A10’s Q2 sales dip to $49m, company considers alternatives, CEO to step down

A10 Networks reported Q2 revenue of $49.2 million, compared with $60.7 million in second-quarter 2018. There was a GAAP net loss of $5.8 million, or $0.08 per basic and diluted share.

“Second quarter revenue came in below our guidance as a number of large deals in our pipeline pushed into future quarters or were downsized. These deals were primarily in North America and within the service provider and web giant verticals where opportunities can be large but the timing is difficult to predict,” said Lee Chen, president and chief executive officer of A10 Networks. “Outside of North America, all of our major geographies met or exceeded our Q2 expectations, and we continued to make progress on our strategic initiatives in security, 5G and multi-cloud.”

A10 also confirmed that it has retained Bank of America Merrill Lynch to advise about a potential sale or change of control transaction. The company has appointed Eric Singer, Founder and Managing Member of VIEX Capital Advisors, to its Board and formed a Strategic Committee to consider strategic options.

In addition, Lee Chen, president and chief executive officer of A10 Networks, announced his intention to step down once a new CEO has been selected.