UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
DC 20549
FORM
8-K
CURRENT
REPORT PURSUANT
TO
SECTION 13 OR 15(d) OF THE
SECURITIES
EXCHANGE ACT OF 1934
Date
of report (Date of earliest event reported): October 29, 2015
NETSCOUT
SYSTEMS, INC.
(Exact name of registrant as specified in
its charter)
Delaware
(State or other jurisdiction of
incorporation)
000-26251 |
04-2837575 |
|
(Commission File Number) |
(IRS Employer Identification No.) |
310 Littleton Road |
01886 |
|
(Address of principal executive offices) |
(Zip Code) |
(978) 614-4000
(Registrant’s telephone number, including area
code)
Not Applicable
(Former Name or Former Address, if
changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
⃞ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
⃞ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
⃞ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
⃞ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02. Results of Operations and Financial Condition.
The following information and the Exhibit attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as expressly set forth by specific reference in such filing.
On October 29, 2015, NetScout Systems, Inc. (the “Company”) issued a press release regarding its financial results for the second quarter of fiscal year 2016 ended September 30, 2015, its expectations of future performance and its intention to hold a conference call regarding these topics. The Company's press release is furnished as Exhibit 99.1 to this report.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
The Company hereby furnishes the following exhibit:
99.1 Press release dated October 29, 2015.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
NETSCOUT SYSTEMS, INC. |
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By: |
/s/ Jean Bua |
Jean Bua |
|||
Chief Financial Officer |
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Date: |
October 29, 2015 |
Exhibit Index
Exhibit Number |
Description |
99.1 |
Press release dated October 29, 2015. |
Exhibit 99.1
NetScout Systems Reports Financial Results For Second Quarter Fiscal Year 2016
Strong Quarterly Performance Following NetScout’s Transformative Acquisition of Danaher’s Communications Business
WESTFORD, Mass.--(BUSINESS WIRE)--October 29, 2015--NetScout Systems, Inc. (NASDAQ: NTCT), a market leader in service assurance and cyber security solutions, today announced financial results for its second quarter of fiscal year 2016 ended September 30, 2015.
“NetScout’s results this quarter reflect positively on the two-plus month contribution from Danaher’s Communications Business, which we acquired in mid-July,” stated Anil Singhal, NetScout’s president and CEO. “We were pleased with the initial progress we made this quarter toward achieving our key strategic and financial objectives. Our revenue performance this quarter was underpinned by the success of a major project for a tier-one North American service provider, combined with ongoing efforts to address the near-term requirements of our global customer base in both the enterprise and service provider markets. In addition to our solid top-line results, our non-GAAP earnings per share for the quarter also benefited from prudent expense management. Our integration activities, including certain product development initiatives, are underway and proceeding according to plan. Moving forward, we believe we are well positioned to help our customers thrive in the connected world through a broader range of compelling, high-value service assurance and cyber security solutions.”
Q2 FY16 Financial Results
NetScout’s financial results for the second quarter of fiscal year 2016 include approximately two and one-half months of contribution from Danaher’s Communications Business, which NetScout acquired on July 14, 2015. The timing and magnitude of the contributions from the acquired businesses impact year-over-year comparisons for the three-month and six-month periods ended September 30, 2015.
Total revenue for the second quarter of fiscal year 2016 was $261.1 million. Non-GAAP total revenue for the second quarter of fiscal year 2016 was $281.8 million. A reconciliation of GAAP and non-GAAP results is included in the attached financial tables.
Product revenue for the second quarter of fiscal year 2016 was $175.8 million, or approximately 67% of total revenue. On a non-GAAP basis, product revenue for the second quarter of fiscal year 2016 was $181.5 million, or approximately 64% of total revenue. Service revenue for the second quarter of fiscal year 2016 was $85.4 million, or approximately 33% of total revenue. On a non-GAAP basis, service revenue for fiscal year 2016’s second quarter was $100.3 million, or approximately 36% of total revenue.
