A10 Networks Inc - ATEN STOCK NEWS

A10 Networks (NYSE: ATEN) has announced the pricing of $200 million convertible senior notes due 2030 in a private offering. The notes will carry a 2.75% annual interest rate, payable semi-annually, and will mature on April 1, 2030.

The initial conversion rate is set at 42.6257 shares per $1,000 principal amount, representing a conversion price of approximately $23.46 per share - a 20% premium over the last reported sale price of $19.55. The company expects net proceeds of approximately $193.8 million, with plans to use $44.2 million for immediate share repurchases at $19.55 per share.

The remaining proceeds will be used for working capital, general corporate purposes, and potential future acquisitions. The notes will become convertible under certain conditions before December 1, 2029, and freely convertible thereafter. The company maintains the option to redeem the notes after April 5, 2028, subject to specific conditions.

A10 Networks (NYSE: ATEN) has announced plans to offer $200 million in convertible senior notes due 2030 through a private offering to qualified institutional buyers. The company may grant initial purchasers an option for an additional $25 million in notes.

The notes will be senior, unsecured obligations with semi-annual interest payments. They become convertible under certain conditions before December 1, 2029, and freely convertible thereafter until maturity. The company will settle conversions through a combination of cash and/or common stock.

A10 Networks plans to use up to $44.2 million of the proceeds to repurchase shares concurrently with the offering. The remaining funds will be allocated for working capital, general corporate purposes, and potential future acquisitions. The notes will be redeemable after April 5, 2028, subject to specific conditions, including the stock price reaching 130% of the conversion price.

A10 Networks (NYSE: ATEN) has acquired ThreatX Protect's assets and key personnel to expand its cybersecurity portfolio with web application and API protection (WAAP). The acquisition, which has already closed, is expected to be modestly accretive to A10's earnings per share in 2025.

ThreatX Protect offers a WAAP solution utilizing behavioral and risk profiling to protect enterprises from evolving threats, including AI application threats. The software-as-a-service solution includes API protection, bot management, and next-generation web application firewall.

The acquisition supports A10's strategy of helping customers deploy security solutions in a hybrid approach to protect applications and APIs across various environments. The A10 Defend portfolio now includes hybrid DDoS protection, DDoS threat intelligence, web application and bot protection, and WAAP solution integrated into a single platform.

A10 Networks (NYSE: ATEN) reported strong Q4 2024 financial results with revenue of $74.2 million, up 5% year-over-year. Enterprise revenue grew 8% and service provider revenue increased 4%. The company achieved a GAAP gross margin of 79.9% and non-GAAP gross margin of 80.7%.

Q4 GAAP net income was $18.3 million (24.7% of revenue), or $0.24 per diluted share. Non-GAAP net income reached $23.0 million (30.9% of revenue), or $0.31 per share. For full-year 2024, revenue grew 4% to $261.7 million, with GAAP net income of $50.1 million.

The company ended Q4 with $195.6 million in cash and investments, generating $25.7 million in operational cash flow. A10 Networks returned $10.2 million to investors through share repurchases and dividends, declaring a quarterly dividend of $0.06 per share.

A10 Networks (NYSE: ATEN), a leading provider of secure application services and solutions, announced that it will release its fourth quarter and full year 2024 financial results on February 4, 2025, after market close.

Management will host a conference call at 1:30 p.m. Pacific time (4:30 p.m. Eastern time) on the same day to discuss the results. Interested parties can join the call by dialing (833) 470-1428 (toll-free) or (404) 975-4839 and using access code 475407.

A live audio webcast will be accessible from the “Investor Relations” section of A10 Networks' website at investors.a10networks.com. The webcast will be archived for at least 90 days. A telephonic replay will be available two hours after the live call for seven days, accessible by dialing (866) 813-9403 (toll-free) or (929) 458-6194 and entering the passcode 596790.

A10 Networks is advancing its strategy to secure customers' AI applications. As AI adoption grows, it creates new architectures and security challenges in data centers and hybrid cloud infrastructures. A KPMG survey revealed over 76% of respondents fear data privacy and security risks from Generative AI (GenAI). To address these concerns, A10 Networks is expanding its infrastructure and security solutions to include an AI firewall and LLM safety tooling. These tools aim to enhance security, availability, and low latency for AI applications. The AI firewall inspects traffic to AI inference applications, enforces policies, and minimizes latency. A10 Networks' president and CEO, Dhrupad Trivedi, highlights the importance of securing AI applications to maximize performance and availability.

A10 Networks (NYSE: ATEN) has announced its participation in three upcoming investor conferences. The company will attend the UBS Global Technology and AI Conference in Scottsdale, Arizona on December 4, 2024, the BTIG Virtual Software Forum on December 10, 2024, and the Needham Annual Growth Conference on January 16, 2025. CEO Dhrupad Trivedi and CFO Brian Becker will participate in one-on-one meetings and provide corporate overviews. Interested investors can request meetings through their sales representatives or by contacting A10's Investor Relations.

A10 Networks (NYSE: ATEN) reported strong Q3 2024 financial results with revenue of $66.7 million, up from $57.8 million in Q3 2023. The company achieved a GAAP net income of $12.6 million ($0.17 per diluted share) and non-GAAP net income of $15.9 million ($0.21 per diluted share). Notable highlights include an 80.5% GAAP gross margin, cash and investments reaching $182.1 million, and $21.0 million generated from operations. The company returned $13.9 million to investors through share repurchases and dividends. Security-led revenue represented 63% of total revenue, reflecting A10's evolution into a cybersecurity-focused organization.

A10 Networks (NYSE: ATEN) has outlined a blueprint to secure and deliver AI applications, aiming to increase cyber resilience. The company is enhancing its Advanced Core Operating System (ACOS) with an integrated AI stack, set to launch later this year. This update will enable A10 solutions to interface with customers' AI Inference and GenAI environments.

Key developments include:

• A10 Control: A centralized management platform for A10 Thunder ADC and A10 Defend products
• AI-powered bot protection as part of the A10 Defend portfolio
• Expanded DDoS protection capabilities for large enterprises

These innovations aim to help customers lower cybersecurity risks, improve user experiences, and simplify IT infrastructures in the face of increasing AI adoption and cybersecurity threats.