A10 Networks, Inc.

Good day and welcome to the ATEM Network's fourth quarter 2020 financial results conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your touchtone phone. If you would like to withdraw your question, please press star, then two. Please note this event is being recorded. I would now like to turn the conference over to Rob Fink of FNK IR. Please go ahead.

Thank you, Operator, and thank you, everyone, for joining us today. This call is being recorded and webcasted live and may be accessed for at least 90 days on ATEN's Investor Relations website at atennetworks.com. Hosting the call today are Drew Petruvetti, ATEN's president and CEO, and Brian Becker, interim CFO. Before we begin, I would like to remind you that shortly after the market closed today, ATEN Networks issued a press release announcing its fourth quarter 2020 financial results. Additionally, the company published a presentation and supplemental trended financial statements. You may access the press release, presentations, and trended financial statements on the investor relations section of the company's website. During the course of today's call, management will make forward-looking statements, including statements regarding our positioning, industry trends, and opportunities strategy, including diversification, portfolio management, recurring revenue, deferred revenue, operating margin, growth and profitability, and volatility. These statements are based on current expectations and beliefs as of today, February 9th, 2021. These forward-looking statements involve the number of risks and uncertainties, some of which are beyond the company's control, such as the potential impact of COVID-19 on its business and operations that could cause actual results to differ materially, and you should not rely on them as predictions as future events. ATEN does not intend to update information contained in these forward-looking statements, whether as a result of new information, future events, or otherwise, except required by law. For more detailed description of these risks and uncertainties, please refer to the company's most recent 10-K. Please note with the exception of revenue, financial measures discussed today are a non-GAAP basis and have been adjusted to exclude certain charges. The non-GAAP financial measures are not intended to be or considered in isolation or as a substitute for any results prepared in accordance with GAAP and may be different from non-GAAP financial measures presented by other companies. A reconciliation between GAAP and non-GAAP measures can be found in the press release issued today and on the trended quarterly financial statements posted on the company's website. With all that said, I'd now like to turn the call over to Drupad. Drupad, the call is yours.

Thank you, Rob, and thank you all for joining us today. The fourth quarter represented a strong end to a solid year for us. we have established the foundation for sustainable growth and profitability. In fact, we reported our fourth consecutive quarter of positive year-over-year organic growth, delivering total growth of 6% for the year. Importantly, we have refined our go-to-market strategy, establishing strategic relationships with partners and resellers, streamlining our sales organization around the globe to focus on the most promising and profitable opportunities and transition from a provider of commoditized solutions to a strategic integrator providing best-in-class solutions in several growth-oriented technological areas. In particular, we are well positioned in cybersecurity, the 5G rollout, and network availability, including DDoS attack prevention. Each of these areas represent strong multi-year secular opportunities for us. They enjoy broad tailwinds. And our offerings are not only best in class, but differentiated by building upon strong historical leadership in these segments that has been built over 10 years. Let me speak to some of our solution-based approaches and how they are resonating with customers. A major service provider in Japan was faced with growth in mobile internet traffic, as well as increased volume of cybersecurity attacks. ATEN was able to provide an integrated solution that included multiple functions, was able to operate efficiently at hyperscale, and provided the best path for them as they continue to grow their network, all while adding more security. Our solution was chosen for technical performance, alignment with customer's business metrics, and reduction in the customer's OPEX with ease of management. In another example, one of our important service provider customers was planning to expand their existing 5G rollout. In spite of COVID-related restrictions, ATEN was able to work with the customer to deliver a virtualized solution that helped them to address their growing Internet traffic. This was an important step as it demonstrates that ATEN can support customer solutions based on their needs, which can sometimes be a mix of virtualized and physical solutions. Government agencies have been faced with increasing external cyber attacks during 2020. ATEN was able to partner with a government agency in Southeast Asia to deploy our DDoS protection solution to protect them and vital services from disruption. Our solution was chosen because it was easy to deploy, integrated well with their infrastructure, and most importantly, provided the strongest protection in technical evaluations. Today, ATEM has a global presence helping us navigate the COVID challenge demand environment. We have revenue diversity mitigating our reliance on large customers and individual product offerings. Throughout the last year, our primary focus was to deliver growth while maintaining cost discipline and maximizing our efficiency in all functional areas. With that foundation in place, we are turning our focus in 2021 towards portfolio management. This includes broader security-led solutions for our customers, enabling 5G and 5G readiness, and increasing our recurring revenue in line with our customers' business goals. This effort will make our business even more sustainable while increasing our visibility into our quarterly performance. Our goal is to grow our recurring revenue faster than our overall revenue. For perspective, our recurring revenue on December 31st, 2019 was $94 million, and grew to approximately $105 million by end of last year. During 2021, we anticipate this transition to be neutral to our operating margins as we invest the incremental revenue into back-end support to grow this stream. Beginning in 2022, we expect this initiative to be slightly accretive to our operating margins. As part of this initiative, beginning in the first quarter, we plan to call out total recurring revenue and deferred revenue. Deferred revenue represents a leading indicator of future revenue and can provide some insight into total lifetime value of a customer relationship as it represents contracted revenue that has not yet been recognized. This initiative is strategically important it adds a new pillar of sustainable growth in line with our customers' needs. While we are benefiting from macro tailwinds related to cloud computing, Internet of Things, growth in data, and convergence of networks, trends which closely align with our value proposition to customers, ultimately, our long-term success is based on choosing the right opportunities and on executions. The last year has demonstrated our ability to build upon our technical foundation and improve execution, and the impact of that is evident in the sustainable and profitable growth we generate. With that, I'd like to turn the call over to Brian for a detailed review of the fourth quarter and full year. Brian?