Thu, May 16, 8:09 PM (71 days ago)
NetScout Systems, Inc. (NTCT) reported a 9% decline in total revenue for the fiscal year ended March 31, 2024, amounting to $829.5 million, down from $914.5 million in the previous fiscal year. This decrease was primarily driven by a 20% reduction in product revenue, which fell to $360.4 million, reflecting lower sales from service assurance offerings, particularly among service provider customers. Conversely, service revenue saw a modest increase of 1%, reaching $469.0 million, boosted by higher maintenance and professional services contracts. The company's gross profit margin improved by one percentage point to 77%, attributed to favorable product mix and lower incentive compensation expenses. However, NetScout reported a net loss of $147.7 million, a stark contrast to the net income of $59.6 million in the prior year. This was largely due to a $217.3 million goodwill impairment charge and the decrease in revenue. Operational expenses saw mixed trends, with significant reductions in employee-related costs, legal fees, and trade show expenses, but increases in contractor fees and travel expenses. Despite these challenges, the company managed to generate $58.8 million in net cash from operating activities. NetScout's future outlook is cautious, given the constrained spending environment among service provider customers, although it expects continued growth in its cybersecurity segment. The company remains focused on managing costs and aligning spending with current market conditions while executing long-term strategic plans.