How A10 Networks Stock Fell 25.5% in September
Shares of A10 Networks (NYSE: ATEN) fell 25.5% in September 2020, according to data from S&P Global Market Intelligence. The stock was caught in the tech sector sell-offs in early September and three weeks later. Investors shrugged off the application delivery specialist's updated third-quarter guidance between the two sharp drops.
On Sept. 17, A10 Networks published a set of guidance targets for the third quarter. Management did not provide guidance figures in the second-quarter report, so these expectations were brand new. Revenue should rise approximately 3% year over year to $54.5 million and operating expenses should stop near $34.5 million, down from $40.7 million in the year-ago quarter. Management said that A10 sees organic growth in a difficult environment, and the cost-cutting efforts should result in sustainable cash flows.
The board of directors also authorized a $50 million share buyback program that day, and CFO Tom Constantino announced his departure. Share prices hardly moved on this mixed bag of business news and the sell-off of high-flying stocks continued on Sept. 23.
Source Fool.com
