What happened
Shares of A10 Networks (ATEN +4.47%) are soaring today, up by 11% as of 11:45 a.m. EDT, after the company reported second-quarter earnings.
So what
Revenue in the second quarter came in at $53.7 million, down from $57.1 million a year ago. That translated into a non-GAAP net loss of $3.1 million, or $0.04 per share.
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The results were mixed relative to expectations, slightly missing the consensus estimate of $54.9 million in revenue but losing less than the $0.06 per share that analysts were modeling for. On a GAAP basis, A10 lost $0.12 per share.
Now what
CEO Lee Chen said, "We are disappointed with our second quarter results as a number of opportunities in our pipeline did not close in the quarter, which impacted our revenue. We are implementing a number of cross-functional actions to improve our execution, increase the effectiveness of our go-to-market activities and support growth for our expanding product portfolio."
While A10 was disappointed in the results, investors already priced in a poor quarter when A10 provided preliminary results earlier this month, sending shares lower. The official results reported yesterday came in slightly higher than the preliminary estimates, which expected revenue in the range of $52.5 million to $53.5 million with a non-GAAP net loss of $0.05 to $0.06 per share. Investors could be breathing a sigh of relief.
