A10 Networks Inc. Warns On Q3 Rev; Stock Hits New Low

A10 Networks Inc.

shares fell sharply after the company warned that third-quarter revenue would be far below Wall Street views. The San Jose-based network security company, which went public in March, expects revenue for the period of between $43 million to $43.5 million, down from its earlier forecast of $48 million to $50 million. Analysts expect a loss of $0.08 cents a share, on revenue of $48.7 million when the company posts results Oct. 30. Chief Executive Lee Chen said results stem from lower than expected North America bookings and "longer close cycles for deals awarded to A10." "Third quarter revenue in Japan was ahead of expectations, even though we saw an unfavorable impact from currency exchange rates," Chen added. Shares of A10 are down 60 percent since its March IPO. Early in Wednesday's session A10 fell 27 percent to a new low of $5.75 a share.