NetScout Systems, Inc. announced unaudited consolidated earnings results for the third quarter and nine months ended December 31, 2017. For the quarter, the company reported total revenue of $268,944,000 compared to $302,192,000 a year ago. Income from operations was $38,261,000 compared to $33,362,000 a year ago. Income before income tax expense was $35,154,000 compared to $30,614,000 a year ago. Net income was $89,685,000 or $1.02 per diluted share compared to $21,245,000 or $0.23 per basic and diluted share a year ago. Non-GAAP revenue was $272,011,000 compared to $311,354,000 a year ago. Non-GAAP income from operations was $83,939,000 compared to $84,330,000 a year ago. Non-GAAP net income was $60,723,000 or $0.69 per diluted share compared to $55,207,000 or $0.60 per diluted share a year ago. Non-GAAP EBITDA from operations was $93,556,000 compared to $92,751,000 a year ago.

For the nine months, the company reported total revenue of $751,563,000 compared to $843,192,000 a year ago. Income from operations was $3,467,000 compared to $23,413,000 a year ago. Loss before income tax benefit was $6,098,000 compared to income of $15,331,000 a year ago. Net income was $62,995,000 or $0.70 per diluted share compared to $10,981,000 or $0.12 per basic and diluted share a year ago. Non-GAAP revenue was $760,805,000 compared to $872,576,000 a year ago. Non-GAAP income from operations was $140,879,000 compared to $185,479,000 a year ago. Non-GAAP net income was $94,546,000 or $1.05 per diluted share compared to $117,969,000 or $1.27 per diluted share a year ago. Non-GAAP EBITDA from operations was $169,413,000 compared to $210,826,000 a year ago.

The company provided earnings guidance for the fiscal year 2018. For the year 2018 the company is lowering revenue outlook from the original target of approximately $1.2 billion to between $1 billion and $1.025 billion. The company expects fiscal year 2018 non-GAAP revenue will be in the range of approximately $1.0 billion to $1.025 billion. Taking all of the aforementioned items into account, the company expects that fiscal year 2018's GAAP net income per share (diluted) to range from $0.53 to $0.84. The company anticipates non-GAAP net income per share (diluted) in the range of approximately $1.30 to $1.45. Due to the impact of recently enacted tax legislation, the company's effective (GAAP) tax rate for fiscal year 2018 is expected to be in the range of -5,000% to -5,500%. The company's fiscal year 2018 non-GAAP effective tax is anticipated to be around 28%. The company expects GAAP net income is to be in the range of $47 million to $75 million, amortization of intangible assets is to be in the range of $110 million to $112 million and non-GAAP net income is to be in the range of $116 million to $130 million. The company currently anticipate that gross margin should increase to around 77% for this year, which implies that fourth quarter gross margins are likely to decline modestly from third quarter levels.

The company expected fourth quarter diluted earnings per share in the range of $0.25 to $0.40. The company anticipates fourth quarter revenue in the range of roughly $240 million to $265 million. The wider revenue range for the fourth quarter reflects some uncertainty about the timing of certain orders across both customer segments.