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News >> Technology >>
NetScout announces Q1 outlook
By siliconindia
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Wednesday, 02 July 2003, 19:30 IST
WESTFORD: NetScout Systems, Inc. (Nasdaq:NTCT), a provider of network performance management solutions, Wednesday announced that based on preliminary estimates it expects revenues for the first fiscal quarter to be in the range of $15 to $16 million.
The GAAP net loss per share is expected to be in the range of ($0.03) to ($0.01) and pro forma loss per share is expected to be in the range of ($0.02) to ($0.00). GAAP and pro forma earnings per share include a software capitalization benefit of $0.02 after tax per share due to post-feasibility development work on major new software releases during the quarter. Pro forma earnings per share exclude only stock- based compensation of $49,000 and amortization of other intangible assets of $272,000, totaling $321,000, which is approximately ($0.01) in earnings per share. This compares to revenue in the previous quarter of $17.7 million, net loss per share of ($0.01) and pro forma loss per share of ($0.00).
"We are disappointed by the results of this quarter, which were caused by lengthening sales cycles, driven by longer, more complex customer sign-off processes. However we continue to feel positive about the future," said Anil Singhal, President and CEO of NetScout Systems. "We expect our second fiscal quarter to have stronger order flow, based on early indications of a stronger sales pipeline, and bolstered by orders deferred out of the first quarter."
"Looking beyond next quarter, we are encouraged by customer enthusiasm with our new CDM strategy and resulting new products, presently scheduled for release in July," Mr. Singhal added. "We anticipate orders from the new products will begin to impact our business in the second half of fiscal 2004. We have been conducting extensive sales force training on the new products over the last month which, combined with some anticipation of new product function, may have contributed to some of the delays in the closing of sales opportunities that we experienced at the end of this quarter."