Obviously, that caused A10 to end up in the red temporarily, but it appears the company wouldn’t have been profitable in 2012 and 2013 anyway; according to the S-1 form filed with the SEC, the company has recorded losses for at least eight quarters running.
Still, A10 has been saying it’s grown dramatically, and the S-1 lets the company put some numbers behind that claim.
Details of the public offering haven’t been filled in yet, but A10 has filed with a maximum proposed offering price of $100 million. The proposed stock symbol is ATEN, as if you hadn’t guessed.
A10 is an application delivery controller (ADC) vendor, meaning it’s treading on turf occupied by companies like F5 (and the similarity in names came up in another lawsuit that was settled years ago).
The bigger issue is the lawsuit where Brocade accused A10 of patent infringement, non-willful copyright infringement, and the unfair poaching of employees. (A10’s founders came from Foundry Networks, which was acquired by Brocade in 2008.) That suit eventually got settled, with A10 paying $75 million to Brocade, according to the S-1. The payment happened in May 2013, but accounting rules and the circumstances of the case steered A10 to record the charge in the first quarter of 2012, a loss of $77.8 million on revenues of $26.3 million.
That’s a pretty dramatic loss, but it shouldn’t obscure the fact that A10 has been growing rapidly.
For all of 2013, the company reported revenues of $141.7 million and a net loss of $29.1 million, or $3.14 per share. That’s compared with 2012 revenues of $120.1 million and a net loss of $90.2 million, or $10.80 per share.
In 2011, A10 recorded revenues of $91.3 million and a profit of $7.3 million, or 12 cents per share.
Shareholder Roll Call
Founder and CEO Lee Chen holds 21.3 percent of A10’s shares; he also took no salary or stock options in 2013. The only compensation he got last year, according to the S-1, is a $6 group term life insurance premium that the company paid for him. (He even reimbursed the company for the employee portion of his health benefits.)
Summit Ventures is the largest non-Chen shareholder, with 19 percent; the firm invested in A10’s Series D round. That’s followed by Mitsui & Co., which holds 12.8 percent of A10. No employee other than Chen holds more than 5 percent of the company’s shares.