FY 2013 Revenue Up 14% Year-over-Year (GAAP and Non-GAAP)
FY 2013 Net Income Up Year-over-Year: 25% GAAP; 19% Non-GAAP
WESTFORD, Mass.--(BUSINESS WIRE)--Apr. 25, 2013--
NetScout Systems, Inc. (NASDAQ: NTCT):
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FY 2013
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Q4 FY 2013
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GAAP
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Non-GAAP
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GAAP
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Non-GAAP
|
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Revenue (in millions)
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$350.6
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$351.8
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$98.1
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$98.6
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Net income (in millions)
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$40.6
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$56.0
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$14.6
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$18.1
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Net income per share
|
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$0.96
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$1.32
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$0.34
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$0.43
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NetScout
Systems, Inc. (NASDAQ: NTCT), an industry leader for advanced
application and service assurance solutions, today announced financial
results for its fourth quarter and fiscal year ended March 31, 2013.
“We are very pleased with our fiscal year 2013 results, which came in at
the high end of both the revenue and the non-GAAP EPS guidance we
provided one year ago,” said Anil Singhal, President and CEO of NetScout
Systems. “Over the past two years, we have worked to reach our growth
milestones passing both $300 million in revenue in FY ’12 and then $350
million in revenue in FY ‘13. This year, as our non-GAAP revenue
guidance range of $385 million to $400 million indicates, we are
approaching another revenue growth milestone for the Company.”
“Our customers continue to validate our Unified Service Delivery
Management strategy. We completed two technology acquisitions during
this fiscal year, furthering our innovative approach in enhancing the
value of our product line,” added Mr. Singhal. “We acquired voice
technology that will be released over the coming year, providing our
service provider customers with a complete solution supporting legacy,
Voice over IP, and important next generation (VoLTE) infrastructures. We
also added a scalable packet flow switch to our switch portfolio that
has quickly gained market acceptance. In addition, we will be unveiling
exciting new product capabilities in the coming months that we believe
will provide the market with a differentiated approach to traditional
Application Performance Management (APM).”
Total GAAP revenue for the fourth quarter was $98.1 million; non-GAAP
revenue was $98.6 million. A reconciliation of GAAP and non-GAAP results
is included in the attached financial tables.
Product revenue for the fourth quarter, on a GAAP and non-GAAP basis was
$59.6 million. Service revenue on a GAAP basis was $38.5 million and
non-GAAP service revenue was $39.0 million.
GAAP net income for the fourth quarter was $14.6 million, or $0.34 per
diluted share. GAAP income from operations was $21.9 million. On a
non-GAAP basis, net income for the quarter was $18.1 million, or $0.43
per diluted share, and non-GAAP income from operations was $27.6 million.
For the fiscal year ended March 31, 2013, NetScout reported total GAAP
revenue of $350.6 million and non-GAAP revenue was $351.8 million. GAAP
net income for the fiscal year was $40.6 million, or $0.96 per diluted
share. GAAP income from operations was $64.5 million. Non-GAAP net
income for the fiscal year was $56.0 million, or $1.32 per diluted
share, and non-GAAP income from operations was $88.6 million. A
reconciliation of GAAP and non-GAAP results is included in the attached
financial tables.
Fiscal year 2013 GAAP and non-GAAP revenue results were within the range
of original guidance issued a year ago of $340 million to $355 million.
Fiscal year 2013 GAAP net income per share results were at the low end
of the original guidance range of $0.96 to $1.05. Non-GAAP net income
per share results were above the original guidance range of $1.21 to
$1.30. In January 2013, the company narrowed the revenue and net income
per share guidance for fiscal year 2013. Fiscal year 2013 revenue
results on a GAAP basis were at the high end of the narrowed range of
$346 million to $351 million, while non-GAAP revenue was also at the
high end of the range of $347 million to $352 million. Fiscal year 2013
GAAP and non-GAAP net income per diluted share results were at the high
end of the narrowed guidance ranges. GAAP net income per diluted share
range was narrowed to be in the range of $0.92 to $0.96. The non-GAAP
net income per diluted share was raised to be between $1.28 and $1.32.
Financial Highlights:
For the fourth quarter:
-
GAAP and non-GAAP revenue increased 10% year-over-year and increased
7% sequentially.
-
GAAP and non-GAAP product revenue increased 9% year-over-year and
increased 13% sequentially.
-
GAAP service revenue increased 10% year-over-year and decreased 1%
sequentially. Non-GAAP service revenue increased 11% year-over-year
and decreased 1% sequentially.