NetScout’s loss from operations was $35.3 million in the second quarter of fiscal year 2016. Second-quarter fiscal year 2016 non-GAAP income from operations was $67.4 million. NetScout’s non-GAAP operating margin for the second quarter of fiscal year 2016 was 23.9%.
Net loss for the second quarter of fiscal year 2016 was $7.9 million, or $0.09 per diluted share. On a non-GAAP basis, net income for the second quarter was $43.6 million, or $0.47 per diluted share.
Other notable financial and operations highlights for the second quarter and first six months of fiscal year 2016 included:
Guidance:
For fiscal year 2016, NetScout is refining the guidance that was originally issued in July 2015 to reflect updated estimates related to the deferred revenue fair value adjustment and a range of anticipated expenses primarily related to the acquisition, as well as the anticipated impact of the Company’s share repurchase activity through the second quarter of fiscal year 2016 and anticipated full-year interest expense:
Conference Call Instructions:
NetScout will host a conference call to discuss its second-quarter fiscal year 2016 financial results today at 8:30 a.m. ET. This call will be webcast live through NetScout’s website at http://ir.netscout.com/phoenix.zhtml?c=92658&p=irol-irhome. Alternatively, people can listen to the call by dialing (866) 701-8242 for U.S./Canada and (763) 416-6912 for international callers and using conference ID 53716905. A replay of the call will be available after 11:30 a.m. ET on October 29, 2015 for approximately one week. The number for the replay is (855) 859-2056 for U.S./Canada and (404) 537-3406 for international callers. The conference ID is 53716905.
Use of Non-GAAP Financial Information:
To supplement the financial measures presented in NetScout's press release in accordance with accounting principles generally accepted in the United States ("GAAP"), NetScout also reports the following non-GAAP measures: non-GAAP total revenue, non-GAAP product revenue, non-GAAP service revenue, non-GAAP income from operations, effective non-GAAP tax rate, non-GAAP net income, non-GAAP net income per diluted share, and non-GAAP operating margin. Non-GAAP revenue eliminates the GAAP effects of acquisitions by adding back revenue related to deferred revenue revaluation, revenue affected by the timing of the delayed transfer of certain acquired foreign entities, and revenue impacted by the amortization of intangible assets. Non-GAAP income from operations includes the aforementioned revenue adjustments and also removes expenses related to the amortization of acquired intangible assets, stock-based compensation, certain expenses relating to acquisitions including inventory fair value adjustments, depreciation costs, compensation for post-combination services and business development and integration costs. The effective non-GAAP tax rate reflects adjustments made to the tax rate resulting from the aforementioned eliminations to both revenue and expenses. Non-GAAP net income includes the aforementioned items related to non-GAAP income from operations, net of related income tax effects. Non-GAAP diluted net income per share also excludes these expenses as well as the related impact of all these adjustments on the provision for income taxes. Non-GAAP operating margin is calculated based on the non-GAAP financial metrics discussed above.
These non-GAAP measures are not in accordance with GAAP, should not be considered an alternative for measures prepared in accordance with GAAP (revenue, net income and diluted net income per share), and may have limitations in that they do not reflect all of NetScout’s results of operations as determined in accordance with GAAP. These non-GAAP measures should only be used to evaluate NetScout’s results of operations in conjunction with the corresponding GAAP measures. The presentation of non-GAAP information is not meant to be considered superior to, in isolation from or as a substitute for results prepared in accordance with GAAP.
NetScout believes these non-GAAP financial measures will enhance the reader’s overall understanding of NetScout’s current financial performance and NetScout's prospects for the future by providing a higher degree of transparency for certain financial measures and providing a level of disclosure that helps investors understand how the Company plans and measures its own business. NetScout believes that providing these non-GAAP measures affords investors a view of NetScout’s operating results that may be more easily compared to peer companies and also enables investors to consider NetScout’s operating results on both a GAAP and non-GAAP basis during and following the integration period of NetScout’s acquisitions. Presenting the GAAP measures on their own would not be indicative of NetScout’s core operating results. Furthermore, NetScout believes that the presentation of non-GAAP measures when shown in conjunction with the corresponding GAAP measures provide useful information to management and investors regarding present and future business trends relating to its financial condition and results of operations.
