NETSCOUT Systems Inc. Q1 FY25 10-Q Filing

TL;DR

NETSCOUT's Q1 FY25 10-Q is in, showing product and service revenue details. Balance sheet updates filed.

AI Summary

NETSCOUT SYSTEMS INC filed its 10-Q for the period ending June 30, 2024. The company reported its financial results for the first quarter of fiscal year 2025, detailing revenues from both product and service segments. The filing also includes balance sheet information as of March 31, 2024, and June 30, 2024, showing changes in common stock, additional paid-in capital, and retained earnings.

Why It Matters

This filing provides investors with the latest financial performance and position of NETSCOUT SYSTEMS INC, crucial for understanding the company's operational health and future prospects.

Risk Assessment

Risk Level: medium — The filing is a routine quarterly report, but the financial details within could reveal performance trends that impact risk.

Key Numbers

• 0331 — Fiscal Year End (Indicates the company's annual financial reporting cycle.)
• 2024-06-30 — Period End Date (Marks the end of the reporting quarter for this 10-Q.)
• 2024-03-31 — Previous Balance Sheet Date (Provides a comparative point for financial position changes.)

Key Players & Entities

• NETSCOUT SYSTEMS INC (company) — Filer of the 10-Q report
• 20240630 (date) — End of the reporting period
• 20240805 (date) — Filing date of the report
• 0001078075 (company) — Central Index Key for NETSCOUT SYSTEMS INC

FAQ

Key Financial Figures

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

Filing Documents

• ntct-20240630.htm (10-Q) — 1264KB
• exhibit101netscout-formofp.htm (EX-10.1) — 65KB
• ntct-ex311_20240630.htm (EX-31.1) — 10KB
• ntct-ex312_20240630.htm (EX-31.2) — 10KB
• ntct-ex321_20240630.htm (EX-32.1) — 5KB
• ntct-ex322_20240630.htm (EX-32.2) — 6KB
• image_0.jpg (GRAPHIC) — 4KB
• 0001628280-24-034721.txt ( ) — 7446KB
• ntct-20240630.xsd (EX-101.SCH) — 50KB
• ntct-20240630_cal.xml (EX-101.CAL) — 86KB
• ntct-20240630_def.xml (EX-101.DEF) — 224KB
• ntct-20240630_lab.xml (EX-101.LAB) — 682KB
• ntct-20240630_pre.xml (EX-101.PRE) — 463KB
• ntct-20240630_htm.xml (XML) — 950KB

: FINANCIAL INFORMATION

PART I: FINANCIAL INFORMATION

Unaudited Financial Statements

Item 1. Unaudited Financial Statements: Consolidated Balance Sheets: At June 3 0 , 202 4 and March 31, 2024 2 Consolidated Statements of Operations: For the three months ended June 30 , 202 4 and 20 23 3 Consolidated Statements of Comprehensive Loss : For the three months ended June 30 , 202 4 and 20 23 4 Consolidated Statements of Stockholder's Equity: For the three months ended June 30 , 202 4 and 20 23 5 Consolidated Statements of Cash Flows: For the three months ended June 30 , 202 4 and 20 23 6

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 7

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 25

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 37

Controls and Procedures

Item 4. Controls and Procedures 37

: OTHER INFORMATION

PART II: OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 38

Risk Factors

Item 1A. Risk Factors 38

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 38

Defaults Upon Senior Securities 38

Item 3. Defaults Upon Senior Securities 38

Mine Safety Disclosures 38

Item 4. Mine Safety Disclosures 38

Other Information 39

Item 5. Other Information 39

Exhibits

Item 6. Exhibits 40

SIGNATURES

SIGNATURES 41 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, 2024, 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) June 30, 2024 March 31, 2024 (Unaudited) Assets Current assets: Cash and cash equivalents $ 362,213 $ 389,674 Marketable securities and investments 43,954 33,459 Accounts receivable and unbilled costs, net of allowance for credit allowances of $ 116 and $ 479 a t June 30, 2024 and March 31, 2024, respectively 129,270 192,096 Inventories and deferred costs 14,994 14,095 Prepaid income taxes 13,352 11,076 Prepaid expenses and other current assets 26,267 32,094 Total current assets 590,050 672,494 Fixed assets, net 24,903 26,487 Operating lease right-of-use assets 39,911 42,486 Goodwill 1,076,715 1,502,820 Intangible assets, net 295,290 308,659 Deferred income taxes 47,855 30,767 Long-term marketable securities 1,003 994 Other assets 9,689 10,595 Total assets $ 2,085,416 $ 2,595,302 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 15,938 $ 14,506 Accrued compensation 63,059 51,362 Accrued other 12,399 14,665 Income taxes payable 764 764 Deferred revenue and customer deposits 279,185 301,806 Current portion of operating lease liabilities 11,859 11,979 Total current liabilities 383,204 395,082 Other long-term liabilities 6,897 7,055 Deferred tax liability 4,326 4,374 Accrued long-term retirement benefits 28,124 28,413 Long-term deferred revenue and customer deposits 120,638 130,212 Operating lease liabilities, net of current portion 35,231 38,101 Long-term debt 75,000 100,000 Total liabilities 653,420 703,237 Commitments and contingencies (Note 14) Stockholders' equity: Preferred stock, $ 0.001 par value: 5,000,000 shares authorized; no shares issued or outstanding at June 30, 2024 and March 31, 2024 — — Common stock, $ 0.001 par value: 300,000,000 shares authoriz ed; 133,189,228 and 131,316,309 shares issued and 71,311,409 and 71,404,216 shares outstanding at June 30,

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, 2024 filed with the Securities and Exchange Commission on May 16, 2024. Global and Macroeconomic Conditions The Company continues to closely monitor the current global and macroeconomic conditions, including the impacts of the ongoing war in Ukraine and hostilities in the Middle East, 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

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View this 10-Q filing on SEC EDGAR