8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

____________________________________________________________________________

FORM 8-K

____________________________________________________________________________

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported)

October 29, 2015

____________________________________________________________________________

A10 NETWORKS, INC.

(Exact name of registrant as specified in its charter)

____________________________________________________________________________

Delaware	001-36343	20-1446869
(State or Other Jurisdiction of Incorporation or Organization)	(Commission File Number)	(I.R.S. Employer Identification Number)

3 West Plumeria Drive

San Jose, CA 95134

(Address of principal executive offices, including zip code)

(408) 325-8668

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02. Results of Operations and Financial Condition.

On October 29, 2015, A10 Networks, Inc. (the “Company”) issued a press release regarding financial results for the third quarter ended September 30, 2015. The Company also posted on its website (www.a10networks.com) slides with accompanying prepared remarks regarding such financial results. Copies of the press release and slides with accompanying prepared remarks by the Company are attached as Exhibits 99.1 and 99.2, respectively, and the information in Exhibits 99.1 and 99.2 are incorporated herein by reference.

The information in Item 2.02 and Item 9.01 in this Current Report on Form 8-K and the exhibits attached hereto shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.

Item 9.01. Financial Statements and Exhibits

(d) Exhibits

Exhibit	Description
99.1	Press release, dated October 29, 2015, regarding financial results of A10 Networks, Inc. for the third quarter ended September 30, 2015.
99.2	Slides with accompanying prepared remarks of A10 Networks, Inc., dated October 29. 2015, regarding financial results of the third quarter ended September 30, 2015.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: October 29, 2015

By: /s/ Greg Straughn

Greg Straughn

Chief Financial Officer

(Principal Accounting and Financial Officer)

EX-99.1

EXHIBIT 99.1

A10 Networks, Inc. Reports Third Quarter 2015 Financial Results

Achieves record revenue driven by enterprise growth and security products and features

SAN JOSE, Calif., October 29, 2015 -- A10 Networks, Inc. (NYSE: ATEN), a technology leader in application networking, today announced financial results for its third quarter ended September 30, 2015.

Third Quarter 2015 Financial Highlights

• Record revenue of $50.8 million, up 17 percent year-over-year

• Record enterprise revenue of $30.4 million, up 15 percent year-over-year

• Increased cash and cash equivalents to $100.5 million, up from $96.2 million as of June 30, 2015

“We delivered record revenue for the second consecutive quarter and achieved better than expected bottom line results,” said Lee Chen, president and chief executive officer of A10 Networks. “Our security focused portfolio, encompassing our standalone high-end Thunder TPS appliance and Thunder ADC with advanced security features such as SSL Insight and web application firewall, continues to gain traction with customers and partners. We are encouraged by our momentum as we enter the fourth quarter and will remain focused on executing our growth strategy, furthering our technology leadership, and expanding our addressable markets.”

Total revenue for the third quarter grew to a record $50.8 million, up 17 percent when compared with $43.4 million in the third quarter of 2014. On a GAAP basis, A10 Networks reported a net loss for the third quarter 2015 of $9.0 million or $0.14 per share, compared with a net loss of $12.3 million or $0.21 per share in the third quarter of 2014. Non-GAAP net loss for the third quarter of 2015 was $4.4 million or $0.07 per share, compared with a non-GAAP net loss of $8.8 million or $0.15 per share in the third quarter of 2014. A reconciliation between GAAP and non-GAAP information is contained in the financial statements below.

Prepared Materials and Conference Call Information

A10 Networks has made available a presentation with management’s prepared remarks on its third quarter 2015 financial results. These materials are accessible from the “Investors” section of A10 Networks website at investors.a10networks.com.

A10 Networks will host a conference call today at 4:30 p.m. Eastern time / 1:30 p.m. Pacific time for analysts and investors to discuss its third quarter of 2015 results and outlook for its fourth quarter of 2015. Open to the public, investors may access the call by dialing +1-785-424-1668 or +1-877-876-9175. A live audio webcast of the conference call will be accessible from the “Investors” section of A10 Networks website at investors.a10networks.com. The webcast will be archived for a period of one year. A telephonic replay of the conference call will be available two hours after the call, will run for five business days, and may be accessed by dialing +1-719-457-0820 or +1-888-203-1112 and entering the passcode 123194. The press release and supplemental financials will be accessible from A10 Networks website prior to the commencement of the conference call.

