Cover
Cover - shares | 3 Months Ended | |
Jun. 30, 2024 | Jul. 25, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
Document Transition Report | false | |
Entity File Number | 000-26251 | |
Entity Registrant Name | NETSCOUT SYSTEMS, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 04-2837575 | |
Entity Address, Address Line One | 310 Littleton Road | |
Entity Address, City or Town | Westford | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 01886 | |
City Area Code | 978 | |
Local Phone Number | 614-4000 | |
Title of 12(b) Security | Common Stock, $0.001 par value per share | |
Trading Symbol | NTCT | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 71,317,824 | |
Entity Central Index Key | 0001078075 | |
Current Fiscal Year End Date | --03-31 | |
Document Fiscal Year Focus | 2025 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 |
Current assets: | ||
Cash and cash equivalents | $ 362,213 | $ 389,674 |
Marketable securities and investments | 43,954 | 33,459 |
Accounts receivable and unbilled costs, net of allowance for credit allowances of $116 and $479 at June 30, 2024 and March 31, 2024, respectively | 129,270 | 192,096 |
Inventories and deferred costs | 14,994 | 14,095 |
Prepaid income taxes | 13,352 | 11,076 |
Prepaid expenses and other current assets | 26,267 | 32,094 |
Total current assets | 590,050 | 672,494 |
Fixed assets, net | 24,903 | 26,487 |
Operating lease right-of-use assets | 39,911 | 42,486 |
Goodwill | 1,076,715 | 1,502,820 |
Intangible assets, net | 295,290 | 308,659 |
Deferred income taxes | 47,855 | 30,767 |
Long-term marketable securities | 1,003 | 994 |
Other assets | 9,689 | 10,595 |
Total assets | 2,085,416 | 2,595,302 |
Current liabilities: | ||
Accounts payable | 15,938 | 14,506 |
Accrued compensation | 63,059 | 51,362 |
Accrued other | 12,399 | 14,665 |
Income taxes payable | 764 | 764 |
Deferred revenue and customer deposits | 279,185 | 301,806 |
Current portion of operating lease liabilities | 11,859 | 11,979 |
Total current liabilities | 383,204 | 395,082 |
Other long-term liabilities | 6,897 | 7,055 |
Deferred tax liability | 4,326 | 4,374 |
Accrued long-term retirement benefits | 28,124 | 28,413 |
Long-term deferred revenue and customer deposits | 120,638 | 130,212 |
Operating lease liabilities, net of current portion | 35,231 | 38,101 |
Long-term debt | 75,000 | 100,000 |
Total liabilities | 653,420 | 703,237 |
Commitments and contingencies (Note 14) | ||
Preferred stock, $0.001 par value: | ||
5,000,000 shares authorized; no shares issued or outstanding at June 30, 2024 and March 31, 2024 | 0 | 0 |
Common stock, $0.001 par value: | ||
300,000,000 shares authorized; 133,189,228 and 131,316,309 shares issued and 71,311,409 and 71,404,216 shares outstanding at June 30, 2024 and March 31, 2024, respectively | 133 | 131 |
Additional paid-in capital | 3,201,998 | 3,181,366 |
Accumulated other comprehensive income | 3,404 | 3,572 |
Treasury stock at cost, 61,877,819 and 59,912,093 shares at June 30, 2024 and March 31, 2024, respectively | (1,652,642) | (1,615,483) |
(Accumulated deficit) retained earnings | (120,897) | 322,479 |
Total stockholders' equity | 1,431,996 | 1,892,065 |
Total liabilities and stockholders' equity | $ 2,085,416 | $ 2,595,302 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 |
Statement of Financial Position [Abstract] | ||
Allowance for credit allowances | $ 116 | $ 479 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 300,000,000 | 300,000,000 |
Common stock, shares issued (in shares) | 133,189,228 | 131,316,309 |
Common stock, shares outstanding (in shares) | 71,311,409 | 71,404,216 |
Treasury stock, shares (in shares) | 61,877,819 | 59,912,093 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Revenue: | ||
Total revenue | $ 174,565 | $ 211,138 |
Cost of revenue: | ||
Total cost of revenue | 44,369 | 50,396 |
Gross profit | 130,196 | 160,742 |
Operating expenses: | ||
Research and development | 42,465 | 45,520 |
Sales and marketing | 70,330 | 78,996 |
General and administrative | 25,581 | 28,214 |
Amortization of acquired intangible assets | 11,614 | 12,707 |
Restructuring charges | 16,563 | 0 |
Goodwill impairment | 426,967 | 0 |
Total operating expenses | 593,520 | 165,437 |
Loss from operations | (463,324) | (4,695) |
Interest and other income (expense), net: | ||
Interest income | 3,098 | 2,288 |
Interest expense | (1,945) | (2,093) |
Other income (expense), net | 8,475 | (834) |
Total interest and other income (expense), net | 9,628 | (639) |
Loss before income tax benefit | (453,696) | (5,334) |
Income tax benefit | (10,320) | (1,134) |
Net loss | $ (443,376) | $ (4,200) |
Basic net loss per share (in dollars per share) | $ (6.20) | $ (0.06) |
Diluted net loss per share (in dollars per share) | $ (6.20) | $ (0.06) |
Weighted average common shares outstanding used in computing: | ||
Net loss per share - basic (in shares) | 71,467 | 71,540 |
Net loss per share - diluted (in shares) | 71,467 | 71,540 |
Product | ||
Revenue: | ||
Total revenue | $ 61,169 | $ 94,661 |
Cost of revenue: | ||
Total cost of revenue | 12,004 | 16,662 |
Service | ||
Revenue: | ||
Total revenue | 113,396 | 116,477 |
Cost of revenue: | ||
Total cost of revenue | $ 32,365 | $ 33,734 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (443,376) | $ (4,200) |
Other comprehensive income (loss): | ||
Cumulative translation adjustments | (131) | 68 |
Changes in market value of investments: | ||
Changes in unrealized gains (losses), net of taxes (benefit) of $2, and ($35), respectively | 7 | (106) |
Total net change in market value of investments | 7 | (106) |
Changes in market value of derivatives: | ||
Changes in market value of derivatives, net of (benefit) taxes of ($27), and $51, respectively | (90) | 159 |
Reclassification adjustment for net gains (losses) included in net loss, net of taxes (benefit) of $14, and ($18), respectively | 46 | (56) |
Total net change in market value of derivatives | (44) | 103 |
Other comprehensive (loss) income | (168) | 65 |
Total comprehensive loss | $ (443,544) | $ (4,135) |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Loss (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Changes in unrealized losses, tax expense (benefit) | $ 2 | $ (35) |
Changes in market value of derivatives, tax expense (benefit) | (27) | 51 |
