Overview

* A10 Networks ( ATEN ) Q2 revenue grows 15% yr/yr, beating analyst expectations

* Non-GAAP net income rises in the qtr

* Co repurchased shares and paid dividends, returning $8.3 mln to investors

Result Drivers

* SECURITY DEMAND - Increased demand for security and infrastructure solutions contributed to revenue growth, per CEO Dhrupad Trivedi

* AI INVESTMENTS - Revenue benefited from AI infrastructure investments and data center expansions

* OPERATIONAL DISCIPLINE - Strong operational discipline helped improve profitability and cash flow

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $69.38 $66.20

Revenue mln mln (6

Analysts

)

Q2 Net $10.54

Income mln

Q2 EBIT $10.31

mln

Q2 Gross $54.71

Profit mln

Q2 $44.40

Operatin mln

g

Expenses

Q2 $11.93

Pretax mln

Profit

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the software peer group is "buy"

* Wall Street's median 12-month price target for A10 Networks Inc ( ATEN ) is $22.00, about 17.4% above its August 4 closing price of $18.17

* The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 19 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)