Forward Looking Statements

This press release contains “forward-looking statements,” including statements regarding our security focused portfolio continuing to gain traction with customers and partners and our ability to execute on our growth strategy, further our technology leadership and expand our addressable markets. Forward-looking statements are subject to known and unknown risks and uncertainties and are based on assumptions that may prove to be incorrect, which could cause actual results to differ materially from those expected or implied by the forward-looking statements. Factors which may cause actual results to differ include the continued market adoption of our products, our ability to successfully anticipate market needs and opportunities, our timely development of new products and features, any loss or delay of expected purchases by our largest end-customers, our ability to attract and retain new end-customers, continued growth in markets relating to network security, our ability to hire, retain and motivate qualified personnel, the ability of our sales team to execute well, our ability to shorten our close cycles, the ability of our channel partners to sell our products, our ability to achieve or maintain profitability while continuing to invest in our sales, marketing and research and development teams, variations in product mix or geographic locations of our sales, fluctuations in currency exchange rates, risks associated with our significant presence in international markets, the cost and potential outcomes of existing and future litigation, increased cost requirements of being a public company and future sales of substantial amounts of our common stock in the public markets, or the perception that such sales might occur, and litigation risks and costs.

More information about potential factors that could affect the company's business and financial results is included in our annual and quarterly reports on file with the SEC. These filings are available on the SEC's website at www.sec.gov and the company’s website.

All forward-looking statements in this press release are based on information available to the company as of the date hereof. We disclaim any obligation to update information contained in these forward-looking statements whether as a result of new information, future events, or otherwise.

Non-GAAP Financial Measures

In addition to disclosing financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), this press release and the accompanying tables contain certain non-GAAP financial measures, including non-GAAP net income (loss). Non-GAAP financial measures do not have any standardized meaning and are therefore unlikely to be comparable to similarly titled measures presented by other companies.

A10 Networks considers these non-GAAP financial measures to be important because they provide useful measures of the operating performance of the company, exclusive of unusual events or factors that do not directly affect what we consider to be our core operating performance, and are used by the company's management for that purpose. We define non-GAAP net

income (loss) as our net income (loss) excluding: (i) stock-based compensation and (ii) amounts paid in settlement of litigation, and other legal expenses associated with these settlements.

We have included non-GAAP net income (loss) in this press release. Non-GAAP financial measures are presented for supplemental informational purposes only for understanding the company's operating results. The non-GAAP financial measures should not be considered a substitute for financial information presented in accordance with GAAP, and may be different from non-GAAP financial measures presented by other companies. Please see the reconciliation of non-GAAP financial measures to the most directly comparable GAAP measure attached to this release.

About A10 Networks

A10 Networks (NYSE: ATEN) is a leader in application networking, providing a range of high-performance application networking solutions that help organizations ensure that their data center applications and networks remain highly available, accelerated and secure. Founded in 2004, A10 Networks is based in San Jose, Calif., and serves customers globally with offices worldwide. For more information, visit a10networks.com and @A10Networks

The A10 logo and A10 Networks are trademarks or registered trademarks of A10 Networks, Inc. in the United States and other countries. All other trademarks are property of their respective owners.

Investor Contact:

The Blueshirt Group

Maria Riley, 415-217-7722

investors@a10networks.com

or

Media Contact:

A10 Networks

Karen Richardson, 408-592-4663

karenr@a10networks.com

Source: A10 Networks, Inc.

