Netscout Systems Inc (NTCT) 2026 Q1 法說會逐字稿

(Operator Instructions) Ladies and gentlemen, thank you for standing by, and welcome to NETSCOUT's first-quarter fiscal 2026 financial results conference call. (Operator Instructions) As a reminder, this call is being recorded.

（操作員指示）女士們，先生們，感謝您的支持，歡迎參加 NETSCOUT 2026 財年第一季財務業績電話會議。（操作員指示）提醒一下，此通話正在被錄音。

Paul Canavan, AVP, Corporate Finance and his colleagues at NETSCOUT are on the line with us today. (Operator Instructions) I would now like to turn the call over to Paul Canavan to begin the company's prepared remarks.

今天，NETSCOUT 公司財務部副總裁 Paul Canavan 和他的同事與我們進行了線上交流。（操作員指示）現在，我想將電話轉給 Paul Canavan，讓他開始公司準備好的演講。

Thank you, [Margaux], and good morning, everyone. Welcome to NETSCOUT's first-quarter fiscal year 2026 conference call for the period ended June 30, 2025. Joining me today are Anil Singhal, NETSCOUT's President and Chief Executive Officer; and Tony Piazza, NETSCOUT's Executive Vice President and Chief Financial Officer.

謝謝你，[Margaux]，大家早安。歡迎參加 NETSCOUT 2026 財年第一季電話會議，該期間截至 2025 年 6 月 30 日。今天與我一起出席的還有 NETSCOUT 總裁兼執行長 Anil Singhal 和 NETSCOUT 執行副總裁兼財務長 Tony Piazza。

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.

我們的準備好的發言稿附有幻燈片簡報。您可以在網路廣播檢視器中前進幻燈片來關注我們的評論。幻燈片和準備好的發言稿均可在我們網站 www.netscout.com 的“投資者關係”部分的多個區域訪問，包括“財務結果”下的 IR 登錄頁面、網絡廣播本身以及“季度結果”頁面上的“財務資訊”。

As discussed in detail on slide number 3, today's conference call will include certain forward-looking statements about NETSCOUT's views on expected results of future performance and go-forward business strategy. These statements speak only as of today's date and involve risks, uncertainties, and assumptions that may cause actual results to differ materially, including, but not limited to, those described in the company's most recent annual report on Form 10-K and subsequent filings with the Securities and Exchange Commission.

正如投影片 3 中詳細討論的那樣，今天的電話會議將包括一些前瞻性陳述，這些陳述涉及 NETSCOUT 對未來業績預期結果和未來業務策略的看法。這些聲明僅代表截至今日的觀點，涉及風險、不確定性和假設，可能導致實際結果出現重大差異，包括但不限於公司最新的 10-K 表年度報告以及隨後向美國證券交易委員會提交的文件中所述的內容。

As discussed in detail on slide number 4, today's conference call will also include discussion of certain non-GAAP financial measures that the company believes to be useful for investors. While this slide presentation includes both GAAP and non-GAAP results, unless otherwise stated, financial information discussed on today's conference call will be on a non-GAAP basis only.

正如幻燈片 4 中詳細討論的那樣，今天的電話會議還將討論該公司認為對投資者有用的某些非 GAAP 財務指標。雖然此幻燈片簡報包括 GAAP 和非 GAAP 結果，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。

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 financial results 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 to the nearest GAAP measures are provided in the appendix of the slide presentation in today's financial press release and on our website.

提供非公認會計準則衡量指標的理由以及僅依賴這些指標的局限性在本投影片和今天的財務業績新聞稿中有詳細說明。這些措施不應孤立地看待或取代根據 GAAP 編制的財務資訊。今天的財務新聞稿中的幻燈片簡報附錄和我們的網站上提供了所有非 GAAP 指標與最接近的 GAAP 指標的對帳。

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

現在我將把電話轉給阿尼爾，請他發表準備好的發言。阿尼爾？

Thank you, Paul, and good morning, everyone. Thank you all for joining us today. We delivered a solid start to fiscal year 2026 with Q1 performance reflecting strong execution and positive momentum across both our top and bottom lines. Growth in our cybersecurity and Service Assurance product line supported these results as we continue to position NETSCOUT for long-term success in the market.

