ANNUAL REPORT 2018 CORPORATE INFORMATION BOARD OF DIRECTORS CORPORATE HEADQUARTERS ANIL K. SINGHAL 310 Littleton Road Chairman of the Board, Westford, MA 01886 President and Chief Executive Officer Telephone: (978) 614-4000 NETSCOUT SYSTEMS, INC. NETSCOUT SYSTEMS, INC. (NASDAQ: NTCT) Fax: (978) 614-4004 ROBERT E. DONAHUE Web: www.netscout.com The world’s largest, most innovative and influential highly structured, contextual metadata — what we at President and Chief Executive Officer (Retired) Authorize.net Holdings, Inc. FORM 10-K service providers, enterprises and government agencies NETSCOUT call “smart data” — to feed an expanding Stockholders may obtain copies of the exhibits to the Company’s JOHN R. EGAN recognize that digital transformation — which typically range of powerful analytics, our customers are Annual Report on Form 10-K as filed with the Securities and Managing Partner encompasses modifying or overhauling workflow optimizing network performance, delivering high- Egan-Managed Capital, L.P. Exchange Commission at the SEC’s website, www.sec.gov, or by processes, upgrading and reconfiguring technology quality applications and services, protecting the contacting NETSCOUT Investor Relations or by visiting the investor ALFRED GRASSO relations section of the Company’s website, www.netscout.com. infrastructures and deploying new digital systems, network against attack, gaining insight into the end- President and Chief Executive Officer (Retired) INVESTOR RELATIONS applications and tools — is fundamental to growing user experience and making smarter, faster and more The Mitre Corporation ANDREW KRAMER revenue, boosting productivity, building scale, informed business and technology decisions. The JOSEPH G. HADZIMA, JR. Managing Director Vice President, Investor Relations creating new efficiencies, reducing risk Company’s powerful software capabilities Main Street Partners, LLC NETSCOUT SYSTEMS, INC. and controlling costs. Over the and flexible range of deployment 310 Littleton Road JAMES A. LICO past several years, NETSCOUT options deliver the real-time, President and Chief Executive Officer Westford, MA 01886 USA Telephone: (978) 614-4000 has invested considerably — pervasive visibility and insight Fortive Corporation Email: [email protected] through both acquisitions that customers need to VINCENT J. MULLARKEY ANNUAL MEETING and organic R&D — to accelerate and secure their Senior Vice President, Finance and Chief Financial Officer (Retired) The Annual Meeting of Stockholders of the Company will be expand its product digital transformation. Digital Equipment Corporation held on Wednesday, September 12, 2018 at 10:00 a.m. ET at portfolio and deliver a CHRISTOPHER PERRETTA NETSCOUT’s corporate headquarters. broader range of high- In an era during which Chief Information and Operations Officer LEGAL COUNSEL MUFG Americas Holdings Corporation value solutions that are connectivity has become Cooley LLP designed to support its fundamental to the way we SUSAN L. SPRADLEY Boston, MA Chief Executive Officer customers worldwide as they work, communicate and socialize, INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Motion Intelligence, Inc. advance their digital transformation NETSCOUT’s solutions have never been PricewaterhouseCoopers LLP Boston, MA initiatives with confidence and assure more important to network, IT and security EXECUTIVE OFFICERS their digital business services against disruptions in teams. We’ve long understood that the costs associated ANIL K. SINGHAL TRANSFER AGENT Founder, Chairman of the Board, Computershare availability, performance and security. with network and application downtime are significant President and Chief Executive Officer P.O. Box 43006 — potentially impacting our customers’ top-line, MICHAEL SZABADOS Providence, RI 02940-3006 NETSCOUT’s solutions are playing a critical role profitability and organizational reputations. NETSCOUT’s Chief Operating Officer and President, Stockholder Inquiries: in helping service providers, enterprises and customers rely on the Company’s technology to drive ROI Service Assurance Telephone: (877) 239-1247 government agencies monitor, manage and protect on their infrastructure investments, maximize network JEAN BUA TDD for hearing impaired: (800) 231-5469 Executive Vice President, International Shareowners: (201) 680-6578 their networks and the applications and services and application performance, and quickly identify and Chief Financial Officer and Treasurer TDD International Shareowners: (201) 680-6610 that traverse those networks. By collecting and mitigate security threats — all of which are key tenets of www.computershare.com/investor JOHN W. DOWNING instantaneously transforming network traffic into digital transformation. Executive Vice President, COMMON STOCK Worldwide Sales Operations Common Stock of NETSCOUT SYSTEMS, INC. is traded on the Nasdaq Global Select Market under the symbol “NTCT”
FINANCIAL PERFORMANCE
REVENUE INCOME FROM OPERATIONS FREE CASH FLOW1 (Non-GAAP, $ in millions) (Non-GAAP, $ in millions) ($ in millions)
$300 23.0% 25% $205.9
$1,199.8 20% $194.6 $999.3 18.4% $200 15%
$275.4 10%
$183.4 $100 5%
$- 0% FY17 FY18 FY17 FY18 FY17* FY18
Op. Income
Op. Margin
1 Free cash flow is defined as cash flow provided by operating activities less purchases of fixed and intangible assets
* Includes cash provided by operating activities related to the acquisition of the Danaher Communications Business totaling ~$30 million
FY17 FY18 GAAP Non-GAAP GAAP Non-GAAP