Latest news with #A10Networks
Yahoo
14-05-2025
- Business
- Yahoo
We Like A10 Networks' (NYSE:ATEN) Earnings For More Than Just Statutory Profit
A10 Networks, Inc.'s (NYSE:ATEN) recent earnings report didn't offer any surprises, with the shares unchanged over the last week. Our analysis suggests that shareholders might be missing some positive underlying factors in the earnings report. We check all companies for important risks. See what we found for A10 Networks in our free report. As finance nerds would already know, the accrual ratio from cashflow is a key measure for assessing how well a company's free cash flow (FCF) matches its profit. The accrual ratio subtracts the FCF from the profit for a given period, and divides the result by the average operating assets of the company over that time. You could think of the accrual ratio from cashflow as the 'non-FCF profit ratio'. Therefore, it's actually considered a good thing when a company has a negative accrual ratio, but a bad thing if its accrual ratio is positive. While it's not a problem to have a positive accrual ratio, indicating a certain level of non-cash profits, a high accrual ratio is arguably a bad thing, because it indicates paper profits are not matched by cash flow. That's because some academic studies have suggested that high accruals ratios tend to lead to lower profit or less profit growth. For the year to March 2025, A10 Networks had an accrual ratio of -0.25. Therefore, its statutory earnings were very significantly less than its free cashflow. To wit, it produced free cash flow of US$61m during the period, dwarfing its reported profit of US$50.0m. A10 Networks did see its free cash flow drop year on year, which is less than ideal, like a Simpson's episode without Groundskeeper Willie. However, that's not all there is to consider. We can see that unusual items have impacted its statutory profit, and therefore the accrual ratio. See our latest analysis for A10 Networks That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. Surprisingly, given A10 Networks' accrual ratio implied strong cash conversion, its paper profit was actually boosted by US$5.7m in unusual items. While it's always nice to have higher profit, a large contribution from unusual items sometimes dampens our enthusiasm. We ran the numbers on most publicly listed companies worldwide, and it's very common for unusual items to be once-off in nature. Which is hardly surprising, given the name. Assuming those unusual items don't show up again in the current year, we'd thus expect profit to be weaker next year (in the absence of business growth, that is). In conclusion, A10 Networks' accrual ratio suggests its statutory earnings are of good quality, but on the other hand the profits were boosted by unusual items. Based on these factors, we think that A10 Networks' profits are a reasonably conservative guide to its underlying profitability. Obviously, we love to consider the historical data to inform our opinion of a company. But it can be really valuable to consider what other analysts are forecasting. At Simply Wall St, we have analyst estimates which you can view by clicking here. In this article we've looked at a number of factors that can impair the utility of profit numbers, as a guide to a business. But there are plenty of other ways to inform your opinion of a company. For example, many people consider a high return on equity as an indication of favorable business economics, while others like to 'follow the money' and search out stocks that insiders are buying. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks with high insider ownership. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
01-05-2025
- Business
- Yahoo
Is A10 Networks, Inc. (ATEN) the Best Cybersecurity Stock to Invest in Under $20?
We recently published a list of . In this article, we are going to take a look at where A10 Networks, Inc. (NYSE:ATEN) stands against other best cybersecurity stocks to invest in under $20. The cybersecurity sector is at a tipping point, driven by growing cyber threats, breakthrough technologies such as AI and IoT, and a renewed focus on national security and digital infrastructure. Despite a well-documented talent scarcity and evolving geopolitical concerns, the industry continues to grow rapidly, creating an ideal environment for innovation and investment. According to Fortune Business Insights, the worldwide cybersecurity industry was valued at $172.24 billion in 2023 and is expected to reach $562.72 billion by 2032, expanding at a CAGR of 14.3%. North America, notably the United States, dominates this environment, driven by the growth of e-commerce platforms, increased digital adoption in industries such as BFSI and healthcare, and greater consumer awareness. Cloud computing, AI, machine learning, and IoT technologies are now at the forefront of current cybersecurity solutions, allowing enterprises to identify and prevent digital breaches in real time. However, as technology advances, so do the hazards. McKinsey's November 2024 report underlines the critical need to make AI systems more secure, advising cybersecurity providers to focus on the dual problem of protecting both their own AI models and those used by their clients. Generative AI and third-party integrations provide new attack surfaces, necessitating the use of smarter, more adaptive protection technologies. The need is further heightened by significant policy developments. According to WIRED, former President Trump slapped punitive tariffs on technology imports, sending shockwaves across the semiconductor and e-commerce