NetScout management regularly uses supplemental non-GAAP financial measures internally to understand, manage and evaluate its business and to make operating decisions. These non-GAAP measures are among the primary factors that management uses in planning and forecasting.
About NetScout Systems, Inc.
NetScout Systems, Inc. (NASDAQ: NTCT) is a market leader in real-time service assurance and cyber security solutions for today’s most demanding service provider, enterprise and government networks. NetScout’s Adaptive Service Intelligence (ASI) technology continuously monitors the service delivery environment to identify performance issues and provides insight into network-based security threats, helping teams to quickly resolve issues that can cause business disruptions or impact user experience. NetScout delivers unmatched service visibility and protects the digital infrastructure that supports our connected world. To learn more, visit www.netscout.com.
Safe Harbor
Forward-looking statements in this release are made pursuant to the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934 and other federal securities laws. Investors are cautioned that statements in this press release, which are not strictly historical statements, including without limitation, the statements related to the financial guidance for NetScout, the statements related to the Company’s integration activities, and the statements related to being well positioned to help customers thrive in the connected world through a broader range of compelling, high-value service assurance and cyber security solutions, constitute forward-looking statements which involve risks and uncertainties. Actual results could differ materially from the forward-looking statements due to known and unknown risk, uncertainties, assumptions and other factors. Such factors include slowdowns or downturns in economic conditions generally and in the market for advanced network and service assurance solutions specifically; the volatile foreign exchange environment; the Company’s relationships with strategic partners; dependence upon broad-based acceptance of the Company’s network performance management solutions; the presence of competitors with greater financial resources than ours and their strategic response to our products; our ability to retain key executives and employees; and the ability of NetScout to successfully integrate the merged assets and the associated technology and achieve operational efficiencies. For a more detailed description of the risk factors associated with the Company, please refer to the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2015, which is on file with the Securities and Exchange Commission. NetScout assumes no obligation to update any forward-looking information contained in this press release or with respect to the announcements described herein.
©2015 NetScout Systems, Inc. All rights reserved. NetScout and the NetScout logo are registered trademarks or trademarks of NetScout Systems, Inc. and/or its subsidiaries and/or affiliates in the USA and/or other countries.
NetScout Systems, Inc. | ||||||||||||||||||||||
Condensed Consolidated Statements of Operations |
||||||||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||
September 30 | September 30 | |||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||||||||
Revenue: | ||||||||||||||||||||||
Product | $ | 175,750 | $ | 57,953 | $ | 229,343 | $ | 122,319 | ||||||||||||||
