A10 Networks, Inc. 10-K

Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Market for Registrant’s Common Equity Our common stock has been quoted on the New York Stock Exchange (“NYSE”) under the symbol “ATEN.” We have never declared or paid any cash dividends on shares of our capital stock. We presently expect to retain the majority of our earnings to finance the expansion and development of our business and we do not have any present plans to pay cash dividends on our capital stock in the near future. Our board of directors will determine future dividends, if any. There were approximately 100 stockholders of record on February 26, 2021. Because many shares of our common stock are held by brokers and other institutions on behalf of stockholders, we are unable to estimate the total number of stockholders represented by these holders of record. Company Stock Performance The following graph compares the cumulative total return on our common stock, the NASDAQ Composite Index and the Russell 1000 Index. The graph assumes $100 was invested on December 31, 2015 in our common stock and each index and all dividends were reinvested. The historic stock price performance is not necessarily indicative of future stock price performance. Issuer Purchases of Equity Securities On September 17, 2020, the Company issued a press release announcing that the Company’s Board of Directors had approved a stock repurchase program of up to $50 million of its common stock over a period of twelve months. To date, all repurchases under this program have occurred in the open market. Share repurchase activity during the three months ended December 31, 2020 was as follows (in thousands, except per share amounts): 46 Periods Total Number of Shares Purchased Average Price Paid Per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs (1) October 1 - 31, 2020 2,180 $ 7.07 2,180 November 1 - 30, 2020 520 $ 7.31 520 December 1 - 31, 2020 — $ — — Total 2,700 $ 30,795 (1) The $30.8 million in the table represents the amount available to repurchase shares under the authorized repurchase program as of December 31, 2020. The Company’s stock repurchase program does not obligate it to acquire any specific number of shares. Under this program, shares may be repurchased in privately negotiated and/or open market transactions, including under plans complying with Rule 10b5-1 under the Exchange Act. Unregistered Sales of Equity Securities None. Item 6. Selected Financial Data We have derived the consolidated statement of operations data for the years ended December 31, 2020, 2019 and 2018 and the selected consolidated balance sheet data as of December 31, 2020 and 2019 from our audited consolidated financial statements that are included in this Form 10-K. The following selected consolidated statement of operations data for the years ended December 31, 2017 and 2016 and the selected consolidated balance sheet data as of December 31, 2018, 2017 and 2016 are derived from our audited consolidated financial statements that are not included in this report. Our historical operating results are not necessarily indicative of future operating results, these selected consolidated financial data should be read in conjunction with the consolidated financial statements and accompanying notes in Part II, Item 8, and Management’s Discussion and Analysis of Financial Condition and Results of Operations in Part II, Item 7 included in this report. The amounts as of and for the years ended December 31, 2020, 2019 and 2018 have been prepared based on our adoption of Accounting Standards Codification (“ASC”) No. 606, Contracts with Customers . We elected to adopt this accounting standard on a modified retrospective basis which resulted in the impact of adoption being recorded as of January 1, 2018. The amounts in years 2017 and 2016 in the tables below have been prepared on the previously outstanding guidance on revenue recognition. We have disclosed the ASC 606 adoption impact on our revenue recognition in Note 2 of the audited consolidated financial statements included in Part II, Item 8 of this report. The amounts as of and for the years ended December 31, 2020 and 2019 have been prepared based on our adoption of ASC No. 842, Leases . We adopted this accounting standard on a modified retrospective basis which resulted in the impact of adoption being recorded as of January 1, 2019. The amounts in all other years, other than 2020 and 2019, in the tables below have been prepared on the previously outstanding guidance on leases. We have disclosed the ASC 842 adoption impact on our right-of-use assets and lease liabilities in Note 5 Leases, of the audited consolidated financial statements included in Part II, Item 8 of this report. 47 Years Ended December 31, (in thousands, except per share amounts) 2020 2019 2018 2017 2016 Consolidated Statement of Operations Data: Revenue $ 225,527 $ 212,628 $ 232,223 $ 235,429 $ 227,297 Cost of revenue $ 50,148 $ 48,881 $ 51,896 $ 53,318 $ 54,413 Gross profit $ 175,379 $ 163,747 $ 180,327 $ 182,111 $ 172,884 Income (loss) from operations $ 17,733 $ (17,094) $ (27,679) $ (10,372) $ (20,570) Net income (loss) $ 17,816 $ (17,819) $ (27,617) $ (10,751) $ (22,391) Net income (loss) per share: Basic $ 0.23 $ (0.23) $ (0.38) $ (0.15) $ (0.34) Diluted $ 0.22 $ (0.23) $ (0.38) $ (0.15) $ (0.34) Weighted-average shares used in computing net income (loss) per share: Basic 77,776 76,080 72,882 70,053 65,701 Diluted 80,019 76,080 72,882 70,053 65,701 Consolidated Balance Sheet Data: Cash, cash equivalents and marketable securities $ 158,132 $ 129,922 $ 128,375 $ 131,134 $ 114,347 Working capital $ 134,523 $ 123,358 $ 117,572 $ 111,076 $ 95,285 Total assets $ 290,811 $ 274,053 $ 235,876 $ 224,858 $ 216,733 Deferred revenue (current and non-current) $ 108,699 $ 101,164 $ 97,966 $ 94,637 $ 91,617 Total stockholders’ equity $ 115,974 $ 108,787 $ 103,883 $ 98,386 $ 82,752 48