A10 Networks Inc

Previous wording

We are a leading provider of secure application solutions and services that enable a new generation of intelligently connected companies with the ability to continuously improve cyber protection and digital responsiveness across dynamic Information Technology (“IT”) and network infrastructures. Our product portfolio seeks to address many of the cyber protection challenges and solution requirements. The portfolio consists of six secure application solutions; Thunder Application Delivery Controller (“ADC”), Lightning Application Delivery Controller (“Lightning ADC”), Thunder Carrier Grade Networking (“CGN”), Thunder Threat Protection System (“TPS”), Thunder SSL Insight (“SSLi”) and Thunder Convergent Firewall (“CFW”), and two intelligent management and automation tools; Harmony Controller and aGalaxy TPS. Our solutions are available in a variety of form factors, such as optimized hardware appliances, bare metal software, containerized software, virtual appliances and cloud-native software. Our customers include leading service providers (cloud, telecommunications, multiple system operators, cable), government organizations, and enterprises.

Current wording

We are a leading provider of security and infrastructure solutions and services for on-premises, hybrid cloud and edge-cloud environments that enable a new generation of intelligently connected companies with the ability to continuously improve cyber protection and digital responsiveness across dynamic Information Technology (“IT”) and network infrastructures. Our product portfolio seeks to address many of the cyber protection challenges and solution requirements. The portfolio consists of six secure application solutions; Thunder Application Delivery Controller (“ADC”), Lightning Application Delivery Controller (“Lightning ADC”), Thunder Carrier Grade Networking (“CGN”), Thunder Threat Protection System (“TPS”), Thunder SSL Insight (“SSLi”) and Thunder Convergent Firewall (“CFW”), and two intelligent management and automation tools; Harmony Controller and aGalaxy TPS. Our solutions are available in a variety of form factors, such as optimized hardware appliances, bare metal software, containerized software, virtual appliances and cloud-native software. Our 7000+ customers span global large enterprises and communications, cloud and web service providers, and government organizations.

Previous wording

We derive revenue from two sources: (i) products revenue, which includes hardware, perpetual software license and subscription offerings, which include term-based license agreements; and (ii) services revenue, which includes post contract support (“PCS”), professional services, training and software-as-a-service offerings. Revenue for term-based license agreements is recognized at a point in time when the Company delivers the software license to the customer and over time once the subscription term has commenced. For our software-as-a-service offerings, our customers do not take possession of the Company’s software but rather we provide access to the service via a hosting arrangement. Revenue in these arrangements is recognized over time as the services are provided. A substantial portion of our revenue is from sales of our products and services through distribution channel partners, such as resellers and distributors. Our customers predominantly purchase PCS services in conjunction with purchases of our products. We recognize services revenue ratably over the term of the PCS contract, which is typically one year, but can be up to seven years.

Current wording

We derive revenue from two sources: (i) products revenue, which includes hardware, perpetual software license and subscription offerings, which include term-based license agreements; and (ii) services revenue, which includes post contract support (“PCS”), professional services, training and software-as-a-service offerings. Revenue for term-based license agreements is recognized at a point in time when the Company delivers the software license to the customer and over time once the subscription term has commenced. For our software-as-a-service offerings, our customers do not take possession of the Company’s software but rather we provide access to the service via a hosting arrangement. Revenue in these arrangements is recognized over time as the services are provided. A substantial portion of our revenue is from sales of our products and services through distribution channels, such as resellers and distributors. Our customers predominantly purchase PCS services in conjunction with purchases of our products. We recognize services revenue ratably over the term of the PCS contract, which is typically one year, but can be up to seven years.

Previous wording

We sell substantially all of our solutions through our high-touch sales organization as well as distribution channel partners, including distributors, value-added resellers and system integrators, and fulfill nearly all orders globally through such partners. We believe this sales approach allows us to obtain the benefits of channel distribution, such as expanding our market coverage, while still maintaining face-to-face relationships with our end-customers. We outsource the manufacturing of our hardware products to original design manufacturers. We perform quality assurance and testing at our San Jose, Taiwan and Japan distribution centers, as well as at our manufacturers’ locations.

