A10 Networks returns to profitability as revenues rise 7% yoy

A10 Networks reported Q3 2019 revenue of $52.8 million, up 7 percent compared with $49.2 million in Q2 2019. GAAP gross margin was 77.4 percent. GAAP net income was $0.2 million, or $0.00 per basic and diluted share, and non-GAAP net income was $1.8 million, or $0.02 per basic and diluted share.

“We delivered results in the third quarter that were in-line to above our most recent guidance. Our revenue increased 7% sequentially, and we were pleased with improving demand from our service provider vertical, which grew 36% versus the prior quarter. We also saw continued strength in 5G security in South Korea, Japan, and the Middle East,” said Lee Chen, president and chief executive officer of A10 Networks. “We are optimistic as we look to the fourth quarter and beyond, due to improving demand signals from several key North America accounts, expanded 5G security infrastructure deployments on the part of service providers across the globe, an ongoing positive mix shift toward more recurring maintenance and subscription revenue, and the fact that the company is laser-focused on making progress to accelerate operating income.”

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