Netscout Systems Inc (NTCT) 2025 Q2 法說會逐字稿

Ladies and gentlemen, thank you for standing by and welcome to Netscout's second quarter, fiscal year 2025, financial results conference call. (Operator Instructions)

女士們先生們，感謝你們的支持並歡迎參加 Netscout 2025 財年第二季財務業績電話會議。（操作員說明）

As a reminder, this call is being recorded. Tony Piazza Netscout's deputy CFO and his colleagues at Netscout are on the line with us today. (Operator Instructions)

提醒一下，此通話正在錄音。Netscout 的副財務長 Tony Piazza 和他在 Netscout 的同事今天與我們通話。（操作員說明）

I would now like to turn the call over to Tony Piazza to begin the company's prepared remarks.

我現在想將電話轉給托尼·皮亞扎（Tony Piazza），讓他開始公司準備好的演講。

Thank you, Operator and good morning, everyone. Welcome to Netscout's second quarter, fiscal year 2025 conference call for the period ended September 30, 2024. Joining me today Anil Singhal. Netscout's President and Chief Executive Officer; Michael Szabados, Netscout's Chief Operating Officer; and Jean Bua Netscout's Executive Vice President and Chief Financial Officer.

謝謝接線員，大家早安。歡迎參加 Netscout 2025 財政年度第二季電話會議（截至 2024 年 9 月 30 日）。今天加入我的行列，阿尼爾辛格 (Anil Singhal)。Netscout 總裁兼執行長； Michael Szabados，Netscout 營運長； Jean Bua Netscout 的執行副總裁兼財務長。

There is a slide presentation that accompanies our prepared remarks. You can advance the slides in the webcast viewer to follow our commentary. Both the slides and the prepared remarks can be accessed in multiple areas within the Investor Relations section of our website at www.netscout.com, including the IR landing page under financial results, the webcast itself and under financial information on the quarterly results page.

我們準備好的評論附有一個幻燈片簡報。您可以在網路廣播檢視器中前進幻燈片以關注我們的評論。幻燈片和準備好的評論都可以在我們網站 www.netscout.com 投資者關係部分的多個區域訪問，包括財務業績下的投資者關係登陸頁面、網絡廣播本身以及季度業績頁面上的財務信息。

Moving on to Slide number 3. Today's conference call will include forward-looking statements. 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. Actual results could differ materially from any forward-looking statements. These statements speak only as of today's date and involve risks and uncertainties, including but not limited to, those described on this slide and in today's financial results press release which are available on the Investor Relations section of our website as well as in the company's most recent annual report on Form 10-K and subsequent SEC filings on file with the Securities and Exchange Commission. NetScout assumes no obligation to update any forward-looking information, except as required by law.

繼續看第 3 張投影片。今天的電話會議將包括前瞻性陳述。前瞻性陳述的例子包括有關我們未來財務表現或狀況、經營績效、業務策略、未來經營管理計畫和目標的陳述以及其他非歷史事實的陳述。實際結果可能與任何前瞻性陳述有重大差異。這些聲明僅代表今天的情況，涉及風險和不確定性，包括但不限於本投影片和今天的財務業績新聞稿中描述的風險和不確定性，這些風險和不確定性可在我們網站的投資者關係部分以及公司最重要的網站上找到。NetScout 不承擔更新任何前瞻性資訊的義務，除非法律要求。

Now, let's move -- let's turn to Slide number 4 which involves non-GAAP metrics. While this slide presentation includes both GAAP and non-GAAP results, unless otherwise stated, financial information discussed on today's conference call will be based on a non-GAAP basis only. The rationale for providing non-GAAP measures, along with the limitations of relying solely on those measures is detailed on this slide and in today's press release. These measures should not be considered in isolation from or as a substitute for financial information prepared in accordance with GAAP. Reconciliations of all non-GAAP metrics with the applicable GAAP measures are provided in the appendix of the slide presentation in today's earnings press release and on our website.

現在，讓我們轉向第四張投影片，其中涉及非 GAAP 指標。雖然本幻燈片簡報包括 GAAP 和非 GAAP 業績，但除非另有說明，否則今天電話會議上討論的財務資訊將僅基於非 GAAP 基礎。這張投影片和今天的新聞稿詳細介紹了提供非公認會計原則衡量標準的理由，以及僅依賴這些衡量標準的限制。這些措施不應孤立地考慮或取代根據公認會計原則準備的財務資訊。今天的收益新聞稿幻燈片簡報的附錄和我們的網站上提供了所有非 GAAP 指標與適用的 GAAP 指標的對帳。

I will now turn the call over to Anil for his prepared remarks. Anil?