謝謝你，保羅，大家早安。感謝大家今天的參與。我們為 2026 財年取得了良好的開端，第一季的業績體現了強勁的執行力以及我們營收和利潤的積極勢頭。我們網路安全和服務保障產品線的成長支持了這些業績，因為我們將繼續推動 NETSCOUT 在市場上取得長期成功。

Let's turn to slide number 6 to review some non-GAAP financial highlights for the first quarter of fiscal year 2026. Revenue was approximately $187 million, representing a 7% year-over-year increase driven by strong growth in our cybersecurity area and the timing of orders received. We expanded both our gross and operating profit margins during the quarter and delivered non-GAAP diluted earnings per share of $0.34, an increase of approximately 21% year-over-year.

讓我們翻到第 6 張投影片來回顧一下 2026 財年第一季的一些非 GAAP 財務亮點。營收約 1.87 億美元，年增 7%，這得益於我們網路安全領域的強勁成長和收到訂單的時間。本季度，我們的毛利率和營業利潤率均有所提高，非公認會計準則每股攤薄收益為 0.34 美元，年增約 21%。

This result reflects the benefit of restructuring and cost management initiatives that we executed in the past fiscal year. As such, these effects will begin to normalize in our year-over-year comparisons starting in the second quarter.

這項結果反映了我們在過去財政年度實施的重組和成本管理措施的效益。因此，從第二季開始，這些影響將在我們同比比較中開始正常化。

Now, let's move to slide number 7 for some perspective on our business and some market insights. Starting with our Service Assurance offering. Revenue in the first quarter increased approximately 1% year-over-year. The growth was driven by our Enterprise Customer vertical, which offset a decline in our Service Provider Customer vertical.

現在，讓我們翻到第 7 張投影片，了解我們的業務和一些市場見解。從我們的服務保證開始。第一季營收年增約1%。這一成長主要由我們的企業客戶垂直業務推動，抵消了我們的服務提供者客戶垂直業務的下滑。

In the Service Assurance space, our Enterprise Customers are investing in digital transformation initiatives, AIOps and enhanced visibility at the network edge. We experienced solid growth across most of our major sectors in this customer vertical.

在服務保障領域，我們的企業客戶正在投資數位轉型計畫、AIOps 和增強網路邊緣的視覺性。我們在該客戶垂直領域的大多數主要部門都實現了穩健的成長。

On the Service Provider side, we continue to see both domestic and international carriers invest in 5G-related initiatives. They are proceeding at a measured pace, aligning investment with clearly defined monetization opportunities such as fixed wireless access and private 5G.

在服務提供者方面，我們繼續看到國內和國際業者都在投資 5G 相關計畫。他們正以穩健的步伐前進，將投資與明確的貨幣化機會（如固定無線接入和私有 5G）相結合。

While we remain mindful of ongoing macroeconomic uncertainty, we believe NETSCOUT is well positioned to capture further opportunities by delivering differentiated value in this evolving environment. This was recently demonstrated at the TM Forum's NeuroNOC Catalyst, where our Omnis AI Insights Solution showcased how high-value network data can drive closed-loop automation and self-healing of networks. This provided strong validation of our ability to support AI-driven operations in complex 5G environments, reinforcing our role as a technology partner for next-generation telecom transformation.

雖然我們仍然關注持續的宏觀經濟不確定性，但我們相信 NETSCOUT 有能力透過在不斷變化的環境中提供差異化價值來抓住更多機會。這最近在 TM Forum 的 NeuroNOC Catalyst 上得到了證明，我們的 Omnis AI Insights 解決方案展示了高價值網路數據如何推動網路的閉環自動化和自我修復。這有力地驗證了我們在複雜的5G環境中支援人工智慧驅動營運的能力，鞏固了我們作為下一代電信轉型技術合作夥伴的角色。

Moving to our Cybersecurity offering. Revenue in the first quarter increased approximately 18% year-over-year, driven by strong growth in both our enterprise and Service Provider Customer verticals. Customers continue to prioritize spending in this area as they seek to protect themselves against an increasingly complex and expanding cyber threat landscape.

轉向我們的網路安全產品。第一季營收年增約 18%，這得益於企業和服務供應商客戶垂直領域的強勁成長。客戶繼續優先考慮該領域的支出，因為他們尋求保護自己免受日益複雜和不斷擴大的網路威脅。

We believe Cybersecurity continues to represent a strong growth opportunity for NETSCOUT, and we continue to advance our portfolio with new innovations in this area. For example, we recently announced new AI-backed enhancements to our NETSCOUT Arbor Edge Defense and NETSCOUT Arbor Enterprise Manager Adaptive Distributed Denial of Service attack solutions to help customers further automate operations, enhance defense, and improve reporting.