Service | 85,360 | 45,646 | 132,510 | 89,132 | ||||||||||||||||||
Total revenue | 261,110 | 103,599 | 361,853 | 211,451 | ||||||||||||||||||
Cost of revenue: | ||||||||||||||||||||||
Product | 69,562 | 12,939 | 82,060 | 26,705 | ||||||||||||||||||
Service | 30,625 | 8,656 | 39,423 | 17,486 | ||||||||||||||||||
Total cost of revenue | 100,187 | 21,595 | 121,483 | 44,191 | ||||||||||||||||||
Gross profit | 160,923 | 82,004 | 240,370 | 167,260 | ||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||
Research and development | 65,896 | 19,241 | 83,954 | 38,008 | ||||||||||||||||||
Sales and marketing | 79,153 | 32,196 | 117,245 | 69,468 | ||||||||||||||||||
General and administrative | 41,405 | 11,067 | 51,504 | 19,820 | ||||||||||||||||||
Amortization of acquired intangible assets | 9,843 | 856 | 10,652 | 1,718 | ||||||||||||||||||
Restructuring charges | (104 | ) | - | (104 | ) | - | ||||||||||||||||
Total operating expenses | 196,193 | 63,360 | 263,251 | 129,014 | ||||||||||||||||||
Income (loss) from operations | (35,270 | ) | 18,644 | (22,881 | ) | 38,246 | ||||||||||||||||
Interest and other expense, net | (828 | ) | (543 | ) | (974 | ) | (674 | ) | ||||||||||||||
Income (loss) before income tax expense | (36,098 | ) | 18,101 | (23,855 | ) | 37,572 | ||||||||||||||||
Income tax expense | (28,183 | ) | 6,868 | (23,609 | ) | 14,863 | ||||||||||||||||
Net income (loss) |
$ | (7,915 | ) | $ | 11,233 | $ | (246 | ) | $ | 22,709 | ||||||||||||
Basic net income (loss) per share | $ | (0.09 | ) | $ | 0.27 | $ | - | $ | 0.55 | |||||||||||||
Diluted net income (loss) per share | $ | (0.09 | ) | $ | 0.27 | $ | - | $ | 0.54 | |||||||||||||
Weighted average common shares outstanding used in computing: |
||||||||||||||||||||||
Net income (loss) per share - basic |
91,410 | 41,060 | 66,232 | 41,071 | ||||||||||||||||||
Net income (loss) per share - diluted |
91,410 | 41,652 | 66,232 | 41,732 |
NetScout Systems, Inc. | |||||||||||||||||||||||||
Reconciliation of Current GAAP to Current and Historical Non-GAAP Financial Measures | |||||||||||||||||||||||||
(In thousands, except per share data) | |||||||||||||||||||||||||
Three Months Ended |
Three Months Ended |
Six Months Ended | |||||||||||||||||||||||
September 30 | June 30, | September 30 | |||||||||||||||||||||||
2015 | 2014 | 2015 | 2015 | 2014 | |||||||||||||||||||||
GAAP Revenue | $ | 261,110 | $ | 103,599 | $ | 100,743 | $ | 361,853 | $ | 211,451 | |||||||||||||||
Product deferred revenue fair value adjustment | 3,107 | - | 3,107 | 18 | |||||||||||||||||||||
Service deferred revenue fair value adjustment | 14,945 | - | - | 14,945 | - | ||||||||||||||||||||
Delayed transfer entity adjustment (1) | 633 | - | - | 633 | - | ||||||||||||||||||||
Amortization of acquired intangible assets (3) | 2,028 | - | - | 2,028 | - | ||||||||||||||||||||
Non-GAAP Revenue | $ | 281,823 | $ | 103,599 | $ | 100,743 | $ | 382,566 | $ | 211,469 | |||||||||||||||
GAAP Gross profit | $ | 160,923 | $ | 82,004 | $ | 79,447 | $ | 240,370 | $ | 167,260 | |||||||||||||||
Product deferred revenue fair value adjustment | 3,107 | - | 3,107 | 18 | |||||||||||||||||||||
Service deferred revenue fair value adjustment | 14,945 | - | - | 14,945 | - | ||||||||||||||||||||
Inventory fair value adjustment | 12,773 | - | - | 12,773 | - | ||||||||||||||||||||
Delayed transfer entity adjustment (1) | 535 | - | - | 535 | - | ||||||||||||||||||||
