WESTFORD, Mass.--(BUSINESS WIRE)-- October 7, 2008 -- NetScout Systems, Inc.
Guidance
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GAAP Non-GAAP
Expected Revenue (millions) $250 to $260 $260 to $270
Expected Net Income per share $0.13 to $0.23 $0.55 to $0.65
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Q2 FY 2009
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GAAP Non-GAAP
Estimated Revenue (millions) $68 to $69 $72 to $73
Estimated Net Income per share $0.10 to $0.12 $0.21 to $0.23
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NetScout Systems, Inc. (NASDAQ: NTCT), an industry leader for
advanced network and service assurance solutions, today reaffirmed
guidance for fiscal year 2009 and announced strong preliminary results
for the second quarter of fiscal year 2009, ended September 30, 2008.
For the 2009 fiscal year, NetScout continues to expect GAAP
revenue to be in the range of $250 million to $260 million, with GAAP
net income per diluted share between $0.13 and $0.23, and non-GAAP
revenue to be in the range of $260 million to $270 million, with
non-GAAP net income per diluted share between $0.55 and $0.65. The
fiscal year 2009 non-GAAP revenue and net income per diluted share
expectations exclude the purchase accounting adjustment to fair value
of approximately $11.5 million of Network General's deferred revenue,
share-based compensation expenses of approximately $4.8 million,
amortization of acquired intangible assets of approximately $6
million, and integration expenses of approximately $1.7 million.
NetScout's guidance is supported by strong revenue and earnings in
the second quarter led by the wireless telecommunications sector. In
the quarter, NetScout recognized revenue from prior shipments to a
large wireless carrier that previously was recorded as deferred
product revenue on the June 30, 2008 balance sheet. This deferred
product revenue recognition in the second quarter accounted for the
sequential growth in quarterly revenue. For the second half of fiscal
year 2009, NetScout anticipates continuing strong revenue flow from
the wireless and government sectors which is expected to partially
offset anticipated weakness in the economy and its potential impact on
NetScout's enterprise customers. As a result, NetScout expects
financial results for the second half of the fiscal year to be
consistent with previously issued full year guidance.
For the second quarter, GAAP revenue is estimated to be in the
range of $68 million to $69 million, with GAAP net income per diluted
share between $0.10 and $0.12. Non-GAAP revenue is expected to be in
the range of $72 million to $73 million, with non-GAAP net income per
diluted share between $0.21 and $0.23. The second quarter fiscal year
2009 non-GAAP revenue and net income per diluted share expectations
exclude the purchase accounting adjustment to fair value of
approximately $4.1 million of Network General's deferred revenue,
share-based compensation expenses of approximately $1.2 million,
amortization of acquired intangible assets of approximately $1.5
million, and integration expenses of approximately $300 thousand.
"We are cautious about the impact on our customers of the turmoil
in the financial markets and in the broader economy; however, to date
we have seen only modest effects on our business. In the financial
sector, the negative impact on some of our investment banking and
commercial banking customers has been offset, in part, by positive
impact on our trading and exchange customers. Our visibility,
principally due to our solid wireless carrier and government business,
gives us strong confidence that we will achieve our expectations for
the full 2009 fiscal year," said Anil Singhal, President and CEO of
NetScout Systems. "We look forward to providing more information about
our second quarter performance in our scheduled Q2 earnings release
and conference call on October 23, 2008," he added.
Use of Non-GAAP Financial Information
To supplement the financial measures presented in the Company's
press release in accordance with accounting principles generally
accepted in the United States ("GAAP"), the Company also presents
non-GAAP measures relating to revenue and net income per diluted share
which were adjusted from amounts determined based on GAAP to exclude
the purchase accounting adjustment representing the fair value of
Network General's deferred revenue, share-based compensation expenses,
amortization of acquired intangible assets, integration expenses as
well as the related income tax effects.
These non-GAAP measures are not in accordance with, and should not
be considered an alternative for measures prepared in accordance with
GAAP, and these non-GAAP measures may have limitations in that they do
not reflect all of NetScout's results of operations as determined in
accordance with GAAP. These non-GAAP measures should only be used to
evaluate NetScout's results of operations in conjunction with the
corresponding GAAP measures. The presentation of non-GAAP information
is not meant to be considered superior to, in isolation from or as a
substitute for results prepared in accordance with GAAP.
The Company believes these non-GAAP financial measures will
enhance the reader's overall understanding of NetScout's current
financial performance and the Company's prospects for the future by
providing a higher degree of transparency for certain financial
measures and providing a level of disclosure that helps investors
understand how the Company plans and measures its own business. The
Company believes that providing these non-GAAP measures affords
investors a view of the Company's operating results that may be more
easily compared to peer companies and also enables investors to
consider the Company's operating results on both a GAAP and non-GAAP
basis during the integration period of the Company's acquisition of
Network General. Presenting the GAAP measures on their own would not
be indicative of the Company's core operating results. Furthermore,
NetScout believes that the presentation of non-GAAP measures when
shown in conjunction with the corresponding GAAP measures provide
useful information to management and investors regarding present and
future business trends relating to its financial conditions and
results of operations.
About NetScout Systems
NetScout Systems, Inc. (NASDAQ: NTCT) has been an industry leader
for advanced network and service assurance solutions for over twenty
years. NetScout's breakthrough technology solutions provide trusted,
comprehensive real-time and historical performance intelligence,
including advanced early warnings and rapid, definitive problem
analysis. These capabilities are vital to IT operators who are
accountable for reducing the Mean Time to Resolution. The world's
largest enterprises, government agencies, and service providers depend
upon NetScout's nGenius and Sniffer (formerly Network General) brand
solutions to assure service levels to their users by reducing or
preventing disruptions and degradations. More information about
NetScout is available at http://www.netscout.com.
Safe Harbor:
Forward-looking statements in this release are made pursuant to
the safe harbor provisions of Section 21E of the Securities Exchange
Act of 1934 and other federal securities laws. 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 slowdowns
or downturns in economic conditions generally and in the market for
network performance management solutions specifically, the Company's
relationships with strategic partners, dependence upon broad-based
acceptance of the Company's network 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, the ability of the Company 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. 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, 2008 on file
with the Securities and Exchange Commission. NetScout assumes no
obligation to update any forward-looking information contained in this
press release or with respect to the announcements described herein.
(C)2008 NetScout Systems, Inc. All rights reserved. NetScout and
the NetScout logo and nGenius are registered trademarks of NetScout
Systems, Inc.
Source: NetScout Systems, Inc.