Current wording

We sell substantially all of our solutions through our high-touch sales organization as well as distribution channels, including distributors, value-added resellers and system integrators, and fulfill nearly all orders globally through such channels. We believe this sales approach allows us to obtain the benefits of channel distribution, such as expanding our market coverage, while still maintaining face-to-face relationships with our end-customers. We outsource the manufacturing of our hardware products to original design manufacturers. We perform quality assurance and testing at our San Jose, Taiwan and Japan distribution centers, as well as at our manufacturers’ locations.

Previous wording

During the three months ended June 30, 2024, (i) 51% of our total revenue was generated from the Americas region, of which 44% was generated from the United States and 7% was generated from the Americas-other, (ii) 32% from the APJ region and (iii) 17% from the EMEA region. During the three months ended June 30, 2023, (i) 56% of our total revenue was generated from the Americas region, of which 48% was generated from the United States and 8% was generated from the Americas-other, (ii) 33% from the APJ region and (iii) 11% from the EMEA region. One of our priorities is to strengthen our sales efforts in North America. Our enterprise customers accounted for 44% and 33% of our total revenue during the three months ended June 30, 2024 and 2023, respectively, and our service provider customers accounted for 56% and 67% of our total revenue during the three months ended June 30, 2024 and 2023, respectively.

Current wording

During the three months ended September 30, 2024, (i) 51% of our total revenue was generated from the Americas region, of which 45% was generated from the United States and 6% was generated from the Americas-other, (ii) 34% from the APJ region and (iii) 14% from the EMEA region. During the three months ended September 30, 2023, (i) 45% of our total revenue was generated from the Americas region, of which 41% was generated from the United States and 4% was generated from the Americas-other, (ii) 37% from the APJ region and (iii) 19% from the EMEA region. One of our priorities is to strengthen our sales efforts in North America. Our enterprise customers accounted for 45% and 50% of our total revenue during the three months ended September 30, 2024 and 2023, respectively, and our service provider customers accounted for 55% and 50% of our total revenue during the three months ended September 30, 2024 and 2023, respectively.

Previous wording

As a result of the nature of our target market and the current stage of our development, a substantial portion of our revenue comes from a limited number of large customers, including service providers and enterprise customers, in any period. Purchases by our ten largest end-customers accounted for 44% and 33% of our total revenue for the three months ended June 30, 2024 and 2023, respectively. Sales to these large end-customers have typically been characterized by large but irregular purchases with long sales cycles. The timing of these purchases and the delivery of the purchased products are difficult to predict. Consequently, any acceleration or delay in anticipated product purchases by or deliveries to our largest customers could materially impact our revenue and operating results in any quarterly period. This may cause our quarterly revenue and operating results to fluctuate from quarter to quarter and make them difficult to predict.

Current wording

As a result of the nature of our target market and the current stage of our development, a substantial portion of our revenue comes from a limited number of large customers, including service providers and enterprise customers, in any period. Purchases by our ten largest end-customers accounted for 44% and 29% of our total revenue for the three months ended September 30, 2024 and 2023, respectively. Sales to these large end-customers have typically been characterized by large but irregular purchases with long sales cycles. The timing of these purchases and the delivery of the purchased products are difficult to predict. Consequently, any acceleration or delay in anticipated product purchases by or deliveries to our largest customers could materially impact our revenue and operating results in any quarterly period. This may cause our quarterly revenue and operating results to fluctuate from quarter to quarter and make them difficult to predict.

Previous wording

As of June 30, 2024, we had $77.5 million of cash and cash equivalents and $99.7 million of marketable securities. Cash provided by operating activities was $44.7 million during the six months ended June 30, 2024, compared to $18.7 million in the same period of 2023.

Current wording

As of September 30, 2024, we had $78.1 million of cash and cash equivalents and $104.0 million of marketable securities. Cash provided by operating activities was $64.8 million during the nine months ended September 30, 2024, compared to $41.8 million in the same period of 2023.

Previous wording

We intend to continue to invest for long-term growth. We have invested and expect to continue to invest in our product development efforts to deliver new products and additional features in our current products to address customer needs. In addition, we may expand our global sales and marketing organizations, expand our distribution channel partner programs and increase awareness of our solutions on a global basis. Our investments in growth in these areas may affect our short-term profitability.

Current wording

We intend to continue to invest for long-term growth. We have invested and expect to continue to invest in our product development efforts to deliver new products and additional features in our current products to address customer needs. In addition, we may expand our global sales and marketing organizations, expand our distribution channel programs and increase awareness of our solutions on a global basis. Our investments in growth in these areas may affect our short-term profitability.

