A10 Networks Inc (NYSE:ATEN) has warned of a big decline in third-quarter revenue due to headwinds facing the industry, sending its shares 18% lower in Wednesday pre-market trading.
The cybersecurity company said in a statement that it expects revenue for the quarter ended September 30, 2023, to be between $56.5 million and $58.5 million, down from $72.1 million in 3Q 2022 and below the $74.6 million expected by analysts surveyed by FactSet.
“In our third quarter we experienced delays related to North American service provider customers pushing out capital expenditures,” CEO Dhrupad Trivedi commented.
“Deals we expected to close at the end of the quarter were delayed into future periods. This was partially offset by growth in our Enterprise business.”
Trivedi said the company has taken action to return to historical profitability levels without compromising its long-term growth plans driven by sales of its cybersecurity solutions.
“We maintained robust profitability and cash generation, preserving our strong balance sheet,” Trivedi added.
The company said it expects to achieve fourth-quarter revenue between $70 million and $80 million and, as a result, growth in full-year adjusted earnings per share.
It expects to release its 3Q results on November 7, 2023.
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