-
GAAP operating margin was 22%, down one point from 23% a year ago and
up three points sequentially. Non-GAAP operating margin was 28%, down
one point from 29% a year ago and up two points sequentially.
For the 2013 fiscal year:
-
GAAP and non-GAAP revenue increased 14% year-over-year.
-
GAAP and non-GAAP product revenue increased 18% year-over-year.
-
GAAP service revenue increased 8% year-over-year. Non-GAAP service
revenue increased 9% year-over-year.
-
GAAP operating margin was 18%, up from 17% in fiscal year 2012.
Non-GAAP operating margin was 25%, up from 24% in fiscal year 2012.
-
As of March 31, 2013 cash and cash equivalents and short and long-term
marketable securities were $154.1 million, up $17.4 million from
$136.7 million as of the end of the prior quarter. Year-over-year,
cash and securities decreased $59.4 million due to debt retirement of
$62.0 million, acquisition and stock buyback activity.
Guidance:
For fiscal year 2014, we expect GAAP revenue to be in the range of $384
million to $399 million and non-GAAP revenue to be in the range of $385
million to $400 million. GAAP net income per diluted share is expected
to be in the range of $1.06 to $1.16 and non-GAAP net income per diluted
share between $1.40 and $1.50.
For fiscal year 2014, the non-GAAP net income per diluted share
expectation excludes the acquisition accounting adjustment to fair value
of approximately $0.8 million for deferred revenue, forecasted
share-based compensation expenses of approximately $13.0 million,
estimated amortization of acquired intangible assets of approximately
$6.7 million, compensation for post combination services of
approximately $2.8 million, and the related impact of these adjustments
on the provision for income taxes of $8.9 million.
CONFERENCE CALL INSTRUCTIONS:
NetScout invites shareholders to listen to its conference call today at
8:30 a.m. ET, which will be webcast live through NetScout’s website at http://ir.netscout.com/phoenix.zhtml?c=92658&p=irol-irhome.
Alternatively, people can listen to the call by dialing (866)701-8242
for U.S./Canada and (763)416-6912 for international callers and using
conference ID: 36424445. A replay of the call will be available after
11:30 a.m. ET on April 25, 2013 for approximately one week. The number
for the replay is (855)859-2056 for U.S./Canada and (404)537-3406 for
international callers. The conference ID is: 36424445.
Use of Non-GAAP Financial Information
To supplement the financial measures presented in NetScout's press
release in accordance with accounting principles generally accepted in
the United States ("GAAP"), NetScout also reports the following non-GAAP
measures: non-GAAP revenue, non-GAAP net income and non-GAAP net income
per diluted share. Non-GAAP revenue eliminates the GAAP effects of
acquisitions by adding back revenue related to deferred revenue
revaluation. Non-GAAP net income includes the foregoing adjustment and
also removes inventory fair value adjustments, expenses related to the
amortization of acquired intangible assets, stock-based compensation,
restructuring, certain expenses relating to acquisitions including
compensation for post-combination services and business development
charges and loss on early extinguishment of debt, net of related income
tax effects. Non-GAAP diluted net income per share also excludes these
expenses as well as the related impact of all these adjustments on the
provision for income taxes.
These non-GAAP measures are not in accordance with GAAP, should not be
considered an alternative for measures prepared in accordance with GAAP
(revenue, net income and diluted net income per share), and 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.
NetScout believes these non-GAAP financial measures will enhance the
reader’s overall understanding of NetScout’s current financial
performance and NetScout'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. NetScout believes that
providing these non-GAAP measures affords investors a view of NetScout’s
operating results that may be more easily compared to peer companies and
also enables investors to consider NetScout’s operating results on both
a GAAP and non-GAAP basis during and following the integration period of
NetScout’s acquisitions. Presenting the GAAP measures on their own would
not be indicative of NetScout’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 condition and results of
operations.
NetScout management regularly uses supplemental non-GAAP financial
measures internally to understand, manage and evaluate its business and
to make operating decisions. These non-GAAP measures are among the
primary factors that management uses in planning and forecasting future
periods.
About NetScout Systems, Inc.
