NetScout results boosted by service provider segment

Network intelligence and analytics company NetScout saw its revenues grow 32% year-over-year, driven by its operator segment, and more than doubled its profits compared to the year-ago quarter.
NetScout reported total revenues for the most recent quarter of $107.9 million, with product revenue of $64.4 million (up 50% year-over-year) and service revenues of $43.5 million. Net income was $11.5 million, up from $5.25 million in the year-ago period.
NetScout reiterated guidance that its full-year revenue growth will be in the range of 13% to 16%.
The company said in its quarterly call that it has seen strong growth in the first half of this year and that it expects the second half of 2014 to be more in line with expectations. Its customer base is largely still focused on the roll-out of LTE networks and services, said Anil Singhal, who is president, founder, CEO and chairman of the board of NetScout. Ultimately, NetScout expects service providers to drive most of its growth over the next five years as operators look for better analytics tools for network management, ensuring application performance and service delivery.
While NetScout has focused on service providers, the company is also serving the enterprise segment and sees market opportunity there. Even in large enterprises with plenty of troubleshooting tools, Singhal said, it can take days or weeks to identify network issues, while only a fraction of  time is spent solving the actual problem. NetScout feels that its solutions’ automation and both broad and granular visibility will continue to see demand.
“It’s really about service delivery monitoring and performance management for the network, for the service, for the application – voice, video and data,” said Steven Shalita, VP of marketing for NetScout, in a recent interview with RCR Wireless News. He added that NetScout’s technology is deployed in more than 160 service provider networks, both wireless and wireline, with “a very significant” number in the mobile space.
“That’s where the biggest innovation has been happening,” Shalita said. “We’re seeing that as being a center of excellence, and where operators are making investment.”