A10 NETWORKS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited, in thousands, except per share amounts)

	Three Months Ended   September 30,						Nine Months Ended   September 30,
	2015			2014			2015			2014
Revenue:
Products	$	34,990		$	31,601		$	98,837		$	102,140
Services	15,788			11,827			43,494			32,165
Total revenue	50,778			43,428			142,331			134,305
Cost of  revenue:
Products	8,529			8,818			23,501			23,655
Services	4,186			2,935			11,601			8,491
Total cost of revenue	12,715			11,753			35,102			32,146
Gross profit	38,063			31,675			107,229			102,159
Operating expenses:
Sales and marketing	25,774			24,651			75,258			70,189
Research and development	13,562			12,342			41,542			35,416
General and administrative	6,892			5,141			20,122			16,035
Litigation expense (benefit)	469			910			1,939			(3,103		)
Total operating expenses	46,697			43,044			138,861			118,537
Loss from operations	(8,634		)	(11,369		)	(31,632		)	(16,378		)
Other income (expense), net:
Interest expense	(151		)	(192		)	(382		)	(904		)
Interest income and other income (expense), net	22			(510		)	(167		)	(673		)
Total other income (expense), net	(129		)	(702		)	(549		)	(1,577		)
Loss before provision for income taxes	(8,763		)	(12,071		)	(32,181		)	(17,955		)
Provision for income taxes	204			233			497			747
Net loss	(8,967		)	(12,304		)	(32,678		)	(18,702		)
Accretion of redeemable convertible preferred stock dividend	—			—			—			(1,150		)
Net loss attributable to common stockholders	$	(8,967	)	$	(12,304	)	$	(32,678	)	$	(19,852	)
Net loss per share attributable to common stockholders, basic and diluted	$	(0.14	)	$	(0.21	)	$	(0.53	)	$	(0.45	)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted	62,753			59,913			62,009			44,538

A10 NETWORKS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Continued)

(Unaudited, in thousands, except per share amounts)

	Three Months Ended   September 30,						Nine Months Ended   September 30,
	2015			2014			2015			2014
Other Financial Measures / GAAP to Non-GAAP Reconciliation
GAAP net loss	$	(8,967	)	$	(12,304	)	$	(32,678	)	$	(18,702	)
Stock-based compensation	4,608			3,538			13,246			8,314
Litigation and settlement expense (benefit)	—			—			686			(6,973		)
Non-GAAP net loss	$	(4,359	)	$	(8,766	)	$	(18,746	)	$	(17,361	)
Non-GAAP net loss per share, basic and diluted	$	(0.07	)	$	(0.15	)	$	(0.30	)	$	(0.31	)
Weighted average shares used in computing Non-GAAP net loss per share, basic and diluted (1) (2)	62,753			59,913			62,009			56,844
(1) For the nine months ended September 30, 2014, the non-GAAP share counts assume preferred stock was outstanding at December 31, 2013 (as-if converted basis)
(2) In connection with our initial public offering in March 2014, we issued 9.0 million shares of common stock and converted all of its outstanding convertible preferred stock into 40.0 million shares of common stock.

A10 NETWORKS, INC.

Reconciliation of Selected GAAP to Non-GAAP Financial Measures

(Unaudited, in thousands)

	Three Months Ended   September 30,		Nine Months Ended   September 30,
	2015	2014	2015	2014
Weighted average shares used in computing GAAP net loss per share, basic and diluted	62,753	59,913	62,009	44,538
Preferred stock adjustment	—	—	—	12,306
Weighted average shares used in computing Non-GAAP net loss per share, basic and diluted (1) (2)	62,753	59,913	62,009	56,844
(1) For the nine months ended September 30, 2014, the non-GAAP share counts assume preferred stock was outstanding at December 31, 2013 (as-if converted basis)
(2) In connection with our initial public offering in March 2014, we issued 9.0 million shares of common stock and converted all of its outstanding convertible preferred stock into 40.0 million shares of common stock.

