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EX - 99.1 2 a52521579ex99_1.htm EXHIBIT 99.1 Exhibit 99.1 NETSCOUT Reports Second Quarter Fiscal Year 2022 Financial Results WESTFORD , Mass .-- ( BUSINESS WIRE ) -- November 4 , 2021 -- NETSCOUT SYSTEMS , INC . ( NASDAQ : NTCT ) , a leading provider of cybersecurity , service assurance , and business analytics solutions , today announced financial results for its second quarter fiscal year 2022 ended September 30 , 2021 . " We are pleased with our second quarter results , which have contributed to our solid foundation as we move into the second half of the fiscal year , " stated Anil Singhal , NETSCOUT's president and chief executive officer . " The strong growth of our ' software - only ' product revenue in the second quarter supported our overall revenue increase , enhanced our margins , and improved our diluted earnings per share on a year - over - year basis . Additionally , as customers dealt with the challenging supply chain environment and experienced procurement issues , our ' software - only ' solutions enabled them to utilize their budgets more effectively by accelerating the timing of their purchases with us . " Singhal continued , " As ' Guardians of the Connected World , ' our solutions continue to be vital . We provide borderless visibility and cybersecurity solutions that assure and secure the performance , availability , and security of our customers ' digital ecosystems . Our customers can leverage these solutions to compete more efficiently and effectively in the new economy , which is increasingly essential given the most - recent challenges brought about by the COVID - 19 pandemic . Looking ahead , long - term technology trends , including 5G , digital transformation through cloud migration , and the requirement for greater cybersecurity protection , are all setting the stage for NETSCOUT's continued advancement . ' Recent developments and highlights : In early - November 2021 , NETSCOUT announced the availability of Omnis® Cyber Intelligence ( OCI ) , the industry's fastest and most scalable network security software solution , built on the foundation of the industry's most prominent network monitoring and packet recording and analysis technology . OCI uniquely detects and investigates suspicious activities in real - time and retrospectively , identifies threats early in the attack life cycle to prevent infections from spreading , stops future attacks , and identifies compromised assets . In October 2021 , NETSCOUT introduced its NETSCOUT Visibility as a Service ( VaaS ) managed service offering , which provides 24x7 testing , monitoring , troubleshooting , and reporting for customers ' critical IT services and applications . Built on NETSCOUT's nGenius® service assurance solutions , the service leverages the deep expertise of the company's VaaS engineering team to help alleviate the burdens faced by corporate and government IT organizations worldwide . In late - September 2021 , NETSCOUT announced that the Company and Palo Alto Networks ( NYSE : PANW ) , the global cybersecurity leader , had fully integrated security solutions that are now available to support security operations centers ( SOCs ) in detecting , analyzing , and mitigating security threats in complex hybrid environments . • In late September 2021 , NETSCOUT announced that it had begun working with NTT Communications Corporation ( NTT Com ) to conduct research and resilience testing to detect and mitigate cyberattacks by leveraging the resources of NETSCOUT's ATLAS Security Engineering & Response Team ( ASERT ) . NTT Com is taking active measures to ensure that its network can support increased traffic and security needs while also providing a more resilient network for the future . In mid - September 2021 , NETSCOUT released its findings from its bi - annual Threat Intelligence Report . These findings underscore the dramatic impact that cyberattacks continue to have on private and public organizations as well as governments worldwide . In the first half of 2021 , cybercriminals launched approximately 5.4 million Distributed Denial of Services ( DDoS ) attacks , increasing 11 % over 1H2020 figures . Additionally , data projections from NETSCOUT's Active Level Threat Analysis System ( ATLAS ™ M ) Security Engineering and Response Team ( ASERT ) point to 2021 as another record - setting year that is on track to surpass 11 million global DDoS attacks . ASERT expects the long tail of attacker innovation to last going forward , fueling a growing cybersecurity crisis that will continue to impact both public and private organizations alike . In August 2021 , NETSCOUT announced that it had issued its inaugural Environmental , Social , and Governance ( ESG ) Report . The report details the Company's efforts on multiple ESG front , which include but are not limited to 1 ) supporting community based digital inclusion programs , 2 ) driving diversity , equity , and inclusion ( DEI ) , 3 ) reducing electricity demands across the Company's facilities , and 4 ) continuing to design solutions that help customers to reduce their environmental impacts . Q2 FY22 Financial Results Total revenue ( GAAP and non - GAAP ) for the second quarter of fiscal year 2022 was $ 211.9 million , compared with $ 205.3 million in the same quarter one year ago . A reconciliation of GAAP and non - GAAP results is included in the attached financial tables . Product revenue ( GAAP and non - GAAP ) for the second quarter of fiscal year 2022 was $ 101.6 million , which was approximately 48 % of total revenue . This compares with second - quarter fiscal year 2021 product revenue ( GAAP and non - GAAP ) of $ 92.0 million , which was approximately 45 % of total revenue . Service revenue ( GAAP and non - GAAP ) for the second quarter of fiscal year 2022 was $ 110.3 million , or approximately 52 % of total revenue , compared to service revenue ( GAAP and non - GAAP ) of $ 113.4 million , or approximately 55 % of total revenue , for the same period one year ago .