NetScout Systems, Inc. (NASDAQ: NTCT) is the market leader in Unified
Service Delivery Management enabling comprehensive end-to-end network
and application assurance. For 28 years, NetScout has delivered
breakthrough packet-flow technology that provides trusted and
comprehensive real-time network and application performance intelligence
enabling unified assurance of the network, applications and users. These
solutions enable IT staff to predict, preempt and resolve network and
service delivery problems while facilitating the optimization and
capacity planning of the network infrastructure. NetScout nGenius®
and Sniffer® solutions are deployed at more than 20,000 of
the world’s largest enterprises, government agencies, and more than 148
service providers, on over one million physical and 2,000 virtual
network segments to assure the network, applications, and service
delivery to their users and customers. For more information about
NetScout go to 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,
as amended, and other federal securities laws. Investors are cautioned
that statements in this press release, which are not strictly historical
statements, including without limitation, our financial guidance for
fiscal 2014, 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 advanced network and service
assurance solutions specifically, NetScout’s relationships with
strategic partners, dependence upon broad-based acceptance of NetScout’s
network performance management solutions, NetScout’s ability to achieve
and maintain a high rate of growth, introduction and market acceptance
of new products and product enhancements, 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 and the ability of NetScout to successfully
integrate Psytechnics, Fox Replay, Simena, Accanto Systems and ONPATH
Technologies, and achieve operational efficiencies. For a more detailed
description of the risk factors associated with NetScout, please refer
to NetScout’s Annual Report on Form 10-K for the fiscal year ended March
31, 2012 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.
©2013 NetScout Systems, Inc. All rights reserved. NetScout and the
NetScout logo and nGenius are registered trademarks of NetScout
Systems, Inc.
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NetScout Systems, Inc.
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Condensed Consolidated Statements of Operations
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(In thousands, except per share data)
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Three Months Ended
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Twelve Months Ended
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March 31,
|
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March 31,
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2013
|
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2012
|
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2013
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2012
|
|
Revenue:
|
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|
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|
|
Product
|
|
$
|
59,649
|
|
|
$
|
54,525
|
|
|
$
|
198,749
|
|
|
$
|
168,141
|
|
|
|
Service
|
|
|
38,428
|
|
|
|
34,937
|
|
|
|
151,801
|
|
|
|
140,538
|
|
|
|
|
Total revenue
|
|
|
98,077
|
|
|
|
89,462
|
|
|
|
350,550
|
|
|
|
308,679
|
|
|
|
|
|
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|
|
|
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|
|
Cost of revenue:
|
|
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|
|
|
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Product
|
|
|
13,170
|
|
|
|
11,832
|
|
|
|
45,752
|
|
|
|
39,271
|
|
|
|
Service
|
|
|
7,870
|
|
|
|
7,128
|
|
|
|
28,256
|
|
|
|
26,401
|
|
|
|
Total cost of revenue
|
|
|
21,040
|
|
|
|
18,960
|
|
|
|
74,008
|
|
|
|
65,672
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
77,037
|
|
|
|
70,502
|
|
|
|
276,542
|
|
|
|
243,007
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
16,916
|
|
|
|
13,405
|
|
|
|
61,546
|
|
|
|
49,478
|
|
|
|
Sales and marketing
|
|
|
29,810
|
|
|
|
28,480
|
|
|
|
116,807
|
|
|
|
109,624
|
|
|
|
General and administrative
|
|
|
7,647
|
|
|
|
7,353
|
|
|
|
29,718
|
|
|
|
27,488
|
|
|
|
Amortization of acquired intangible assets
|
|
|
800
|
|
|
|
590
|
|
|
|
2,877
|
|
|
|
2,131
|
|
|
|
Restructuring charges
|
|
|
-
|
|
|
|
231
|
|
|
|
1,065
|
|
|
|
603
|
|
|
|
Total operating expenses
|
|
|
55,173
|
|
|
|
50,059
|
|
|
|
212,013
|
|
|
|
189,324
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations
|
|
|
21,864
|
|
|
|
20,443
|
|
|
|
64,529
|
|
|
|
53,683
|
|
|
Interest and other expense, net
|
|
|
(217
|
)
|
|
|
(323
|
)
|
|
|
(793
|
)
|
|
|
(2,765
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income tax expense
|
|
|
21,647
|
|
|
|
20,120
|
|
|
|
63,736
|
|
|
|
50,918
|
|
|
Income tax expense
|
|
|
7,094
|
|
|
|
7,173
|
|
|
|
23,127
|
|
|
|
18,490
|
|
|
Net income
|
|
$
|
14,553
|
|
|
$
|
12,947
|
|
|
$
|
40,609
|
|
|
$
|
32,428
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income per share
|
|
$
|
0.35
|
|
|
$
|
0.31
|
|
|
$
|
0.97
|
|
|
$
|
0.77
|
|
|
Diluted net income per share
|
|
$
|
0.34
|
|
|
$
|
0.30
|
|
|
$
|
0.96
|
|
|
$
|
0.76
|
|
|
Weighted average common shares outstanding used in computing:
|
|
|
|
|
|
|
|
|
|
|
Net income per share - basic
|
|
|
41,517
|
|
|
|
41,711
|
|
|
|
41,665
|
|
|
|
42,035
|
|
|
|
Net income per share - diluted
|
|
|
42,199
|
|
|
|
42,530
|
|
|
|
42,322
|
|
|
|
42,750
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NetScout Systems, Inc.
