NETSCOUT Reports Financial Results for Second Quarter Fiscal Year 2019

▤ Summary

“During the second quarter, we took steps to recalibrate our spending by selling our handheld network test (HNT) tools business, and by restructuring and realigning resources across our global operations.We remain on track to achieve our original diluted non-GAAP EPS guidance range and have further refined these targets largely due to the anticipated cost savings associated with our recent restructuring actions.”NETSCOUT has made progress extending the scope of its solutions to provide visibility to enterprises who are migrating application workloads to public and hybrid cloud environments.NETSCOUT’s loss from operations (GAAP) in the first half of fiscal year 2019 includes approximately $45 million in charges associated with the sale of the HNT tools business.Such factors include slowdowns or downturns in economic conditions generally and in the market for advanced network, service assurance and cybersecurity solutions specifically; the volatile foreign exchange environment; the Company’s relationships with strategic partners and resellers; dependence upon broad-based acceptance of the Company’s network performance management solutions; the presence of competitors with greater financial resources than we have, and their strategic response to our products; our ability to retain key executives and employees; the Company’s ability to realize the anticipated savings from recent restructuring actions and other expense management programs; lower than expected demand for the Company’s products and services; and the timing and magnitude of stock buyback activity based on market conditions, corporate considerations, debt agreements, and regulatory requirements.

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NETSCOUT

$500M to $1B