About Netscout Systems, Inc.

NetScout Systems helps network administrators stay prepared. The company provides systems that monitor and report on the performance of software applications and the networks on which they run. Its probes -- monitoring appliances that can be placed throughout a network -- allow administrators to collect information about traffic flow and to optimize application and network performance. Its nGenius Service Assurance Solution monitors systems ranging from VoIP communications to customer relationship management applications. NetScout sells directly and through resellers and distributors to corporate and government customers. The acquisition of Danaher's communications business more than doubled NetScout's revenue.


Product sales generate two thirds of NetScout's sales with the rest coming from services. The company procures parts from contractors and does the assembly and testing of products itself.

Geographic Reach

Massachusetts-based NetScout Systems rings up about 71% of its sales in the US. Europe accounts for about 14% of sales, while countries in Asia represent most of the rest.

Sales and Marketing

NetScout sells through its own sales force and through indirect channels. One direct customer accounted for more than 10% of revenue in 2016 (ended March); in 2015, two customers each accounted for more than 10% of revenue.

The company primarily markets to midsized and large corporate customers. It counts some 90% of FORTUNE 100 companies as customers and another 40 from the FORTUNE Global 200 list. Target industries include financial services, health care, internet, manufacturing, retail, technology, telecommunications, and utilities. In the public sector, NetScout provides professional services for its federal government customers to help them meet the Security Technical Implementation Guides and Trusted Internet Connection specifications.

The company doubled its advertising spending in 2016, putting $6.4 million into that line item compared to $3.1 million in 2015.

Financial Performance

NetScout's revenue rose 110% in 2016 (ended March) to $955 million from 2015. The big leap was supplied by the acquired Danaher assets. NetScout also added revenue from maintenance contracts in its legacy NetScout business.

Costs associated with the acquisition, however, led to a loss of $28 million in 2016, off from a $61 million profit in 2015.

Cash flow from operations dipped to $95 million in 2016 from $107 million in 2015.


The acquisition of several communications businesses from Danaher should help NetScout expand its relationships with existing large and mid-sized customers, further fortify third-party distribution channels for the enterprise tools products, and help accelerate enterprise adoption of cybersecurity products of Arbor (one of the acquired businesses). The company will also continue to drive further penetration into its global service provider customer base.

NetScout's research and development expense rose to about $209 million in 2016 from $75 million in 2015. The increase came from the acquisitions as well as further investment from NetScout. More than a third of the company's employees are involved with R&D.

NetScout in 2016 invested in development programs aimed at enhancing its range of offerings, including delivering new features and functionality for its nGeniusONE Service Assurance platform that address the evolving requirements of our enterprise, service provider and government customers.

Mergers and Acquisitions

In mid-2015 NetScout bought portions of Danaher's communications unit for $2.6 billion. The deal brought Tektronix, Fluke Networks, and Arbor Networks to NetScout. Tektronix and Fluke had been competitors of NetScout. The deal was made to strengthen NetScout's capability to compete with bigger competitors who offer a wider array of products, especially in cyber security and communications services.

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Netscout Systems, Inc.

310 Littleton Rd
Westford, MA 01886-4105
Phone: 1 (978) 614-4000
Fax: 1 (978) 614-4004


  • Employer Type: Public
  • Stock Symbol: NTCT
  • Stock Exchange: NASDAQ
  • Chairman, President, and CEO: Anil K. Singhal
  • Chairman, President, and CEO: Anil K. Singhal
  • COO: Michael Szabados
  • 2017 Employees: 3,113

Major Office Locations

  • Westford, MA

Other Locations

  • San Jose, CA
  • Colorado Springs, CO
  • Ann Arbor, MI
  • Marlton, NJ
  • Jericho, NY
  • Irving, TX
  • Plano, TX
  • Shanghai, China
  • Boulogne Billancourt, France
  • Bengaluru, India
  • Pune, India
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