Anya Soderstrom

Anya Soderstrom (Sidoti & Company, LLC) asked about the primary drivers behind A10 Networks' Q4 outperformance and the quarter's overall trend. She also inquired about the nature of new customer acquisitions, changes in the competitive landscape, and the drivers behind the uptick in CapEx spend.

Answer

Dhrupad Trivedi, President and CEO of A10 Networks, attributed the Q4 outperformance to an improved service provider segment, growth in larger enterprise customers, and investments in AI infrastructure. He confirmed that new customer wins typically involve displacing competitors, with no significant changes in the competitive landscape. Trivedi also clarified that an uptick in CapEx was driven by investments in back-end infrastructure for services (e.g., ThreatX integration, hosting, SOC) and early-stage AI infrastructure for demos and POCs.

Anya Soderstrom from Sidoti & Company LLC asked how Daktronics anticipates the third quarter softening, given the strong backlog growth. She also inquired about the new Mexico plant's impact on U.S. capacity utilization, whether production would shift, and the revenue capacity this new footprint could facilitate before further expansion is needed.

Answer

Brad Wiemann, Interim President and CEO, explained that the anticipated third-quarter softening is primarily due to fewer available workdays because of holidays, despite the strong backlog. He clarified that the Mexico plant is a small, complementary footprint designed to support overall growth objectives (7-10% CAGR) and does not involve moving production from U.S. factories, which will continue to account for approximately 80% of global manufacturing. He reiterated that it's a small expansion, part of growth plans, and not intended to significantly alter the existing production distribution.