NetScout Systems Reports Financial Results for First Quarter of Fiscal 2008
biz.yahoo.com
Thursday July 26, 4:05 pm ET
Record First Quarter Revenue of $27.9 Million
Revenue Up 18% Year- over-Year
EPS Up 100% Year-over-Year
WESTFORD, Mass.--(BUSINESS WIRE)--NetScout Systems, Inc. (NASDAQ: NTCT), an industry pacesetter for advanced network and service assurance solutions, today announced financial results for its first quarter of fiscal year 2008, ended June 30, 2007.
Total revenue for the first quarter of fiscal year 2008 was $27.9 million, up 18% year-over-year. Product revenue was $17.5 million, up 23% from 2007. Net income was $2.7 million, an increase of 95% on a year-over-year basis, leading to net income per diluted share of $0.08. Operating income, which included stock-based compensation expense of $385,000 and amortization of acquired intangible assets of $111,000, was $2.9 million in the first quarter of fiscal 2008, representing an operating margin of 10%.
"We are off to a fast start to our fiscal year due to strong sales execution into our target, high-end vertical markets which are increasingly receptive to our nGenius solution approach to application and service management," said Anil Singhal, President and CEO of NetScout Systems. "Our pipeline has been growing over the last several quarters as our sales force expansion has come on line and our strategy has yielded increased order sizes. We believe that the results in the quarter demonstrate that the growth initiatives that we put in place last year are delivering on their promise and validate our confidence in our full year guidance of EPS growth in excess of 40%."
Financial and Company Highlights for the First Quarter 2008:
* First quarter revenue increased 18% year-over-year and 2% sequentially.
* Product revenue increased 23% year-over-year and 2% sequentially.
* Operating margin was 10% of total revenue, up six points year-over-year and up three points sequentially.
* Cash and cash equivalents and short and long-term marketable securities increased by $5.1 million in the first quarter to $105.2 million.
* NetScout received its third consecutive NorthFace ScoreBoard Award for exemplary customer support.
* NetScout released nGenius® Analytics version 1.2 providing early warning capabilities for potential VoIP degradations, application response time increases, application utilization decreases and other critical aspects to assuring services and reducing Mean Time to Restore on today's converged networks.
* NetScout was selected to the Business 2.0 "B2 100" list ranking NetScout as the 34th fastest-growing tech company in America. NetScout was also featured by Forbes.com for making Audit Integrity's Top 100 report which identifies the most trustworthy public companies in the U.S. in terms of accounting transparency and fair dealing to stakeholders in 2006.
* NetScout participated at the HP Software Universe 2007 conference hosting educational sessions centered on best practices for reducing MTTR in virtual and converged networks and assuring performance on MPLS networks.
Guidance:
For the second quarter of fiscal year 2008, the Company expects total revenue to be in the range of $28.0 million to $29.0 million and net income per diluted share to be in the range of $0.08 to $0.09. The Company reiterates its guidance for net income per diluted share growth at or above 40% in fiscal year 2008. |