Previous wording

A summary of our condensed consolidated statements of operations for the three and six months ended June 30, 2024 and 2023 is as follows (dollars in thousands):

Current wording

A summary of our condensed consolidated statements of operations for the three and nine months ended September 30, 2024 and 2023 is as follows (dollars in thousands):

Previous wording

We generate services revenue from sales of post contract support (“PCS”), which is bundled with sales of products and technical services. We offer tiered PCS services under renewable, fee-based PCS contracts, primarily including technical support, hardware repair and replacement parts, and software upgrades on a when-and-if-available basis. We recognize services revenue ratably over the term of the PCS contract, which is typically one year, but can be up to seven years. For our software-as-a-service offerings, our customers do not take possession of our software but rather we provide access to the service via a hosting arrangement. Revenue in these arrangements is recognized over time as the services are provided. Additionally, an immaterial portion of our services revenue comes from subscription revenue. We offer several services by subscription, primarily through either term-based license agreements or as a service through our cloud-based platform.

Current wording

We generate services revenue from sales of PCS, which is bundled with sales of products and technical services. We offer tiered PCS services under renewable, fee-based PCS contracts, primarily including technical support, hardware repair and replacement parts, and software upgrades on a when-and-if-available basis. We recognize services revenue ratably over the term of the PCS contract, which is typically one year, but can be up to seven years. For our software-as-a-service offerings, our customers do not take possession of our software but rather we provide access to the service via a hosting arrangement. Revenue in these arrangements is recognized over time as the services are provided. Additionally, an immaterial portion of our services revenue comes from subscription revenue. We offer several services by subscription, primarily through either term-based license agreements or as a service through our cloud-based platform.

Previous wording

Total net revenue decreased $5.7 million, or 9%, during the three months ended June 30, 2024, compared to the same period of 2023. Changes in revenue were due primarily to (i) a $6.1 million decrease in the Americas region, comprised of a decrease in the United States of $5.1 million and a decrease in Americas-other of $0.9 million, (ii) a $2.7 million decrease in the APJ region, and (iii) a $3.0 million increase in the EMEA region. The overall decrease in revenue was attributable to a $11.0 million decrease in revenue from service provider customers, partially offset by a $5.3 million increase in revenue from enterprise customers during the three months ended June 30, 2024 compared to the same period of 2023. Products revenue decreased $9.6 million, of which the Americas region decreased $7.0 million and the APJ region decreased $4.4 million, partially offset by an increase of $1.9 million in the EMEA region for the three months ended June 30, 2024, compared to the same period of 2023. Services revenue increased $3.8 million, comprised of increases of $1.7 million, $1.1 million and $1.0 million in the APJ, EMEA and Americas regions, respectively, for the three months ended June 30, 2024, compared to the same period of 2023.

Current wording

Total net revenue increased $8.9 million, or 15%, during the three months ended September 30, 2024, compared to the same period of 2023. Changes in revenue were due primarily to (i) an increase of $8.4 million in the Americas region, comprised of increases of $6.5 million in the United States and $1.9 million in Americas-other, (ii) an increase of $1.8 million in the APJ region, and (iii) a decrease of $1.3 million in the EMEA region. The overall increase in revenue was attributable to a $8.0 million increase in revenue from service provider customers and a $0.9 million increase in revenue from enterprise customers during the three months ended September 30, 2024 compared to the same period of 2023. Products revenue increased $6.6 million, of which the Americas region increased $6.9 million and the APJ region increased $1.3 million, partially offset by a decrease of $1.6 million in the EMEA region for the three months ended September 30, 2024, compared to the same period of 2023. Services revenue increased $2.3 million, comprised of increases of $1.6 million, $0.5 million and $0.3 million in the Americas, APJ and EMEA regions, respectively, for the three months ended September 30, 2024, compared to the same period of 2023.

Previous wording

Products revenue decreased $9.6 million, or 24%, during the three months ended June 30, 2024 compared to the same period of 2023, as a result of a decrease in demand from our service provider customers in the Americas and APJ regions.

Current wording

Products revenue increased $6.6 million, or 22%, during the three months ended September 30, 2024 compared to the same period of 2023, as a result of an increase in demand from our service provider customers in the Americas and APJ regions.

