NetScout Slashes Outlook on Tight IT Spending - TheStreet

Network performance management solutions provider

NetScout Systems

(NTCT) - Get Report

said on Friday that its first-quarter results would be lower than expected as the IT spending environment continued to be tight.

The company now expects to report pro forma results in the range of a loss of 4 cents a share to earnings of 1 cent a share on revenue of $17 million to $20 million, compared to a year-ago loss of 3 cents a share on revenue of $18.2 million. On a GAAP basis, the loss is expected to be 2 cents to 7 cents a share.

Analysts polled by Thomson Financial/First Call had been expecting earnings of 3 cents a share on revenue of $23.6 million for the quarter.

NetScout said it continues to see cautious worldwide spending "resulting in smaller orders and extended sales cycles compared to prior quarters." The company said it has seen sales dropping across all customer segments, including the traditionally strong financial services sector, and it is impossible to tell when spending will return to prior levels.

NetScout also said it expected to revise its guidance further in its July earnings conference call.

Shares of NetScout were trading down 19% to $5 in Instinet premarket trading after closing at $6.17 Friday.