|
|
Reconciliation of Current GAAP to Current and Historical Non-GAAP
Financial Measures
|
|
(In thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
|
|
|
|
March 31,
|
|
March 31,
|
|
|
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Revenue
|
|
$
|
98,077
|
|
|
$
|
89,462
|
|
|
$
|
350,550
|
|
|
$
|
308,679
|
|
|
Deferred revenue fair value adjustment
|
|
|
544
|
|
|
|
154
|
|
|
|
1,215
|
|
|
|
312
|
|
|
Non-GAAP Revenue
|
|
$
|
98,621
|
|
|
$
|
89,616
|
|
|
$
|
351,765
|
|
|
$
|
308,991
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Gross profit
|
|
$
|
77,037
|
|
|
$
|
70,502
|
|
|
$
|
276,542
|
|
|
$
|
243,007
|
|
|
Deferred revenue fair value adjustment
|
|
|
544
|
|
|
|
154
|
|
|
|
1,215
|
|
|
|
312
|
|
|
Inventory fair value adjustment
|
|
|
204
|
|
|
|
-
|
|
|
|
453
|
|
|
|
-
|
|
|
Shared-based compensation expense (1)
|
|
|
152
|
|
|
|
121
|
|
|
|
577
|
|
|
|
419
|
|
|
Amortization of acquired intangible assets (2)
|
|
|
686
|
|
|
|
1,239
|
|
|
|
4,547
|
|
|
|
4,651
|
|
|
Business development and integration expense (3)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
10
|
|
|
Compensation for post combination services (4)
|
|
|
7
|
|
|
|
-
|
|
|
|
14
|
|
|
|
-
|
|
|
Non-GAAP Gross profit
|
|
$
|
78,630
|
|
|
$
|
72,016
|
|
|
$
|
283,348
|
|
|
$
|
248,399
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Income from operations
|
|
$
|
21,864
|
|
|
$
|
20,443
|
|
|
$
|
64,529
|
|
|
$
|
53,683
|
|
|
Deferred revenue fair value adjustment
|
|
|
544
|
|
|
|
154
|
|
|
|
1,215
|
|
|
|
312
|
|
|
Inventory fair value adjustment
|
|
|
204
|
|
|
|
-
|
|
|
|
453
|
|
|
|
-
|
|
|
Shared-based compensation expense (1)
|
|
|
2,337
|
|
|
|
2,585
|
|
|
|
9,580
|
|
|
|
8,702
|
|
|
Amortization of acquired intangible assets (2)
|
|
|
1,486
|
|
|
|
1,829
|
|
|
|
7,424
|
|
|
|
6,782
|
|
|
Business development and integration expense (3)
|
|
|
244
|
|
|
|
462
|
|
|
|
1,618
|
|
|
|
4,347
|
|
|
Compensation for post combination services (4)
|
|
|
902
|
|
|
|
270
|
|
|
|
2,721
|
|
|
|
438
|
|
|
Restructuring charges
|
|
|
-
|
|
|
|
231
|
|
|
|
1,065
|
|
|
|
603
|
|
|
Non-GAAP Income from operations
|
|
$
|
27,581
|
|
|
$
|
25,974
|
|
|
$
|
88,605
|
|
|
$
|
74,867
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Net income
|
|
$
|
14,553
|
|
|
$
|
12,947
|
|
|
$
|
40,609
|
|
|
$
|
32,428
|
|
|
Deferred revenue fair value adjustment
|
|
|
544
|
|
|
|
154
|
|
|
|
1,215
|
|
|
|
312
|
|
|
Inventory fair value adjustment
|
|
|
204
|
|
|
|
-
|
|
|
|
453
|
|
|
|
-
|
|
|
Shared-based compensation expense (1)
|
|
|
2,337
|
|
|
|
2,585
|
|
|
|
9,580
|
|
|
|
8,702
|
|
|
Amortization of acquired intangible assets (2)
|
|
|
1,486
|
|
|
|
1,829
|
|
|
|
7,424
|
|
|
|
6,782
|
|
|
Business development and integration expense (3)
|
|
|
244
|
|
|
|
462
|
|
|
|
1,618
|
|
|
|
4,715
|
|
|
Compensation for post combination services (4)
|
|
|
902
|
|
|
|
270
|
|
|
|
2,721
|
|
|
|
438
|
|
|
Restructuring charges
|
|
|
-
|
|
|
|
231
|
|
|
|
1,065
|
|
|
|
603
|
|
|
Loss on extinguishment of debt (5)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
690
|
|
|
Income tax adjustments (6)
