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Why A10 Networks Stock Fell Friday

By Daniel Sparks – Apr 26, 2019 at 1:19PM

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Here are the figures in the cybersecurity company's first-quarter results that likely disappointed investors.

What happened

Shares of cybersecurity solutions company A10 Networks (ATEN 3.94%) fell as much as 17.3% on Friday, following A10's first-quarter earnings report. As of 12:41 p.m. EDT, the stock was down 11.3%.

Shares were likely down because the company's first-quarter results and second-quarter guidance were below analysts' consensus forecasts.

A chalkboard sketch of a chart showing a stock price falling

Image source: Getty Images.

So what

A10 reported first-quarter revenue of $50.3 million, up from $49.2 million in the first quarter of 2018. Non-GAAP loss per share for the period was $0.09. On average, analysts were expecting revenue of $51.7 million and a narrower non-GAAP loss per share of $0.07.

A10 Networks CEO Lee Chen seemed pleased with the quarter in the company's first-quarter earnings release, noting that security product revenue was up 22% year over year. He also said the company "secured another 5G design win with a top mobile provider in Korea and forged ahead in our efforts to drive further product innovation that supports the commercial roll-out of 5G networks."

Now what

For the company's second quarter of 2019, A10 said it expects revenue between $51 million and $56 million. In addition, it guided for non-GAAP earnings per share between a loss of $0.08 and breakeven.

A10's guidance range for its second quarter was below analysts' consensus forecast for second-quarter revenue of $57.7 million. In addition, the midpoint of management's outlook for its second-quarter non-GAAP earnings per share was behind analysts' outlook for breakeven.

Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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