我們相信網路安全持續為 NETSCOUT 帶來強勁的成長機會，並且我們將繼續透過該領域的創新來推進我們的產品組合。例如，我們最近宣布了對 NETSCOUT Arbor Edge Defense 和 NETSCOUT Arbor Enterprise Manager Adaptive Distributed Denial of Service 攻擊解決方案的 AI 支援增強功能，以協助客戶進一步實現操作自動化、增強防禦並改善報表。

These powerful enhancements are designed to leverage AI and our ATLAS Intelligence. Feed to automate defense is against an expanding array of attack vectors, enabling customers to mitigate up to 80% of all DDoS attacks without the need for further analysis.

這些強大的增強功能旨在利用人工智慧和我們的 ATLAS 智慧。自動防禦的饋送可抵禦不斷擴展的攻擊媒介，使客戶無需進一步分析即可緩解高達 80% 的 DDoS 攻擊。

We also announced that our Omnis Cyber Intelligence platform aligns with the NIST Zero-Trust security framework. We believe this further reinforces our product offerings and strengthens our relevance as a strategic partner for the US Federal agencies in both Service Assurance and Cybersecurity.

我們也宣布，我們的 Omnis Cyber​​ Intelligence 平台符合 NIST 零信任安全框架。我們相信這進一步增強了我們的產品供應，並增強了我們作為美國聯邦機構在服務保障和網路安全方面的戰略合作夥伴的地位。

Finally, we introduced Adaptive Threat Analytics, a key enhancement to our Omnis Network Detection and Response or NDR solution. It empowers SOC analysts with faster, smarter incident response through continuous packet capture and enriched metadata. This innovation improves our competitive edge in the market where speed and precision in threat response are critical.

最後，我們引入了自適應威脅分析，這是我們的 Omnis 網路偵測和回應或 NDR 解決方案的重要增強。它透過持續的資料包捕獲和豐富的元數據，使 SOC 分析師能夠更快、更聰明地回應事件。這項創新提高了我們在威脅反應速度和準確性至關重要的市場上的競爭優勢。

Our solution continued to gain strong traction with customers seeking to enhance both visibility and cybersecurity capabilities, leading to robust multi-solution wins across three verticals. Notably, we secured a high seven-figure order earlier than anticipated with a US government agency that has been a long-standing and loyal customer.

我們的解決方案繼續受到尋求增強可視性和網路安全能力的客戶的強烈關注，從而在三個垂直領域取得了強大的多解決方案勝利。值得注意的是，我們比預期更早與一家長期忠實的美國政府機構簽訂了一份價值七位數的高訂單。

This order consisted of both Service Assurance and cybersecurity solutions, including our new Omnis AI and Cyber Intelligence products. This customer values our solution for the smart data we provide, which they are leveraging to enhance user experience and support AI-driven operations and initiatives.

該訂單包括服務保證和網路安全解決方案，包括我們的新款 Omnis AI 和網路智慧產品。該客戶重視我們提供的智慧數據解決方案，他們利用這些數據來增強用戶體驗並支援人工智慧驅動的營運和計劃。

We also won a low seven-figure deal with major Latin American financial institution, where we replaced two incumbent vendors in a competitive situation focused on online banking applications. This customer purchased both Service Assurance and Cybersecurity solutions and is exploring our Omnis AI products. Our clear differentiator was our integrated platform, which combines Cybersecurity performance and user experience visibility with valuable smart data to support AIOps initiatives.

我們也與拉丁美洲的主要金融機構贏得了價值七位數的低價交易，在專注於網路銀行應用程式的競爭環境中，我們取代了兩家現有供應商。這位客戶購買了服務保證和網路安全解決方案，並正在探索我們的 Omnis AI 產品。我們的明顯差異在於我們的整合平台，它將網路安全性能和用戶體驗可見性與有價值的智慧數據相結合，以支援 AIOps 計劃。

These wins demonstrate the value of our innovative and integrated solutions, solid reputation and strong customer relationships, which help organizations address the performance, availability, and security needs of the connected digital world. Additionally, they reflect the momentum we are building as we continue to execute our strategy.

