2010, 2011, 2012 and 2013, our gross margin was 78%, 80%, 80% and 76%. We generated net income (loss) of $5.2 million, $7.3 million, $(90.2) million and $(27.1) million for the years ended December 31, 2010, 2011, 2012 and 2013. Our net income (loss) in these periods was affected by the settlement of, and legal expenses related to, our litigation with Brocade Communications Systems, Inc.

A10's competitors includes: F5 Networks (NASDAQ: FFIV), Brocade (Nasdaq: BRCD), Cisco Systems, Inc. (NASDAQ: CSCO), Citrix Systems, Inc. (NASDAQ: CTXS) and Radware Ltd (NASDAQ: RDWR), among others.




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