Previous wording

Services revenue increased $3.8 million, or 14%, during the three months ended June 30, 2024, compared to the same periods of 2023, primarily attributable to an increase in PCS sales as a result of our growing installed customer base, especially in the APJ and EMEA regions.

Current wording

Services revenue increased $2.3 million, or 9%, during the three months ended September 30, 2024, compared to the same periods of 2023, primarily attributable to an increase in PCS sales as a result of our growing installed customer base across all regions.

Previous wording

During the six months ended June 30, 2024, $58.3 million, or 48% of total revenue, was generated from the Americas region, which represents an 13% decrease in revenue compared to the same period of 2023. The decrease was primarily due to lower products revenue due to a decrease in demand from our service provider customers.

Current wording

During the three months ended September 30, 2024, $34.3 million, or 51% of total revenue, was generated from the Americas region, which represents a 33% increase in revenue compared to the same period of 2023. The increase was primarily due to higher products revenue due to an increase in demand from our service provider customers in the Americas region.

Previous wording

During the three months ended June 30, 2024, $9.9 million, or 17% of total revenue, was generated from the EMEA region, which represents a 44% increase compared to the same period of 2023. The increase was primarily due to higher services revenue due to an increase in demand from our service provider and enterprise customers in the EMEA region.

Current wording

During the three months ended September 30, 2024, $23.0 million, or 35% of total revenue, was generated from the APJ region, which represents an 8% increase compared to the same period of 2023. The increase was primarily due to higher services revenue due to an increase in demand from both our enterprise and service provider customers in the APJ region.

Previous wording

During the three months ended June 30, 2024, $19.3 million, or 32% of total revenue, was generated from the APJ region, which represents a 12% decrease compared to the same period of 2023. The decrease was primarily due to lower services revenue due to a decrease in demand from our service provider customers in the APJ region.

Current wording

During the three months ended September 30, 2024, $9.5 million, or 14% of total revenue, was generated from the EMEA region, which represents a 12% decrease compared to the same period of 2023. The decrease was primarily due to lower products revenue due to a decrease in demand from our service provider customers in the EMEA region.

Previous wording

Total net revenue decreased $2.7 million, or 2%, during the six months ended June 30, 2024, compared to the same period of 2023. Changes in revenue were due primarily to (i) a $8.6 million decrease in the Americas region, comprised of a decrease in the United States of $6.1 million and a decrease in Americas-other of $2.5 million, (ii) a $6.6 million increase in the APJ region, and (iii) a $0.8 million decrease in the EMEA region. The overall decrease in revenue was attributable to a $5.9 million decrease in revenue from service provider customers, partially offset by a $3.2 million decrease in revenue from enterprise customers during the six months ended June 30, 2024 compared to the same period of 2023. Products revenue decreased $10.7 million, of which the America region decreased $11.0 million and the EMEA region decreased $2.7 million, partially offset by an increase of $3.0 million in the APJ region for the six months ended June 30, 2024, compared to the same period of 2023. Services revenue increased $7.9 million, comprised of increase of $3.6 million, $2.4 million and $1.9 million in the APJ, Americas and EMEA regions, respectively, for the six months ended June 30, 2024, compared to the same period of 2023.

Current wording

Total net revenue increased $6.2 million, or 3%, during the nine months ended September 30, 2024, compared to the same period of 2023. Changes in revenue were due primarily to (i) a decrease of $0.1 million in the Americas region, comprised of a decrease of $0.6 million in Americas-other, partially offset by an increase of $0.4 million in the United States, (ii) an increase of $8.4 million in the APJ region, and (iii) a decrease of $2.0 million in the EMEA region. The overall increase in revenue was attributable to a $10.3 million increase in revenue from service provider customers, partially offset by a $4.1 million decrease in revenue from enterprise customers during the nine months ended September 30, 2024 compared to the same period of 2023. Products revenue decreased $4.1 million, of which the EMEA region decreased $4.3 million and the Americas region decreased $4.1 million, partially offset by an increase of $4.4 million in the APJ region for the nine months ended September 30, 2024, compared to the same period of 2023. Services revenue increased $10.3 million, comprised of increases of $4.0 million, $4.0 million and $2.3 million in the Americas, APJ and EMEA regions, respectively, for the nine months ended September 30, 2024, compared to the same period of 2023.

