A10 Networks | $ATEN Stock | Shares Fall on Poor Preliminary Q2 Earnings

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A10 Networks

A10 Networks, Inc. (NASDAQ: ATEN)

 

A10 Networks, Inc. (ATEN), a global software and hardware solutions yesterday reported their preliminary second quarter 2017 financial results. A10 Networks reported adjusted preliminary second quarter earnings of a loss of  $0.05 to $0.06 per share which fell short of  analyst expectations of $0.02 per share.

A10 Networks reported preliminary second quarter revenues of $52.5 to $53.5 million which fell short of analyst expectations of $62.8 million.   

 

A10 Networks, Inc. CEO’s  Comments

“We are disappointed with our preliminary results. Revenue came in below our guidance as a number of opportunities in our pipeline did not close primarily in North America and to a lesser degree in Japan. Key deals remain in our pipeline and we are diligently working to improve our execution,” said Lee Chen, president and chief executive officer of A10 Networks. “We remain confident that our investments in security and cloud will serve as a strong foundation to penetrate these faster-growing segments of our market.”  

 

ATEN Technical Analysis

A10 Networks

ATEN opened trading yesterday at $8.20 which was down from the previous day’s trading close of $8.21. ATEN closed trading yesterday at $8.24 and spiked down after market to $6.75, equivalent to a 18% decrease from the closing price. Taking a look at the daily chart we can see the last time ATEN traded below these levels we have to go back to October 28th when it traded at lows of $6.35.

Taking a closer look at the daily chart we can see that before the spike down ATEN had already been in an overall downward trend dating back to April 27th when it traded at $9.55. ATEN has a float of 41.47 million shares and traded 1.29 times the normal daily trading volume on Thursday.

For trading purposes, I would like to see ATEN open trading on Friday below $7.25 and if it does I would be looking to take a short position with a limit order at the bell. My stop loss would be $0.20 from my entry position fearing anything more than that and the stock would start to fill in the gap down.

 

Company Profile

A10 Networks, Inc. provides software and hardware solutions in the United States, Japan, and internationally. The company’s products are built on advanced core operating system platform. It offers application delivery controllers that provide advanced server load balancing; lightning application delivery service, a cloud-native software-as-a-service platform designed to boost the delivery and security of applications and micro services; and carrier grade networking address translation product that offer network address and protocol translation services for service provider networks.

The company also provides threat protection systems for the protection of networks and server resources against massive distributed denial of service attacks; secure sockets layer insight that decrypts secure sockets layer-encrypted traffic and forwards it to a third-party security device, such as a firewall, for deep packet inspection; and convergent firewall, which consolidates multiple critical security capabilities in one package by consolidating multiple security and networking functions in a single appliance.

Its solutions enable cloud providers, Web-scale companies, service providers, government organizations, and enterprises to secure and optimize the performance of their data center and cloud applications; and secure their users, applications, and infrastructure from Internet, Web, and network threats. The company delivers its solutions on optimized hardware appliances, bare metal software, virtual appliances, and cloud-native software.

It serves telecommunications, technology, industrial, retail, financial, gaming, and education industries. The company markets its products through sales organizations, as well as distribution channel partners, including distributors, value added resellers, and system integrators. A10 Networks, Inc. was incorporated in 2004 and is headquartered in San Jose, California.  Yahoo Finance

 

 

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