Share-based compensation expense (2) | 921 | 407 | 475 | 1,396 | 695 | ||||||||||||||||||||
Amortization of acquired intangible assets (3) | 16,835 | 923 | 758 | 17,593 | 1,857 | ||||||||||||||||||||
Business development and integration expense (4) | 225 | - | - | 225 | - | ||||||||||||||||||||
Compensation for post combination services (5) | 2,079 | 9 | - | 2,079 | 17 | ||||||||||||||||||||
Acquisition related depreciation expense (6) | 87 | - | - | 87 | - | ||||||||||||||||||||
Non-GAAP Gross profit | $ | 212,430 | $ | 83,343 | $ | 80,680 | $ | 293,110 | $ | 169,847 | |||||||||||||||
GAAP Income (loss) from operations |
$ | (35,270 | ) | $ | 18,644 | $ | 12,389 | $ | (22,881 | ) | $ | 38,246 | |||||||||||||
Product deferred revenue fair value adjustment | 3,107 | - | 3,107 | 18 | |||||||||||||||||||||
Service deferred revenue fair value adjustment | 14,945 | - | - | 14,945 | - | ||||||||||||||||||||
Inventory fair value adjustment | 12,773 | - | - | 12,773 | - | ||||||||||||||||||||
Delayed transfer entity adjustment (1) | 383 | - | - | 383 | - | ||||||||||||||||||||
Share-based compensation expense (2) | 7,503 | 4,495 | 4,595 | 12,098 | 7,797 | ||||||||||||||||||||
Amortization of acquired intangible assets (3) | 26,678 | 1,779 | 1,567 | 28,245 | 3,575 | ||||||||||||||||||||
Business development and integration expense (4) | 14,544 | 1,477 | 3,362 | 17,906 | 1,477 | ||||||||||||||||||||
Compensation for post combination services (5) | 21,661 | 545 | 21 | 21,682 | 1,081 | ||||||||||||||||||||
Restructuring charges | (104 | ) | - | - | (104 | ) | - | ||||||||||||||||||
Acquisition related depreciation expense (6) | 1,177 | - | - | 1,177 | - | ||||||||||||||||||||
Non-GAAP Income from operations |
$ | 67,397 | $ | 26,940 | $ | 21,934 | $ | 89,331 | $ | 52,194 | |||||||||||||||
GAAP Net income (loss) |
$ | (7,915 | ) | $ | 11,233 | $ | 7,669 | $ | (246 | ) | $ | 22,709 | |||||||||||||
Product deferred revenue fair value adjustment | 3,107 | - | 3,107 | 18 | |||||||||||||||||||||
Service deferred revenue fair value adjustment | 14,945 | - | - | 14,945 | - | ||||||||||||||||||||
Inventory fair value adjustment | 12,773 | - | - | 12,773 | - | ||||||||||||||||||||
Share-based compensation expense (2) | 7,503 | 4,495 | 4,595 | 12,098 | 7,797 | ||||||||||||||||||||
Amortization of acquired intangible assets (3) | 26,678 | 1,779 | 1,567 | 28,245 | 3,575 | ||||||||||||||||||||
Business development and integration expense (4) | 14,544 | 1,477 | 3,362 | 17,906 | 1,477 | ||||||||||||||||||||
Compensation for post combination services (5) | 21,661 | 545 | 21 | 21,682 | 1,081 | ||||||||||||||||||||
Restructuring charges | (104 | ) | - | - | (104 | ) | - | ||||||||||||||||||
Acquisition related depreciation expense (6) | 1,177 | - | - | 1,177 | - | ||||||||||||||||||||
Loss on extinguishment of debt (7) | 55 | - | - | 55 | - | ||||||||||||||||||||
Income tax adjustments (8) | (50,868 | ) | (2,907 | ) | (3,552 | ) | (54,420 | ) | (4,817 | ) | |||||||||||||||
Non-GAAP Net income | $ | 43,556 | $ | 16,622 | $ | 13,662 | $ | 57,218 | $ | 31,840 | |||||||||||||||
GAAP Diluted Net income (loss) per share |
$ | (0.09 | ) | $ | 0.27 | $ | 0.19 | $ | - | $ | 0.54 | ||||||||||||||
Share impact of non-GAAP adjustments identified above | 0.56 | 0.13 | 0.14 | 0.86 | 0.22 | ||||||||||||||||||||
Non-GAAP Diluted net income per share | $ | 0.47 | $ | 0.40 | $ | 0.33 | $ | 0.86 | $ | 0.76 | |||||||||||||||
