Netscout Systems, Inc. · NASDAQ:NTCT
Netscout Systems — 2014 Technology, Internet, Media & Telecommunications Conference
19 slides from Netscout Systems's conference presentation, Nov 10, 2014
Slide 1: NetScout Systems, Inc. 2014 Technology, Internet, Media & Telecommunications Conference
NetScout Systems, Inc. 2014 Technology, Internet, Media & Telecommunications Conference Filed by NetScout Systems, Inc. Pursuant to Rule 425 under the Securities Act of 1933, as amended and deemed filed pursuant to Rule 14a-12 under the Securities Exchange Act of 1934, as amended Subject Company: Ne
Slide 2: Additional Information and Where You Can Find It
Additional Information and Where You Can Find It NetScout will file a Preliminary Proxy Statement on Schedule 14A and a Registration Statement on Form S-4 containing a prospectus of NetScout and other documents concerning the proposed acquisition with the Securities and Exchange Commission (“SEC”).
Slide 3: Safe Harbor & Non-GAAP Financial Metrics
Safe Harbor & Non-GAAP Financial Metrics Forward Looking Statements: Forward-looking statements in this communication 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 th
Slide 4: NetScout Investment Highlights
NetScout Investment Highlights • Market leader in network and application performance management • Award-winning solutions based on proprietary software: “ASI” enabling real-time intelligence and analytics • Helping our customers achieve ROI and manage risk through the operational intelligence gaine
Slide 5: Our Value Proposition for IT Operations
Our Value Proposition for IT Operations Real-time operational intelligence and analytics NetScout Enables Proactive Network, Service and UC Triage ROI: Reduce costs Improve productivity Generate incremental revenue Risks: Outages/downtime Cyber attacks Non-compliance/fines Reputational damage
Slide 6: Mobility Trends Driving our Growth
Mobility Trends Driving our Growth: • 4G/LTE: Global deployments Consumer adoption • Services deployed (e.g. VoLTE) • Network analytics • Geo-analytics • Virtualization • Voice/video/data convergence • “Big Data ” Service Providers : Monetize their investment and retain customers Source: Ericsson Mo
Slide 7: Trends Impacting Enterprise IT
Trends Impacting Enterprise IT Enterprise : “ Uptime ” and user experience with cost-effective delivery Session Analysis Packet Analysis UMC/OSS • Mobility: “BYOD” • Virtualization • Unified communications • Converged infrastructure • Cloud-based services • “Big Data” • “Internet of things” Network
Slide 8: Why NetScout will continue to win
Why NetScout will continue to win…. NetScout: Proven technology for proving change… Today’s fundamentals: Secular IT Trends Product Strategy Financial Strength Tomorrow’s information : ASI solving “Big Data’s” data problem
Slide 9: Revenue and EPS Performance
Revenue and EPS Performance CAGRS at FY ‘15 Guidance Mid-points: Revenue: 9.5% EPS: 11% Non-GAAP, in millions except EPS EPS range: $1.74 - $1.81 Revenue range: $450 - $465 $0.55 $0.76 $1.04 $1.10 $1.32 $1.53 $1.81 Guidance as of October 16, 2014 $174 $211 $290 $309 $352 $397 $465 FY '11 FY '12 FY '
Slide 10: Cumulative Free Cash Flow Generation
Cumulative Free Cash Flow Generation (in millions) Capital deployment priority: product development $- $100 $200 $300 $400 FY '10 FY '11 FY '12 FY '13 FY '14 FY '15 YTD FY '15 YTD FCF FY '14 FCF FY '13 FCF FY '12 FCF FY '11 FCF FY '10 FCF $40 $100 $157 $240 $337 $362
Slide 11: NetScout Investment Position: Balance Sheet Highlights
NetScout Investment Position: Balance Sheet Highlights (in millions) Total liquidity exceeds $465M Q2 FY ‘15 FY ’14 FY ’13 FY ’12 FY ’11 Cash and Securities $217 $219 $154 $214 $229 Accounts Receivable $50 $61 $74 $70 $63 Total Debt $0 $0 $0 $62 $68 Total Deferred Revenue $118 $134 $121 $112 $100 To
Slide 12: NetScout Operating Targets
NetScout Operating Targets Operating Targets FY ’15 Guidance (as of 10/16/14) Scalable organization increases operating leverage Non-GAAP Operating targets attained at mid- teens revenue growth. Gross Margin 78 – 81% 79 – 80% R&D of Revenue 13 – 15% 15 – 16% S&M of Revenue 33 – 35% 32 – 33% G&A of R
Slide 13: Strategic Direction and Opportunity
Strategic Direction and Opportunity • NetScout is well positioned within its core markets with a differentiated product portfolio, innovative technology and a compelling value proposition • Service providers and enterprises have invested significantly in their infrastructures during the past decade
Slide 14: NetScout to Acquire Danaher's Communications Business: Strategic Rationale
Go-to-Market More global and diverse Broader sales and channel presence worldwide More customers and more touch points within the customer Increased customer mindshare Best-In-Class Solutions Broader portfolio for service providers Extends reach into the mid-tier enterprise market Jump-starts our en
Slide 15: NetScout to Acquire Danaher's Communications Business: Transaction Overview
NetScout to Acquire Danaher’s Communications Business: Transaction Overview Structure and Consideration Ownership (2) Board of Directors Management Headquarters Closing Conditions • NetScout to acquire Danaher’s Communications Group • NetScout to issue 62.5 million shares, valued at approximately $2
Slide 16: Proven track record of leadership and financial strength
Proven track record of leadership and financial strength Strategy: Continued leadership in the major computing trends over the next decade Helping our customers achieve ROI and manage risk through the operational intelligence gained from our analytics Transformational acquisition positions NetScout
Slide 17: <® NETSCOUT.
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Slide 18: Appendix: Non-GAAP Measure Reconciliation
Appendix: Non-GAAP Measure Reconciliation
Slide 19: Non-GAAP Measure Reconciliation: Revenue, EPS and Free Cash Flow
Non-GAAP Measure Reconciliation: Revenue, EPS and Free Cash Flow ($ in millions) 1H FY'15 Operating Cash Flow 29.0 $ Purchase of Fixed Assets & Intangible Assets (4.1) $ Free Cash Flow 24.9 $ Free Cash Flow (in thousands, except per share data) For the Fiscal Years Ended March 31, GAAP Revenue 290,5
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