NETSCOUT Systems Inc. Files Q2 FY25 10-Q

TL;DR

NETSCOUT's Q2 FY25 10-Q is in, check financials for product/service revenue.

AI Summary

NETSCOUT SYSTEMS INC filed its 10-Q for the period ending September 30, 2024. The filing covers the second quarter of fiscal year 2025. Key financial data and operational details for this period are presented, including revenue breakdowns by product and service segments.

Why It Matters

This filing provides investors with an update on NETSCOUT's financial performance and operational status for the second quarter of fiscal year 2025, crucial for understanding the company's trajectory.

Risk Assessment

Risk Level: low — This is a routine quarterly filing providing standard financial disclosures.

Key Numbers

• 2024-09-30 — Reporting Period End (This is the end date for the financial data presented in the 10-Q.)
• 2024-11-01 — Filing Date (The date the 10-Q was officially submitted to the SEC.)

Key Players & Entities

• NETSCOUT SYSTEMS INC (company) — Filer
• 2024-09-30 (date) — Reporting Period End Date
• 2024-11-01 (date) — Filing Date
• 0001078075 (company) — Central Index Key

FAQ

Key Financial Figures

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

Filing Documents

• ntct-20240930.htm (10-Q) — 1679KB
• ntct-ex311_20240930.htm (EX-31.1) — 10KB
• ntct-ex312_20240930.htm (EX-31.2) — 10KB
• ntct-ex321_20240930.htm (EX-32.1) — 5KB
• ntct-ex322_20240930.htm (EX-32.2) — 6KB
• 0001628280-24-044742.txt ( ) — 8231KB
• ntct-20240930.xsd (EX-101.SCH) — 51KB
• ntct-20240930_cal.xml (EX-101.CAL) — 88KB
• ntct-20240930_def.xml (EX-101.DEF) — 236KB
• ntct-20240930_lab.xml (EX-101.LAB) — 700KB
• ntct-20240930_pre.xml (EX-101.PRE) — 480KB
• ntct-20240930_htm.xml (XML) — 1120KB

: FINANCIAL INFORMATION

PART I: FINANCIAL INFORMATION

Unaudited Financial Statements

Item 1. Unaudited Financial Statements: Consolidated Balance Sheets: At September 30, 2024 and March 31, 2024 2 Consolidated Statements of Operations: For the three and six months ended September 30, 2024 and 2023 3 Consolidated Statements of Comprehensive Income (Loss): For the three and six months ended September 30, 2024 and 2023 4 Consolidated Statements of Stockholder's Equity: For the three and six months ended September 30, 2024 and 2023 5 Consolidated Statements of Cash Flows: For the six months ended S e ptember 30, 2024 and 2023 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 26

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 44

Controls and Procedures

Item 4. Controls and Procedures 44

: OTHER INFORMATION

PART II: OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 45

Risk Factors

Item 1A. Risk Factors 45

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 45

Defaults Upon Senior Securities 45

Item 3. Defaults Upon Senior Securities 45

Mine Safety Disclosures 45

Item 4. Mine Safety Disclosures 45

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, 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) September 30, 2024 March 31, 2024 (Unaudited) Assets Current assets: Cash and cash equivalents $ 363,355 $ 389,674 Marketable securities and investments 37,512 33,459 Accounts receivable and unbilled costs, net of allowance for credit allowances of $ 64 and $ 479 a t September 30, 2024 and March 31, 2024, respectively 118,632 192,096 Inventories and deferred costs 16,388 14,095 Prepaid income taxes 15,391 11,076 Prepaid expenses and other current assets 32,435 32,094 Total current assets 583,713 672,494 Fixed assets, net 23,244 26,487 Operating lease right-of-use assets 38,498 42,486 Goodwill 1,073,355 1,502,820 Intangible assets, net 285,605 308,659 Deferred income taxes 54,978 30,767 Long-term marketable securities 1,009 994 Other assets 10,270 10,595 Total assets $ 2,070,672 $ 2,595,302 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 13,911 $ 14,506 Accrued compensation 41,485 51,362 Accrued other 15,192 14,665 Income taxes payable 764 764 Deferred revenue and customer deposits 263,874 301,806 Current portion of operating lease liabilities 11,876 11,979 Total current liabilities 347,102 395,082 Other long-term liabilities 6,622 7,055 Deferred tax liability 3,955 4,374 Accrued long-term retirement benefits 29,253 28,413 Long-term deferred revenue and customer deposits 115,825 130,212 Operating lease liabilities, net of current portion 33,527 38,101 Long-term debt 75,000 100,000 Total liabilities 611,284 703,237 Commitments and contingencies (Note 14) Stockholders' equity: Preferred stock, $ 0.001 par value: 5,000,000 shares authorized; no shares issued or outstanding at September 30, 2024 and March 31, 2024 — — Common stock, $ 0.001 par value: 300,000,000 shares authoriz ed; 133,671,490 and 131,316,309 shares issued and 71,715,229 and 71,404,216 shares outstand

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

View Full Filing

View this 10-Q filing on SEC EDGAR