A10 NETWORKS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited, in thousands)

	September 30, 2015			December 31, 2014
ASSETS
Current Assets:
Cash and cash equivalents	$	100,524		$	91,905
Accounts receivable, net of allowances	41,492			54,003
Inventory	17,566			20,701
Prepaid expenses and other current assets	4,918			4,732
Total current assets	164,500			171,341
Property and equipment, net	9,087			10,780
Other long-term assets	4,372			4,859
Total Assets	$	177,959		$	186,980
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	8,182		$	8,994
Accrued liabilities	20,960			22,435
Deferred revenue, current	44,352			39,256
Total current liabilities	73,494			70,685
Deferred revenue, non-current	21,986			17,964
Other long-term liabilities	1,541			1,766
Total Liabilities	97,021			90,415
Stockholders’ Equity
Common stock and additional paid-in capital	295,401			278,350
Accumulated deficit	(214,463		)	(181,785		)
Total Stockholders' Equity	80,938			96,565
Total Liabilities And Stockholders' Equity	$	177,959		$	186,980

A10 NETWORKS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited, in thousands)

	Nine Months Ended September 30,
	2015			2014
Cash flows from operating activities:
Net loss	$	(32,678	)	$	(18,702	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	6,784			7,337
Stock-based compensation	13,246			8,314
Gain on settlement of contractual liability	—			(6,993		)
Provision for doubtful accounts and sales allowance	1,575			52
Other non cash items	14			(31		)
Changes in operating assets and liabilities:
Accounts receivable, net	11,223			(4,771		)
Inventory	922			(6,276		)
Prepaid expenses and other assets	(97		)	(3,303		)
Accounts payable	(1,086		)	4,109
Accrued liabilities	(1,510		)	4,102
Accrued litigation expenses	18			(6,832		)
Deferred revenue	9,118			9,670
Other	104			(197		)
Net cash provided by (used in) operating activities	7,633			(13,521		)
Cash flows from investing activities:
Purchases of property and equipment	(2,558		)	(5,380		)
Net cash used in investing activities	(2,558		)	(5,380		)
Cash flows from financing activities:
Proceeds from issuance of common stock under employee equity incentive plans, net of repurchases	3,238			4,399
Proceeds from initial public offering, net of offering costs	—			121,037
Principal payments on revolving credit facility	—			(20,000		)
Other	306			(229		)
Net cash provided by financing activities	3,544			105,207
Net increase in cash and cash equivalents	8,619			86,306
Cash and cash equivalents—beginning of period	91,905			20,793
Cash and cash equivalents—end of period	$	100,524		$	107,099

EX-99.2

A10 Networks – Q3 2015 Earnings - October 29, 2015 1 | P a g e

A10 Networks – Q3 2015 Earnings - October 29, 2015 2 | P a g e Thank you all for joining us today. I am pleased to welcome you to A10 Networks third quarter 2015 financial results conference call. This call is being recorded and webcast live and may be accessed for 90 days via the A10 Networks website, www.a10networks.com. Joining me today are A10’s Founder & CEO, Lee Chen; A10’s CFO, Greg Straughn; and our VP of Global Sales, Ray Smets. Before we begin, I would like to remind you that shortly after the market closed today, A10 Networks issued a press release announcing its third quarter 2015 financial results. Additionally, A10 published a presentation along with its prepared comments for this call and supplemental trended financial statements. You may access the press release, presentation with prepared comments, and trended financial statements on the investor relations section of the company’s website www.a10networks.com.

A10 Networks – Q3 2015 Earnings - October 29, 2015 3 | P a g e During the course of today’s call, management will make forward-looking statements, including statements regarding our projections for our fourth quarter operating results, our expectations for future revenue growth, profitability and operating margin, expectations of customer buying patterns and the growth of our business generally. These statements are based on current expectations and beliefs as of today, October 29, 2015. A10 disclaims any obligation to update information contained in these forward-looking statements whether as a result of new information, future events, or otherwise. These forward-looking statements involve a number of risks and uncertainties, some of which are beyond our control that could cause actual results to differ materially. We disclaim any obligation to update these forward-looking statements as a result of future events or otherwise. For a more detailed description of these risks and uncertainties, please refer to our most recent 10-Q filed on August 6th.

