A10 Networks (ATEN) warns for Q3

A10 Networks (NYSE: ATEN) announced the following preliminary and unaudited results for the quarter ended September 30, 2023.

A10 Networks expects revenue in the third quarter of 2023 to be between $56.5 million and $58.5 million, versus the consensus of $74.65 million. Cash and cash equivalents are expected to be between $162 million and $166 million.

“The industry headwinds we discussed on our previous earnings calls impacted our results in the third quarter,” commented Dhrupad Trivedi, President and Chief Executive Officer of A10 Networks. “In our third quarter we experienced delays related to North American service provider customers pushing out capital expenditures. Deals we expected to close at the end of the quarter were delayed into future periods. This was partially offset by growth in our Enterprise business.”

Trivedi continued, “Given the third quarter results, we have taken actions to achieve historical profitability levels without compromising our long-term growth plans driven by sales of our industry-leading cybersecurity solutions. We maintained robust profitability and cash generation, preserving our strong balance sheet. We expect to achieve fourth quarter revenue between $70 million and $80 million (*** consensus is $82 million). As a result we anticipate growth in full-year non-GAAP EPS.

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