我現在將把電話轉給阿尼爾，聽他準備好的演講。阿尼爾？

Thank you, Tony and good morning, everyone. Welcome and thank you all for joining us today. We delivered Q2 fiscal year 2025, revenue and earnings results in line with our expectations, as we continue to position Netscout to win in the market. We remain confident that our differentiated solutions are well positioned to address our customers' cybersecurity and service assurance needs well into the future. During the quarter, we released several products and -- product enhancements aligned with key technology trends that help address our customers' cybersecurity and service assurance needs, including our AI-ready smart data solutions.

謝謝你，托尼，大家早安。歡迎並感謝大家今天加入我們。我們交付的 2025 財年第二季的營收和獲利結果符合我們的預期，我們將繼續讓 Netscout 在市場上獲勝。我們仍然相信，我們的差異化解決方案能夠很好地滿足客戶未來的網路安全和服務保障需求。在本季度，我們發布了多種產品以及與關鍵技術趨勢一致的產品增強功能，有助於滿足客戶的網路安全和服務保障需求，包括我們的人工智慧就緒智慧資料解決方案。

We also had a strong turnout and interest in our recent annual Engage Technology and User Summit that we attribute to our customer enthusiasm for our current and upcoming portfolio of solutions. Looking ahead, we remain focused on executing against our full fiscal year 2025 non-GAAP expectations as we capitalize on the opportunity and navigate the challenges of the current market environment.

我們在最近的年度參與技術和用戶高峰會上也有很高的出席率和興趣，我們將其歸因於客戶對我們當前和即將推出的解決方案組合的熱情。展望未來，我們將繼續專注於執行 2025 財年非 GAAP 預期，充分利用機會並應對當前市場環境的挑戰。

Let's turn to Slide number 6 for a brief recap of our non-GAAP financial results for the second quarter and first half of our fiscal year 2025.

讓我們轉向第 6 號投影片，簡要回顧我們 2025 財年第二季和上半年的非 GAAP 財務表現。

For the second quarter, revenue was approximately $191 million, down approximately 3% compared to the prior year period. The comparison was impacted by 2 items that benefited the prior year period, approximately $11 million of backlog-related revenue and approximately $3 million for the now divested test optimization business. Normalizing for those, Q2 revenue would have grown at a mid-single-digit percentage. Diluted earnings per share was $0.47 for the second quarter which is down approximately $0.23 or $0.14 from the prior year.

第二季營收約 1.91 億美元，比去年同期下降約 3%。這項比較受到上一年期間受益的 2 個項目的影響，即約 1,100 萬美元的積壓相關收入和約 300 萬美元的現已剝離的測試優化業務。正常化後，第二季營收將以中個位數百分比成長。第二季稀釋每股收益為 0.47 美元，比去年同期下降約 0.23 美元或 0.14 美元。

As we previously noted, this includes an approximately $0.15 headwind from the reversal of incentive-based related expenses that benefited last year's Q2. Normalizing for this, Q2 earnings would have been slightly higher year over year, even after absorbing the $0.02 impact from an unrealized foreign investment loss. For the first half of the fiscal year or the 6-month period ended September 30, 2024, revenue was approximately $366 million, down approximately 10% year over year, primarily due to the unusually high levels of backlog-related revenue that benefited last year as well as the aforementioned test optimization divestiture.

正如我們之前指出的，這包括去年第二季度受益的激勵相關費用逆轉帶來的約 0.15 美元的阻力。正常化後，即使吸收了未實現的外國投資損失 0.02 美元的影響，第二季收益仍將比去年同期略高。在本財年上半年或截至 2024 年 9 月 30 日的 6 個月期間，收入約為 3.66 億美元，年減約 10%，主要是由於去年受益的積壓相關收入水平異常高以及前面提到的測試優化剝離。

Normalizing for these factors, our first half revenue would have grown low single digits year over year due to solid order flow growth. The corresponding diluted earnings per share for the first half of $0.75 was a decrease of approximately $0.18 year over year. Normalizing for the previously mentioned incentive-related expense headwind alone, our first half EPS would be relatively consistent year over year as cost management measures and a gain on a foreign investment helped to offset the revenue headwind impact.

將這些因素正常化後，由於訂單流穩健成長，我們上半年的營收將年增率較低的個位數。相應的上半年攤薄每股收益為0.75美元，年減約0.18美元。僅考慮前面提到的與激勵相關的費用逆風正常化，我們上半年的每股盈餘將比去年同期相對穩定，因為成本管理措施和外國投資收益有助於抵消收入逆風的影響。

Now, let's move to Slide number 7 for some further perspective on business and market insights. Starting with our service assurance offerings. Revenue for the first half of fiscal year 2025 was down approximately 13% year over year. The decline was largely attributable to the backlog-related revenue headwind and the constrained spending environment primarily from the service provider element of the market. Importantly, though, carriers continue to invest their 5G initiatives domestically and internationally at a measured pace as they manage investments against monetization opportunities.

