Thursday, April 16, 2020

NETSCOUT updates financial guidance

NETSCOUT announced the following preliminary Fiscal Year 2020 guidance:

  • 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.

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.”