For more details regarding the acquisition of Accanto Systems, S.r.l. please see the corresponding press release issued today.

Total GAAP revenue for the first quarter was $76.4 million; non-GAAP revenue was $76.5 million. A reconciliation of GAAP and non-GAAP results is included in the attached financial tables.

Product revenue for the first quarter, on a GAAP and non-GAAP basis was $40.3 million. Service revenue on a GAAP basis was $36.1 million and non-GAAP service revenue was $36.2 million.

GAAP net income for the first quarter was $5.0 million, or $0.12 per diluted share. GAAP income from operations was $8.2 million. On a non-GAAP basis, net income for the quarter was $8.1 million, or $0.19 per diluted share, and non-GAAP income from operations was $13.2 million.

Financial Highlights: For the first quarter:
  • GAAP and non-GAAP revenue increased 21% year-over-year and decreased 15% sequentially.
  • GAAP and non-GAAP product revenue increased 36% year-over-year and decreased 26% sequentially.
  • GAAP and non-GAAP service revenue increased 7% year-over-year and increased 3% sequentially.
  • GAAP operating margin was 11%, up four points from 7% a year ago and down 12 points sequentially. Non-GAAP operating margin was 17%, up three points from 14% a year ago and down 12 points sequentially.
  • As of June 30, 2012 cash and cash equivalents and short and long-term marketable securities were $239.2 million, up $25.7 million from $213.5 million as of the end of the prior quarter. Year-over-year, cash and securities increased $30 million.

In addition:
  • NetScout released nGenius Forensic Intelligence, a new analysis module resulting from NetScout’s acquisition of Fox Replay BV that enables network operations and information security teams to accelerate forensic analysis of network traffic with automated, accurate and contextual session reconstruction and visual replay for security-focused investigations.

Guidance:

For fiscal year 2013, we are reiterating the non-GAAP guidance we issued last quarter since we expect the Accanto acquisition to have minimal impact on our full year non-GAAP results. We expect GAAP and non-GAAP revenue to be in the range of $340 million to $355 million. We are adjusting our GAAP net income per diluted share to be in the range of $0.91 to $1.00. The revised GAAP net income per diluted share range includes additional expenses related to the acquisition of technology and assets from Accanto Systems, organizational restructuring related to the Accanto acquisition and anticipated business development expenses. Non-GAAP net income per diluted share remains unchanged and is expected to be between $1.21 and $1.30.

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