現在，讓我們轉到第七張投影片，進一步了解業務和市場洞察。從我們的服務保證產品開始。2025財年上半年營收年減約13%。下降的主要原因是積壓相關的收入逆風以及主要來自市場服務提供者因素的支出環境受限。但重要的是，營運商在根據貨幣化機會管理投資的同時，繼續以穩健的步伐在國內和國際上投資其 5G 計劃。

On the enterprise front, we also see spending scrutiny but maintain traction and remain confident that as customers advance their digital transformation initiatives, Netscout is well positioned to win additional business by leveraging our value proposition of extending visibility to the edges of the network. Additionally, as customers advance their AI initiative, we believe our new AI-ready high-quality smart data will be invaluable to ensure unique and deep insights critical for enabling organizations to improve decision-making and optimize the user experience.

在企業方面，我們也看到了支出審查，但仍保持吸引力，並且仍然相信，隨著客戶推進數位轉型計劃，Netscout 完全有能力利用我們將可見性擴展到網路邊緣的價值主張來贏得更多業務。此外，隨著客戶推進他們的人工智慧計劃，我們相信我們新的人工智慧就緒高品質智慧數據將非常寶貴，以確保獲得獨特而深入的見解，這對於使組織能夠改進決策和優化用戶體驗至關重要。

Moving to our cybersecurity offering. Revenue in the second quarter increased approximately 3% and was down approximately $0.04 for the first half, primarily due to the backlog-related headwind.

轉向我們的網路安全產品。第二季營收成長約 3%，上半年營收下降約 0.04 美元，主要是由於積壓相關的不利因素。

Cybersecurity continued to represent a strong growth opportunity for Netscout, as customers prioritize spending to protect themselves from the expanding cyber threat landscape. This was validated by our recently released first half 2024 Threat Intelligence Report, where we highlighted that the surge in DDoS attacks and activity continues to threaten critical global infrastructure, including banking, financial services, government and utilities. The report points to a dramatic 43% increase in the number of application layer attacks and 30% increase in volumetric attack. Michael will provide more insight regarding customer wins in our offering areas during his remarks.

網路安全仍然為 Netscout 帶來強勁的成長機會，因為客戶優先考慮支出以保護自己免受不斷擴大的網路威脅環境的影響。我們最近發布的 2024 年上半年威脅情報報告證實了這一點，我們在報告中強調，DDoS 攻擊和活動的激增繼續威脅著關鍵的全球基礎設施，包括銀行、金融服務、政府和公用事業。報告指出，應用層攻擊數量急劇增加 43%，容量攻擊增加 30%。邁克爾將在演講中提供有關我們產品領域客戶獲勝的更多見解。

Now, let's move to Slide number 8 to review our outlook. Looking ahead, we are reaffirming our full year 2025 non-GAAP revenue and EPS outlook. Jean will provide a recap of the outlook in her remarks. As we navigate both the opportunities and challenges of the current market environment, we remain focused on executing against our full fiscal year 2025 expectations as we advance our strategic priorities. These include enhancing our cybersecurity offerings to meet growing customer needs given the expanding cyber threat landscape and continue to prudently manage costs.

現在，讓我們轉到第 8 張投影片來回顧我們的前景。展望未來，我們重申 2025 年全年非 GAAP 收入和每股盈餘展望。Jean 將在她的演講中概述前景。在我們應對當前市場環境的機會和挑戰時，我們將繼續專注於執行 2025 財年全年預期，以推進我們的策略重點。其中包括增強我們的網路安全產品，以滿足不斷擴大的客戶需求（鑑於網路威脅情勢不斷擴大），並持續審慎管理成本。

During the first half of the fiscal year, we completed the majority of the previously announced voluntary separation program. We expect this to have a benefit of approximately $25 million of annualized cost reduction, a portion of which will be recognized during fiscal year 2025. Long term, we remain committed to leveraging our visibility without Borders platform to help customers address the performance, availability and security challenges of the complex digital world. We look forward to sharing our progress with everyone throughout the remainder of our fiscal year.

在本財年上半年，我們完成了先前宣布的自願離職計劃的大部分。我們預計這將帶來約 2,500 萬美元的年度成本降低效益，其中一部分將在 2025 財政年度得到確認。從長遠來看，我們仍然致力於利用我們的可見性無國界平台來幫助客戶應對複雜數位世界的效能、可用性和安全性挑戰。我們期待在本財年剩餘時間內與大家分享我們的進展。

With that, I'll turn the call over to Michael.

這樣，我會將電話轉給麥可。

Thank you, Anil and good morning, everyone. Slide 10 outlines the areas I will be covering today, starting with Q2 customer win highlights. This quarter, I will begin by focusing on a high single-digit 8-figure combination of orders from a leading global financial institution that spans both our service assurance and cybersecurity product lines. This has been a long-standing customer of ours, who uses our service assurance solutions to manage the performance of their networks and customer-facing applications in order to ensure the quality of their customers' experience.

