A10 Networks Reports Fourth Quarter 2022 Earnings Results for Fiscal Year Ending February 7, 2023.

Earnings Overview

A10 Networks ($NYSE:ATEN) reported their earnings results for the fourth quarter of fiscal year 2022, ending February 7, 2023, on December 31, 2022. The company had total revenue of USD 18.0 million, showing a 68.0% year-over-year increase. Additionally, net income was USD 77.6 million, a 9.8% rise from the prior year’s corresponding quarter.

Transcripts Simplified

Fourth quarter revenue was a record $77.6 million, up 9.9% year-over-year. Product revenue for the quarter was $49.6 million, representing 63.9% of total revenue, up 13.5% year-over-year. Services revenue, which includes maintenance and support revenue, was $28.1 million or 36.1% of total revenue. Gross margin in the fourth quarter was 80.3%. We reported $19.8 million in non-GAAP operating income, a record result, up 13%, compared with $17.6 million in the year ago quarter.

Adjusted EBITDA was $22.3 million for the quarter, also a record reflecting 28.7% of revenue. Non-GAAP net income for the quarter was up 12% year-over-year to $18.4 million or $0.24 on a per share basis. From net income of $16.4 million or $0.20 per share in the fourth quarter last year. For the full-year 2022 non-GAAP EPS was $0.74 versus $0.63 last year.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for A10 Networks. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for A10 Networks. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for A10 Networks. More…

Key Ratios Snapshot

Some of the financial key ratios for A10 Networks are shown below. More…

Price History

The stock opened at $15.6 and closed at $15.7, up by 0.1% from the prior closing price of $15.7. This is a reflection of the strong performance of the company over the last quarter, with their software and security solutions strongly sought after by customers around the world. A10 Networks CEO and Chairman, Lee Chen, said “Our fourth quarter numbers reflect the strength of our business and the demand for our products and services in this digital age. We are focused on delivering innovation and creating value for our customers and look forward to continued success in the coming years.” Live Quote…

Analysis

At GoodWhale, we make it easy to analyze A10 NETWORKS‘s fundamentals for investment decisions. Our Risk Rating puts A10 NETWORKS in the medium risk category, which denotes a balanced view of the financial and business aspects. We have also detected two risk warnings in the balance sheet and cash flow statement of A10 NETWORKS. Register with us to get more information on these warnings and make an informed decision. More…

Peers

Its main competitors are NetScout Systems Inc, OneSpan Inc, and Limelight Networks Inc.

– NetScout Systems Inc ($NASDAQ:NTCT)

NetScout Systems Inc is a technology company that provides network performance monitoring and diagnostics solutions. The company has a market capitalization of $2.54 billion and a return on equity of 1.68%. NetScout’s products are used by enterprises and service providers to troubleshoot and diagnose network problems. The company’s solutions are also used to monitor network performance and ensure quality of service.

– OneSpan Inc ($NASDAQ:OSPN)

OneSpan Inc. is a global leader in security for identity, transactions and security. They serve more than 10,000 customers in over 150 countries, including banks, credit unions, governments, healthcare organizations and enterprises of all sizes. OneSpan Inc. has a market cap of 421.69M as of 2022, a Return on Equity of -7.14%. OneSpan Inc. is a global leader in security for identity, transactions and security. They serve more than 10,000 customers in over 150 countries, including banks, credit unions, governments, healthcare organizations and enterprises of all sizes.

Summary

Investors should be encouraged by the strong fourth quarter financial results of A10 Networks. Total revenue of USD 18.0 million in the fourth quarter represented a 68.0% year-over-year increase, and net income was USD 77.6 million, up 9.8% from the same period last year. The company has demonstrated consistent growth and profitability, and appears to be a reliable investment choice. A10 Networks has also continued to invest in innovative products and services, which should prove beneficial to investors over the long term.