NetScout Systems, Inc. · NASDAQ:NTCT
NetScout Systems — Q1 FY2016 Earnings Presentation
15 slides from NetScout Systems's earnings presentation, Jul 30, 2015
Slide 1: Q1 FY 2016 Conference Call
Q1 FY 2016 Conference Call NetScout Systems, Inc. July 30, 2015 ©2015 NETSCOUT ° CONFIDENTIAL & PROPRIETARY
Slide 2: Agenda
Agenda • Introduction & Safe Harbor – Andrew Kramer, Vice President of Investor Relations • CEO Perspective – Anil Singhal, President and CEO • COO Update: Customer Use Cases & Business Initiatives – Michael Szabados, Chief Operating Officer • Financial Review and Fiscal Year 2016 Outlook – Jean Bua
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: CEO Perspective
CEO Perspective Anil Singhal Co-Founder, President and Chief Executive Officer N E T S CO U T.CO M
Slide 5: COO Update
COO Update Michael Szabados Chief Operating Officer N E T S CO U T.CO M
Slide 6: Financial Review Fiscal Year 2016 Outlook
Financial Review Fiscal Year 2016 Outlook Jean Bua Senior Vice President and Chief Financial Officer N E T S CO U T.CO M
Slide 7: Q1 FY 2016 Income Statement
Q1 FY 2016 Income Statement (in millions, except EPS and % change) NON-GAAP GAAP % Change % Change Q1 FY'16 over Prior Q1 FY'16 over Prior Year Year Total Revenue $100.7 -7% $100.7 -7% Product Revenue $53.6 -17% $53.6 -17% Service Revenue $47.1 8% $47.1 8% Gross Profit $80.7 -7% $79.4 -7% % 80.1% 78
Slide 8: Product Revenue Composition
Q1 FY 2016 Product Revenue Composition (Non-GAAP, $ in millions) % Change over Q1 FY’16 Prior Year Total Revenue $100.7 -7% Product Revenue $53.6 -17% Service Revenue $47.1 8% Q1 FY'16 Product Revenue Q1 FY'15 Product Revenue 35% 40% 60% 65% Service Providers Enterprise ©2015 NETSCOUT ° CONFIDENTIAL
Slide 9: Product Revenue Growth by Sector
Q1 FY 2016 Product Revenue Growth by Sector (Non-GAAP, $ in millions) % Change over Q1 FY’16 Prior Year Total Revenue $100.7 -7% Product Revenue $53.6 -17% Service Revenue $47.1 8% Product Revenue and Growth 50 101% Product Revenue ($, millions) 40 42% 30 -48% 2% 20 10 0 Q1 FY'16 Q1 FY'15 Enterprise
Slide 10: Total Revenue Composition
Q1 FY 2016 Total Revenue Composition (Non-GAAP, $ in millions) % Change over Q1 FY’16 Prior Year Total Revenue $100.7 -7% Product Revenue $53.6 -17% Service Revenue $47.1 8% Q1 FY'16 Total Revenue Q1 FY'15 Total Revenue 36% 48% 52% 64% Service Providers Enterprise ©2015 NETSCOUT ° CONFIDENTIAL 10 JU
Slide 11: Total Revenue Growth by Sector
Q1 FY 2016 Total Revenue Growth by Sector (Non-GAAP, $ in millions) % Change over Q1 FY’16 Prior Year Total Revenue $100.7 -7% Product Revenue $53.6 -17% Service Revenue $47.1 8% Total Revenue and Growth 70 24% Total Revenue ($, millions) 60 77% 3% 50 -35% 40 30 20 10 0 Q1 FY'16 Q1 FY'15 Enterprise
Slide 12: Total Revenue by Geography
Q1 FY 2016 Total Revenue by Geography (GAAP, $ in millions) Q1 FY'16 Q1 FY’16 % Change over Prior Year Total Revenue $100.7 -7% 3% United States $78.3 -9% 78% 22% 6% International $22.4 3% 13% Europe $12.6 39% Asia $3.5 -47% Rest of World $6.3 4% Q1 FY'15 6% 80% 20% 6% 8% United States Europe Asia R
Slide 13: Balance Sheet Highlights & Free Cash Flow
Balance Sheet Highlights & Free Cash Flow ($ in millions, except where noted) Ending Ending % Change Balance Sheet Balance Sheet over Prior Q1 FY’16 FY’15 Year Cash and Securities $267.5 $264.9 1% Free Cash Flow Accounts Receivables $58.5 $82.2 -29% Inventories $12.7 $12.1 5% Q1 FY’16 Q1 FY’15 Total
Slide 14: FY'16 Guidance
FY’16 Guidance ($in millions except EPS) Non-GAAP Low High Revenue $1,050 $1,100 EPS $1.80 $1.95 GAAP Low High Revenue $1,006 $1,056 EPS $0.40 $0.55 Includes a partial Q2 and two full quarters of acquisition contribution ©2015 NETSCOUT ° CONFIDENTIAL & PROPRIETARY 14
Slide 15: GAAP Reconciliation: Net Income
GAAP Reconciliation: Net Income For the fiscal year 2016, the non-GAAP net income per diluted share expectation excludes the anticipated deferred revenue fair value adjustment of approximately $44 million, a projected inventory fair value adjustment of approximately $23 million, forecasted share- ba