A10 Networks January 2018 Stock Price Drops – Securities Claims Investigation on Behalf of ATEN Shareholders
Kehoe Law Firm, P.C. is investigating potential securities claims on behalf of purchasers of the securities of A10 Networks, Inc. (NYSE:ATEN), “a Secure Application Services™ company,” resulting from allegations that A10 Networks may have issued materially misleading business information to the investing public.
On January 16, 2018, A10 Networks announced it expected fourth quarter 2017 revenue to be between $55.5 million and $56 million, which was below its prior guidance of $64 million to $67 million.
On this news, shares of A10 Networks fell $0.99, or more than 13% from its previous closing price, to close at $6.32 per share on January 17, 2018.
Subsequently, on January 30, 2018, A10 Networks disclosed that its Audit Committee was investigating ATEN’s revenue recognition practices from the fourth quarter of 2015 through the fourth quarter of 2017.
Specifically, ATEN’s January 30, 2018 press release stated that A10 Networks
. . . is postponing its 2017 fourth quarter and full year earnings announcement and conference call, originally scheduled for Feb. 8, 2018.
In the fourth quarter of 2017, [A10 Networks] determined that a mid-level employee within its finance department had violated [A10 Networks’s] Insider Trading Policy and Code of Conduct. As a result, [A10 Networks], with the assistance of outside counsel, conducted an email review and additional procedures to ensure the accuracy of its reporting of financial information for 2017. Such review and procedures did not identify matters that required material adjustments to be made. Nonetheless, [A10 Networks’s] Audit Committee determined that further review and procedures relating to certain accounting and internal control matters should be undertaken. The Audit Committee’s investigation, which is being conducted with the assistance of outside counsel, is principally focused on certain revenue recognition matters from the fourth quarter of 2015 through the fourth quarter of 2017 inclusive.
The investigation is in its early stages. [A10 Networks] is not able to provide a date as to when it will be completed, nor provide any assurance that [A10 Networks] will not determine that material adjustments to its past financial statements are appropriate.
At the conclusion of the Audit Committee’s investigation, [A10 Networks] will announce the scheduling of a conference call to discuss full financial results for the 2017 fourth quarter and full year.
On this news, shares of A10 Networks fell $0.86, or more than 12% from its previous closing price, to close at $6.13 per share on January 31, 2018.
ATEN – A10 Networks Shareholders
If you purchased, or otherwise acquired, ATEN shares and have questions or concerns about the investigation or your potential legal rights or claims, please contact John Kehoe, Esq., (215) 792-6676, Ext. 801, [email protected], complete the form above on the right or e-mail [email protected].