謝謝你，阿尼爾，大家早安。投影片 10 概述了我今天要介紹的領域，從第二季客戶贏得亮點開始。本季度，我將首先關注來自全球領先金融機構的高個位數 8 位數訂單組合，涵蓋我們的服務保證和網路安全產品線。這是我們的長期客戶，他們使用我們的服務保證解決方案來管理其網路和麵向客戶的應用程式的效能，以確保客戶體驗的品質。

They leverage our cybersecurity solutions to protect the availability of their infrastructure against DDoS attacks to prevent disruption to their digital services. In both product lines, they upgraded and expanded our solutions to ensure they have the most current technological capabilities such as adaptive DDoS and security to assure and secure their network. We were awarded this additional business due to our proven technology, outstanding customer support and trusted long-standing relationship.

他們利用我們的網路安全解決方案來保護其基礎設施的可用性免受 DDoS 攻擊，從而防止其數位服務中斷。在這兩條產品線中，他們升級並擴展了我們的解決方案，以確保他們擁有最新的技術能力，例如自適應 DDoS 和安全性，以確保和保護他們的網路。由於我們成熟的技術、出色的客戶支援和值得信賴的長期合作關係，我們獲得了這項額外業務。

Turning to our go-to-market activities now. As Anil stated, we recently released our first half 2024 DDoS Threat Intelligence Report. The report provided significant insight into the evolving cybersecurity landscape, leveraging our visibility into nearly half of all internal traffic. Additionally, since our last earnings call, we have announced several product advancements. This includes the release of our Omnis AI Insights solution to deliver high-quality, actionable AI-ready streaming smart data based on Deep-Packet Inspection technology to feed our customers' AI initiatives and enable critical insights and outcomes.

現在轉向我們的市場推廣活動。正如 Anil 所說，我們最近發布了 2024 年上半年 DDoS 威脅情報報告。該報告利用我們對近一半內部流量的可見性，提供了對不斷發展的網路安全格局的重要見解。此外，自上次財報電話會議以來，我們宣布了多項產品進度。這包括發布我們的 Omnis AI Insights 解決方案，以提供基於深度數據包檢測技術的高品質、可操作的 AI 就緒流智慧數據，以滿足客戶的 AI 計劃並實現關鍵的見解和成果。

We also announced an update of our advanced scalable Deep-Packet Inspection based Omnis Cyber Intelligence network detection and response for NDR platform which now has additional behaviour analytics to enable earlier detection of advanced threats. Finally, we recently hosted our annual Engage Technology and User Summit in Arlington, Texas. It was another successful event with strong attendance and interest in our new technology initiatives.

我們也宣布更新基於先進可擴展深度資料包檢測的 Omnis Cyber​​ Intelligence 網路偵測和 NDR 平台回應，該平台現在具有額外的行為分析功能，可更早偵測進階威脅。最後，我們最近在德州阿靈頓舉辦了年度參與技術和用戶高峰會。這是另一場成功的活動，出席人數眾多，並對我們的新技術舉措表現出濃厚的興趣。

At the show, we highlighted our upgraded legacy and new solutions and showcased how our highly curated data set can solve security, observability and service assurance problems faster when integrated with AIOps platforms from our industry-leading partner network, including Splunk and ServiceNow, who co-presented these areas and engaged with our customer attendees. We also conducted our typical combination of presentations, panel discussions, solution demonstrations and hands-on training.

在展會上，我們重點介紹了升級後的舊解決方案和新解決方案，並展示了我們精心策劃的數據集在與行業領先的合作夥伴網絡（包括Splunk 和ServiceNow）集成時如何更快地解決安全性、可觀察性和服務保證問題。我們還進行了演示、小組討論、解決方案演示和實踐培訓的典型組合。

Thank you, everyone. That concludes my remarks and I will now turn the call over to Jean.

謝謝大家。我的發言到此結束，現在我將把電話轉給讓。

Thank you, Michael and good morning, everyone. I will review key metrics for our second quarter and first half of fiscal year 2025 and provide some additional commentary on our fiscal year 2025 outlook. As a reminder, this review focuses on our non-GAAP results unless otherwise stated and all reconciliations with our GAAP results appear in the presentation appendix. Regardless, I will note the nature of any such comparisons. Additionally, all comparisons are on a year over year basis, unless otherwise noted.

謝謝邁克爾，大家早安。我將回顧 2025 財年第二季和上半年的關鍵指標，並對 2025 財年展望提供一些額外評論。提醒一下，除非另有說明，本次審查重點關注我們的非 GAAP 業績，並且與我們 GAAP 業績的所有對帳均出現在簡報附錄中。無論如何，我會注意任何此類比較的性質。此外，除非另有說明，所有比較都是逐年進行的。

Slide number 12 details the results for the second quarter and first half of fiscal year 2025. Focusing on our quarterly performance, total revenue for the second quarter of fiscal year 2025 was $191.1 million, down 2.9%.

