A10 Networks Inc. (NASDAQ: (ATEN) stock gained by 1.91% at last close while the ATEN stock price rises by 13.36% in the after-hours trading session. A10 Networks is a hyper-scale company that offers secure application solutions for customers for on-premises, multi-cloud, and edge-cloud settings.
ATEN stock’ Financial Results
A10 Networks announced its financial results for the third quarter of 2021. Given below is the summary:
- For the third quarter of 2021, revenue increased by 15% year over year to $65.4 million.
- Security product sales increased by 18% year over year.
- The company successfully weathered short-term input cost constraints, resulting in a GAAP gross margin of 79.8% and a non-GAAP gross margin of 80.4 percent.
- In the third quarter of 2020, GAAP net income of $74.9 million (114.6 percent of revenue), or $0.94 per diluted share, including a non-recurring tax gain, compared to net income of $6.5 million, or $0.08 per diluted share.
- For the third quarter of 2021, the Non-GAAP net income was $13.7 million, or $0.17 per diluted share, relative to $10.3 million, or $0.13 per diluted share, in the third quarter of 2020.
- $16.8 million in adjusted EBITDA, or 25.7 percent of revenues, whereas it was $12.5 million for the same time period in the previous year.
- Cash and cash equivalents totaled $187.5 million as of September 30, 2021, an increase of $20.6 million (12.4 percent) from $166.8 million as of June 30, 2021.
Future Guidance
Given the current perspective, management anticipates a ten percent increase in fourth-quarter revenue year over year, with the bottom line expanding at a quicker rate than the top line. They anticipate this favorable momentum to continue into 2022, depending on the strategy and market traction for their solutions. In the first quarter, the firm will host an analyst day to outline its growth plan for 2022 and even beyond.
Furthermore,
Furthermore, the Board of Directors authorized a capital allocation strategy to repay cash to shareholders, citing the considerable improvement in profit and A10’s solid balance sheet. The Board also announced a quarterly dividend as part of this. The first dividend, of $0.05 per share, will be paid on December 15, 2021, to shareholders of record on November 12, 2021, pursuant to an earlier revocation. In compliance with applicable law, further dividends will be dependent on additional assessment and approval by the Board. As it examines A10’s capital allocation strategy every now and then, the Board maintains the right to amend or eliminate the quarterly dividend in future periods.
