A10 Networks (NYSE: ATEN) reported Q1 EPS of $0.12, $0.01 better than the analyst estimate of $0.11. Revenue for the quarter came in at $54.8 million versus the consensus estimate of $55.63 million.

“We made significant progress in the first quarter against our stated goal of growing recurring revenue, and continued increasing security solutions revenue as a percent of total revenue,” said Dhrupad Trivedi, President and Chief Executive Officer of A10 Networks. “Our best-in-class security solutions are increasingly well-received by the market, and demand for network security solutions is growing. Software now represents more than 10% of our total revenue in the first quarter, compared to 6% for the full-year of 2020 and just 4% in 2019. Our stated goal was to grow recurring revenue faster than our consolidated revenue, giving us greater predictability into our quarterly revenues and enhancing the financial leverage we have built into our business model. As expected, we saw a decline in our Japan revenue related to the timing of the Olympics, but our strong book-to-bill performance in the quarter of 1.2:1 supports our full-year growth outlook for Japan. We were able to offset this temporary weakness with strong, improving performance in the Americas.”

“Over the past two years, we have maintained discipline in our cost structure while continuing to invest in growth initiatives,” continued Trivedi. “This enabled us to deliver more than $10.8 million in non-GAAP operating income versus $4.1 million in the first quarter last year and a loss of $5.9 million just two years ago, strengthening our balance sheet by growing cash and cash equivalents to $161 million, or approximately $2.02 per diluted share, and no debt. We now have an efficient, focused organization and we are positioned to increase investment in sales, marketing and R&D to facilitate growth in line with our business model. Security solutions grew 15.5% year-over-year on a trailing-12-month basis, and these solutions are creating strong momentum to expand our business going forward in addition to driving recurring revenue. With compelling offerings and powerful catalysts driving demand for our solution, we are well-positioned for a solid 2021.”

For earnings history and earnings-related data on A10 Networks (ATEN) click here.