A10 Networks – Q3 2015 Earnings - October 29, 2015 4 | P a g e Please note that with the exception of revenue, financial measures discussed today are on a non-GAAP basis and have been adjusted to exclude certain charges. A reconciliation between GAAP and non-GAAP measures can be found in the press release issued today and on the trended quarterly financial statements posted on the company’s website. We will provide our current expectations for the fourth quarter of 2015 on a non-GAAP basis. However, we will not make available a reconciliation of non-GAAP guidance measures to corresponding GAAP measures on a forward-looking basis due to high variability and low visibility with respect to the charges, which are excluded from these non-GAAP measures. Before I turn the call over to Lee, I’d like to announce that management will attend the Cowen Networking and Cybersecurity Summit in New York City in December. We hope to see many of you there. Now I would like to turn the call over to Lee for opening remarks.

A10 Networks – Q3 2015 Earnings - October 29, 2015 5 | P a g e

A10 Networks – Q3 2015 Earnings - October 29, 2015 6 | P a g e I am pleased to report another strong quarter that included achieving record revenue for the second consecutive quarter as we continued to execute on our growth strategy and deliver results. We also continued to drive leverage through our operating structure and improved our bottom line by 50% year-over-year. Additionally, we generated 4.2 million dollars in cash from operations. Looking at our topline performance in more detail, total revenue grew 17% year-over-year and 7% sequentially to reach a record 50.8 million dollars. Product revenue grew 11% over last year and 5% over Q2 to reach 35.0 million dollars and we achieved record enterprise revenue of 30.4 million dollars, up 15% from last year.

A10 Networks – Q3 2015 Earnings - October 29, 2015 7 | P a g e Our growth this quarter was driven by sales of our high-end security focused Thunder products, including our ADC with advanced security features such as SSL insight and our Thunder TPS DDoS mitigation solution in which product revenue grew 17% sequentially. The innovations we have made in security are opening new doors for A10 both within new and existing customers and partners.

A10 Networks – Q3 2015 Earnings - October 29, 2015 8 | P a g e I would like to highlight a few recent wins where our products are being deployed in security environments:  A mobile cloud applications provider in the U.S. chose our Thunder TPS platform as the backbone for their DDoS as a service offering.  A large U.S. service provider customer selected our Thunder TPS platform to ward off volumetric DDoS attacks on their Public Cloud. While this carrier is already an A10 customer, this was our first win into their cloud infrastructure.  To improve overall security, a Fortune 500 technology company selected our Thunder ADC with SSL to encrypt and decrypt data between their data centers.  And a branch of the U.S. government looking to improve performance and overall security for their web and email environments, turned to A10’s Thunder ADC with SSL Insight.

A10 Networks – Q3 2015 Earnings - October 29, 2015 9 | P a g e Our advanced technology platform based on our highly flexible and scalable ACOS software is at the core of our ability to add new customers, expand within existing customers and quickly bring new products to market. We have worked to expand our addressable market and diversify our customer base by introducing new security products and features. Based on the market trends we see today, we believe that security features will continue to converge onto an ADC based platform. With our highly scalable, flexible and cloud-ready ACOS software platform, we see significant market expansion opportunities as the industry continues to converge. We plan to announce a new standalone security solution on November 10th. We look forward to sharing the details of our new product with you then. In summary, we are pleased with our third quarter performance. We believe we are making substantial progress in executing our strategy to build a strong foundation for long-term growth, while at the same time, improving our bottom line and driving closer toward profitability.

A10 Networks – Q3 2015 Earnings - October 29, 2015 10 | P a g e

A10 Networks – Q3 2015 Earnings - October 29, 2015 11 | P a g e Third quarter revenue grew to 50.8 million dollars, up 17% compared with 43.4 million dollars in the prior year. Deferred revenue grew 30% year-over-year to reach a record high of 66.3 million dollars.

