A10 Networks (NYSE:ATEN), a global software and hardware solutions company, yesterday reported their preliminary second-quarter 2017 financial results. A10 Networks reported adjusted preliminary second-quarter earnings of a loss of $0.05 to $0.06 per share, which fell short of analyst expectations of $0.02 per share.
A10 Networks reported preliminary second quarter revenues of $52.5 to $53.5 million which fell short of analyst expectations of $62.8 million.
A10 Networks, Inc. CEO’s Comments
We are disappointed with our preliminary results. Revenue came in below our guidance as a number of opportunities in our pipeline did not close primarily in North America and to a lesser degree in Japan. Key deals remain in our pipeline and we are diligently working to improve our execution,” said Lee Chen, president and chief executive officer of A10 Networks. “We remain confident that our investments in security and cloud will serve as a strong foundation to penetrate these faster-growing segments of our market.
ATEN Technical Analysis
ATEN opened trading yesterday at $8.20, which was down from the previous day’s trading close of $8.21. ATEN closed trading yesterday at $8.24 and spiked down after market to $6.75, equivalent to a 18% decrease from the closing price. Taking a look at the daily chart we can see the last time ATEN traded below these levels we have to go back to October 28th when it traded at lows of $6.35.
Taking a closer look at the daily chart we can see that before the spike down ATEN had already been in an overall downward trend dating back to April 27 when it traded at $9.55. ATEN has a float of 41.47 million shares and traded 1.29 times the normal daily trading volume on Thursday.
For trading purposes, I would like to see ATEN open trading on Friday below $7.25 and if it does I would be looking to take a short position with a limit order at the bell. My stop loss would be $0.20 from my entry position fearing anything more than that and the stock would start to fill in the gap down.