WESTFORD, Mass., June 7 /PRNewswire-FirstCall/ --
NetScout Systems, Inc. (Nasdaq: NTCT), a leading provider of network
performance management solutions, today announced revised guidance for its
first fiscal quarter, ending June 30, 2002. Citing the continuing tight IT
spending environment and resulting stagnation in customer buying decisions,
the Company expects first quarter revenue in the range of $17 to $20 million
and pro forma earnings per share in the range of a loss of $0.04 per share to
earnings of $0.01 per share. This compares to revenue and pro forma earnings
per share of $22.9 million and $0.05, in the previous quarter, and revenue and
a pro forma loss per share of $18.2 million and $0.03 in the fiscal quarter
ended June 30, 2001. Pro forma earnings per share excludes non-cash
amortization of goodwill and other intangible assets and stock-based
compensation. On a GAAP basis, the net loss per share is expected to range
from $0.02 to $0.07.
The Company is seeing continued cautious spending worldwide resulting in
smaller orders and extended sales cycles compared to prior quarters. The
deferral in sales commitments is occurring broadly across our customer
segments including the traditionally strong financial services sector.
Nevertheless, the Company continues to see strong customer enthusiasm for its
network management solutions and strategic direction along with minimal
competitive pressures.
"The range in our new guidance is indicative of the current economic
environment. There is a lot of uncertainty surrounding IT spending
particularly in the software sector, which worsened at the beginning of this
quarter. Customer buying decision deferrals are making it very difficult to
predict how and when spending will return to prior levels." said Anil Singhal,
President and CEO of NetScout, "NetScout is committed to staying the course.
We are on schedule to make, in July, the broad strategy announcement that we
discussed at the beginning of the quarter. And during this time of
uncertainty, we are continuing to maintain strict expense controls which we
instituted over a year ago."
In addition, the Company indicated that revised guidance would be issued
during its July earnings announcement conference call.
CONFERENCE CALL INSTRUCTIONS:
NetScout will hold a brief conference call today, June 7, 2002 at 4:30
p.m. EDT, which will be webcast live through the Company's website at
http://www.netscout.com/investors. Alternatively, people can listen to the
call by dialing 800-611-1147 for U.S./Canada and 612-332-0923 for
international callers. A replay of the call will be available after 6:15p.m.
EDT this evening for approximately one week. The number for the replay is
800-475-6701 for U.S./Canada, and 320-365-3844 for international callers. The
access code is 641639.
About NetScout Systems, Inc.
NetScout Systems, Inc. (Nasdaq: NTCT) is a market leader and pioneer of
integrated network performance management solutions for leading companies and
service providers worldwide. NetScout serves the Global 5000 and counts among
its customers ArvinMeritor, Blue Cross and Blue Shield of Massachusetts, Cable
and Wireless, Cisco Systems, China Telecom, Fidelity Investments, Getronics,
Goodyear Tire & Rubber, Nextel Communications, Samsung SDS, Siemens Health
Services Corporation, StarBand Communications, Travelocity.com, Visa
International, and Wachovia Bank. NetScout's solutions are offered through
its nGenius(TM) Performance Management System, an integrated suite of advanced
monitoring and reporting applications that draw on the rich performance data
generated by NetScout's real-time, application-aware probes, advanced
intelligent software agents and network devices. The nGenius System helps
organizations increase their return on infrastructure investments by
optimizing the performance of their network, applications and content.
NetScout is headquartered in Westford, Massachusetts and has approximately 360
employees, with offices in North America, Europe and Asia. Further information
on the company is available on the World Wide Web at http://www.netscout.com.
Forward-looking statements in this release are made pursuant to the safe
harbor provisions of Section 21E of the Securities Exchange Act of 1934.
Investors are cautioned that statements in this press release which are not
strictly historical statements, including the plans, objectives and future
financial performance of NetScout, constitute forward-looking statements which
involve risks and uncertainties. Actual results could differ materially from
the forward-looking statements. Risks and uncertainties which could cause
actual results to differ include, without limitation, risks and uncertainties
associated with the company's strategic relationships with Cisco Systems and
other partners, dependence upon broad-based acceptance of the company's
infrastructure performance management solutions, the company's ability to
achieve and maintain a high rate of growth, introduction and market acceptance
of new products and product enhancements such as the delivery of nGenius
product platform probes and software solutions, the ability of NetScout to
take advantage of service provider opportunities, competitive pricing
pressures, reliance on sole source suppliers, successful expansion and
management of direct and indirect distribution channels, and dependence on
proprietary technology, as well as risks of slowdowns or downturns in economic
conditions generally and in the market for infrastructure performance
management solutions specifically. For a more detailed description of the
risk factors associated with the company, please refer to the company's Annual
Report on Form 10-K for the fiscal year ended March 31, 2001, and its
quarterly report on Form 10-Q for the quarter ended December 31, 2001, on file
with the Securities and Exchange Commission.
NetScout is a registered trademark, and the NetScout logo, nGenius,
nGenius Performance Manager, nGenius Capacity Planner, nGenius Application
Service Level Manager, nGenius Real-Time Monitor and nGenius Probe are
trademarks of NetScout Systems, Inc.
Contacts:
Catherine Taylor
Director of Investor Relations
NetScout Systems, Inc.
978-614-4286
IR@netscout.com
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SOURCE NetScout Systems, Inc.
Web site: http: //www.netscout.com
CONTACT: Catherine Taylor, Director of Investor Relations of NetScout Systems, Inc., +1-978-614-4286, IR@netscout.com