第 12 號投影片詳細介紹了 2025 財年第二季和上半年的業績。關注我們的季度業績，2025 財年第二季總營收為 1.911 億美元，下降 2.9%。

As Anil shared, our Q2 fiscal year 2025 revenue would have grown at a mid-single digit percentage when normalizing for the $11 million in backlog usage and $3 million from the disposition of our test optimization business that took place last year. Product revenue of $81 million was up 0.6% year over year. Service revenue was $110.1 million, a decrease of 5.3% which was primarily due to the timing of the renewal of a large customer's maintenance contract that is expected to close in Q3.

正如 Anil 分享的那樣，如果將 1,100 萬美元的積壓使用量和去年測試優化業務的 300 萬美元的處置正常化，我們 2025 財年第二季度的收入將以中個位數百分比增長。產品收入為 8,100 萬美元，年增 0.6%。服務收入為 1.101 億美元，下降 5.3%，這主要是由於大客戶維護合約的續約時間預計將在第三季結束。

Gross profit margin was 79.7% in the second quarter, down 0.6-percentage-points. Quarterly operating expenses increased 5.2% in comparison to the prior fiscal year which benefited from the reversal of incentive-related expenses. Normalizing for this, operating expenses would have declined mid-single digits, primarily attributable to cost management initiatives, including the voluntary separation program.

第二季毛利率為79.7%，下降0.6個百分點。季度營運費用較上一財年成長 5.2%，受惠於激勵相關費用的轉回。正常化後，營運費用將下降中個位數，這主要歸因於成本管理舉措，包括自願離職計畫。

We reported an operating profit margin of 23.1% in Q2 fiscal year 2025 compared with 28% in the same quarter last year. Diluted earnings per share was $0.47 which included an unrealized loss on a foreign investment of approximately $0.02. This was down 23% from $0.61 in the same quarter last year due to the incentive-related expense reversals in the prior period as well as the unrealized investment loss.

我們報告 2025 財年第二季的營業利潤率為 23.1%，而去年同期為 28%。稀釋每股收益為 0.47 美元，其中包括約 0.02 美元的外國投資未實現虧損。由於上一期間與激勵相關的費用沖銷以及未實現的投資損失，這一數字比去年同期的 0.61 美元下降了 23%。

Turning to Slide 13; I will review key revenue trends by product lines and customer verticals. Please note that all comparisons here are on a year over year basis, consistent with our other remarks. As a reminder, we entered the prior fiscal year with approximately $48 million of backlog which we did not get the benefit of this fiscal year. For the first half of fiscal year 2025, our service assurance revenue decreased by 13.5%, while our cybersecurity revenue decreased by 3.9%. During the same period, our service assurance product line accounted for approximately 65% of our total revenue, while our cybersecurity product line accounted for the remaining 35%.

轉到投影片 13；我將按產品線和客戶垂直領域回顧主要收入趨勢。請注意，此處的所有比較都是逐年比較，與我們的其他評論一致。提醒一下，我們進入上一財年時有大約 4800 萬美元的積壓，但我們沒有從本財年中受益。2025財年上半年，我們的服務保障收入下降了13.5%，而網路安全收入下降了3.9%。同期，我們的服務保障產品線約佔總營收的65%，而我們的網路安全產品線則佔剩餘的35%。

Turning to our customer verticals. For the first half of fiscal year 2025, our enterprise customer vertical revenue was consistent, while our service provider customer vertical revenue decreased 22.2%. During the same period, our enterprise customer vertical accounted for approximately 60% of our total revenue, while our service provider customer vertical accounted for the remaining 40%.

轉向我們的客戶垂直領域。2025財年上半年，我們的企業客戶垂直收入保持一致，而我們的服務供應商客戶垂直收入下降了22.2%。同期，我們的企業客戶垂直領域占我們總收入的約60%，而我們的服務供應商客戶垂直領域佔剩餘的40%。

Turning to Slide 14, this shows our geographic revenue mix. For the first half of fiscal year 2025, 58% of our revenue was derived from the United States, with the remaining 42% provided by international markets. Also, no customer represented 10% or more of our total revenue in the second quarter or the first half of fiscal year 2025.

轉向幻燈片 14，這顯示了我們的地理收入組合。2025 財年上半年，我們 58% 的營收來自美國，其餘 42% 由國際市場提供。此外，沒有客戶占我們 2025 財年第二季或上半年總營收的 10% 或以上。

Slide 15 details certain balance sheet and free cash flow items. We ended the second quarter with $401.9 million in cash, cash equivalents, short and long-term marketable securities and investments, representing a decrease of $22.3 million since the end of fiscal year 2024. Free cash flow for the quarter was a use of $5.8 million.