這些勝利證明了我們創新和整合解決方案的價值、良好的聲譽和牢固的客戶關係，這些價值可以幫助組織滿足互聯數位世界的效能、可用性和安全需求。此外，它們也反映了我們在繼續執行策略時所累積的動力。

With that, let's now move to slide number 8 to review our outlook. Looking ahead, we remain cautiously optimistic amid ongoing macroeconomic uncertainty. Our focus remains firmly on driving product innovations, returning to annual revenue growth, and enhancing margin through disciplined cost management.

現在讓我們轉到第 8 張投影片來回顧我們的展望。展望未來，儘管宏觀經濟仍存在不確定性，我們仍保持謹慎樂觀的態度。我們的重點依然是推動產品創新、恢復年收入成長以及透過嚴格的成本管理提高利潤率。

Based on our first-quarter performance and solid pipeline, we are reaffirming our fiscal year '26 revenue and non-GAAP EPS outlook. Tony will provide a recap of the outlook in his remarks.

根據我們第一季的業績和穩健的產品線，我們重申 26 財年的營收和非 GAAP EPS 預期。托尼將在他的演講中對前景進行回顧。

Looking ahead, during the second quarter, we are hosting our customers and partners at our Annual Engage Technology and User Summit in late September in Arlington, Texas. At Engage 2025, we'll be showcasing both our existing solutions as well as our latest AIOps innovations.

展望未來，在第二季度，我們將於 9 月下旬在德克薩斯州阿靈頓舉辦年度 Engage 技術和用戶高峰會，接待我們的客戶和合作夥伴。在 Engage 2025 上，我們將展示我們現有的解決方案以及最新的 AIOps 創新。

We'll demonstrate how our highly curated data drives improved business outcomes across key ecosystems, focusing on cybersecurity, as well as network and service observability. We'll also be highlighting how our solution provides protection against modern-based DDoS attacks with our AI-powered Arbor DDoS protection.

我們將展示我們精心策劃的數據如何推動關鍵生態系統中業務成果的改善，重點關注網路安全以及網路和服務可觀察性。我們還將重點介紹我們的解決方案如何透過 AI 驅動的 Arbor DDoS 保護來防禦基於現代的 DDoS 攻擊。

Longer term, we are committed to empowering our customers to meet the demand of today's connected, complex, digital landscape by delivering mission-critical solutions that address performance, ensure availability, and safeguard security. We look forward to sharing our progress with you throughout the remainder of our fiscal year.

從長遠來看，我們致力於透過提供解決效能、確保可用性和保障安全的關鍵任務解決方案，幫助客戶滿足當今互聯、複雜、數位化環境的需求。我們期待在本財政年度剩餘時間與您分享我們的進展。

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

說完這些，我就把電話轉給托尼。

Thank you, Anil, and good morning, everyone. Thank you for joining us. I'll start by walking you through the key financial metrics for the first quarter of fiscal year 2026. After that, I'll share some additional commentary on our outlook for the remainder of the fiscal year, including some color on our expectations for Q2.

謝謝你，阿尼爾，大家早安。感謝您加入我們。首先，我將向您介紹 2026 財年第一季的關鍵財務指標。之後，我將對本財年剩餘時間的展望分享一些額外的評論，包括對第二季的一些預期。

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. I will note the nature of any such comparisons accordingly. All comparisons are on a year-over-year basis unless otherwise noted.

提醒一下，除非另有說明，本次審查重點關注我們的非 GAAP 結果，並且與我們的 GAAP 結果的所有對帳均出現在演示附錄中。我會相應地註意任何此類比較的性質。除非另有說明，所有比較均以同比為基礎。

Now let's turn to slide number 10, which details the results of the first quarter of our fiscal year 2026. Total revenue for the first quarter increased 7% to $186.7 million. Product revenue increased 19.3% to $73 million, while service revenue increased 0.3% to $113.8 million. Gross profit margin increased by 1.6 percentage points to 78.7% in the first quarter, primarily driven by product volume and mix.

現在讓我們翻到第 10 張投影片，其中詳細介紹了我們 2026 財年第一季的業績。第一季總營收成長7%，達到1.867億美元。產品收入成長 19.3% 至 7,300 萬美元，服務收入成長 0.3% 至 1.138 億美元。第一季毛利率上升1.6個百分點至78.7%，主要受產品數量及結構推動。

Quarterly operating expenses were relatively consistent year-over-year as the final quarter of benefit from the prior year's restructuring helped offset higher employee-related expenses, commissions, and professional fees. Accordingly, we reported an operating profit margin of 14.2% compared with 8% in the same quarter last year.