Previous wording

Products revenue decreased $10.7 million, or 15%, during the six months ended June 30, 2024 compared to the same period of 2023, as a result of a decrease in demand from our service provider customers in the Americas regions.

Current wording

Products revenue decreased $4.1 million, or 4%, during the nine months ended September 30, 2024 compared to the same period of 2023, as a result of a decrease in demand from our service provider customers in the Americas regions.

Previous wording

Services revenue increased $7.9 million, or 15%, during the six months ended June 30, 2024, compared to the same periods of 2023, primarily attributable to an increase in PCS sales as a result of our growing installed customer base, especially in the APJ and Americas regions.

Current wording

Services revenue increased $10.3 million, or 13%, during the nine months ended September 30, 2024, compared to the same periods of 2023, primarily attributable to an increase in PCS sales as a result of our growing installed customer base across all regions.

Previous wording

During the three months ended June 30, 2024, $30.9 million, or 51% of total revenue, was generated from the Americas region, which represents a 16% decrease in revenue compared to the same period of 2023. The decrease was primarily due to lower products revenue due to a decrease in demand from our service provider customers in the Americas region.

Current wording

During the nine months ended September 30, 2024, $92.6 million, or 49% of total revenue, was generated from the Americas region, which represents an immaterial decrease in revenue compared to the same period of 2023. The decrease was primarily due to lower products revenue due to a decrease in demand from our service provider customers in the Americas region.

Previous wording

During the six months ended June 30, 2024, $44.3 million, or 37% of total revenue, was generated from the APJ region, which represents a 17% increase compared to the same period of 2023. The increase was primarily due to higher products and services revenue due to an increase in demand from our service provider customers.

Current wording

During the nine months ended September 30, 2024, $67.3 million, or 36% of total revenue, was generated from the APJ region, which represents a 14% increase compared to the same period of 2023. The increase was primarily due to higher products and services revenue due to an increase in demand from our service provider customers in the APJ region.

Previous wording

During the three months ended June 30, 2024, $18.1 million, or 15% of total revenue, was generated from the EMEA region, which represents a 4% decrease compared to the same period of 2023. The decrease was primarily due to lower products revenue due to a decrease in demand from our enterprise customers.

Current wording

During the nine months ended September 30, 2024, $27.6 million, or 15% of total revenue, was generated from the EMEA region, which represents a 7% decrease compared to the same period of 2023. The decrease was primarily due to lower products revenue due to a decrease in demand from our service provider customers in the EMEA region.

Previous wording

Products cost of revenue decreased 27.8% and 12.3% during the three and six months ended June 30, 2024, respectively, compared to the same periods of 2023, primarily due to a decrease in products revenue.

Current wording

Products cost of revenue increased 10.5% and decreased 5.3% during the three and nine months ended September 30, 2024, respectively, compared to the same periods of 2023, primarily due product and regional mix.

Previous wording

Services cost of revenue increased 29.7% and 21.0% during the three and six months ended June 30, 2024, respectively, compared to the same periods of 2023, primarily driven by the mix of services delivered, which include technical support, training and service costs.

Current wording

Services cost of revenue increased 31.3% and 24.5% during the three and nine months ended September 30, 2024, respectively, compared to the same periods of 2023, primarily driven by the mix of services delivered, which include technical support, training and service costs.

Previous wording

Products gross margin increased 1.0% and decreased 0.7% during the three and six months ended June 30, 2024, respectively, compared to the same periods of 2023, primarily due to product and regional mix.

Current wording

Products gross margin increased 2.1% and 0.3% during the three and nine months ended September 30, 2024, respectively, compared to the same periods of 2023, primarily due to product and regional mix.

Previous wording

Services gross margin decreased 2.0% and 0.8% during the three and six months ended June 30, 2024, respectively, compared to the same periods of 2023, primarily driven by the mix of services delivered, which include technical support, training and service costs.

Current wording

Services gross margin decreased 3.2% and 1.6% during the three and nine months ended September 30, 2024, respectively, compared to the same periods of 2023, primarily driven by the mix of services delivered, which include technical support, training and service costs.