投影片 15 詳細介紹了某些資產負債表和自由現金流項目。截至第二季末，我們的現金、現金等價物、短期和長期有價證券和投資為 4.019 億美元，較 2024 財年末減少了 2,230 萬美元。該季度的自由現金流使用量為 580 萬美元。

During the second quarter of fiscal year 2025, we repurchased approximately 14,000 shares of our common stock for approximately $257,000 or an average price of $18 per share. We currently have capacity in our share repurchase authorization and subject to market conditions, intend to be active in the market during the balance of the fiscal year.

在 2025 財年第二季度，我們以約 257,000 美元（平均價格為每股 18 美元）回購了約 14,000 股普通股。我們目前有能力進行股票回購授權，並根據市場狀況，打算在本財年剩餘時間內活躍於市場。

From a debt perspective, we ended the second quarter of fiscal year 2025 with $75 million outstanding on our revolving credit facility. In October, we leveraged the favorable financial -- financing market environment to amend and extend our credit facility.The amended revolving credit facility reduces the facility size from $800 million to $600 million and extends the maturity from July 2026 to October 2029, while maintaining financial flexibility and lowering financing costs.

從債務角度來看，截至 2025 財年第二季度，我們的循環信貸額度未償還金額為 7,500 萬美元。10月份，我們利用有利的金融融資市場環境，修改並延長了我們的信貸額度。 2029年10月，同時維持財務狀況不變。

To briefly recap other balance sheet items, accounts receivable net was $118.6 million, representing a decrease of $73.5 million since March 31, 2024. The DSO metric at the end of the second quarter of fiscal year 2025 was 53 days versus 69 days for the same period in the prior year and 81 days at the end of fiscal year 2024. The lower DSO metric in the second quarter of this fiscal year was due to the timing and composition of bookings.

簡單回顧一下其他資產負債表項目，應收帳款淨額為 1.186 億美元，自 2024 年 3 月 31 日以來減少了 7,350 萬美元。2025 財年第二季末的 DSO 指標為 53 天，而上年同期為 69 天，2024 財年末為 81 天。本財年第二季 DSO 指標較低是由於預訂的時間和組成造成的。

Let's move to Slide 16 for commentary on our outlook. I will focus my review on our non-GAAP targets for fiscal year 2025. As Anil noted earlier, we are reaffirming our non-GAAP outlook for fiscal year 2025 that was presented during our July 25, 2024, first quarter earnings call. As a reminder, for fiscal year 2025, we anticipate revenue in the range of $800 million to $830 million. Additionally, we continue to anticipate non-GAAP diluted earnings per share within the range of $2.10 to $2.30 with the midpoint consistent year over year. The full year effective tax rate is expected to be approximately 20%.

讓我們轉到第 16 張投影片來評論我們的前景。我將重點放在 2025 財年的非 GAAP 目標。正如阿尼爾先前指出的，我們重申了 2024 年 7 月 25 日第一季財報電話會議上提出的 2025 財年非 GAAP 展望。提醒一下，我們預計 2025 財年的營收將在 8 億至 8.3 億美元之間。此外，我們繼續預期非 GAAP 攤薄後每股收益將在 2.10 美元至 2.30 美元之間，中點與去年同期保持一致。預計全年有效稅率約20%。

Our weighted average diluted shares outstanding is assumed to be approximately 73 million shares which incorporates our recent share repurchase activity but does not assume any further repurchase activity.

我們的加權平均稀釋流通股假設約為 7,300 萬股，其中包含我們最近的股票回購活動，但不假設任何進一步的回購活動。

Finally, given that we are only halfway through the fiscal year, any further impact associated with the previously mentioned foreign investment which currently reflects a year-to-date unrealized gain will be evaluated as the fiscal year progresses at its value and therefore, impact to our outlook fluctuates. Our fiscal year 2025 non-GAAP guidance also reflects the anticipated benefits associated with the previously mentioned voluntary separation program restructuring actions and ongoing cost management initiatives.

最後，鑑於本財年才剛過半，與上述外國投資相關的任何進一步影響（目前反映的是年初至今未實現的收益）將隨著本財年的進展按其價值進行評估，因此，對我們的前景會改變。我們的 2025 財年非 GAAP 指引也反映了與前面提到的自願離職計畫重組行動和持續成本管理措施相關的預期收益。

In conjunction with these actions, we recorded a GAAP restructuring charge in the first half of fiscal year 2025 attributable to onetime separation payments of $19 million, $2.4 million of which was in the second quarter. We expect to record an additional restructuring charge of approximately $0.6 million in the third quarter of fiscal year 2025, primarily for severance costs associated with the remaining implementation of the current VSP. We expect that these actions will generate annual run rate savings of approximately $25 million, of which approximately $19 million will be realized in fiscal year 2025 due to the timing of these actions.

