NETSCOUT SYSTEMS, INC. (NTCT) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $21.24 million, or $ 0.23 a share in the quarter, against a net loss of $24.51 million, or $0.25 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $55.21 million, or $0.60 a share compared with $57.24 million or $0.58 a share, a year ago. Revenue during the quarter went down marginally by 1.78 percent to $302.19 million from $307.68 million in the previous year period. Gross margin for the quarter expanded 746 basis points over the previous year period to 72.97 percent. Total expenses were 88.96 percent of quarterly revenues, down from 99.27 percent for the same period last year. This has led to an improvement of 1031 basis points in operating margin to 11.04 percent.
Operating income for the quarter was $33.36 million, compared with $2.25 million in the previous year period.
However, the adjusted operating income for the quarter stood at $84.33 million compared to $88.30 million in the prior year period. At the same time, adjusted operating margin contracted 79 basis points in the quarter to 27.91 percent from 28.70 percent in the last year period.
“NETSCOUT delivered solid quarterly results that were in line with our plans entering the quarter," stated Anil Singhal, NETSCOUTs president and chief executive officer. "While the service provider spending environment remains muted, we are seeing momentum build for our newest offerings, including the software version of the InfiniStreamNG, our next-generation, real-time information platform. We have continued to execute well on our development roadmaps that align with a range of exciting opportunities spanning each of our major product areas and customer segments globally. As we move forward, we are focused on achieving our fiscal year 2017 financial, product and operational objectives while also setting the stage for further progress that can drive shareholder value in the next fiscal year."
Netscout Systems expects revenue to be $1,163 million for fiscal year 2017. Netscout Systems projects revenue to be in the range of $1,163 million to $1,163 million for financial year 2017. Netscout Systems forecasts adjusted revenue to be $1,200 million for fiscal year 2017. Netscout Systems projects adjusted revenue to be in the range of $1,200 million to $1,200 million for financial year 2017. For the fiscal year 2017, Netscout Systems forecasts adjusted net income to be in the range of $174 million to $177 million. For financial year 2017, the company forecasts diluted earnings per share to be in the range of $0.40 to $0.43. For financial year 2017, the company forecasts diluted earnings per share to be in the range of $1.87 to $1.90 on adjusted basis.
Working capital declinesNETSCOUT SYSTEMS, INC. has witnessed a decline in the working capital over the last year. It stood at $292.61 million as at Dec. 31, 2016, down 8.77 percent or $28.14 million from $320.74 million on Dec. 31, 2015. Current ratio was at 1.65 as on Dec. 31, 2016, down from 1.74 on Dec. 31, 2015. Cash conversion cycle (CCC) has decreased to 54 days for the quarter from 81 days for the last year period. Days sales outstanding went up to 68 days for the quarter compared with 61 days for the same period last year.
Days inventory outstanding has decreased to 30 days for the quarter compared with 58 days for the previous year period. At the same time, days payable outstanding went up to 45 days for the quarter from 39 for the same period last year.
Debt moves up
NETSCOUT SYSTEMS, INC. has witnessed an increase in total debt over the last one year. It stood at $300 million as on Dec. 31, 2016, up 20 percent or $50 million from $250 million on Dec. 31, 2015. NETSCOUT SYSTEMS, INC. has witnessed an increase in long-term debt over the last one year. Total debt was 8.54 percent of total assets as on Dec. 31, 2016, compared with 6.88 percent on Dec. 31, 2015. Debt to equity ratio was at 0.13 as on Dec. 31, 2016, up from 0.10 as on Dec. 31, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
