NETSCOUT SYSTEMS INC. Files 10-Q for Period Ending December 31, 2023

TL;DR

<b>NETSCOUT SYSTEMS INC. filed its quarterly 10-Q report for the period ending December 31, 2023.</b>

AI Summary

NETSCOUT SYSTEMS INC (NTCT) filed a Quarterly Report (10-Q) with the SEC on February 8, 2024. NETSCOUT SYSTEMS INC. reported financial results for the period ending December 31, 2023. The filing is a 10-Q, indicating a quarterly report. The company's fiscal year ends on March 31st. The filing covers the period from April 1, 2023, to December 31, 2023. NETSCOUT SYSTEMS INC. is incorporated in Delaware.

Why It Matters

For investors and stakeholders tracking NETSCOUT SYSTEMS INC, this filing contains several important signals. This 10-Q filing provides investors with an update on NETSCOUT SYSTEMS INC.'s financial performance and position during the third quarter of its fiscal year. Understanding the details within this report is crucial for assessing the company's operational health, revenue trends, and overall financial stability.

Risk Assessment

Risk Level: low — NETSCOUT SYSTEMS INC shows low risk based on this filing. The filing is a standard quarterly report (10-Q) and does not appear to contain any immediately alarming information or significant deviations from typical reporting.

Analyst Insight

Monitor future filings for revenue growth trends in product and service segments and changes in debt-to-equity ratios.

Key Numbers

• 2023-12-31 — Period End Date (Reported Period)
• 2024-02-08 — Filing Date (Date of Submission)
• 0331 — Fiscal Year End (Company's Fiscal Year End)
• 2023-04-01 — Quarter Start Date (Reporting Period Start)
• 2023-12-31 — Quarter End Date (Reporting Period End)

Key Players & Entities

• NETSCOUT SYSTEMS INC (company) — Filer
• 0001628280-24-003860 (filing_id) — Accession Number
• 20231231 (date) — Period of Report
• 20240208 (date) — Filed as of Date
• 0001078075 (company_id) — Central Index Key
• DE (state) — State of Incorporation
• 0331 (fiscal_year_end) — Fiscal Year End
• 978-614-4000 (phone) — Business Phone

Forward-Looking Statements

• NETSCOUT's product revenue will continue to face headwinds in the next quarter. (NETSCOUT SYSTEMS INC) — medium confidence, target: 2024-03-31
• Service revenue will remain a stable, if not slightly growing, component of NETSCOUT's total revenue. (NETSCOUT SYSTEMS INC) — high confidence, target: 2024-03-31

FAQ

Industry Context

NETSCOUT SYSTEMS INC. operates in the computer integrated systems design industry, providing network performance management and cybersecurity solutions.

Regulatory Implications

The company is subject to standard SEC reporting requirements for publicly traded companies, including the filing of quarterly (10-Q) and annual (10-K) reports.

What Investors Should Do

1. Analyze revenue breakdown by product and service segments for Q3 FY2024.
2. Review balance sheet details for changes in assets, liabilities, and equity.
3. Examine cash flow statements for operating, investing, and financing activities.

Key Dates

• 2023-12-31: Period End Date — End of the reporting quarter for the 10-Q filing.
• 2024-02-08: Filing Date — Date the 10-Q report was officially submitted to the SEC.

Year-Over-Year Comparison

This is the 10-Q filing for the third quarter of fiscal year 2024, following previous quarterly and annual reports.

Key Financial Figures

• $0.001 — nge on which registered: Common Stock, $0.001 par value per share NTCT Nasdaq Global

Filing Documents

• ntct-20231231.htm (10-Q) — 1724KB
• ntct-ex311_20231231.htm (EX-31.1) — 10KB
• ntct-ex312_20231231.htm (EX-31.2) — 10KB
• ntct-ex321_20231231.htm (EX-32.1) — 5KB
• ntct-ex322_20231231.htm (EX-32.2) — 6KB
• 0001628280-24-003860.txt (&nbsp;) — 8292KB
• ntct-20231231.xsd (EX-101.SCH) — 50KB
• ntct-20231231_cal.xml (EX-101.CAL) — 88KB
• ntct-20231231_def.xml (EX-101.DEF) — 228KB
• ntct-20231231_lab.xml (EX-101.LAB) — 748KB
• ntct-20231231_pre.xml (EX-101.PRE) — 469KB
• ntct-20231231_htm.xml (XML) — 1186KB

: FINANCIAL INFORMATION

PART I: FINANCIAL INFORMATION

Unaudited Financial Statements

Item 1. Unaudited Financial Statements: Consolidated Balance Sheets: At December 31, 2023 and March 31, 2023 2 Consolidated Statements of Operations: For the three and nine months ended December 31, 2023 and 2022 3 Consolidated Statements of Comprehensive Income (Loss) : For the three and nine months ended December 31, 2023 and 2022 4 Consolidated Statements of Stockholder's Equity: For the three and nine months ended December 31, 2023 and 2022 5 Consolidated Statements of Cash Flows: For the nine months ended December 31, 2023 and 2022 7