sectors. While some tech businesses may profit from increased demand for logistics and supply chain management technologies, others, such as major tech giants, saw their stock prices fall sharply due to concerns about inflation and disrupted trade routes. Tariffs on goods from China and other significant nations may boost consumer prices and limit the supply of critical cybersecurity components, particularly for cloud and data center operators. In the meantime, firms' stakes are still rising. Nearly half of American businesses have experienced significant revenue losses as a result of data breaches, according to Arcserve and IBM. In 2024, the average cost of a breach was close to $4.9 million; when events took more than 200 days to identify, the cost increased to $5.5 million. The threat surface is growing due to generative AI, and just 40% of SaaS services are actively monitored for security, further taxing already overworked security teams. According to Forbes, there is a paradox in the workforce, despite a 4.8 million cybersecurity expert deficit worldwide, thousands of competent IT workers are still underutilized as a result of strict recruiting practices and a lack of investment in local talent development. While degrees and certifications are still important, practical experience gained through laboratories, bug bounty programs, or internships has emerged as the key differentiator. When combined, these patterns point to a fundamental transformation of the cybersecurity sector as well as an increase in demand for cybersecurity services. Cybersecurity firms that can innovate at scale while navigating governmental changes and global uncertainties are being keenly watched by investors, particularly those keeping an eye on high-growth tech industries. In order to find the Best Cybersecurity Stocks to invest in under $20, we started by searching for companies working in the cybersecurity sector using the Finviz stock screener, applying a price filter to include just those trading below $20 per share. Following the compilation of the list, we used Insider Monkey's hedge fund holdings database to analyze hedge fund sentiment for each stock. Next, we arranged the stocks according to the number of hedge funds that owned each one in ascending order, as per Insider Monkey's database of Q4 2024. The final list consists of cybersecurity stocks under $20 that are currently overlooked by institutional investors, perhaps representing discounted chances in a quickly changing field. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). A computer network engineer operating a control panel with a view of a server room in the background. Share Price: $16.40 Number of Hedge Fund Holders: 30 A10 Networks, Inc. (NYSE:ATEN) is a new cybersecurity and infrastructure solutions provider that serves businesses, governments, and telecom carriers globally. A10 Networks, known for its extremely efficient and secure technologies, has been expanding into the rapidly rising AI data center market. With excellent financials, outstanding innovation, and recent strategic acquisitions, the company is establishing itself as a significant competitor in cybersecurity and AI-powered networking solutions. In 2024, A10 Networks, Inc. (NYSE:ATEN) witnessed enterprise revenues grow 6% and service provider revenues rise 2.5%, reversing previous year decreases. Security-led revenue, a significant strategic priority, increased 9% year-over-year to 63% of overall revenue, approaching the company's long-term aim of 65%. A10 Networks, Inc. (NYSE:ATEN) also returned capital to shareholders through dividends and share repurchases, demonstrating its strong cash creation from operations of $90.5 million. A10 Networks, Inc. (NYSE:ATEN) increased its cybersecurity portfolio on February 12, 2025, with the acquisition of ThreatX Protect, a premier web application and API protection (WAAP) product. The acquisition enhances A10's Defend platform with powerful AI-driven behavioral threat identification and bot control capabilities. With the proliferation of AI applications, ThreatX Protect enhances A10 Networks' hybrid cybersecurity capabilities by protecting apps and APIs across public, private, and on-premises settings. A10 Networks, Inc. (NYSE:ATEN), with its underrated positioning, strong focus on cybersecurity innovation, and share price under $20, stands out as one of the best cybersecurity stocks to keep an eye on. Overall, ATEN ranks 2nd on our list of best cybersecurity stocks to invest in under $20. While we acknowledge the potential of ATEN as an investment, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than ATEN but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Tahawul Tech
11-03-2025
- Business
- Tahawul Tech
service providers Archives
A return to pre-pandemic working practices is unlikely to happen. To learn more about the impact on networks and cyber security that COVID-19 has had on service providers, A10 Networks commissioned a survey and the results from the Middle East provide interesting insights. A large proportion of the senior IT professionals that we surveyed were adamant that the workplace won't snap back to how it was before COVID-19, and that they expect and are preparing for a hybrid approach to working practices. The pandemic significantly raised awareness around the resiliency of the network and the robustness of security, and going forward, subscribers and enterprises expect much stronger security from their communications service providers and will demand more in their SLAs and expand to other types of service providers to get this commitment.
