Why Software Company A10 Networks' Shares Are Diving Today

A10 Networks Inc ATEN shares are down around 13% Wednesday morning after the company's worse-than-expected preliminary Q3 revenues and Q4 guidance.

The company sees Q3 revenue of $56.5 million-$58.5 million, vs. consensus of $74.65 million.

ATEN says industry headwinds impacted its Q3 results and experienced delays related to North American service provider customers pushing out capital expenditures. 

Cash and cash equivalents for Q3 are expected to be between $162 million and $166 million.

ATEN expects Q4 revenue of $70 million-$80 million (vs. street view of $82 million) and anticipates growth in full-year adjusted EPS.

"Given the third quarter results, we have taken actions to achieve historical profitability levels without compromising our long-term growth plans driven by sales of our industry-leading cybersecurity solutions. We maintained robust profitability and cash generation, preserving our strong balance sheet," said Dhrupad Trivedi, President and CEO.  

Price Action: ATEN shares are trading lower by 12.99% at $13.20 premarket on the last check Wednesday.