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 8

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 27

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 43

Controls and Procedures

Item 4. Controls and Procedures 43

: OTHER INFORMATION

PART II: OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 44

Risk Factors

Item 1A. Risk Factors 44

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 44

Defaults Upon Senior Securities 44

Item 3. Defaults Upon Senior Securities 44

Mine Safety Disclosures 44

Item 4. Mine Safety Disclosures 44

Other Information 45

Item 5. Other Information 45

Exhibits

Item 6. Exhibits 46

SIGNATURES

SIGNATURES 47 Unless the context suggests otherwise, references in this Quarterly Report on Form 10-Q, or Quarterly Report, to "NetScout," the "Company," "we," "us," and "our" refer to NetScout Systems, Inc. and, where appropriate, our consolidated subsidiaries. NetScout, the NetScout logo, Adaptive Service Intelligence and other trademarks or service marks of NetScout appearing in this Quarterly Report are the property of NetScout Systems, Inc. and/or its subsidiaries and/or affiliates in the United States and/or other countries. Any third-party trade names, trademarks and service marks appearing in this Quarterly Report are the property of their respective holders. Table of Contents Cautionary Statement Concerning Forward-Looking Statements In addition to historical information, the following discussion and other parts of this Quarterly Report contain forward-looking statements under Section 21E of the Securities Exchange Act of 1934, as amended, and other federal securities laws. These forward-looking statements involve risks and uncertainties. These statements relate to future events or our future financial performance and are identified by terminology such as "may," "will," "could," "should," "expects," "plans," "intends," "seeks," "anticipates," "believes," "estimates," "potential," or "continue," or the negative of such terms or other comparable terminology. These statements are only predictions. You should not place undue reliance on these forward-looking statements. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties, and other factors, including those described in Part I, Item 1A. Risk Factors in our Annual Report on Form 10-K for our fiscal year ended March 31, 2023, filed with the Securities and Exchange Commission, and elsewhere in this Quarterly Report. These factors may cause our actual results to differ materially from any forward-looking statement. Moreover, we operate in a very compe

: FINANCIAL INFORMATION

PART I: FINANCIAL INFORMATION

Unaudited Financial Statements

Item 1. Unaudited Financial Statements NetScout Systems, Inc. Consolidated Balance Sheets (In thousands, except share data) December 31, 2023 March 31, 2023 (Unaudited) Assets Current assets: Cash and cash equivalents $ 297,655 $ 386,794 Marketable securities and investments 31,457 32,204 Accounts receivable and unbilled costs, net of allowance for doubtful accounts of $ 1,076 and $ 675 a t December 31, 2023 and March 31, 2023, respectively 221,574 143,855 Inventories and deferred costs 15,342 17,956 Prepaid income taxes 14,946 2,235 Prepaid expenses and other current assets 28,344 34,316 Total current assets 609,318 617,360 Fixed assets, net 27,955 34,735 Operating lease right-of-use assets 44,977 51,456 Goodwill 1,551,541 1,724,404 Intangible assets, net 323,899 366,591 Deferred income taxes 19,518 4,534 Long-term marketable securities 1,010 8,940 Other assets 11,581 12,540 Total assets $ 2,589,799 $ 2,820,560 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 15,132 $ 16,473 Accrued compensation 42,283 83,279 Accrued other 17,844 26,283 Income taxes payable 1,604 4,391 Deferred revenue and customer deposits 293,410 311,531 Current portion of operating lease liabilities 11,979 11,650 Total current liabilities 382,252 453,607 Other long-term liabilities 7,312 7,683 Deferred tax liability 4,505 24,939 Accrued long-term retirement benefits 26,310 26,049 Long-term deferred revenue and customer deposits 124,619 129,814 Operating lease liabilities, net of current portion 40,898 48,819 Long-term debt 100,000 100,000 Total liabilities 685,896 790,911 Commitments and contingencies (Note 14) Stockholders' equity: Preferred stock, $ 0.001 par value: 5,000,000 shares authorized; no shares issued or outstanding at December 31, 2023 and March 31, 2023 — — Common stock, $ 0.001 par value: 300,000,000 shares authorized; 130,922,477 and 128,683,824 shares issued and 71,019,904 and 71,249,045 shares out

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) NOTE 1 – BASIS OF PRESENTATION The accompanying unaudited interim consolidated financial statements have been prepared by NetScout Systems, Inc. (NetScout or the Company). Certain information and footnote disclosures normally included in financial statements prepared under United States generally accepted accounting principles (GAAP) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). In the opinion of management, the unaudited interim consolidated financial statements include all adjustments, consisting of normal recurring adjustments, necessary for a fair statement of the Company's financial position and stockholders' equity, results of operations and cash flows. The year-end consolidated balance sheet data and statement of stockholders' equity were derived from the Company's audited financial statements, but do not include all disclosures required by GAAP. The results reported in these unaudited interim consolidated financial statements are not necessarily indicative of results that may be expected for the entire year. All significant intercompany accounts and transactions are eliminated in consolidation. These unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements, including the notes thereto, included in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2023 filed with the Securities and Exchange Commission on May 16, 2023. Global and Macroeconomic Conditions The Company continues to closely monitor the current global and macroeconomic conditions, including the impacts of the ongoing Ukraine and Israel wars, global geopolitical tension, stock market volatility, industry-specific capital spending trends, exchange rate fluctuations, inflation, interest rates, and the risk of a recession, including the manner and extent to which they h

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View this 10-Q filing on SEC EDGAR