One party not yet throwing in the towel is J.P. Morgan hardware analyst Rod Hall, who reiterated an Overweight rating, while cutting his price target to $7.50 from $16.50, while stating “We continue to believe that A10 is exposed to an attractive market with good products.”
Hall wonders what the implications might be for other names such as Cisco Systems (CSCO) and Hewlett-Packard (HPQ):
This report in combination with ADTRAN’s recent indication that their enterprise business is weak makes us wonder if there isn’t some negative readacross to other enterprise exposed names in our coverage (CSCO, HPQ, etc.). We also note A10’s strong performance in Japan may bode well for F5, which has over 20% of its sales coming from the country.
In addition to Hall, Merrill Lynch reiterated a Buy on A10, arguing that the sales miss is a “structural” problem with the sales force, and over time the portfolio is what matters, according to a summary by the wire service The Fly on the Wall
Shares of Chinese mobile app publisher Sky-mobi (NASDAQ: MOBI) rose almost 18% Wednesday and another 4.5% after-hours. CFO John Bi indicated in an email to Benzinga, that the company's CEO, Michael Michael Tao Song, speaking at the 2014 TFC Global Mobile Game Developers Conference Wednesday, "revealed a clear strategy and high-growth opportunity" for Sky-mobi.
On Tuesday, Sky-mobi announced a partnership with China Telecom (NYSE: CHL), to provide customized software services at China Telecom's network of stores.
Sky-mobi shares closed Wednesday at $10.42 and traded over $11.00 after-hours.