Reclassification adjustment for net gains (losses) included in net income (loss), tax expense (benefit) | $ 14 | $ (18) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock Voting | Additional Paid In Capital | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | (Accumulated Deficit) Retained Earnings |
Beginning balance, common stock (in shares) at Mar. 31, 2023 | 128,683,824 | |||||
Beginning balance at Mar. 31, 2023 | $ 2,029,649 | $ 128 | $ 3,099,698 | $ 5,738 | $ (1,546,128) | $ 470,213 |
Beginning balance, treasury stock (in shares) at Mar. 31, 2023 | 57,434,779 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (4,200) | (4,200) | ||||
Unrealized net investment gains (losses) | (106) | (106) | ||||
Unrealized net gain (losses) on derivative financial instruments | 103 | 103 | ||||
Cumulative translation adjustments | 68 | 68 | ||||
Issuance of common stock pursuant to vesting of restricted stock units (in shares) | 1,332,217 | |||||
Issuance of common stock pursuant to vesting of restricted stock units | 2 | $ 2 | ||||
Stock-based compensation expense for restricted stock units granted to employees | 19,100 | 19,100 | ||||
Repurchase of treasury stock (in shares) | 435,172 | |||||
Repurchase of treasury stock | (13,406) | $ (13,406) | ||||
Ending balance, common stock (in shares) at Jun. 30, 2023 | 130,016,041 | |||||
Ending balance at Jun. 30, 2023 | $ 2,031,210 | $ 130 | 3,118,798 | 5,803 | $ (1,559,534) | 466,013 |
Ending balance, treasury stock (in shares) at Jun. 30, 2023 | 57,869,951 | |||||
Beginning balance, common stock (in shares) at Mar. 31, 2024 | 71,404,216 | 131,316,309 | ||||
Beginning balance at Mar. 31, 2024 | $ 1,892,065 | $ 131 | 3,181,366 | 3,572 | $ (1,615,483) | 322,479 |
Beginning balance, treasury stock (in shares) at Mar. 31, 2024 | 59,912,093 | 59,912,093 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | $ (443,376) | (443,376) | ||||
Unrealized net investment gains (losses) | 7 | 7 | ||||
Unrealized net gain (losses) on derivative financial instruments | (44) | (44) | ||||
Cumulative translation adjustments | (131) | (131) | ||||
Issuance of common stock pursuant to vesting of restricted stock units (in shares) | 1,872,919 | |||||
Issuance of common stock pursuant to vesting of restricted stock units | 2 | $ 2 | ||||
Stock-based compensation expense for restricted stock units granted to employees | 20,632 | 20,632 | ||||
Repurchase of treasury stock (in shares) | 1,965,726 | |||||
Repurchase of treasury stock | $ (37,159) | $ (37,159) | ||||
Ending balance, common stock (in shares) at Jun. 30, 2024 | 71,311,409 | 133,189,228 | ||||
Ending balance at Jun. 30, 2024 | $ 1,431,996 | $ 133 | $ 3,201,998 | $ 3,404 | $ (1,652,642) | $ (120,897) |
Ending balance, treasury stock (in shares) at Jun. 30, 2024 | 61,877,819 | 61,877,819 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | Mar. 31, 2024 | |
Cash flows from operating activities: | |||
Net loss | $ (443,376) | $ (4,200) | |
Adjustments to reconcile net loss to cash provided by (used in) operating activities: | |||
Depreciation and amortization | 16,405 | 19,436 | |
Operating lease right-of-use asset amortization | 2,606 | 2,592 | |
Loss on disposal of fixed assets | 0 | 38 | |
Share-based compensation expense | 21,198 | 19,844 | |
Change in fair value of derivative investment | 0 | (206) | |
Goodwill impairment | 426,967 | 0 | $ 217,300 |
Deferred income taxes | (17,077) | (11,456) | |
Other (gains) losses | (8,839) | 363 | |
Changes in assets and liabilities | |||
Accounts receivable and unbilled costs | 62,715 | 35,565 | |
Inventories and deferred costs | (1,567) | (1,604) | |
Prepaid expenses and other assets | 4,152 | (1,157) | |
Accounts payable | 1,686 | (2,031) | |
Accrued compensation and other expenses | 8,740 | (37,677) | |
Operating lease liabilities | (3,022) | (2,907) | |
Income taxes payable | (65) | (2,717) | |
Deferred revenue | (32,095) | (36,251) | |
Net cash provided by (used in) operating activities | 38,428 | (22,368) | |
Cash flows from investing activities: | |||
Purchase of marketable securities and investments | (12,151) | (25,905) | |
Proceeds from sales and maturity of marketable securities | 10,325 | 8,733 | |
Purchase of fixed assets | (1,268) | (1,957) | |
Net cash used in investing activities | (3,094) | (19,129) | |
Cash flows from financing activities: | |||
Issuance of common stock under stock plans | 2 | 2 | |
Treasury stock repurchases | (25,000) | 0 | |
Tax withholding on restricted stock units | (12,159) | (13,406) | |
Repayment of long-term debt | (25,000) | 0 | |
Net cash used in financing activities | (62,157) | (13,404) | |
Effect of exchange rate changes on cash and cash equivalents | (638) | 823 | |
Net decrease in cash and cash equivalents | (27,461) | (54,078) | |
Cash and cash equivalents, beginning of period | 389,674 | 386,794 | 386,794 |
Cash and cash equivalents, end of period | 362,213 | 332,716 | $ 389,674 |
Supplemental disclosures: | |||
Cash paid for interest | 1,437 | 1,587 | |
Cash paid for income taxes | 9,143 | 21,831 | |
Non-cash transactions: | |||
Transfers of inventory to fixed assets | 645 | 1,114 | |
Additions to property, plant and equipment included in accounts payable | $ 253 | $ 46 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION The accompanying unaudited interim consolidated financial statements have been prepared by NetScout Systems, Inc. (NetScout or the Company). Certain information and footnote disclosures normally included in financial statements prepared under United States generally accepted accounting principles (GAAP) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). In the opinion of management, the unaudited interim consolidated financial statements include all adjustments, consisting of normal recurring adjustments, necessary for a fair statement of the Company's financial position and stockholders' equity, results of operations and cash flows. The year-end consolidated balance sheet data and statement of stockholders' equity were derived from the Company's audited financial statements, but do not include all disclosures required by GAAP. The results reported in these unaudited interim consolidated financial statements are not necessarily indicative of results that may be expected for the entire year. All significant intercompany accounts and transactions are eliminated in consolidation. These unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements, including