Shares used in computing non-GAAP diluted net income per share | 91,967 | 41,652 | 41,371 | 66,811 | 41,732 | ||||||||||||||||||||
(1 | ) | Delayed transfer entity adjustment included in these amounts | |||||||||||||||||||||||
is as follows: | |||||||||||||||||||||||||
Product Revenue | $ | 633 | $ | - | $ | - | $ | 633 | $ | - | |||||||||||||||
Cost of product revenue | (98 | ) | - | - | (98 | ) | - | ||||||||||||||||||
Sales and Marketing | (152 | ) | - | - | (152 | ) | - | ||||||||||||||||||
Other Income(Expense) | (383 | ) | - | - | (383 | ) | - | ||||||||||||||||||
Total Delayed transfer entity adjustment | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||||
(2 | ) | Share-based compensation expense included in these amounts | |||||||||||||||||||||||
is as follows: | |||||||||||||||||||||||||
Cost of product revenue | $ | 167 | $ | 93 | $ | 102 | $ | 269 | $ | 153 | |||||||||||||||
Cost of service revenue | 754 | 314 | 373 | 1,127 | 542 | ||||||||||||||||||||
Research and development | 2,572 | 1,490 | 1,490 | 4,062 | 2,516 | ||||||||||||||||||||
Sales and marketing | 2,240 | 1,235 | 1,403 | 3,643 | 2,198 | ||||||||||||||||||||
General and administrative | 1,770 | 1,363 | 1,227 | 2,997 | 2,388 | ||||||||||||||||||||
Total share-based compensation expense | $ | 7,503 | $ | 4,495 | $ | 4,595 | $ | 12,098 | $ | 7,797 | |||||||||||||||
(3 | ) | Amortization expense related to acquired software and product | |||||||||||||||||||||||
technology, tradenames, customer relationships included in these | |||||||||||||||||||||||||
amounts is as follows: | |||||||||||||||||||||||||
Total revenue adjustment | $ | 2,028 | $ | - | $ | - | $ | 2,028 | $ | - | |||||||||||||||
Cost of product revenue | 14,807 | 923 | 758 | 15,565 | 1,857 | ||||||||||||||||||||
Operating expenses | 9,843 | 856 | 809 | 10,652 | 1,718 | ||||||||||||||||||||
Total amortization expense | $ | 26,678 | $ | 1,779 | $ | 1,567 | $ | 28,245 | $ | 3,575 | |||||||||||||||
(4 | ) | Business development and integration expense included in | |||||||||||||||||||||||
these amounts is as follows: | |||||||||||||||||||||||||
Cost of product revenue | $ | 131 | $ | - | $ | - | $ | 131 | $ | - | |||||||||||||||
Cost of service revenue | 94 | - | 94 | - | |||||||||||||||||||||
Research and development | 256 | - | - | 256 | - | ||||||||||||||||||||
Sales and marketing | 271 | - | 983 | 1,254 | - | ||||||||||||||||||||
General and administrative | 13,792 | 1,477 | 2,379 | 16,171 | 1,477 | ||||||||||||||||||||
Total business development and integration expense | $ | 14,544 | $ | 1,477 | $ | 3,362 | $ | 17,906 | $ | 1,477 | |||||||||||||||
(5 | ) | Compensation for post combination services included in these | |||||||||||||||||||||||
amounts is as follows: | |||||||||||||||||||||||||
Cost of product revenue | $ | 328 | $ | 6 | $ | - | $ | 328 | $ | 12 | |||||||||||||||
Cost of service revenue | 1,751 | 3 | - | 1,751 | 5 | ||||||||||||||||||||
Research and development | 8,262 | 215 | 21 | 8,283 | 420 | ||||||||||||||||||||
Sales and marketing | 7,472 | 37 | - | 7,472 | 76 | ||||||||||||||||||||
General and administrative | 3,848 | 284 | - | 3,848 | 568 | ||||||||||||||||||||
Total compensation for post combination services | $ | 21,661 | $ | 545 | $ | 21 | $ | 21,682 | $ | 1,081 | |||||||||||||||
(6 | ) | Acquisition related depreciation expense included in these | |||||||||||||||||||||||
amounts is as follows: | |||||||||||||||||||||||||