與這些行動結合，我們在 2025 財年上半年記錄了 1,900 萬美元一次性離職付款的 GAAP 重組費用，其中 240 萬美元發生在第二季。我們預計在 2025 財年第三季將額外記錄約 60 萬美元的重組費用，主要用於與目前 VSP 的剩餘實施相關的遣散費。我們預計這些行動將每年節省約 2500 萬美元的運行費用，其中約 1900 萬美元將由於這些行動的時機而在 2025 財年實現。

Finally, I would like to provide some color for the second half of fiscal year 2025. Consistent with the expectations that we shared on our last earnings call, we anticipated a revenue skew of approximately 45% in the first half of the fiscal year and 55% in the second half of the fiscal year. We expect the remaining 55% of the full fiscal year's revenue to be essentially split evenly between the third and fourth quarters. We also expect the corresponding non-GAAP earnings per share to be split evenly between the third and fourth quarters.

最後，我想為 2025 財年下半年提供一些色彩。與我們在上次財報電話會議上分享的預期一致，我們預計本財年上半年的收入偏差約為 45%，下半年的收入偏差約為 55%。我們預計整個財年剩餘 55% 的收入將在第三季和第四季之間平均分配。我們也預期相應的非公認會計準則每股收益將在第三季和第四季之間平均分配。

That concludes my formal review of our financial results. Before we transition to Q&A, I'd like to quickly note that our upcoming IR conference participation is listed on Slide 17. Thank you. And I'll now turn the call over to the operator for questions.

我對我們財務表現的正式審查到此結束。在我們轉向問答之前，我想快速指出我們即將參加的 IR 會議已列在幻燈片 17 中。謝謝。我現在將把電話轉給接線員詢問問題。

(Operator Instructions)

（操作員說明）

Matthew Hedberg, RBC Capital Markets.

馬修‧赫德伯格，加拿大皇家銀行資本市場部。

Hey, good morning. This is Mike Richards, I'm for Matt. Thanks for taking the question. Maybe just broadly to start, are you guys seeing things stabilize in the environment? And then given that you expect an even split between Q3 and Q4 revenue which usually shows a seasonally strong Q3, do you think you could get some boost from a December budget flush this year that you're maybe not factoring in? Thanks.

嘿，早安。我是麥克理查茲，我支持馬特。感謝您提出問題。也許從廣義上講，你們看到環境中的情況穩定了嗎？然後，考慮到您預計第三季和第四季的收入將平均分配，這通常顯示出第三季的季節性強勁，您是否認為您可能會從今年12 月的預算充裕中獲得一些提振，而您可能沒有考慮到這一點？謝謝。

Yeah. I mean, that's why we have a guidance range and to account for those kinds of upsides. And yeah, usually, we benefit from the budget flush because we work with very big companies, large carriers. And that's why often the Q3 is actually better than Q4 in terms of bookings. So yes, we are looking to that and we are working on several opportunities.

是的。我的意思是，這就是為什麼我們有一個指導範圍並考慮到這些好處。是的，通常我們會從預算充足中受益，因為我們與非常大的公司、大型營運商合作。這就是為什麼第三季的預訂量實際上比第四季好。所以，是的，我們正在尋找這一點，並且正在尋找一些機會。

Got it. And then maybe is there anything notable to call out in cybersecurity in terms of what's driving growth and then maybe how that's tracking against your internal expectations and getting to that double-digit growth that you guys are aiming towards?

知道了。那麼，在網路安全方面，在推動成長的因素方面，可能有什麼值得注意的地方，然後，這可能是如何追蹤你們的內部預期，並實現你們所目標的兩位數成長的？

Yeah. So we have made a slight pivot about 6 months ago in terms of our positioning to cover some of the gaps in cybersecurity solutions in the market which is more around the analytics part which we have some of the best technology in the DPI area. So that's going very well, traction is a little slow, but we are looking over the next 6 to 12 months, I think we're going to see this attached to some of our customers and we have also come up with some interesting ideas on how we can position our OCI or Omnis Cyber Intelligence solution in the DDoS space which was not in the plan last year.

是的。因此，大約 6 個月前，我們的定位發生了輕微的轉變，以彌補市場上網路安全解決方案的一些空白，這更多地圍繞著分析部分，我們在 DPI 領域擁有一些最好的技術。所以進展非常順利，牽引力有點慢，但我們正在展望未來 6 到 12 個月，我認為我們將看到這與我們的一些客戶聯繫在一起，我們也提出了一些有趣的想法我們如何將我們的OCI或Omnis 網路智慧解決方案定位在DDoS 領域，這在去年的計畫中是沒有的。

Great. Thanks guys.

