WESTFORD, Mass.--(BUSINESS WIRE)--NETSCOUT SYSTEMS, INC. (NASDAQ: NTCT), a leading provider of service assurance, security, and business analytics, today announced a business update, preliminary financial results for its fiscal year ended March 31, 2020, and the date for its fourth quarter and fiscal year end 2020 earnings call. The preliminary results announced today are subject to change based on the completion of the Company’s quarter and year-end review processes and audit.

Anil Singhal, NETSCOUT’s President and CEO, stated, “During this uncertain and unprecedented time, with communication and transparency being critical, we have chosen to provide an update on our business and financial performance. Our first priority is the health and safety of our people, partners, customers and the communities where we live and work. During this global COVID-19 pandemic, our purpose as 'Guardians of the Connected World' has never been more important. Our customers depend on NETSCOUT’s service assurance and security solutions to support and protect critical networks and infrastructure that connect people and support businesses around the globe. It is essential that these infrastructures continue to perform, even as they are stressed with unprecedented demand as we deal with global quarantines. For this reason, we continue to effectively operate our business and support our customers, with the majority of our employees working remotely.”

Preliminary Fiscal Year 2020 Financial Performance

The Company expects to report:

• GAAP and Non-GAAP revenue in the range of $890 million to $892 million;
• GAAP net income in the range of $1 million to $3 million, or $0.01 to $0.03 per share (diluted);
• Non-GAAP net income in the range of $117 million to $119 million, or $1.54 to $1.56 per share (diluted), assuming an effective tax rate in the low 20% range;
• Cash, cash equivalents and short-term marketable securities of approximately $385 million, which represents approximately six months of the Company’s normal working capital requirements; and
• Debt of approximately $450 million outstanding on the Company’s $1 billion revolving credit facility, which matures in January 2023, and has no principal payments due until maturity.

A reconciliation of the fiscal year 2020 GAAP and Non-GAAP preliminary results is included in the attached financial table.

Singhal continued, “From a financial perspective, we expect to deliver annual GAAP EPS within our guidance range and Non-GAAP EPS at the upper end of our guidance range on essentially flat revenue as compared with fiscal year 2019, excluding the divested HNT Tools business. Our revenue performance was approximately 1% below our target range, despite the disruption caused by the COVID-19 pandemic occurring within our fourth fiscal quarter, which is traditionally one of our stronger quarters. This demonstrates the necessity for our service assurance and security solutions for the mission critical applications that our customers provide. With Non-GAAP EPS at the upper end of our target range, we expect to deliver low double-digit percentage growth over the prior year, on relatively flat organic revenue. This reflects the success of the prudent cost discipline we have maintained while continuing to invest in our product solutions.”

Business Outlook

“As we move forward, we remain committed to maintaining our disciplined approach to managing capital and expenses in this uncertain environment, while continuing to innovate and invest in our compelling technology and solutions. We are confident that our solid balance sheet and financial position provide us with the flexibility and liquidity necessary to weather this challenging situation in the near-term. Finally, I would like to thank my fellow Guardians at NETSCOUT for their commitment and dedication, as well as our stakeholders for their continued support,” Singhal concluded.

NETSCOUT plans to provide a business update during the Q4 and fiscal year end 2020 financial results call scheduled for May 7th. However, given the rapidly evolving COVID-19 situation, it is not possible, with reasonable accuracy, to estimate the impact of the pandemic on future financial performance. Therefore, the Company will defer providing fiscal year 2021 guidance until there is a clearer outlook on the duration and magnitude of the COVID-19 pandemic.

About NETSCOUT SYSTEMS, INC.

NETSCOUT SYSTEMS, INC. (NASDAQ: NTCT) assures digital business services against disruptions in availability, performance, and security. Our market and technology leadership stems from combining our patented smart data technology with smart analytics. We provide real-time, pervasive visibility, and insights customers need to accelerate and secure their digital transformation. Our approach transforms the way organizations plan, deliver, integrate, test, and deploy services and applications. Our nGenius service assurance solutions provide real-time, contextual analysis of service, network, and application performance. Arbor security solutions protect against DDoS attacks that threaten availability and advanced threats that infiltrate networks to steal critical business assets. To learn more about improving service, network, and application performance in physical or virtual data centers, or in the cloud, and how NETSCOUT’s performance and security solutions, powered by service intelligence can help you move forward with confidence, visit www.netscout.com or follow @NETSCOUT and @ArborNetworks on Twitter, Facebook, or LinkedIn.