the notes thereto, included in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2024 filed with the Securities and Exchange Commission on May 16, 2024. Global and Macroeconomic Conditions The Company continues to closely monitor the current global and macroeconomic conditions, including the impacts of the ongoing war in Ukraine and hostilities in the Middle East, global geopolitical tension, stock market volatility, industry-specific capital spending trends, exchange rate fluctuations, inflation, interest rates, and the risk of a recession, including the manner and extent to which they have impacted and could continue to impact its business, customers, employees, supply chain, and distribution network. The full extent of the impacts of these global and macroeconomic trends remain uncertain. It is possible that the measures taken by the governments of countries affected and the resulting economic impacts may materially and adversely affect the Company's future results of operations, cash flows and financial position as well as its customers. The Company has the responsibility to evaluate whether conditions and/or events raise substantial doubt about its ability to meet its future financial obligations as they become due within one year after the date that the financial statements are issued. The macroeconomic environment remains challenging with constrained customer spending and the Company expects this to persist into the remainder of fiscal year 2025. The Company has taken and continues to take precautionary actions to manage costs and increase productivity across the organization. This includes managing discretionary spending and hiring activities. In addition, based on covenant levels, the Company had as of June 30, 2024 an in cremental $725 million available under the revolving credit facility. The Company expects net cash provided by operations combined with cash, cash equivalents, marketable securities and investments and borrowing availability under the revolving credit facility to provide sufficient liquidity to fund current obligations, capital spending, debt service requirements and working capital requirements over at least the next twelve months. Recent Accounting Pronouncements In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09 is intended to enhance the transparency and decision usefulness of income tax disclosures. The amendments address investor requests for enhanced income tax information primarily through changes to the rate reconciliation and income taxes paid information. The amendments are effective retrospectively for fiscal years beginning after December 15, 2024. The amendments should be applied prospectively; however, retrospective application is also permitted. ASU 2023-09 is effective for NetScout beginning April 1, 2025. Early adoption is permitted. The Company is in the process of evaluating the impact that the adoption ASU 2023-09 will have to the financial statements and related disclosures. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which provides updates to qualitative and quantitative reportable segment disclosure requirements, including enhanced disclosures about significant segment expenses and increased interim disclosure requirements, among others. The amendments in ASU 2023-07 are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted, and the amendments should be applied retrospectively. The Company plans to adopt ASU 2023-07 beginning with its fiscal year ending March 31, 2025. The Company is in the process of evaluating the impact that the adoption ASU 2023-07 will have to the financial statements and related disclosures. |
REVENUE
REVENUE | 3 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE Revenue Recognition Policy The Company exercises judgment and uses estimates in connection with determining the amounts of product and service revenues to be recognized in each accounting period. The Company derives revenues primarily from the sale of network management tools and cybersecurity solutions for service provider and enterprise customers, which include hardware, software, and service offerings. The Company's product sales consist of software only offerings and offerings which include hardware appliances with embedded software that are essential to providing customers the intended functionality of the solutions. The Company accounts for revenue once a legally enforceable contract with a customer has been approved by the parties and the related promises to transfer products or services have been identified. A contract is defined by the Company as an arrangement with commercial substance identifying payment terms, each party's rights and obligations regarding the products or services to be transferred and the amount the Company deems probable of collection. Customer contracts may include promises to transfer multiple products and services to a customer. Determining whether the products and services are considered distinct performance obligations that should be accounted for separately or as one combined performance obligation may require significant judgment. Revenue is recognized when control of the products or services are transferred to the Company's customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for products and services. Product revenue is typically recognized upon fulfillment, provided a legally enforceable contract exists, control has passed to the customer, and in the case of software products, when the customer has the rights and ability to access the software, and collection of the related receivable is probable. If any significant obligations to the customer remain post-delivery, typically involving obligations relating to installation and acceptance by the customer, revenue recognition is deferred until such obligations have been fulfilled. The Company's service offerings include installation, integration, extended warranty and maintenance services, post-contract customer support, stand-ready software-as-a-service (SAAS) and other professional services including consulting and training. The Company generally provides software and/or hardware support as part of product sales. Revenue related to the initial bundled software and hardware support is recognized ratably over the support period. In addition, customers can elect to purchase extended support agreements for periods after the initial