ATEN - A10 Networks stock slides after disappointing Q1 top line results

2023-04-03 08:59:08 ET

• A10 Networks ( NYSE: ATEN ) expects revenue between $56M and $58M for first quarter of 2023, below analysts estimates of $66.05M .
• Shares of the application services provider dropped 9% premarket on Monday
• CEO Dhrupad Trivedi said, "The expected headwinds we discussed on our Q4 2022 earnings call on February 7th impacted our results in the first quarter. Additionally, approximately $4.8M in orders were shifted to future periods as we prioritized security in response to the cyber incident that occurred during Q1 2023. Like others, we also experienced delays related to North American customers going through their own restructuring. These issues were taken into account in our full-year outlook and we expect Q1 to be the bottom for the year."
• Despite macro-driven top line challenges, Q1 adjusted EBITDA margin expanded on year-over-year. The San Jose, California-based firm has reiterated guidance for full-year earnings, expecting double-digit growth in full-year non-GAAP EPS.

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