Netscout Systems (NTCT) Tops Q4 EPS by 1c, Miss on Revenues

Netscout Systems (NASDAQ: NTCT) reported Q4 EPS of $0.36, $0.01 better than the analyst estimate of $0.35. Revenue for the quarter came in at $238.5 million versus the consensus estimate of $254.57 million.

Q4 FY18 Financial ResultsTotal revenue (GAAP) for the fourth quarter of fiscal year 2018 was $235.2 million, compared with $318.9 million in the same quarter one year ago. Non-GAAP total revenue for the fourth quarter of fiscal year 2018 was $238.5 million, compared with $327.2 million in the same quarter one year ago. A reconciliation of GAAP and non-GAAP results is included in the attached financial tables.

Product revenue (GAAP) for the fourth quarter of fiscal year 2018 was $128.8 million, which was approximately 55% of total revenue. This compares with product revenue (GAAP) of $210.1 million in the prior fiscal year’s fourth quarter, which was approximately 66% of total revenue. On a non-GAAP basis, product revenue for the fourth quarter of fiscal year 2018 was $129.8 million, which was approximately 54% of total non-GAAP revenue. This compares with fourth-quarter fiscal year 2017 non-GAAP product revenue of $213.7 million, which was approximately 65% of total non-GAAP revenue.

Service revenue (GAAP) for the fourth quarter of fiscal year 2018 was $106.4 million, or approximately 45% of total revenue, compared with $108.9 million in the same period one year ago, or 34% of total GAAP revenue. Non-GAAP service revenue for fiscal year 2018’s fourth quarter was $108.7 million, which was approximately 46% of total non-GAAP revenue, compared with $113.5 million in the year-ago quarter, or approximately 35% of total non-GAAP revenue.

NETSCOUT’s loss from operations (GAAP) was $7.5 million in the fourth quarter of fiscal year 2018 versus income from operations (GAAP) of $38.7 million in the same quarter one year ago. The Company’s fourth-quarter fiscal year 2018 operating profit margin (GAAP) was -3.2% versus 12.1% in fiscal year 2017’s fourth quarter. Fourth-quarter fiscal year 2018 non-GAAP EBITDA from operations was $51.5 million, or 21.6% of total non-GAAP quarterly revenue, compared with non-GAAP EBITDA from operations of $98.7 million, or 30.2% of total non-GAAP quarterly revenue, in the fourth quarter of fiscal year 2017. Fourth-quarter fiscal year 2018 non-GAAP income from operations was $42.5 million and the non-GAAP operating margin was 17.8%. This compares with non-GAAPincome from operations of $89.9 million and a non-GAAP operating margin of 27.5% in the fourth quarter of fiscal year 2017.

Net income (GAAP) for the fourth quarter of fiscal year 2018 was $16.8 million, or $0.20 per share (diluted), versus net income (GAAP) of $22.3 million, or $0.24 per share (diluted), for the fourth quarter of fiscal year 2017. On a non-GAAP basis, net income for fiscal year 2018’s fourth quarter was $30.1 million, or $0.36 per share (diluted), compared with non-GAAP net income of $60.6 million, or $0.65 per share (diluted), for the same quarter one year ago.

For earnings history and earnings-related data on Netscout Systems (NTCT) click here.

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