software/hardware warranty expiration. Support services generally include rights to unspecified upgrades (when and if available), telephone and internet-based support, updates, bug fixes and hardware repair and replacement. Consulting services are recognized upon delivery or completion of performance depending on the terms of the underlying contract. Reimbursements of out-of-pocket expenditures incurred in connection with providing consulting services are included in services revenue, with the offsetting expense recorded in cost of service revenue. Training services include on-site and classroom training. Training revenues are recognized upon delivery of the training. Generally, the Company's contracts are accounted for individually. However, when contracts are closely interrelated and dependent on each other, it may be necessary to account for two or more contracts as one to reflect the substance of the group of contracts. Bundled arrangements are concurrent customer purchases of a combination of the Company's product and service offerings that may be delivered at various points in time. The Company allocates the transaction price among the performance obligations in an amount that depicts the relative standalone selling prices (SSP) of each obligation. Judgment is required to determine the SSP for each distinct performance obligation. The Company uses a range of amounts to estimate SSP for each of the products and services sold, based primarily on the performance obligation's historical pricing. The Company also considers its overall pricing objectives and practices across different sales channels and geographies, and market conditions. Generally, the Company has established SSP for a majority of its service performance obligations based on historical standalone sales. In certain instances, the Company has established SSP for services based upon an estimate of profitability and the underlying cost to fulfill those services. SSP has primarily been established for product performance obligations as the average or median selling price the performance obligation was recently sold for, whether sold alone or sold as part of a bundle transaction. The Company reviews sales of the product performance obligations on a quarterly basis and updates, when appropriate, its SSP for such performance obligations to ensure that it reflects recent pricing experience. The Company's products are distributed through its direct sales force and indirect distribution channels through alliances with resellers and distributors. Revenue arrangements with resellers and distributors are recognized on a sell-in basis; that is, when control of the product transfers to the reseller or distributor. The Company records consideration given to a customer as a reduction of revenue to the extent they have recorded revenue from the customer. With limited exceptions, the Company's return policy does not allow product returns for a refund. Returns have been insignificant to date. In addition, the Company has a history of successfully collecting receivables from its resellers and distributors. During the three months ended June 30, 2024, the Company recognized re ven ue of $100.3 million relate d t o the Company's deferred revenue balance reported at March 31, 2024. Performance Obligations Customer contracts may include promises to transfer multiple products and services to a customer. Determining whether the products and services are considered distinct performance obligations that should be accounted for separately or as one combined performance obligation may require significant judgment. The transaction price is allocated among performance obligations in bundled contracts in an amount that depicts the relative standalone selling prices of each obligation. For contracts involving distinct hardware and software licenses, the performance obligations are satisfied at a point in time when control is transferred to the customer. For standalone maintenance and post-contract support (PCS) the performance obligation is satisfied ratably over the contract term as a stand-ready obligation. For consulting and training services, the performance obligation may be satisfied over the contract term as a stand-ready obligation, satisfied over a period of time as those services are delivered, satisfied at the completion of the service when control has transferred, or the services have expired unused. Payments for hardware, software licenses, one-year maintenance, PCS and consulting services, are typically due up front with payment terms of 30 to 90 days. However, the Company does have contracts pursuant to which billings occur ratably over a period of years following the transfer of control for the contracted performance obligations. Payments on multi-year maintenance, PCS and consulting services are typically due in annual installments over the contract term. The Company did not have any material variable consideration su ch as obligations for returns, refunds or warranties at June 30, 2024. At June 30, 2024, the Company had total defer red revenue of $399.8 million, which represents the aggregate total contract price allocated to undelivered performance obligations. The Company expects to recognize $279.2 million, or 70%, of this revenue during the next 12 months, and expects to recognize the remaining $120.6 million, or 30%, of this revenue thereafter. Because of NetScout's revenue recognition policies, there are circumstances for which the Company does not recognize revenue relating to sales transactions that have been billed, but the related account receivable has not been collected. While the receivable represents an enforceable obligation, the Company does not believe its right to payment is unconditional, therefore for balance sheet presentation purposes, the Company has not recognized the deferred revenue or the related account receivable and no amounts appear in the consolidated balance sheets for such transactions because control of the underlying deliverable has not transferred. The aggregate amount of unrecognized accounts receivable and de ferred revenue was $9.7 million and $5.9 million at June 30, 2024 and March 31, 2024, respectively. NetScout expects that the amount of billed and unbilled deferred revenue will change from quarter to quarter for several reasons, including the specific timing, duration and size of large customer