Previous wording

Sales and marketing operating expenses decreased $1.4 million, or 6.8%, in the three months ended June 30, 2024, compared to the same period in 2023, and decreased $2.5 million, or 5.9%, in the six months ended June 30, 2024, compared to the same period in 2023, primarily due to a decrease in personnel costs.

Current wording

Sales and marketing operating expenses decreased $0.3 million, or 1.5%, in the three months ended September 30, 2024, compared to the same period in 2023, and decreased $2.8 million, or 4.4%, in the nine months ended September 30, 2024, compared to the same period in 2023, primarily due to a decrease in personnel costs.

Previous wording

For the full year 2024, we expect sales and marketing expenses to increase from 2023 levels in line with overall revenue growth as we apply a disciplined approach to focus our investments in areas that offer the greatest opportunities.

Current wording

For the full year 2024, we expect sales and marketing expenses to decrease from 2023 levels as we apply a disciplined approach to focus our investments in areas that offer the greatest opportunities.

Previous wording

Research and development operating expenses increased $0.8 million, or 5.5%, in the three months ended June 30, 2024, compared to the same period in 2023, and increased $3.2 million, or 12.4%, in the six months ended June 30, 2024, compared to the same period in 2023, primarily due to an increase in personnel costs.

Current wording

General and administrative operating expenses increased $0.9 million, or 15.7%, in the three months ended September 30, 2024, compared to the same period in 2023, and increased $1.1 million, or 5.6%, in the nine months ended September 30, 2024, compared to the same period in 2023, primarily due to an increase in personnel costs.

Previous wording

Non-operating income, net, had a favorable change of $0.5 million for the three months ended June 30, 2024, compared to the same period of 2023. The favorable change was primarily driven by an increase in interest income of $1.1 million, fair value adjustment gains of $0.5 million and other expense gains of $0.3 million, partially offset by an unfavorable change of $1.3 million in foreign exchange gains for the three months ended June 30, 2024, compared to the same period of 2023.

Current wording

Non-operating income, net, had a favorable change of $1.2 million for the three months ended September 30, 2024, compared to the same period of 2023. The favorable change was primarily driven by fair value adjustment gains of $0.9 million and foreign exchange gains of $0.5 million, partially offset by a decrease in interest income of $0.1 million for the three months ended September 30, 2024, compared to the same period of 2023.

Previous wording

Non-operating income, net, had a favorable change of $5.8 million for the six months ended June 30, 2024, compared to the same period of 2023. The favorable change was primarily driven by a favorable change of $2.5 million in foreign exchange gains and losses, an increase in interest income of $1.8 million and fair value adjustment gains of $1.2 million for the six months ended June 30, 2024, compared to the same period of 2023.

Current wording

Non-operating income, net, had a favorable change of $7.0 million for the nine months ended September 30, 2024, compared to the same period of 2023. The favorable change was primarily driven by a favorable change in foreign exchange gains and losses of $3.0 million, fair value adjustment gains of $2.0 million and an increase in interest income of $1.7 million for the nine months ended September 30, 2024, compared to the same period of 2023.

Previous wording

We recorded income tax provisions of $1.5 million and $3.2 million for the three months ended June 30, 2024 and 2023, respectively, and we recorded income tax provisions of $3.0 million and $4.2 million for the six months ended June 30, 2024 and 2023. Our income tax provisions for the three months ended June 30, 2024 and 2023 and for the six months ended June 30, 2024 and 2023 primarily consisted of U.S. federal and state taxes.

Current wording

We recorded a provision for income tax of $1.8 million and a benefit for income tax of $1.5 million for the three months ended September 30, 2024 and 2023, respectively, and we recorded a provision for income tax expense of $4.8 million and $2.6 million for the nine months ended September 30, 2024 and 2023, respectively. The Company’s income tax provision and benefit for the three and nine months ended September 30, 2024 and 2023 primarily consisted of U.S. federal and state taxes.

Previous wording

As of June 30, 2024, we had cash and cash equivalents of $77.5 million, including $2.3 million held outside the United States in our foreign subsidiaries, and $99.7 million of marketable securities. We currently do not have any plans to repatriate our earnings from our foreign operations. As of June 30, 2024, we had working capital of $160.0 million, accumulated deficit of $71.3 million and total stockholders’ equity of $214.4 million. Our marketable securities are highly liquid and are classified as available for sale should the Company decide to quickly raise cash at any time in the future.

