NetScout Systems Reports Financial Results For Third Quarter Fiscal Year 2014

NetScout Systems, Inc., an industry leader for advanced application and service assurance solutions, today announced financial results for its third quarter of fiscal year 2014 ended December 31, 2013.    

“We are pleased to report very strong performance with our third quarter results.  For the first time, our company has crossed the $100 million quarterly revenue milestone,” said Anil Singhal, President and CEO of NetScout Systems.  “Our results this quarter were driven by key factors, including new product introductions for the Enterprise sector, expanded deployments by Service Providers, and increased traction with our complementary Packet Flow Switch product line.”  Mr. Singhal added, “Also, during this quarter, we officially received a patent for our unique Adaptive Session Intelligence, or ASI.  ASI is our intelligence software providing real-time and actionable operational intelligence to our customers. It represents significant inventions associated with next generation analytics and scalability that further enables service assurance and business intelligence.”    

Total GAAP revenue for the third quarter was $110.4 million; non-GAAP revenue was $110.6 million.  A reconciliation of GAAP and non-GAAP results is included in the attached financial tables.    

Product revenue for the third quarter, on a GAAP and non-GAAP basis was $68.6 million.  Service revenue on a GAAP basis was $41.8 million and non-GAAP service revenue was $42.0 million.   

GAAP net income for the third quarter was $17.3 million, or $0.41 per diluted share.  GAAP income from operations was $27.3 million.  On a non-GAAP basis, net income for the quarter was $21.0 million, or $0.50 per diluted share, and non-GAAP income from operations was $32.9 million.