Why A10 Networks Shares Got Crushed Today

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What happened

A10 Networks (NYSE: ATEN) stock is getting crushed today, down by 19% as of 11:40 a.m. EDT, after the company announced preliminary second-quarter results.

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So what

Revenue in the second quarter should come in at $52.5 million to $53.5 million, which is well below the company's prior guidance of $62 million to $64 million in sales. A10 Networks expects to post a non-GAAP net loss of $0.05 to $0.06 per share, also below prior guidance of an adjusted profit of $0.01 to $0.03 per share.

Analysts were expecting the company to post revenue of $62.8 million and non-GAAP earnings per share of $0.02.

Now what

"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 CEO Lee Chen in a statement. "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."

A10 will release full results on July 27.

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Evan Niu, CFA has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.