Yahoo
06-03-2025
- Business
- Yahoo
The Strong Earnings Posted By A10 Networks (NYSE:ATEN) Are A Good Indication Of The Strength Of The Business
A10 Networks, Inc. (NYSE:ATEN) just reported healthy earnings but the stock price didn't move much. We think that investors have missed some encouraging factors underlying the profit figures. See our latest analysis for A10 Networks Many investors haven't heard of the accrual ratio from cashflow, but it is actually a useful measure of how well a company's profit is backed up by free cash flow (FCF) during a given period. To get the accrual ratio we first subtract FCF from profit for a period, and then divide that number by the average operating assets for the period. This ratio tells us how much of a company's profit is not backed by free cashflow. As a result, a negative accrual ratio is a positive for the company, and a positive accrual ratio is a negative. While having an accrual ratio above zero is of little concern, we do think it's worth noting when a company has a relatively high accrual ratio. That's because some academic studies have suggested that high accruals ratios tend to lead to lower profit or less profit growth. A10 Networks has an accrual ratio of -0.66 for the year to December 2024. Therefore, its statutory earnings were very significantly less than its free cashflow. Indeed, in the last twelve months it reported free cash flow of US$78m, well over the US$50.1m it reported in profit. A10 Networks' free cash flow improved over the last year, which is generally good to see. However, that's not all there is to consider. The accrual ratio is reflecting the impact of unusual items on statutory profit, at least in part. That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. While the accrual ratio might bode well, we also note that A10 Networks' profit was boosted by unusual items worth US$5.3m in the last twelve months. We can't deny that higher profits generally leave us optimistic, but we'd prefer it if the profit were to be sustainable. When we analysed the vast majority of listed companies worldwide, we found that significant unusual items are often not repeated. Which is hardly surprising, given the name. Assuming those unusual items don't show up again in the current year, we'd thus expect profit to be weaker next year (in the absence of business growth, that is). A10 Networks' profits got a boost from unusual items, which indicates they might not be sustained and yet its accrual ratio still indicated solid cash conversion, which is promising. Based on these factors, we think that A10 Networks' profits are a reasonably conservative guide to its underlying profitability. Obviously, we love to consider the historical data to inform our opinion of a company. But it can be really valuable to consider what other analysts are forecasting. At Simply Wall St, we have analyst estimates which you can view by clicking here. Our examination of A10 Networks has focussed on certain factors that can make its earnings look better than they are. But there is always more to discover if you are capable of focussing your mind on minutiae. For example, many people consider a high return on equity as an indication of favorable business economics, while others like to 'follow the money' and search out stocks that insiders are buying. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks with high insider ownership. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
05-02-2025
- Business
- Yahoo
A10 Networks (ATEN): AI & Security Investments Fuel Growth in High-Performance Networking
We recently published a list of . In this article, we are going to take a look at where A10 Networks, Inc. (NYSE:ATEN) stands against other AI news and ratings investors are keeping their eye on. Josh Wolfe, co-founder of Lux Capital, discussed the current AI space and the increasing importance of both capital and human talent in the field as he joined Caroline Hyde and Mike Shepard on 'Bloomberg Technology.' He highlighted how investments in large foundation models, previously seen as groundbreaking, are being overshadowed by more cost-effective open-source models and the rise of novel AI applications, especially in physical intelligence, robotics, and biology. Wolfe pointed out the significance of AI models' geopolitical implications, especially regarding the competition between the U.S. and China. He stressed that U.S. leadership in AI is at risk due to China's rapid advancements and its ability to produce a significant portion of AI talent globally. Wolfe also highlighted concerns about China's state-backed companies, such as TikTok and Huawei, which he views as extensions of the Chinese government, posing national security risks. He emphasized the importance of attracting top international talent to the U.S. to maintain a competitive edge, as China produces a large percentage of AI researchers and students. Additionally, Wolfe noted the growing significance of AI infrastructure, especially in hardware and inference. He predicts a shift toward on-device AI processing, which could reduce reliance on cloud-based systems and change the competitive landscape in AI. On national security, Wolfe praised initiatives that foster collaboration between technologists, policymakers, and venture capitalists to strengthen U.S. competitiveness. He also expressed concern about potential challenges to scientific research funding under the current administration, urging more federal investment in basic science and research to promote innovation, especially in physical sciences, robotics, and space exploration. Wolfe concluded by stressing the need for more support for young researchers, as significant breakthroughs often come from ambitious and unconventional ideas, and called for a stronger focus on advancing U.S. leadership in these fields. For this article, we selected AI stocks by reviewing news articles, stock analysis, and press releases. We listed the stocks in ascending order of their hedge fund sentiment taken from Insider Monkey's database of 900 hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (). A computer network engineer operating a control panel with a view of a server room in the background. Number of Hedge Fund Holders: 20 A10 Networks, Inc. (NYSE:ATEN) offers networking solutions, including load balancing, security, and DDoS protection, serving various industries globally. On February 4, A10 Networks reported a Q4 non-GAAP EPS of $0.31, surpassing estimates by $0.09. The company's revenue reached $74.2 million, a 5.4% year-over-year increase, exceeding expectations by $2.38 million. A10 Networks is seeing a positive outlook driven by its strong competitive position, especially with security and AI-related investments. Demand for AI data centers is increasing, and A10's products offer efficient performance with integrated security, giving the company a competitive edge. A10 continues to invest in cybersecurity and AI solutions, including Bot Protection, DDoS mitigation, and AI infrastructure for GPUs. The company is focused on internal investments, shareholder returns, and strategic opportunities, ending the year with nearly $200 million in cash and marketable securities. Overall, ATEN ranks 7th on our list of AI news and ratings investors are keeping their eye on. While we acknowledge the potential of ATEN as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ATEN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap Disclosure: None. This article is originally published at Insider Monkey.