季度營運費用與去年同期相比相對穩定，因為去年重組的最後一個季度收益有助於抵消更高的員工相關費用、佣金和專業費用。因此，我們報告的營業利潤率為 14.2%，而去年同期為 8%。

Diluted earnings per share was $0.34, up 21.4% from $0.28 in the same quarter last year. Both the current and prior year's quarters included unrealized gains related to a foreign investment. In the current quarter, this resulted in a benefit of approximately $0.03 per share compared to a benefit of approximately $0.10 per share in the same quarter last year.

每股攤薄收益為 0.34 美元，較去年同期的 0.28 美元增長 21.4%。本季和去年同期均包含與外國投資相關的未實現收益。本季度，每股收益約為 0.03 美元，而去年同期每股收益約為 0.10 美元。

Turning to slide 11. 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.

翻到第 11 張投影片。我將按產品線和客戶垂直領域回顧主要收入趨勢。請注意，這裡的所有比較都是按同比進行的，與我們的其他評論一致。

For the first quarter of fiscal year 2026, Service Assurance revenue increased by 1.4%, while Cybersecurity revenue grew by 18.3%. During the same period, our Service Assurance product line accounted for approximately 63% of our total revenue and our Cybersecurity product line accounted for the remaining 37%.

2026財年第一季，服務保障收入成長1.4%，網路安全收入成長18.3%。在同一時期，我們的服務保證產品線約占我們總收入的 63%，而我們的網路安全產品線佔剩餘的 37%。

Turning to our Customer verticals. For the first quarter of fiscal year 2026, our Enterprise Customer vertical revenue grew 17.7%, while our Service Provider Customer vertical revenue decreased 5.6%. During the same period, our Enterprise Customer vertical accounted for approximately 59% of our total revenue, while our Service Provider Customer vertical accounted for the remaining 41%.

轉向我們的客戶垂直領域。2026財年第一季度，我們的企業客戶垂直收入成長了17.7%，而我們的服務供應商客戶垂直收入下降了5.6%。同期，我們的企業客戶垂直業務約占我們總收入的 59%，而我們的服務供應商客戶垂直業務佔剩餘的 41%。

Turning to slide 12. This slide shows our revenue split between the United States and the international markets. For the first quarter of fiscal year 2026, 54% of our revenue was generated from the United States, with the remaining 46% coming from international markets. Additionally, no single customer accounted for 10% or more of our total revenue during the first quarter.

翻到第 12 張投影片。這張幻燈片顯示了我們在美國和國際市場之間的收入分配。2026財年第一季，我們54%的營收來自美國，其餘46%來自國際市場。此外，第一季沒有任何一個客戶的收入占我們總收入的 10% 或以上。

Slide 13 outlines select balance sheet items alongside free cash flow for the period. We ended the first quarter of fiscal year 2026 with $543.5 million in cash, cash equivalents, short- and long-term marketable securities, and investments, representing an increase of $51 million since the end of fiscal year 2025. Free cash flow for the quarter was $71.7 million.

投影片 13 概述了選定的資產負債表項目以及該期間的自由現金流。截至 2026 財年第一季，我們擁有 5.435 億美元的現金、現金等價物、短期和長期有價證券和投資，比 2025 財年末增加了 5,100 萬美元。本季自由現金流為 7,170 萬美元。

During the first quarter, we repurchased approximately 761,000 shares of our common stock for approximately $15 million at an average share price of $19.72 per share. We currently have capacity under our share repurchase authorization and, subject to market conditions, intend to remain active in the market through the rest of fiscal year 2026. From a liquidity perspective, we have no outstanding balance on our $600 million revolving credit facility as of June 30, 2025, which expires in October 2029.

第一季度，我們以約 1,500 萬美元的價格回購了約 761,000 股普通股，平均股價為每股 19.72 美元。我們目前擁有股票回購授權的能力，根據市場狀況，我們打算在 2026 財年剩餘時間內繼續活躍於市場。從流動性角度來看，截至 2025 年 6 月 30 日，我們的 6 億美元循環信貸額度沒有未償還餘額，該信貸額度將於 2029 年 10 月到期。

To briefly recap other balance sheet items, accounts receivable net was $92.2 million, representing a decrease of $71.5 million since March 31, 2025. Days sales outstanding, or DSO, at the end of the first quarter of fiscal year 2026, was 41 days compared with 63 days in the same period in the prior year. This improvement in the DSO in the first quarter reflects 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 9,220 萬美元，自 2025 年 3 月 31 日以來減少了 7,150 萬美元。2026 財年第一季末的應收帳款週轉天數（DSO）為 41 天，去年同期為 63 天。第一季 DSO 的改善反映了預訂的時間和組成。

Let's move to slide 14 for commentary on our outlook. I will focus my remarks on our non-GAAP targets for fiscal year 2026. As Anil noted earlier, we are reaffirming our non-GAAP outlook for fiscal year 2026 that we presented during our fourth-quarter and full fiscal year 2025 earnings call in May.

