GAAP income from operations, and also removes the change in fair value of derivative instruments, net of
related income tax effects. Non-GAAP diluted net income per share includes the foregoing adjustments related to non-GAAP net income. Non-GAAP EBITDA from operations includes the aforementioned items related to non-GAAP income from operations and
also removes non-acquisition related depreciation expense. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures
included in the attached tables within this press release.
These non-GAAP measures are not in accordance with GAAP, should not be
considered an alternative for measures prepared in accordance with GAAP (gross profit, operating margin, net income, and diluted net income per share), and may have limitations because they do not reflect all of NETSCOUTs results of operations
as determined in accordance with GAAP. These non-GAAP measures should only be used to evaluate NETSCOUTs results of operations in conjunction with the corresponding GAAP measures. The presentation of non-GAAP information is not meant to be
considered superior to, in isolation from, or as a substitute for results prepared in accordance with GAAP. NETSCOUT believes these non- GAAP financial measures will enhance the readers overall understanding of NETSCOUTs current
financial performance and NETSCOUTs prospects for the future by providing a higher degree of transparency for certain financial measures and providing a level of disclosure that helps investors understand how the Company plans and measures its
own business. NETSCOUT believes that providing these non-GAAP measures affords investors a view of NETSCOUTs operating results that may be more easily compared to peer companies and also enables investors to consider NETSCOUTs operating
results on both a GAAP and non-GAAP basis during and following the integration period of NETSCOUTs acquisitions. Presenting the GAAP measures on their own, without the supplemental non-GAAP disclosures, might not be indicative of
NETSCOUTs core operating results. Furthermore, NETSCOUT believes that the presentation of non-GAAP measures when shown in conjunction with the corresponding GAAP measures provides useful information to management and investors regarding
present and future business trends relating to its financial condition and results of operations.
NETSCOUT management regularly uses
supplemental non-GAAP financial measures internally to understand, manage and evaluate its business and to make operating decisions. These non-GAAP measures are among the primary factors that management uses in planning and forecasting.
About NETSCOUT SYSTEMS, INC.
NETSCOUT SYSTEMS, INC. (NASDAQ: NTCT) protects the connected world from cyberattacks and performance and availability disruptions through the
companys unique visibility platform and solutions powered by its pioneering deep packet inspection at scale technology. NETSCOUT serves the worlds largest enterprises, service providers, and public sector organizations. Learn more at
www.netscout.com or follow @NETSCOUT on LinkedIn, Twitter, or Facebook.
Safe Harbor
Certain information provided in this
press release includes forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995
and other federal securities laws. Examples of forward-looking statements include statements regarding our future financial performance or position, results of operations, business strategy, plans and objectives of management for future operations,
and other statements that are not historical fact. You can identify forward-looking statements by their use of forward-looking words such as may, will, anticipate, expect, believe,
estimate, intend, plan, should, seek, or other comparable terms. Investors are cautioned that such forward-looking statements in this press release including, without limitation, statements
regarding NETSCOUTs preliminary unaudited financial results for its second fiscal quarter ended September 30, 2023, its financial
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