support and service agreements, varying billing cycles of such agreements, th e specific timing of customer renewals, and foreign currency fluctuations. The Company did not have material significant financing components, or variable consideration or performance obligations satisfied in a prior period recognized during the three months ended June 30, 2024. Contract Balances The Company may receive payments from customers based on billing schedules as established by the Company's contracts. Contract assets relate to performance obligations where control has transferred to the customer in advance of scheduled billings. The Company records unbilled accounts receivable representing the right to consideration in exchange for goods or services that have been transferred to a customer conditional on the passage of time. Deferred revenue relates to scenarios where billings with an unconditional right to payment occur before all performance obligations are delivered or payments are received in advance of performance under the contract. Costs to Obtain Contracts The Company has determined that the only significant incremental costs incurred to obtain contracts with customers within the scope of Topic 606 are sales commissions paid to its employees. Sales commissions are recorded as an asset and amortized to expense ratably over the remaining performance periods of the related contracts with remaining performance obligations. The Company expenses costs as incurred for sales commissions when the amortization period would have been one year or less. At June 30, 2024, the consoli dated balance sheet included $9.3 million in assets related to sales commissions to be expensed in future periods. A balance of $5.0 million was included in prepaid expenses and other current assets, and a balance of $4.3 million was included in other assets in the Company's consolidated balance sheet at June 30, 2024. At March 31, 2024, the consolidated balance sheet included $9.3 million in assets related to sales commissions to be expensed in future periods. A balance of $4.8 million was included in prepaid expenses and other current assets, and a balance of $4.5 million was included in other assets in the Company's consolidated balance sheet at March 31, 2024. During each of the three months ended June 30, 2024 and 2023 , the Company recognized $1.7 million of amortization related to this sales commission asset, which is included in the sales and marketing expense line in the Company's consolidated statements of operations. Allowance for Credit Losses The Company continually monitors collections from its customers. The Company evaluates the collectability of its accounts receivable and determines the appropriate allowance for credit losses based on a combination of factors, including but not limited to, analysis of the aging schedules, past due balances, historical collection experience and prevailing economic conditions. The following table summarizes the activity in the allowance for credit losses (in thousands): Balance at March 31, 2024 $ 479 Additions resulting in charges to operations 27 Recoveries of previously reserved balances (381) Deductions due to write-offs (9) Balance at June 30, 2024 $ 116 |
CONCENTRATION OF CREDIT RISK AN
CONCENTRATION OF CREDIT RISK AND SIGNIFICANT CUSTOMERS | 3 Months Ended |
Jun. 30, 2024 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATION OF CREDIT RISK AND SIGNIFICANT CUSTOMERS | CONCENTRATION OF CREDIT RISK AND SIGNIFICANT CUSTOMERS Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of investments, trade accounts receivable and accounts payable. The Company's cash, cash equivalents, and marketable securities are placed with financial institutions with high credit standings. At June 30, 2024, one direct customer accounted for more than 10% of the Company's accounts receivable balance, while no channel partners accounted for more than 10% of the Company's accounts receivable balance. At March 31, 2024, the Company had no direct customers or channel partners which accounted for more than 10% of the accounts receivable balance. During t he three months ended June 30, 2024, and 2023, no direct customers or channel partners accounted for more than 10% of total revenue. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 3 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION On September 12, 2019, the Company's stockholders approved the 2019 Equity Incentive Plan (2019 Plan), which replaced the Company's 2007 Equity Incentive Plan, as amended (Amended 2007 Plan). The 2019 Plan permits the granting of incentive and nonstatutory stock options, stock appreciation rights, restricted stock awards, restricted stock unit awards, and other stock awards, collectively referred to as "share-based awards." On September 10, 2020, the Company's stockholders approved an amendment and restatement of the 2019 Equity Incentive Plan (2019 First Amended Plan) to increase the number of shares reserved for issua nce by 4,700,000 s hares, establish a one-year minimum vesting requirement for awards granted on or after September 10, 2020, and change the "fungible share counting ratio" used to calculate the increase or reduction in the number of shares available for issuance under the 2019 First Amended Plan. On August 24, 2022, the Company's stockholders approved an amendment and restatement of the 2019 Equity Incentive Plan (2019 Second Amended Plan) to increase the number of shares reserved for issuance by 7,000,000 shares, and change the "fungible share counting ratio" used to calculate the increase or reduction in the number of shares available for issuance under the 2019 Second Amended Plan. On September 14, 2023, the Company's stockholders approved an amendment and restatement to the 2019 First Amended Plan (2019 Third Amended Plan) to further increase the number of shares reserved for issuance by 5,900,000 shares and changed the "fungible share counting ratio" used to calculate the increase or reduction in the number of shares available for issuance under the 2019 Third Amended Plan. At September 14, 2023, there was a total of 8,263,547 shares reserved for issuance under the 2019 Third Amended Plan, which consisted of 5,900,000 new shares plus 2,363,547 shares that remained available for grant under the 2019 Second Amended Plan as of September 14, 2023, the effective date of the 2019 Third