讓我們轉到第 14 張幻燈片來查看對我們的展望的評論。我的發言將重點放在我們 2026 財年的非 GAAP 目標。正如阿尼爾之前指出的那樣，我們重申了我們在 5 月第四季和 2025 財年全年收益電話會議上提出的 2026 財年非 GAAP 展望。

As a reminder, for our fiscal year 2026, we continue to anticipate revenue in the range of $825 million to $865 million and non-GAAP diluted earnings per share within the range of $2.25 to $2.40. This full year, effective tax rate is expected to be approximately 20%. Our weighted average diluted shares outstanding are assumed to be approximately 74 million shares, which does not incorporate any future share repurchase activities.

提醒一下，我們預計2026財年的營收將在8.25億美元至8.65億美元之間，非公認會計準則（Non-GAAP）攤薄每股收益將在2.25美元至2.40美元之間。預計全年有效稅率約20%。我們的加權平均稀釋流通股數估計約為 7,400 萬股，其中不包含任何未來股票回購活動。

I would also like to note that on August 4, we successfully completed the sale of our entire previously disclosed foreign investment for the equivalent of approximately $12 million. Our outlook anticipates that this investment would have a relatively neutral impact on our full fiscal year financial performance, which remains the case as a result of this transaction.

我還想指出，8 月 4 日，我們成功完成了先前披露的全部海外投資的出售，價值約為 1200 萬美元。我們預計，這項投資將對我們整個財年的財務表現產生相對中性的影響，而由於此交易，這種情況仍然有效。

Finally, let me now provide some color for our second quarter expectations. We currently anticipate year-over-year second quarter revenue growth in the range of 4% to 6%. In terms of non-GAAP earnings per share, we anticipate a range of $0.43 to $0.45 for the quarter.

最後，讓我對第二季的預期提供一些資訊。我們目前預計第二季營收年增將在 4% 至 6% 之間。就非公認會計準則每股收益而言，我們預計本季每股收益將介於 0.43 美元至 0.45 美元之間。

This outlook reflects several key factors: the shift in timing of our Engage customer event, which will occur in Q2 this fiscal year versus Q3 last fiscal year; the normalization of operating expenses in Q2 as benefits from the prior year's restructuring actions lapse; and the impact of the sale of our previously disclosed foreign investment in Q2, which will offset the gain recorded in Q1 and is expected to have a relatively neutral impact on our full fiscal year outlook.

這一前景反映了幾個關鍵因素：我們的 Engage 客戶活動時間的變化，該活動將在本財年第二季度舉行，而不是上一財年的第三季度；隨著上一年重組行動帶來的收益消失，第二季度運營費用將正常化；以及我們之前披露的海外投資在第二季度出售的影響，這將抵消第一季度相對得的收益，預計對我們整個中性的前景產生影響。

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 15. Thank you, and I'll now turn the call over to the operator for questions.

這就是我對我們的財務結果的正式審查。在我們進入問答環節之前，我想快速指出，我們即將參加的 IR 會議列在第 15 張投影片上。謝謝，現在我將把電話轉給接線生來回答問題。

(Operator Instructions) Matt Hedberg, RBC Capital Markets.

（操作員指示）RBC 資本市場 Matt Hedberg。

This is Simran on for Matt Hedberg. Congrats on the quarter. So just to start, could you talk a little bit about what you are seeing in the macro environment relative to 90 days ago? And can you give a little bit more color on the outlook around the service provider spending in fiscal year '26 and compare it to what you were seeing this time last year?

這是 Simran 為 Matt Hedberg 表演的。恭喜本季取得佳績。那麼首先，您能否談談與 90 天前相比，您所看到的宏觀環境是怎麼樣的？您能否進一步闡述 26 財年服務提供者支出的前景，並將其與去年同期的情況進行比較？

So thanks for your question. So if you're talking about the external environment related to tariffs, I think the jury is still out, and we are not seeing any effect at this point. Also, as I mentioned on our last call that we are more of, let's say, mostly a software business, which is less impacted by tariff. So we still remains to be seen whether we'll have any serious impact this fiscal year.

