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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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.
"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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