Good day and welcome to the A10 Networks' Third Quarter 2019 Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Chris Mammone, Investor Relations. Please go ahead.

Thank you for -- thank you all for joining us today. This call is being recorded and webcast live and may be accessed for one year via the A10 Networks website, a10networks.com. Members of A10's management team joining me today are Lee Chen, Founder and CEO; Chris White, EVP of Worldwide Sales; and Tom Constantino, CFO. Before we begin, I would like to remind you that shortly after the market close today, A10 Networks issued a press release announcing its third quarter 2019 financial results. Additionally, A10 published a presentation along with its prepared comments for this call and supplemental trended financial statements. You may access the press release, presentation with prepared remarks, and trended financial statements on the Investor Relations section of the company's website. Now, during the course of today's call, management will make forward-looking statements, including statements regarding our projections for our future operating results, including our belief that we will see a sequential increase in revenue during the fourth quarter, increased recurring revenue for 2020; our focus on business optimization and overall profitability, including through a reduction in force; our pursuit of potential alternatives to create shareholder value; our CEO succession plan; the capabilities of our sales team; the refining of our marketing engine; our expectations regarding future opportunities and our ability to execute on those opportunities; our commitment to innovation and bringing new solutions to market; our expectations for future market growth and general growth of our business; the development and performance of our products; our current and future strategies; our beliefs relating to our competitive advantages; anticipating customer benefits around the use of our products; our expectations and priorities with respect to 5G; responses to new security threats; our partnerships with key technology providers and sales partnerships; and our ability to penetrate certain markets.…

Thank you, Chris and thank you all for joining us today. We are pleased with the delivered results for third quarter that were in line with revenue expectation for sequential growth and better than the guidance range for gross margin and operating expenses that we communicated during our previous earnings call. We delivered revenue of $52.8 million, non-GAAP gross margin of 78.1%, EBITDA of $4 million, and reported $0.02 of non-GAAP earnings per share. We believe we will see a further uptick in revenue during Q4. We continue to see strong engagement with customers while adopting our secure application services for multi-cloud and 5G environments. During my recent visit to Japan and Middle East, many of our customer convey optimism about the demand for their 5G services and are planning to build out their 5G transfer infrastructures over the next several years. Security remain a top concern for our customers, and our differentiated software-driven security solution continue to gain traction. During Q3, we announced industry-leading innovation with the Cloud Access Proxy, which provides stronger security, better performance and enhanced user experience for Software-as-a-Service, SaaS, applications, such as Microsoft Office 365. Through our work with Intel, we were recognized with the Winners' Circle Leaders Board Award for 5G security and NFVi innovations. A10's 5G solution continued to drive a number of significant wins during the quarter. Thunder CFW was adopted at SK Telecom for the world's first 5G commercial service and which took sale for hyperscale, virtualized, carrier-grade net services. In the Middle East, we also secured a $1 million-plus 5G design win with mobile operators. Moving now to strategic topic. On our last earning call, we announced both the formation of a strategy committee of the Board of Directors as well as a CEO succession plan. This strategy committee continues to evaluate opportunities to maximize shareholder value. Meanwhile, the search committee continue to evaluate CEO candidates. I remain fully committed to my role as CEO of A10 Networks and will work closely with the team to help ensure a smooth transition to my successor when that time comes. In summary, I have greater confidence in our ability to navigate effectively through a dynamic business environment closing out this year and heading into 2020. I believe we are in a strong position to continue to drive customer engagements and successes around our core strategic security solutions in 5G and multi-cloud. And there's continuing shift underway with respect to our recurring revenue. We are targeting $100 million in recurring high-margin maintenance and subscription revenue in 2020. With that, I would like to turn the call over to Tom to review the details of our third quarter financial performance and fourth quarter guidance. Tom?

Thank you, Lee. Third quarter revenue was $52.8 million, up 7% sequentially from $49.2 million reported in Q2 and above the midpoint of our guidance range. The year-over-year decline in revenue is driven by fluctuating demand from our largest web giant account in North America. Third quarter product revenue was $30.1 million, representing 57% of total revenue. Service revenue was $22.8 million or 43% of total revenue. Security product revenue comprised 44% of total product revenue in Q3. Moving to our revenue from a geographic standpoint. For the third quarter, revenue from North America decreased 27% year-over-year to $19.6 million compared with $27 million from the same period last year. In Japan, revenue was $15.2 million, up 8% year-over-year. Revenue from APAC excluding Japan was $8.4 million compared with $9.3 million in Q3 of 2018. In EMEA, revenue was $6.5 million, a decrease of 19% when compared with $8.1 million in the year ago period. Revenue from LatAm continued to grow and came in at $3.2 million, up 56% compared with $2 million last year. Service provider revenue in the quarter was 50% of total revenue, enterprise revenue was 38%, and web giant revenue rounded to 12%. As we move beyond revenue, all further metrics discussed on this call are on a non-GAAP basis unless stated otherwise. We delivered third quarter total gross margin of 78.1%, 10 basis points better than Q2 and also above our guidance range. Q3 marked our highest gross margin performance so far this year. Third-party gross -- third-party product gross margin was 76.5% compared with 74.4% last quarter and 77.1% in Q3 of 2018. Our product gross margin was negatively impacted by geographic mix versus the prior year period. Service gross margin in the quarter came in at 80.2% compared to 82.4% last quarter and…

Thank you, Tom. And looking at the dynamics within the quarter, North America revenue grew 28% versus last year, which far and away was the biggest driver of the company's 7% overall sequential growth. Furthermore, our win rate remains high and we continue to see the overall quality of the pipeline strengthen. That said, demand from our largest installed base in North America remains challenging. Although the larger sized deals, primarily in our enterprise and web giant verticals continue to be pushed into future quarters, we're starting to see increased traction in smaller sized deal activity from our strategic accounts in North America. And this at the very least is a positive early indicator. This improved demand enabled us to deliver revenue above the midpoint of our guidance range for Q3. Accordingly, this higher traction activity has extended into the current period, positioning us well for what we believe will be another sequential increase in revenue in Q4, as indicated by our guidance. In 5G, we are pleased to report that customers who have selected A10 over the past year are beginning to expand their deployments. A10 Networks is focused on 5G security solutions with multiple proven Tier 1 5G deployments that require continued hyperscale, lower latency, agility and advanced security. As an example, we saw a significant continued expansion of our 5G security technology footprint with one of the largest carriers in the Middle East. Intel is the latest industry titan to recognize A10 Networks' 5G security and NFVi innovation as superior in enabling service providers worldwide, recently awarding us with the Winners' Circle Leaders Board Award. This is the top honor in the Intel Network Builders program, which aims to accelerate network transformation by fostering innovation and solution development. As a member of the Intel Network Builders ecosystem,…

Thank you. There are no questions at this time. This does conclude our question-and-answer session. I would now like to turn the conference back over to management for any closing remarks.

Thank you and all of our shareholder for joining us today and for your support. Thank you and good day.

Thank you. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.