NetScout Systems, Inc.

  • Overview
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. The company's 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. Customers in the US account for about three-quarters of sales.

Sales and Marketing

Generating about 60% of its revenue through indirect sales channels, NetScout primarily markets to midsized and large corporate customers, including more than 90 FORTUNE 100 companies and about 40 from the FORTUNE Global 200 list. Target industries include financial services, health care, 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.

Financial Analysis

Year-over-year revenue rose 12% in fiscal 2011. Product revenue was up 13% behind strong demand in the enterprise and service provider markets. The company restructured its sales force to focus on these markets. Serving more than 130 service provider networks in more than 40 countries, NetScout expects more growth from such customers as they roll out 4G service.

Revenue for the service segment increased 10%, thanks in part to healthy income from maintenance contracts and post-contract customer support. Product revenue accounts for 55% of sales. The product segment includes hardware while service comprises customer support agreements, consulting, and training.

Year-over-year revenue declined about 3% in fiscal 2010, but rose 58% in 2009. The company has enjoyed a profit every year from 2007 to 2011, with the exception of 2008.

Mergers and Acquisitions

In late 2012 NetScout acquired privately held, New Jersey-based ONPATH Technologies in a strategic move to aggressively expand its leadership position in the network monitoring switch market. The ONPATH deal builds upon NetScout's acquisition and integration of Virginia-based monitoring and switching technology company Simena LLC in late 2011.

In other areas of its business, NetScout acquired IP voice, video, and telepresence technology provider Psytechnics in 2011 to boost its unified service delivery management operations, which includes NGenius. The company is also focusing R&D on unified service delivery management.

Other acquisitions are intended to help NetScout expand internationally, such as its 2011 purchase of Dutch cybersecurity firm Fox Replay.

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NetScout Systems, Inc.


310 Littleton Rd
Westford, MA 01886-4105
Phone: 1 (978) 614-4000
Fax: 1 (978) 6144004
www.netscout.com

STATS


  • Employer Type: Public
  • Stock Symbol: NTCT,
  • Stock Exchange: , NASDAQ
  • Chairman, President, and CEO: Anil Singhal
  • Chairman, President, and CEO: Anil Singhal
  • COO: Michael Szabados

Major Office Locations

  • Westford, MA

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