感謝您的提問。因此，如果您談論與關稅相關的外部環境，我認為目前尚無定論，而且我們目前還沒有看到任何影響。另外，正如我在上次電話會議上提到的那樣，我們主要從事軟體業務，受關稅的影響較小。因此，我們是否會對本財年產生嚴重影響仍有待觀察。

The second thing on your question of service provider spending, I would not look at the quarter-over-quarter comparison in any serious way because of lumpy deals in service provider. We think that it's too early to compare this year with last year. Overall, the spending climate looks very similar to what we saw last year.

關於服務提供者支出的問題，第二點，由於服務提供者的交易不穩定，我不會以任何嚴肅的方式看待季度環比的比較。我們認為將今年與去年進行比較還為時過早。整體而言，消費環境與去年非常相似。

Okay. Great. And then just one more from me. Can you talk a little bit more about the security portfolio this year? What keeps it going? Where are you seeing the most demand around the newer products like mobile security, adaptive DDoS, distributed threat mitigation? Yes, any color on that would be great.

好的。偉大的。我再說一句。您能否再多談談今年的安全投資組合？是什麼讓它繼續下去？您認為哪些領域對行動安全、自適應 DDoS、分散式威脅緩解等新產品的需求最大？是的，任何顏色都可以。

So biggest thing, as we have talked about over the last couple of years, the Arbor DDoS business is fully integrated into NETSCOUT, the main business. As a result, we are cross-breeding some of the technologies like we are bringing scalable DPI to the DDoS world, which results in adaptive DDoS and other feature sets, which were not previously available and are big differentiators, even though we are already a big leader and incumbent in this market.

因此，正如我們在過去幾年中討論過的，最重要的事情是，Arbor DDoS 業務已完全融入主營業務 NETSCOUT。因此，我們正在混合使用一些技術，例如，我們將可擴展的 DPI 引入 DDoS 世界，從而產生自適應 DDoS 和其他功能集，這些功能集以前是沒有的，也是很大的差異化因素，儘管我們已經是這個市場的領導者和既有者。

So that's one area, and that's obviously the biggest portion and the biggest area of growth also. We have some traction on the OCI product, which is basically in the NDR space and -- but we are repositioning that into what we call post-incident response.

所以這是一個領域，而且顯然也是最大的部分和成長最大的領域。我們對 OCI 產品有一些關注，該產品基本上屬於 NDR 領域，但我們正在將其重新定位為我們所謂的事件後響應。

And third area is that even our new AI sensor product, which sends curated data to third parties is not only useful for observability, but also used for Cybersecurity use cases with partnership with Splunk and likes of Palo Alto. So we think that, that's a big area of growth, which has -- we have made big advancements in that area, plus spending climate is much better versus Service Assurance.

第三個領域是，即使我們的新 AI 感測器產品將精選資料發送給第三方，也不僅對可觀察性有用，而且還可以透過與 Splunk 和 Palo Alto 等公司合作用於網路安全用例。因此我們認為，這是一個很大的成長領域，我們已經在該領域取得了巨大進步，而且支出環境比服務保證要好得多。

Kevin Liu, K. Liu & Co.

Kevin Liu，K. Liu & Co.

Nice start to the year here. First question, I just wanted to ask about how spending amongst your Federal government customers trended within the first quarter? It did sound like you guys got a nice deal that came in earlier than expected.

今年的開始很好。第一個問題，我只想問第一季聯邦政府客戶的支出趨勢如何？聽起來你們確實達成了一筆比預期更早的好交易。

And then as you look towards the September quarter, any initial thoughts on whether you'd expect the usual Federal government budget flush and maybe put that in context for the $1 trillion-plus defense bill for next fiscal year as well and how that could benefit you?

然後，當您展望 9 月季度時，您是否會預期聯邦政府預算會出現正常增長，並將其與下一財年超過 1 兆美元的國防開支聯繫起來，以及這會給您帶來什麼好處？

Yes. So I'll let Tony maybe give -- add to what my commentary is, Kevin. So yes, we had a good quarter and pipeline looks good. And it's possible that we will get more -- I mean, much better performance in the first half as we enter -- exit this fiscal year.