Amended Plan. The Company refers to the 2019 Plan, 2019 First Amended Plan, 2019 Second Amended Plan and 2019 Third Amended Plan collectively as the "Amended 2019 Plan". At June 30, 2024 , an aggrega te of 4,391,209 shar es remained available for grant under the Amended 2019 Plan. Periodically, the Company grants share-based awards to employees, officers, and directors of the Company and its subsidiaries. Additionally, the Company periodically grants performance-based restricted stock units to certain executive officers that vest based upon the Company's total shareholder return as compared to the Russell 2000 Index over a three-year period. The performance-based restricted stock units were valued using the Monte Carlo Simulation model. The measurement and recognition of compensation expense is based on estimated fair values for all share-based payment awards made to its employees and directors. Share-based award grants are generally measured at fair value on the date of grant based on the number of shares granted and the quoted price of the Company's common stock. Such value is recognized as a cost of revenue or an operating expense over the corresponding vesting period. The following is a summary of share-based compensation expense including restricted stock units and performance-based restricted stock units granted pursuant to the Company's Amended 2007 Plan and the Amended 2019 Plan, and employee stock purchases made under the Company's 2011 Amended and Restated Employee Stock Purchase Plan (ESPP), based on estimated fair values within the applicable cost and expense lines identified below (in thousands): Three Months Ended June 30, 2024 2023 Cost of product revenue $ 431 $ 372 Cost of service revenue 2,889 2,539 Research and development 5,886 5,386 Sales and marketing 7,504 7,284 General and administrative 4,488 4,263 $ 21,198 $ 19,844 Employee Stock Purchase Plan – The Company maintains the ESPP for all eligible employees as described in the Company's Annual Report on Form 10-K for the year ended March 31, 2024. Under the ESPP, shares of the Company's common stock may be purchased on the last day of each bi-annual offering period at 85% of the fair value on the last day of such offering period. The offering periods run from March 1st through August 31st and from September 1st through the last day of February each year . |
CASH, CASH EQUIVALENTS, MARKETA
CASH, CASH EQUIVALENTS, MARKETABLE SECURITIES AND INVESTMENTS | 3 Months Ended |
Jun. 30, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
CASH, CASH EQUIVALENTS, MARKETABLE SECURITIES AND INVESTMENTS | CASH, CASH EQUIVALENTS, MARKETABLE SECURITIES AND INVESTMENTS The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents and those investments with original maturities greater than three months to be marketable securities. Cash and cash equi valents mainly consisted of U.S. government and municipal obligations, commercial paper, money market instruments and cash maintained with various financial institutions at June 30, 2024 and March 31, 2024. Marketable Securities The following is a summary of marketable securities held by NetScout at June 30, 2024, classified as short-term and long-term (in thousands): Amortized Unrealized Fair Type of security: U.S. government and municipal obligations $ 8,879 $ (16) $ 8,863 Commercial paper 12,086 — 12,086 Certificates of deposit 2,829 — 2,829 Total short-term marketable securities 23,794 (16) 23,778 U.S. government and municipal obligations 1,014 (11) 1,003 Total long-term marketable securities 1,014 (11) 1,003 Total marketable securities $ 24,808 $ (27) $ 24,781 The following is a summary of marketable securities held by NetScout at March 31, 2024, classified as short-term and long-term (in thousands): Amortized Unrealized Fair Type of security: U.S. government and municipal obligations $ 10,523 $ (26) $ 10,497 Commercial paper 8,648 — 8,648 Certificates of deposit 2,807 — 2,807 Total short-term marketable securities 21,978 (26) 21,952 U.S. government and municipal obligations 1,004 (10) 994 Total long-term marketable securities 1,004 (10) 994 Total marketable securities $ 22,982 $ (36) $ 22,946 Contractual maturities of the Company's marketable securities held at June 30, 2024 and March 31, 2024 were as follows (in thousands): June 30, March 31, Available-for-sale securities: Due in 1 year or less $ 23,778 $ 21,952 Due after 1 year through 5 years 1,003 994 $ 24,781 $ 22,946 Investments In February 2023, the Company entered into a forward share purchase agreement with Napatech A/S (Napatech), a publicly traded Danish company registered on the Oslo stock exchange, to purchase approximately 6.2 million shares of Napatech's common stock for $7.5 million. In April 2023, the Company settled the forward share purchase contract with Napatech in exchange for approximately 6.2 million shares of Napatech's common stock and recorded a $0.2 million change in the fair value of the derivative instrument in other income (expense), net within the Company's consolidated statement of operations during the three months ended June 30, 2023. As part of the agreement, the Company received the right to designate a representative to be nominated for election to the Napatech Board of Directors, which was approved by Napatech's Nomination Committee in April 2023. The Company accounts for this investment under the equity method and has elected to apply the fair value option to the investment. The Company records the investment at fair value at the end of each period based on the closing price of Napatech's stock and any change in fair value during the period is recorded in other income (expense), net within the Company's consolidated statement of operations. At June 30, 2024 and March 31, 2024, the fair value of the investment in Napatech was $20.2 million and $11.5 million, respectively, and w as included in marketable securities and investments in the Company's consolidated balance sheet. During the three months ended June 30, 2024 and 2023, the Company recognized an $8.8 million increase and a $0.4 million decrease, respectively, in the fair value of the equity investment in Napatech in other income (expense), net within the Company's consolidated statement of operations. For the three months ended June 30, 2024 and 2023, the unrealized losses related to foreign currency translation on the equity investment in Napatech were immaterial. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value. Level 1 refers to fair values determined based on quoted prices in active markets for identical assets. Level 2 refers to fair values estimated using significant other observable inputs, and Level 3 includes fair values estimated using significant non-observable inputs. The following tables present the Company's financial assets and liabilities measured on a recurring basis using the fair value hierarchy at June 30, 2024 and March 31, 2024 (in thousands): Fair Value Measurements at June 30, 2024 Level 1 Level 2 Level 3 Total ASSETS: Cash and cash equivalents $ 346,200 $ 16,013 $ — $ 362,213 U.S. government and municipal obligations 5,991 3,875 — 9,866 Commercial paper — 12,086 — 12,086 Certificates of deposit — 2,829 — 2,829 Equity investment in Napatech 20,176 — — 20,176 Derivative financial instruments — 9 — 9 $ 372,367 $ 34,812 $ — $ 407,179 LIABILITIES: Derivative financial instruments $ — $ (123) $ — $ (123) $ — $ (123) $ — $ (123) Fair Value Measurements at March 31, 2024 Level 1 Level 2 Level 3 Total ASSETS: Cash and cash equivalents $ 381,829 $ 7,845 $ — $ 389,674 U.S. government and municipal obligations 8,985 2,506 — 11,491 Commercial paper — 8,648 — 8,648 Certificates of deposit — 2,807 — 2,807 Equity investment in Napatech 11,507 — — 11,507 Derivative financial instruments — 11 — 11 $ 402,321 $ 21,817 $ — $ 424,138 LIABILITIES: Derivative financial instruments $ — $ (74) $ — $ (74) $ — $ (74) $ — $ (74) This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. On a recurring basis, the Company measures certain financial assets and liabilities at fair value, including marketable securities and derivative financial instruments. The Company's Level 1 investments are classified as such because they are valued using quoted market prices or alternative pricing sources with reasonable levels of price transparency. The Company's Level 2 investments are classified as such because they are valued using observable inputs other than Level 1 quoted prices that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets, or quoted prices for identical or similar assets in markets that are not active. |
INVENTORIES AND DEFERRED COSTS
INVENTORIES AND DEFERRED COSTS | 3 Months Ended |
Jun. 30, 2024 | |
Inventory Disclosure [Abstract] | |
INVENTORIES AND DEFERRED COSTS | INVENTORIES AND DEFERRED COSTS Inventories are stated at the lower of actual cost or net realizable value. Cost is determined by using the first in, first out (FIFO) method. Inventories consist of the following (in thousands): June 30, March 31, Raw materials $ 7,950 $ 8,175 Work in process 426 545 Finished goods 3,764 4,160 Deferred costs 2,854 1,215 $ 14,994 $ 14,095 |
DIVESTITURES
DIVESTITURES | 3 Months Ended |
Jun. 30, 2024 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DIVESTITURES | DIVESTITURES Business Divestiture On September 8, 2023, the Company entered into an Asset Purchase Agreement to divest its Test Optimization business (TO business) for a purchase price of $7.8 million, inclusive of a working capital adjustment. The Company recorded a gain of $3.8 million on the divestiture for the fiscal year ended March 31, 2024. The Company determined that the sale of the TO business did not represent a strategic shift and will not have a major effect on its consolidated results of operations, financial position or cash flow. Accordingly, the Company has not presented the sale as a discontinued operation in the consolidated financial statements. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 3 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS Goodwill The Company has one reporting unit. Goodwill is tested for impairment at a reporting unit level at least annually, as of January 31, or on an interim basis if an event occurs or circumstances change (a "triggering event") that would, more likely than not, reduce the fair value of the reporting unit below its carrying value. During fiscal year 2024, the Company recorded $217.3 million in goodwill impairment charges as a result of the sustained decline in the Company's stock price and overall market capitalization. During the first quarter of fiscal year 2025, due to the continued decrease in the Company's stock price and overall market capitalization, along with other qualitative considerations including the continued impact from the conditions in the macroeconomic environment, it was determined a triggering event occurred, indicating goodwill may be impaired. Accordingly, the Company conducted a quantitative impairment test of its goodwill at June 30, 2024. The Company estimated the implied fair value of its goodwill using a market approach. As a result of the quantitative impairment test performed during the first quarter of fiscal year 2025, the Company determined goodwill was impaired and recorded a goodwill impairment charge of $427.0 million during the three months ended June 30, 2024. The additional impairment charge recorded in the first quarter of fiscal year 2025 was primarily due to the continued decrease in the Company's stock price from March 31, 2024 to June 30, 2024, an increase in the Company's weighted-average cost of capital, and the refinement to the expected cost synergies that could be realized by a hypothetical buyer as a result of the voluntary separation program (VSP) implemented by the Company in the first quarter of fiscal year 2025, which impacted the company-specific control premium used to determine the fair value of the reporting unit under the market approach. Throughout the remainder of the fiscal year 2025, the Company will continue to monitor relevant facts and circumstances, including future changes in its stock price. The Company may be required to record additional goodwill impairment charges. While management cannot predict if or when additional goodwill impairments may occur, future goodwill impairments could have material adverse effects on the Company's results of operations and financial condition. At June 30, 2024 and March 31, 2024, the carrying amounts of goodwill were $1.1 billion and $1.5 billion, respectively. The change in the carrying amount of goodwill for the three months ended June 30, 2024 was due to the impairment of goodwill, and the impact of foreign currency translation adjustments related to asset balances that are recorded