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NetScout Revises Financial Guidance for First Quarter of Fiscal 2003

June 07, 2002

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

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