{"id":726058,"date":"2023-01-26T07:33:17","date_gmt":"2023-01-26T12:33:17","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/netscout-reports-third-quarter-fiscal-year-2023-financial-results\/"},"modified":"2023-01-26T07:33:17","modified_gmt":"2023-01-26T12:33:17","slug":"netscout-reports-third-quarter-fiscal-year-2023-financial-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/netscout-reports-third-quarter-fiscal-year-2023-financial-results\/","title":{"rendered":"NETSCOUT Reports Third Quarter Fiscal Year 2023 Financial Results"},"content":{"rendered":"

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NETSCOUT Reports Third Quarter Fiscal Year 2023 Financial Results<\/b><\/p>\n

Delivers Solid Financial Performance and Updates FY23 Financial Outlook<\/i><\/b><\/p>\n

WESTFORD, Mass.–(BUSINESS WIRE<\/a>)–NETSCOUT SYSTEMS, INC.<\/a> (NASDAQ: NTCT), a leading provider of cybersecurity, service assurance, and business analytics solutions, today announced financial results for its third quarter ended December 31, 2022.\n<\/p>\n

\n\u201cWe advanced our strategic objectives and delivered solid financial results in the third quarter,\u201d commented Anil Singhal, NETSCOUT\u2019s president and chief executive officer. \u201cStrong service assurance performance, supported by the acceleration of service provider orders previously forecast to occur in our fourth quarter, drove higher quarterly sales, margins, and profitability year over year. With this increased visibility, we are narrowing our revenue range, and increasing our EPS ranges for fiscal year 2023.\u201d\n<\/p>\n

\nSinghal added, \u201cWe continue to play a mission-critical role for organizations around the globe. As \u2018Guardians of the Connected World,\u2019 we provide our customers with what we believe is unparalleled visibility into the performance and security of their digital operations through our integrated platform. This allows our customers to better navigate and capitalize on the opportunities and challenges of today\u2019s increasingly complex digital world, including the rise of 5G networks, digital transformation through cloud migration, and expanding cybersecurity threat landscape. Looking ahead, as we continue to closely monitor the dynamic macro environment, we believe that we are well-positioned for the future and remain focused on achieving our long-term objectives.\u201d\n<\/p>\n

Q3 FY23 Financial Results<\/b><\/p>\n

\nTotal revenue (GAAP and non-GAAP) for the third quarter of fiscal year 2023 was $269.5 million, compared with $262.2 million (GAAP and non-GAAP) in the third quarter of fiscal year 2022. A reconciliation of GAAP and non-GAAP results is included in the financial tables below.\n<\/p>\n

\nProduct revenue (GAAP and non-GAAP) for the third quarter of fiscal year 2023 was $149.5 million, or approximately 55% of total revenue in the period. This compares with product revenue (GAAP and non-GAAP) of $144.4 million in the third quarter of fiscal year 2022, which was approximately 55% of total revenue in the period.\n<\/p>\n

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\nService revenue (GAAP and non-GAAP) for the third quarter of fiscal year 2023 was $120.1 million, or approximately 45% of total revenue in the period. This compares with service revenue (GAAP and non-GAAP) of $117.8 million in the third quarter of fiscal year 2022, which was approximately 45% of total revenue for the period.\n<\/p>\n

\nNETSCOUT\u2019s income from operations (GAAP) was $63.8 million in the third quarter of fiscal year 2023, compared with $55.5 million in the third quarter of fiscal year 2022. Non-GAAP EBITDA from operations in the third quarter of fiscal year 2023 was $100.9 million, or 37.4% of non-GAAP quarterly revenue for the period. This compares to non-GAAP EBITDA from operations of $92.6 million in the third quarter of fiscal year 2022, or 35.3% of non-GAAP quarterly revenue for the period. The Company\u2019s operating margin (GAAP) was 23.7% in the third quarter of fiscal year 2023, versus 21.2% in the same period of fiscal year 2022. Non-GAAP income from operations was $95.6 million with a non-GAAP operating margin of 35.5% in the third quarter of fiscal year 2023. This compares to non-GAAP income from operations of $87.2 million and a non-GAAP operating margin of 33.2% in the third quarter of fiscal year 2022.\n<\/p>\n

\nNet income (GAAP) for the third quarter of fiscal year 2023 was $52.6 million, or $0.72 per share (diluted), versus $47.7 million, or $0.64 per share (diluted), for the third quarter of fiscal year 2022. On a non-GAAP basis, net income for the third quarter of fiscal year 2023 was $73.0 million, or $1.00 per share (diluted), compared with $66.5 million, or $0.89 per share (diluted), for the third quarter of fiscal year 2022.\n<\/p>\n

\nAs of December 31, 2022, cash, cash equivalents, and short- and long-term marketable securities were $416.2 million, compared with $703.2 million as of March 31, 2022, and $553.5 million as of December 31, 2021. The change in cash, cash equivalents, and marketable securities since March 31, 2022, was primarily driven by two factors. First, NETSCOUT entered into an accelerated share repurchase agreement (the \u201cASR agreement\u201d) in the first quarter of fiscal year 2023 to repurchase $150 million of the Company\u2019s common stock. The ASR agreement concluded in the third quarter of fiscal year 2023, resulting in a total repurchase of approximately 4.6 million shares at a weighted average price per share of $32.97. Second, NETSCOUT repaid $150 million of its outstanding debt balance under its revolving credit facility during the first quarter of fiscal year 2023. The Company\u2019s outstanding debt balance under its revolving credit facility was $200 million as of December 31, 2022. The Company\u2019s $800 million revolving credit facility will expire in July 2026.\n<\/p>\n

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Nine-Months FY23 Financial Results<\/b><\/p>\n