WESTFORD, Mass.--(BUSINESS WIRE)--NETSCOUT SYSTEMS, INC. (NASDAQ: NTCT), a leading provider of service assurance, security, and business analytics, today announced financial results for its first quarter fiscal year 2021 ended June 30, 2020.
“We delivered strong earnings per share growth on a relatively consistent level of revenue in the first quarter of fiscal year 2021, compared with the same period last year,” stated Anil Singhal, NETSCOUT’s president and chief executive officer. “Our enterprise business was strong given our ability to provide service assurance, with real-time, pervasive visibility and insight, and security solutions that mitigate disruption for our customers regardless of their underlying infrastructure. NETSCOUT’s trust factor is attracting enterprises to our solutions to help solve heightened pandemic challenges, such as remote work, telemedicine, digital transformation, and an expanding cyber threat landscape. We are pleased with our execution to date, and with our ability to serve our customers and deliver solid results in this challenging global economic environment.”
Commenting on the Company’s plans and outlook for fiscal year 2021, Singhal said, “We remain cautiously optimistic about fiscal year 2021 as we experience expanded enterprise customer interest, while navigating timing and budget challenges in the service provider vertical. With our strong financial profile and experienced team, NETSCOUT remains well-positioned to weather this global pandemic and challenging economic environment.”
Q1 FY21 Financial Results
Total revenue (GAAP and non-GAAP) for the first quarter of fiscal year 2021 was $183.8 million, compared with $186.0 million (GAAP) and $186.1 million (non-GAAP) in the same quarter one year ago. A reconciliation of GAAP and non-GAAP results is included in the attached financial tables.
Product revenue (GAAP and non-GAAP) for the first quarter of fiscal year 2021 was $71.7 million, which was approximately 39% of total revenue. This compares with first-quarter fiscal year 2020 product revenue (GAAP and non-GAAP) of $75.7 million, which was approximately 41% of total revenue.
Service revenue (GAAP and non-GAAP) for the first quarter of fiscal year 2021 was $112.1 million, or approximately 61% of total revenue versus service revenue (GAAP) of $110.3 million, or approximately 59% of total revenue, for the same period one year ago. On a non-GAAP basis, service revenue for the first fiscal quarter of fiscal year 2020 was $110.4 million, also approximately 59% of total non-GAAP revenue.
NETSCOUT’s loss from operations (GAAP) was $14.5 million in the first quarter of fiscal year 2021, compared with a loss from operations (GAAP) of $24.4 million in the comparable quarter one year ago. First-quarter fiscal year 2021 non-GAAP EBITDA from operations was $26.6 million, or 14.5% of non-GAAP quarterly revenue, which compares with $18.9 million, or 10.2% of non-GAAP quarterly revenue in the first quarter of fiscal year 2020. The Company’s first-quarter fiscal year 2021 (GAAP) operating margin was -7.9% versus -13.1% in the prior fiscal year’s first quarter. First-quarter fiscal year 2021 non-GAAP income from operations was $20.6 million with a non-GAAP operating margin of 11.2%. This compares with first-quarter fiscal year 2020 non-GAAP income from operations of $12.1 million and a non-GAAP operating margin of 6.5%.
Net loss (GAAP) for the first quarter of fiscal year 2021 was $17.4 million, or $0.24 per share (diluted) versus net loss (GAAP) of $29.3 million, or $0.38 per share, for the first quarter of fiscal year 2020. On a non-GAAP basis, net income for the first quarter of fiscal year 2021 was $12.2 million, or $0.17 per share (diluted), which compares with $5.6 million, or $0.07 per share (diluted), for the first quarter of fiscal year 2020.
As of June 30, 2020, cash and cash equivalents, and short and long-term marketable securities were $426.5 million, compared with $389.1 million as of March 31, 2020 and $443.2 million as of June 30, 2019. During the first quarter of fiscal year 2021, NETSCOUT did not repurchase any shares of its common stock through its share repurchase program and as of June 30, 2020 had $450.0 million outstanding on its $1.0 billion revolving credit facility.
Guidance:
Given the continuing 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 greater visibility on the duration, magnitude, and effects of the COVID-19 global 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.