Cost of product revenue | 46 | $ | - | $ | - | $ | 46 | $ | - | ||||||||||||||||
Cost of service revenue | 41 | - | - | 41 | - | ||||||||||||||||||||
Research and development | 802 | - | - | 802 | - | ||||||||||||||||||||
Sales and marketing | 125 | - | - | 125 | - | ||||||||||||||||||||
General and administrative | 163 | - | - | 163 | - | ||||||||||||||||||||
Total acquisition related depreciation expense | $ | 1,177 | $ | - | $ | - | $ | 1,177 | $ | - | |||||||||||||||
(7 | ) | Loss on extinguishment of debt included in these | |||||||||||||||||||||||
amounts is as follows | |||||||||||||||||||||||||
Interest and Other Income/(Expense), net | 55 | - | - | 55 | - | ||||||||||||||||||||
Total loss on estinguishment of debt | $ | 55 | $ | - | $ | - | $ | 55 | $ | - | |||||||||||||||
(8 | ) | Total income tax adjustment included in these | |||||||||||||||||||||||
amounts is as follows: | |||||||||||||||||||||||||
Tax effect of non-GAAP adjustments above | $ | (50,868 | ) | $ | (3,152 | ) | $ | (3,625 | ) | $ | (54,493 | ) | $ | (5,300 | ) | ||||||||||
Tax impact of non-GAAP reconciling items in loss jurisdictions | - | 245 | 73 | 73 | 483 | ||||||||||||||||||||
Total income tax adjustments | $ | (50,868 | ) | $ | (2,907 | ) | $ | (3,552 | ) | $ | (54,420 | ) | $ | (4,817 | ) |
NetScout Systems, Inc. | ||||||||||
Consolidated Balance Sheets | ||||||||||
(In thousands) | ||||||||||
September 30 | March 31, | |||||||||
2015 | 2015 | |||||||||
Assets | ||||||||||
Current assets: | ||||||||||
Cash, cash equivalents and marketable securities | $ | 318,677 | $ | 206,285 | ||||||
Accounts receivable and unbilled costs, net | 165,092 | 82,226 | ||||||||
Inventories | 71,066 | 12,130 | ||||||||
Prepaid expenses and other current assets | 142,708 | 36,643 | ||||||||
Total current assets | 697,543 | 337,284 | ||||||||
Fixed assets, net | 60,398 | 23,864 | ||||||||
Goodwill and intangible assets, net | 2,805,422 | 247,625 | ||||||||
Long-term marketable securities | 32,708 | 58,572 | ||||||||
Other assets | 8,000 | 1,704 | ||||||||
Total assets | $ | 3,604,071 | $ | 669,049 | ||||||
Liabilities and Stockholders' Equity | ||||||||||
Current liabilities: | ||||||||||
Accounts payable | $ | 37,425 | $ | 13,077 | ||||||
Accrued compensation | 73,482 | 36,553 | ||||||||
Accrued other | 29,912 | 14,581 | ||||||||
Deferred revenue and customer deposits | 233,405 | 123,422 | ||||||||
Total current liabilities | 374,224 | 187,633 | ||||||||
Other long-term liabilities | 10,005 | 6,479 | ||||||||
Deferred tax liability | 328,010 | 10,639 | ||||||||
Accrued long-term retirement benefits | 28,988 | 1,587 | ||||||||
Long-term deferred revenue | 39,224 | 26,961 | ||||||||
Long-term debt | 250,000 | - | ||||||||
|
||||||||||
Total liabilities | 1,030,451 | 233,299 | ||||||||
Stockholders' equity: | ||||||||||
Common stock | 114 | 51 | ||||||||
Additional paid-in capital | 2,619,418 | 298,101 | ||||||||
Accumulated other comprehensive income | (2,914 | ) | (4,645 | ) | ||||||
Treasury stock, at cost | (354,511 | ) | (169,516 | ) | ||||||
Retained earnings | 311,513 | 311,759 | ||||||||
Total stockholders' equity | 2,573,620 | 435,750 | ||||||||
Total liabilities and stockholders' equity | $ | 3,604,071 | $ | 669,049 |
CONTACT:
NetScout Systems, Inc.
Investors
Andrew Kramer,
978-614-4279
Vice President of Investor Relations
IR@netscout.com
or
Media
Donna
Candelori, 408-571-5226
Senior Public Relations Manager
Donna.Candelori@netscout.com