Netscout Systems, Inc. (NASDAQ:NTCT)

“We continue to see the slowing effects of the economy on IT spending across most of our verticals, although we expect that to moderate as the year progresses,” said Anil Singhal, President and CEO of NetScout Systems. “As a result we are reaffirming our fiscal year 2010 guidance and we remain confident in our ability to return to the same level of growth we achieved prior to the economic downturn.

Source: Business Wire (July 23, 2009)

Despite our strength in the market, our outlook for 2010 remains cautious, as we are anticipating stable revenue with growing margins and EPS assuming that the economy remains at current levels. We are driving operating margin expansion through cost reductions and improved operating efficiencies. Our caution about the economy does not alter our confidence in the underlying value proposition of our products and market leadership or our ability to build on our technological and financial strength. We expect to see good order flow continue from our major verticals: wireless service providers, financial services, including high-speed trading, and government. Of the nine customers who ordered over one million dollars in the fourth quarter, eight were from wireless and financial services. In fiscal 2010, we are targeting new products and solutions at these growth verticals as well as the broader market.”

^a The above forecasts reflect the Company's current and preliminary views and are therefore subject to change. Please refer to the Company's Safe Harbor Statement (usually in press releases) for the factors that could cause actual results to differ materially from those contained in any forward-looking statement.

^b Non-GAAP EPS figures generally exclude certain non-operating gains and losses as well as certain non-cash items. Non-GAAP information should not be viewed in isolation or as a substitute for reported, or GAAP information . For a more complete explanation of the company's definition of non-GAAP please refer to its financial press releases. The GeoTeam® non-GAAP figures may, from time to time, differ from company supplied figures.

Guidance Report:

  Outlook for  for fiscal year 2009 ending March 31.

The fiscal year 2009 non-GAAP revenue expectation excludes the purchase accounting adjustment to fair value of approximately $11.8 million of Network General’s deferred revenue and the non-GAAP net income per diluted share expectation excludes the deferred revenue purchase accounting adjustment , as well as share-based compensation expenses of approximately $4.8 million, amortization of acquired intangible assets of approximately $6 million, non-recurring integration expenses of approximately $1.7 million, and the related impact of these adjustments on the provision for income taxes of $9.3 million.

On January 6, 2009 NetScout raised its outlook for revenue and net income per diluted share for fiscal year 2009 ending March 31. GAAP revenue is now expected to be in the range of $266 million to $274 million, with GAAP net income per diluted share between $0.44 and $0.54, and non-GAAP revenue in the range of $278 million to $286 million, with non-GAAP net income per diluted share between $0.81 and $0.91. The fiscal year 2009 non-GAAP revenue expectation excludes the purchase accounting adjustment to fair value of approximately $11.8 million of Network General’s deferred revenue and the non-GAAP net income per diluted share expectation excludes the deferred revenue purchase accounting adjustment , as well as share-based compensation expenses of approximately $4.8 million, amortization of acquired intangible assets of approximately $6 million, non-recurring integration expenses of approximately $1.7 million, and the related impact of these adjustments on the provision for income taxes of $9.3 million.