The growing importance of network monitoring capabilities for communications service providers (CSPs), especially 4G LTE network operators and large enterprises, helped NetScout Systems end 2013 on a high and give its share price a boost following its earnings announcement.
NetScout Systems Inc. (Nasdaq: NTCT), which sells network monitoring switches and supporting assurance and analytics software, reported revenues of $110.4 million for its fiscal third quarter ending December 31, 2013, up 21% from a year earlier.
That's the first time the company has broken the $100 million revenues barrier for any three-month period, and it expects to repeat the feat again in the current quarter ending in March.
Operating income for the final three months of 2013 came in at $27.3 million and net income was $17.3 million.
Those numbers were better than expected and helped give its stock a healthy boost to end the week: Having closed Wednesday at $31.90, it is trading at $35.56 mid-Friday.
The sales ramp has come from new products being introduced into the enterprise sector, and also from "expanded deployments" by CSPs. NetScout has its nGenius technology deployed in more than 160 network operators (fixed, mobile, cable, satellite) in 48 countries globally, and has benefited from increased demand for IP network monitoring systems and from mobile operators deploying 4G LTE networks and planning to introduce voice-over-LTE (VoLTE) services. (See NetScout Pockets Accanto's Probes.)
— Ray Le Maistre, Editor-in-Chief, Light Reading