Current wording

As of September 30, 2024, we had cash and cash equivalents of $78.1 million, including $2.9 million held outside the United States in our foreign subsidiaries, and $104.0 million of marketable securities. We currently do not have any plans to repatriate our earnings from our foreign operations. As of September 30, 2024, we had working capital of $156.8 million, accumulated deficit of $58.6 million and total stockholders’ equity of $217.3 million. Our marketable securities are highly liquid and are classified as available for sale should the Company decide to quickly raise cash at any time in the future.

Previous wording

On November 1, 2022, the Company announced its Board of Directors (the “Board”) authorized a new stock repurchase program (the “2022 Program”) of up to $50 million of its common stock over a period of twelve months. Under all programs, repurchased shares are held in treasury at cost. The Company’s stock repurchase programs do not obligate us to acquire any specific number of shares. Shares may be repurchased in privately negotiated and/or open market transactions, including under plans complying with Rule 10b5-1 under the Exchange Act. Through December 31, 2023,the Company repurchased 1.2 million shares for a total cost of $15.7 million under the 2022 Program. The 2022 Program was active for twelve months and expired in the second half of 2023.

Current wording

The Company’s Board of Directors (the “Board”) has authorized various stock repurchase programs from time to time, including a twelve-month $50 million program approved on November 1, 2022 (the “2022 Program”), a twelve-month $50 million program approved November 7, 2023 (the “2023 Program”) and a $50 million program approved November 7, 2024 (the “2024 Program”). Under all programs, repurchased shares are held in treasury at cost. The Company’s stock repurchase programs do not obligate us to acquire any specific number of shares. Shares may be repurchased in privately negotiated and/or open market transactions, including under plans complying with Rule 10b5-1 under the Exchange Act. Through December 31, 2023, the Company had repurchased 1.2 million shares for a total cost of $15.7 million under the 2022 Program. Through September 30, 2024, the Company had repurchased 1.8 million shares for a total cost of $24.6 million under the 2023 Program.

Previous wording

In October 2021, our Board approved the initiation of a regular quarterly cash dividend on our common stock. In the three and six months ended June 30, 2024, the Company paid cash dividends of $0.06 per share outstanding, for a total of $4.5 million and $8.9 million, respectively, as a return of capital. In the three and six months ended June 30, 2023, the Company paid cash dividends of $0.06 per share outstanding, for a total of $4.4 million $8.9 million, respectively, as a return of capital. The next dividend, in the amount of $0.06 per share, will be paid on September 3, 2024 to stockholders of record on August 15, 2024 as a return of capital. We currently anticipate that we will continue to pay comparable quarterly cash dividends in the future. However, the payment, amount and timing of future dividends remain within the discretion of our Board and will depend upon our results of operations, financial condition, cash requirements, and other factors.

Current wording

In October 2021, our Board approved the initiation of a regular quarterly cash dividend on our common stock. In the three and nine months ended September 30, 2024, the Company paid cash dividends of $0.06 per share outstanding, for a total of $4.5 million and $13.4 million, respectively, as a return of capital. In the three and nine months ended September 30, 2023, the Company paid cash dividends of $0.06 per share outstanding, for a total of $4.4 million $13.4 million, respectively, as a return of capital. The next dividend, in the amount of $0.06 per share, will be paid on December 2, 2024 to stockholders of record on November 18, 2024 as a return of capital. We currently anticipate that we will continue to pay comparable quarterly cash dividends in the future. However, the payment, amount and timing of future dividends remain within the discretion of our Board and will depend upon our results of operations, financial condition, cash requirements, and other factors.

Previous wording

During the six months ended June 30, 2024 cash provided by operating activities was $44.7 million, consisting of net income of $19.2 million, non-cash charges of $13.2 million and an increase in cash resulting from the net change in operating assets and liabilities of $12.2 million. Our non-cash charges consisted primarily of depreciation and amortization expenses of $5.5 million and stock-based compensation expense of $8.1 million. The net change in our operating assets and liabilities primarily reflects cash inflows from the changes in accounts receivable of $16.7 million and accrued liabilities of $3.6 million, partially offset by cash outflows from inventory of $3.3 million, accounts payable of $2.9 million, deferred revenue of $1.4 million and prepaid expenses and other assets of $0.5 million.