偉大的。謝謝你們。

Thank you.

謝謝。

Kevin Liu, K. Liu & Company

劉凱文, K. Liu & Company

Hi, good morning guys. Nice quarter here. Maybe just to start off with, Verizon has started talking about moving towards stand-alone 5G in the near future. I'm wondering if you can talk through some of the puts and takes on how that either increases your opportunity as they do things like network slicing versus any risk you might see if they start to deprecate some of the more legacy 4G networks?

嗨，大家早安。這裡不錯。也許首先，Verizon 已經開始談論在不久的將來轉向獨立 5G。我想知道您是否可以談談一些看跌期權和承兌期權，它們如何增加您的機會，因為他們做網絡切片之類的事情，而如果他們開始棄用一些更傳統的4G 網絡，您可能會遇到任何風險？

Well, there is continued to be, Kevin, a consolidation in the market, both in Europe and which does affect some of our business. But overall, I think the vendors are introducing slicing this year. We are announcing a new release. I don't see a big potential in the short term on private 5G or stand-alone, but slicing is both a revenue opportunity for our customer as well as for us because slicing is an option -- optional module in our solution which doesn't require new hardware upgrade but it's a software solution. So yeah, we are looking for initial 2 or 3 customers in the US very interested in leveraging that functionality.

嗯，凱文，歐洲市場的整合仍在繼續，這確實影響了我們的一些業務。但總的來說，我認為供應商今年會推出切片。我們正在宣布一個新版本。我認為短期內私有 5G 或獨立網路沒有巨大潛力，但切片對於我們的客戶和我們來說都是一個收入機會，因為切片是一種選擇——我們解決方案中的可選模組，但它不會不需要新的硬體升級，但它是一個軟體解決方案。所以，是的，我們正在美國尋找最初的 2 到 3 個對利用該功能非常感興趣的客戶。

Got it. And then also just on the carrier front, there seems to be more talks on their part about just the convergence of mobile and fiber broadband. I'm wondering if you have solutions to address kind of the latter piece of that or if there's anything in kind of the pipeline that you could do in order to help carriers as we move down that strategy.

知道了。然後，就在營運商方面，他們似乎有更多關於行動和光纖寬頻融合的討論。我想知道您是否有解決方案來解決後一部分問題，或者您是否可以採取任何措施來幫助營運商推進該策略。

Yeah. So there are two kinds of carriers, people who are monitoring user plane. And those people will obviously drive more business with us as fixed wireless initiatives take over in US and elsewhere. And we are counting on that for next year. For people who are not monitoring user plane, they are largely not impacted from a revenue point of view for us. But our top 5 or 6 big customers are all very interested and we think that there will be uptick in the dramatic uptick in the fixed wireless traffic. And also, the ARPUs for those are much better than the mobility. So because of that, I think there will be potential investment on Netscout.

是的。所以有兩種運營商，也就是監控用戶平面的人。隨著固定無線計畫在美國和其他地方的興起，這些人顯然將與我們開展更多業務。我們指望明年能做到這一點。對於不監控使用者平面的人來說，從我們的收入角度來看，他們基本上不會受到影響。但我們的前 5 或 6 大客戶都非常感興趣，我們認為固定無線流量將會急劇上升。而且，這些的 ARPU 比移動性好得多。因此，我認為 Netscout 將會有潛在的投資。

Great. And if I could just ask one last one. Any update on your AIOps strategy as it relates to how much contribution you expect from some of the leading partners that you talked about versus what you guys might be focused on directly?

偉大的。如果我能問最後一個問題就好了。您的 AIOps 策略有何更新，因為它涉及您期望從您談到的一些領先合作夥伴那裡獲得多少貢獻，以及您可能直接關注的內容？

Yeah, this is very early. We have seen a lot of interest, a lot of discussions are going on with the customer and partners, but we don't expect much impact from that this year, this fiscal year from AIOps.

是的，這還很早。我們看到了很多興趣，正在與客戶和合作夥伴進行大量討論，但我們預計 AIOps 今年不會產生太大影響。

Got it. Thanks for taking the question.

知道了。感謝您提出問題。

Sure.

當然。

Thank you. And it appears that there are no further questions at this time. I will now turn the program back to Tony Piazza.

謝謝。目前似乎沒有其他問題了。現在我將把這個程序轉回給托尼·皮亞扎。

Thank you, Operator. That concludes our financial results call for today. Thank you for joining us and enjoy the rest of the day.

謝謝你，接線生。我們今天的財務表現報告到此結束。感謝您加入我們並享受這一天剩下的時間。

Thank you. This does conclude today's presentation. Thank you for your participation. You may disconnect at any time.

謝謝。今天的演講到此結束。感謝您的參與。您可以隨時斷開連線。