ATEN - Why A10 Networks Stock Surged Today
Shares of A10 Networks (NYSE: ATEN) have surged today, up by 16% as of 2:50 p.m. EDT, after the company reported second-quarter earnings. The networking technology specialist topped profit expectations but missed sales forecasts.
Revenue in the second quarter increased 7% to $52.5 million, which was shy of the $53.1 million in sales that analysts were modeling for. That resulted in adjusted net income of $7.1 million, or $0.09 per share, topping the consensus estimate of $0.05 by a healthy margin. Adjusted EBITDA was $9.8 million and A10 finished the quarter with $143.4 million in cash. COVID-19 has impacted IT spending and sales cycles while also slightly affecting the company's supply chain.
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