是的。因此，我會讓托尼補充我的評論，凱文。是的，我們度過了一個良好的季度，並且管道看起來也不錯。當我們進入或退出本財年時，我們有可能在上半年取得更好的業績。

But as you know, the timing is always of suspect. So we have a good line of sight into further traction and improvement in the Federal area. But whether it exactly happened before September 30 is not clear right now.

但如你所知，時機總是值得懷疑的。因此，我們對聯邦地區的進一步發展和改善有著良好的預期。但目前尚不清楚這是否確實發生在9月30日之前。

Yes. So Kevin, I would say Fed was strong in the quarter. It grew mid-teens, but -- and we see opportunity in this particular area. As we alluded to in the prepared remarks, we did have an order come in earlier. So that was some of the strength in the quarter.

是的。所以凱文，我想說聯準會在本季表現強勁。它的成長速度達到了十幾歲，但是──我們看到了這個特定領域的機會。正如我們在準備好的發言中提到的那樣，我們確實在早些時候收到了訂單。這就是本季的一些優勢。

But we do see a lot of opportunity in the Federal area. But as you know, it's always subject to the approvals and the timing of those orders given everything going on in the Federal government. But we're cautiously optimistic for that sector right now.

但我們確實看到聯邦地區有很多機會。但正如你所知，考慮到聯邦政府正在發生的一切，它始終取決於這些命令的批准和時間。但我們目前對該行業持謹慎樂觀的態度。

Understood. And then more generally, just with the strength you're seeing on the Enterprise side of the business right now, can you speak to how much of a contributor these investments in AI data centers is impacting that or whether there are other strong secular growth drivers that can help sustain that trend moving forward?

明白了。然後更普遍地講，僅從您現在看到的企業業務的實力來看，您能否談談這些對人工智慧資料中心的投資對此有多大影響，或者是否有其他強勁的長期成長動力可以幫助維持這一趨勢？

So I think the biggest change, which has not impacted the revenue stream yet is that our Service Assurance market, which was more of a niche market where we had almost 40%, 50% market share is getting expanded into the larger observability market. And so -- where our data is even more useful. So I think it's getting legitimacy to what we used to do in the scalable DPI and smart telemetry area.

因此，我認為最大的變化是，目前尚未影響收入流的服務保證市場，它更像是一個利基市場，我們擁有近 40% 至 50% 的市場份額，正在擴展到更大的可觀察性市場。因此，我們的數據就更加有用了。所以我認為我們在可擴展 DPI 和智慧遙測領域所做的事情正在合法化。

And we have made corresponding product improvements into this -- using this product called Omnis AI Insights, which some of it will contribute to revenue this year also. So that's the biggest, most interesting thing going for us that AI is making some of the things, which are very important for our customer into the mainstream and in directly increasing our market size, which was one of the challenges in the Service Assurance area we had.

而我們對此進行了相應的產品改進——使用名為 Omnis AI Insights 的產品，其中一部分也將為今年的收入做出貢獻。所以，對我們來說，最大的、最有趣的事情是，人工智慧正在將一些對我們的客戶非常重要的事情變成主流，並直接擴大我們的市場規模，這是我們在服務保障領域面臨的挑戰之一。

And Kevin, I would say that it's early on for this product, and we're seeing good interest and momentum. It did have some contribution because, as we said in the prepared remarks, that we did highlight a customer that did invest in it, but it's small at this point. But we see opportunity in this area.

凱文，我想說的是，這款產品還處於早期階段，我們看到了良好的興趣和發展勢頭。它確實有一些貢獻，因為正如我們在準備好的評論中所說的那樣，我們確實強調了一位對其進行投資的客戶，但目前這一貢獻還很小。但我們在這個領域看到了機會。

Got it. And maybe just one last one. With the passage of the tax bill last month, wondering what you're hearing from some of your Service Provider Customers at this point in terms of potential incremental investments they're making in their network and how that could translate in a business for you?

知道了。也許這只是最後一個。隨著上個月稅收法案的通過，您想知道您從一些服務提供者客戶那裡聽到了什麼關於他們在網路上進行的潛在增量投資的消息，以及這些投資將如何轉化為您的業務？

We have not heard anything specific from those this year so far. And even in the past, when the changes happened, that didn't necessarily translate into more or less business for us.

今年到目前為止我們還沒有聽到任何具體消息。即使在過去，當這些變化發生時，也不一定會為我們帶來更多或更少的業務。

Thank you. And this concludes our call. We thank you for joining us today. Have a wonderful day.

謝謝。我們的通話到此結束。感謝您今天的到來。祝您有美好的一天。