Current wording

During the nine months ended September 30, 2024 cash provided by operating activities was $64.8 million, consisting of net income of $31.8 million, non-cash charges of $19.5 million and an increase in cash resulting from the net change in operating assets and liabilities of $13.4 million. Our non-cash charges consisted primarily of depreciation and amortization expenses of $8.2 million and stock-based compensation expense of $12.3 million. The net change in our operating assets and liabilities primarily reflects cash inflows from the changes in accounts receivable of $8.4 million, accrued liabilities of $5.1 million, deferred revenue of $2.9 million and prepaid expenses and other assets of $0.8 million, partially offset by cash outflows from inventory of $1.9 million and accounts payable of $1.8 million.

Previous wording

During the six months ended June 30, 2023, cash provided by operating activities was $18.7 million, consisting of net income of $15.6 million and non-cash charges of $11.3 million, partially offset by a decrease in cash resulting from the net change in operating assets and liabilities of $8.1 million. Our non-cash charges consisted primarily of depreciation and amortization expenses of $4.3 million and stock-based compensation expense of $7.2 million. The net change in our operating assets and liabilities primarily reflects cash outflows from the changes in accrued liabilities of $17.1 million, inventory of $1.7 million and accounts payable of $1.5 million, partially offset by cash inflows from changes in deferred revenue of $4.6 million, prepaid expense and other assets of $3.8 million and accounts receivable of $3.7 million.

Current wording

During the nine months ended September 30, 2023, cash provided by operating activities was $41.8 million, consisting of net income of $22.1 million and non-cash charges of $18.8 million and an increase in cash resulting from the net change in operating assets and liabilities of $0.9 million. Our non-cash charges consisted primarily of depreciation and amortization expenses of $6.8 million and stock-based compensation expense of $11.2 million. The net change in our operating assets and liabilities primarily reflects cash inflows from the changes in accrued receivable of $14.1 million, deferred revenue of $8.7 million and prepaid expenses and other assets of $2.0 million, partially offset by cash outflows from changes in accrued liabilities of $17.4 million, inventory of $5.3 million and accounts payable of $1.2 million.

Previous wording

During the six months ended June 30, 2024, cash used in investing activities was $42.5 million, consisting of purchases of marketable securities of $106.3 million and capital expenditures of $6.4 million, partially offset by maturities of marketable securities of $47.7 million and sales of marketable securities of $22.5 million.

Current wording

During the nine months ended September 30, 2024, cash used in investing activities was $48.2 million, consisting of purchases of marketable securities of $127.3 million and capital expenditures of $9.9 million, partially offset by maturities and sales of marketable securities of $89.0 million.

Previous wording

During the six months ended June 30, 2023, cash provided by investing activities was $37.0 million, consisting of maturities of marketable securities of $44.5 million and sales of marketable securities of $42.3 million, partially offset by purchases of marketable securities of $44.7 million and capital expenditures of $5.1 million.

Current wording

During the nine months ended September 30, 2023, cash provided by investing activities was $13.4 million, consisting of maturities and sales of marketable securities of $96.3 million, partially offset by purchases of marketable securities of $75.1 million and capital expenditures of $7.8 million.

Previous wording

During the six months ended June 30, 2024, cash used in financing activities was $22.0 million and primarily consisting of $14.9 million used for repurchases of common stock and $8.9 million used for cash dividend payments, partially offset by $1.9 million of proceeds from common stock issued under the Company’s equity plans.

Current wording

During the nine months ended September 30, 2024, cash used in financing activities was $35.8 million and primarily consisting of $24.3 million used for repurchases of common stock and $13.4 million used for cash dividend payments, partially offset by $1.9 million of proceeds from common stock issued under the Company’s equity plans.

Previous wording

During the six months ended June 30, 2023, cash used in financing activities was $12.6 million and primarily consisting of $8.9 million used for cash dividend payments and $6.2 million used for repurchases of common stock, partially offset by $2.6 million of proceeds from common stock issued under the Company’s equity plans.

Current wording

During the nine months ended September 30, 2023, cash used in financing activities was $19.0 million and primarily consisting of $13.4 million used for cash dividend payments and $8.7 million used for repurchases of common stock, partially offset by $3.0 million of proceeds from common stock issued under the Company’s equity plans.