|
|
|
(2,174
|
)
|
|
|
(2,102
|
)
|
|
|
(8,671
|
)
|
|
|
(7,700
|
)
|
|
Non-GAAP Net income
|
|
$
|
18,096
|
|
|
$
|
16,376
|
|
|
$
|
56,014
|
|
|
$
|
46,970
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Diluted Net income per share
|
|
$
|
0.34
|
|
|
$
|
0.30
|
|
|
$
|
0.96
|
|
|
$
|
0.76
|
|
|
Share impact of non-GAAP adjustments identified above
|
|
|
0.09
|
|
|
|
0.09
|
|
|
|
0.36
|
|
|
|
0.34
|
|
|
Non-GAAP Diluted net income per share
|
|
$
|
0.43
|
|
|
$
|
0.39
|
|
|
$
|
1.32
|
|
|
$
|
1.10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing non-GAAP diluted net income per share
|
|
|
42,199
|
|
|
|
42,530
|
|
|
|
42,322
|
|
|
|
42,750
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1
|
)
|
Share-based compensation expense included in these amounts is as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
Cost of product revenue
|
|
$
|
59
|
|
|
$
|
55
|
|
|
$
|
235
|
|
|
$
|
192
|
|
|
|
|
Cost of service revenue
|
|
|
93
|
|
|
|
66
|
|
|
|
342
|
|
|
|
227
|
|
|
|
|
Research and development
|
|
|
780
|
|
|
|
784
|
|
|
|
2,944
|
|
|
|
2,486
|
|
|
|
|
Sales and marketing
|
|
|
734
|
|
|
|
900
|
|
|
|
3,035
|
|
|
|
3,052
|
|
|
|
|
General and administrative
|
|
|
671
|
|
|
|
780
|
|
|
|
3,024
|
|
|
|
2,745
|
|
|
|
|
Total share-based compensation expense
|
|
$
|
2,337
|
|
|
$
|
2,585
|
|
|
$
|
9,580
|
|
|
$
|
8,702
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2
|
)
|
Amortization expense related to acquired software and product
technology included in these amounts is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
Cost of product revenue
|
|
$
|
686
|
|
|
$
|
1,239
|
|
|
$
|
4,547
|
|
|
$
|
4,651
|
|
|
|
Operating expenses
|
|
|
800
|
|
|
|
590
|
|
|
|
2,877
|
|
|
|
2,131
|
|
|
|
|
Total amortization expense
|
|
$
|
1,486
|
|
|
$
|
1,829
|
|
|
$
|
7,424
|
|
|
$
|
6,782
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3
|
)
|
Business development and integration expense included in these
amounts is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
Cost of service revenue
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
10
|
|
|
|
|
Research and development
|
|
|
-
|
|
|
|
134
|
|
|
|
15
|
|
|
|
1,545
|
|
|
|
|
Sales and marketing
|
|
|
10
|
|
|
|
41
|
|
|
|
10
|
|
|
|
346
|
|
|
|
|
General and administrative
|
|
|
234
|
|
|
|
287
|
|
|
|
1,593
|
|
|
|
2,446
|
|
|
|
|
Other income (expense), net
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
368
|
|
|
|
|
Total business development and integration expense
|
|
$
|
244
|
|
|
$
|
462
|
|
|
$
|
1,618
|
|
|
$
|
4,715
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4
|
)
|
Compensation for post combination services included in these
amounts is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
Cost of product revenue
|
|
|
7
|
|
|
|
-
|
|
|
|
10
|
|
|
|
-
|
|
|
|
|
Cost of service revenue
|
|
|
-
|
|
|
|
-
|
|
|
|
4
|
|
|
|
-
|
|
|
|
|
Research and development
|
|
|
467
|
|
|
|
270
|
|
|
|
1,670
|
|
|
|
438
|
|
|
|
|
Sales and marketing
|
|
|
39
|
|
|
|
-
|
|
|
|
64
|
|
|
|
-
|
|
|
|
|
General and administrative
|
|
|
389
|
|
|
|
-
|
|
|
|
973
|
|
|
|
-
|
|
|
