5G RF planning helps to drive Netscout’s quarterly revenue
Network assurance and security company Netscout reported revenue gains of nearly 10% for the quarter ending June 30 and narrowed its net loss compared to a year ago.
President and CEO Anil Singhal told analysts on the company quarterly call that the revenue growth was driven primarily by 20% product revenue growth and about 2% growth in service revenue.
Specifically, service provider revenue in the quarter was up by nearly 30%, Singhal added, driven by revenue from Netscout’s solutions in radio frequency propagation modeling.
“We continue to see carriers invest in the 5G deployment, as evidenced by the number of radio frequency propagation modeling projects we are working on,” he went on.
COO Mike Szabados said that the company received mid-seven-figure orders related to 5G network deployments from a Tier 1 domestic carrier and an international carrier (both existing customer) during the quarter.
Netscout said that it saw a 5% decline in enterprise revenue year-over-year, but Singhal said that this was mostly due to timing of shipments rather than the health of the enterprise vertical.
“While various external macro headwinds persist, we remain confident in our underlying fundamentals and positioning,” said Singhal.
Netscout reported total revenue up about 10% year-over-year to $208.8 million, of which about 53% was service revenue. The company reported a net loss for the quarter of $7.1 million, compared to $11.3 million in the year-ago period. Netscout noted that it is restructuring some of its departments to “better align functions” and it reported a $1.8 million charge related to restructuring termination benefits.
Also during the quarter, Netscout kicked off a share repurchase up to $150 million of its common stock and repaid $150 million of its outstanding debt.
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