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Telco/Internet specialist

Kirk Boodry

Redex Research

Equity Bottom-Up

<p><a href="https://www.smartkarma.com/entities/arteria-networks-corp" target="_blank" data-smartkarma-citation="entities:27807:1" rel="noopener">ARTERIA Networks Corp (4423 JP)</a> posted Q2 results modestly below consensus on disruption from coronavirus but re-iterated guidance for the full year. Revenue growth in Q2 of 2% tracked Q1 but operating income fell by 9% (v 7% growth in Q1) on higher infrastructure and customer service costs. These were higher than expected and the potential for this kind of impact is what took 15% off the share price over the last three months. The message this quarter is better as there are signs that the operating environment has improved and full-year guidance remains in reach.</p>

ARTERIA Networks Corp (4423 JP) posted Q2 results modestly below consensus on disruption from coronavirus but re-iterated guidance for the full year. Revenue growth in Q2 of 2% tracked Q1 but operating income fell by 9% (v 7% growth in Q1) on higher infrastructure and customer service costs. These were higher than expected and the potential for this kind of impact is what took 15% off the share price over the last three months. The message this quarter is better as there are signs that the operating environment has improved and full-year guidance remains in reach.

Arteria Networks - Q2 20 Results: On Track to Meet Full-Year Guidance