|
|
Total compensation for post combination services
|
|
$
|
902
|
|
|
$
|
270
|
|
|
$
|
2,721
|
|
|
$
|
438
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5
|
)
|
Loss on extinguishment of debt included in this amount is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
Interest and other income (expense), net
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
690
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(6
|
)
|
Total income tax adjustment is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
Tax effect of non-GAAP adjustments above at 38%
|
|
$
|
(2,174
|
)
|
|
$
|
(2,102
|
)
|
|
$
|
(9,149
|
)
|
|
$
|
(8,452
|
)
|
|
|
|
Discrete tax adjustment
|
|
|
-
|
|
|
|
-
|
|
|
|
478
|
|
|
|
752
|
|
|
|
|
Total income tax adjustments
|
|
$
|
(2,174
|
)
|
|
$
|
(2,102
|
)
|
|
$
|
(8,671
|
)
|
|
$
|
(7,700
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NetScout Systems, Inc.
|
|
Consolidated Balance Sheets
|
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
March 31,
|
|
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash, cash equivalents and marketable securities
|
|
$
|
137,268
|
|
|
$
|
196,872
|
|
|
Accounts receivable, net
|
|
|
73,900
|
|
|
|
69,795
|
|
|
Inventories
|
|
|
7,563
|
|
|
|
8,021
|
|
|
Prepaid expenses and other current assets
|
|
|
18,581
|
|
|
|
14,999
|
|
|
|
|
|
|
|
|
Total current assets
|
|
|
237,312
|
|
|
|
289,687
|
|
|
|
|
|
|
|
|
Fixed assets, net
|
|
|
19,678
|
|
|
|
16,457
|
|
|
Goodwill and intangible assets, net
|
|
|
266,280
|
|
|
|
225,069
|
|
|
Deferred income taxes
|
|
|
9,211
|
|
|
|
17,892
|
|
|
Long-term marketable securities
|
|
|
16,823
|
|
|
|
16,644
|
|
|
Other assets
|
|
|
2,872
|
|
|
|
2,008
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
552,176
|
|
|
$
|
567,757
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable
|
|
$
|
10,161
|
|
|
$
|
7,539
|
|
|
Accrued compensation
|
|
|
31,585
|
|
|
|
23,050
|
|
|
Accrued other
|
|
|
10,916
|
|
|
|
10,009
|
|
|
Deferred revenue
|
|
|
95,055
|
|
|
|
93,493
|
|
|
|
|
|
|
|
|
Total current liabilities
|
|
|
147,717
|
|
|
|
134,091
|
|
|
|
|
|
|
|
|
Deferred tax liability
|
|
|
941
|
|
|
|
1,410
|
|
|
Other long-term liabilities
|
|
|
3,951
|
|
|
|
7,175
|
|
|
Accrued long-term retirement benefits
|
|
|
1,757
|
|
|
|
1,990
|
|
|
Long-term deferred revenue
|
|
|
25,907
|
|
|
|
18,722
|
|
|
Long-term debt
|
|
|
-
|
|
|
|
62,000
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
180,273
|
|
|
|
225,388
|
|
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
|
Common stock
|
|
|
49
|
|
|
|
48
|
|
|
Additional paid-in capital
|
|
|
253,202
|
|
|
|
237,289
|
|
|
Accumulated other comprehensive income
|
|
|
671
|
|
|
|
212
|
|
|
Treasury stock, at cost
|
|
|
(83,480
|
)
|
|
|
(56,032
|
)
|
|
Retained earnings
|
|
|
201,461
|
|
|
|
160,852
|
|
|
|
|
|
|
|
|
Total stockholders' equity
|
|
|
371,903
|
|
|
|
342,369
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders' equity
|
|
$
|
552,176
|
|
|
$
|
567,757
|
|
Source: NetScout Systems, Inc.
NetScout Systems, Inc.
Catherine Taylor, 978-614-4286
Director
of Investor Relations
IR@netscout.com