A10 Networks – Q3 2015 Earnings - October 29, 2015 12 | P a g e Third quarter product revenue grew 11% to 35.0 million dollars, representing 69% of total revenue, compared with 31.6 million dollars, or 73% of total revenue in the prior year third quarter. Service revenue grew 33% to 15.8 million dollars, or 31% of total revenue, compared with 11.8 million dollars, or 27%, in the third quarter of 2014. From a geographic standpoint, third quarter revenue from the United States grew 23% year- over-year to reach 25.1 million dollars, or 49% of total revenue. Third quarter revenue from Japan was 8.8 million dollars, or 17% of total revenue, compared with 9.9 million dollars or 23% of total revenue in the third quarter of 2014, on a constant currency basis Japan revenue would have been flat year-over-year. Revenue from APAC (excluding Japan) grew 27% year-over year and 44% sequentially to reach 8.0 million dollars, or 16% of total revenue. And in EMEA we generated record revenue of 7.3 million dollars, or 14% of total revenue, which represents a 48% year-over-year increase. Our enterprise and service provider revenue split this quarter was 60% and 40% of total revenue, respectively. We achieved record enterprise revenue of $30.4 million dollars, representing a 10% increase from the prior quarter and up 15% from Q3 of last year. Service provider revenue came in at 20.4 million dollars, compared with 20.0 million dollars in the prior quarter and 17.1 million dollars in the third quarter of 2014. From a customer perspective, our revenue was well diversified with no 10% or greater customers in the quarter. Revenue outside of our top-10 customers grew 24% over Q3 of last year and 24% sequentially, representing 69% of our total revenue.

A10 Networks – Q3 2015 Earnings - October 29, 2015 13 | P a g e Moving beyond revenue, all further metrics discussed on this call are on a non-GAAP basis, unless expressly stated otherwise. We delivered third quarter total gross margin of 75.8%, within our expected range of 75% to 77%. Product gross margin was 75.8% in Q3 of 2015, compared with 76.4% in the prior quarter and 72.2% in the third quarter of 2014. Product gross margin was negatively impacted by 100 basis points due to initial investments we made related to two new OEM opportunities. Our services gross margin came in at 75.9%, a decrease of 27 basis points vs. Q2’15 and a 142 basis point decline from Q3 of 2014.

A10 Networks – Q3 2015 Earnings - October 29, 2015 14 | P a g e We ended the quarter with a staff of 816, up from 800 at the end of Q2, with the majority of headcount additions in R&D and sales and marketing. In Q3 Sales and marketing expense was 23.7 million dollars, compared with 23.1 million dollars in the prior quarter. On a percentage basis, sales and marketing expense decreased to 46.6% of revenue, compared with 48.6% in the prior quarter. In Q3 R&D expense totaled 12.1 million dollars or 23.8% of revenue, compared with 12.4 million dollars or 26.1% of revenue in the prior quarter. Third quarter combined G&A and litigation expense was approximately 6.8 million dollars or 13.3% of revenue, compared with 5.5 million dollars or 11.6% of revenue in Q2, which included some favorable one-time items. In total, third quarter non-GAAP operating expenses were 42.5 million dollars compared with 41.0 million dollars in the prior quarter. Third quarter non-GAAP operating loss was 4.0 million dollars, compared with a loss of 4.7 million dollars in the second quarter. Our non-GAAP net loss in the third quarter was 4.4 million dollars or 7 cents per share, ahead of our guided range of 8 to 12 cents per share. Q3’s net loss represents an 18% sequential improvement, compared with a net loss of 5.3 million dollars or 9 cents per share in Q2 and a 50% improvement when compared with a loss of 8.8 million dollars or 15 cents per share in the third quarter of 2014. Basic and diluted weighted outstanding shares for the third quarter were approximately 62.8 million shares.

A10 Networks – Q3 2015 Earnings - October 29, 2015 15 | P a g e Moving to the balance sheet, at September 30, 2015 we had 100.5 million dollars in total cash and equivalents, up from 96.2 million dollars at the end of June. During the quarter, cash generated from operations was 4.2 million dollars, reflecting strong billings and collection activities and expense management. This is our second sequential quarter to generate cash flow from operations and we are pleased with the improvements in our working capital management, however, we would like to remind you that we expect to use up to a few million dollars in cash per quarter to fund operations until we reach operating profitability on a non- GAAP basis. We ended Q3 with 41.5 million dollars of net accounts receivable, compared with the Q2’15 balance of 46.2 million dollars. Average days sales outstanding declined to 80 days compared with 95 days in the prior quarter.

A10 Networks – Q3 2015 Earnings - October 29, 2015 16 | P a g e

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