in currencies other than the U.S. Dollar. The following table summarizes the changes in the carrying amount of goodwill for the three months ended June 30, 2024 as follows (in thousands): Balance at March 31, 2024 $ 1,502,820 Goodwill impairment (426,967) Foreign currency translation impact 862 Balance at June 30, 2024 $ 1,076,715 Intangible Assets The net carrying amounts of intangible asse ts were $295.3 million and $308.7 million at June 30, 2024 and March 31, 2024, respectively. Intangible assets acquired in a business co mbination are recorded under the acquisition method of accounting at their estimated fair values at the date of acquisition. The Company amortizes acquired intangible assets over their estimated useful lives. The Company reviews definite-lived intangible assets for impairment when an event occurs that may indicate potential impairment. In connection with the goodwill impairment analysis performed at June 30, 2024, the Company conducted an impairment test of its definite-lived intangible assets at June 30, 2024. Based on this assessment, the Company concluded that the carrying values of the Company's definite-lived intangible assets were recoverable. However, if future events occur or if business conditions deteriorate, the Company may be required to record an impairment loss, and or accelerate the amortization of definite-live intangible assets in the future, which could be material to its results of operations and financial condition. Intangible assets include the following amortizable intangible assets at June 30, 2024 (in thousands): Cost Accumulated Net Developed technology $ 248,098 $ (239,182) $ 8,916 Customer relationships 762,921 (485,971) 276,950 Distributor relationships and technology licenses 7,768 (7,717) 51 Definite-lived trademark and trade name 57,654 (48,462) 9,192 Core technology 7,192 (7,192) — Capitalized software 3,317 (3,317) — Other 1,208 (1,027) 181 $ 1,088,158 $ (792,868) $ 295,290 Intangible assets include the following amortizable intangible assets at March 31, 2024 (in thousands): Cost Accumulated Net Developed technology $ 248,385 $ (238,470) $ 9,915 Customer relationships 763,943 (475,592) 288,351 Distributor relationships and technology licenses 7,785 (7,463) 322 Definite-lived trademark and trade name 57,699 (47,814) 9,885 Core technology 7,192 (7,192) — Capitalized software 3,317 (3,317) — Other 1,208 (1,022) 186 $ 1,089,529 $ (780,870) $ 308,659 Amortization included as cost of product revenue consists of amortization of developed technology, and distributor relationships and technology licenses. Amortization included as operating expense consists of all other intangible assets. The following table provides a summary of amortization expense for the three months ended June 30, 2024 and 2023 , respectively (in thousands): Three Months Ended June 30, 2024 2023 Amortization of intangible assets included as: Cost of product revenue $ 1,266 $ 1,917 Operating expense 11,619 12,712 $ 12,885 $ 14,629 The following is the expected future amortization expense at June 30, 2024 for the fiscal years ending March 31 (in thousands): 2025 (remaining nine months) $ 37,874 2026 46,394 2027 43,515 2028 40,559 2029 31,356 Thereafter 95,592 $ 295,290 |
DERIVATIVE INSTRUMENTS AND HEDG
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 3 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES NetScout operates internationally and, in the normal course of business, is exposed to fluctuations in foreign currency exchange rates. The exposures result from costs that are denominated in currencies other than the U.S. Dollar, primarily the Euro, British Pound, Canadian Dollar, and Indian Rupee. The Company manages its foreign cash flow risk by hedging forecasted cash flows for operating expenses denominated in foreign currencies for up to twelve months, within specified guidelines through the use of forward contracts. The Company enters into foreign currency exchange contracts to hedge cash flow exposures from costs that are denominated in currencies other than the U.S. Dollar. These hedges are designated as cash flow hedges at inception. NetScout also periodically enters into forward contracts to manage exchange rate risks associated with certain third-party transactions and for which the Company does not elect hedge accounting treatment as there is no difference in the timing of gain or loss recognition on the hedging instrument and the hedged item. All of the Company's derivative instruments are utilized for risk management purposes, and the Company does not use derivatives for speculative trading purposes. These contracts will mature over the next twelve months and are expected to impact earnings on or before maturity. The notional amounts and fair values of derivative instruments in the consolidated balance sheets at June 30, 2024 and March 31, 2024 were as follows (in thousands): Notional Amounts (a) Prepaid Expenses and Other Current Assets Accrued Other June 30, March 31, June 30, March 31, June 30, March 31, Derivatives Designated as Hedging Instruments: Forward contracts $ 10,937 $ 11,676 $ 9 $ 11 $ 123 $ 74 Derivatives Not Designated as Hedging Instruments: Forward contracts — — — — $ 9 $ 11 $ 123 $ 74 (a) Notional amounts represent the gross contract/notional amount of the derivatives outstanding. The following table provides the effect that foreign exchange forward contracts designated as hedging instruments had on other comprehensive income (OCI) and results of operations for the three months ended June 30, 2024 and 2023 (in thousands): Gain (Loss) Recognized in Gain (Loss) Reclassified from June 30, June 30, Location June 30, June 30, Forward contracts $ (117) $ 210 Research and development $ 1 $ — Sales and marketing 59 (74) $ (117) $ 210 $ 60 $ (74) (a) The amount represents the change in fair value of derivative contracts due to changes in spot rates. (b) The amount represents reclassification from other comprehensive income to earnings that occurs when the hedged item affects earnings. The following table provides the effect that foreign exchange forward contracts not designated as hedging instruments had on the Company's results of operations for the three months ended June 30, 2024 and 2023 (in thousands): Gain Recognized in Income Location June 30, June 30, Forward contracts General and administrative $ — $ 60 $ — $ 60 (a) The amount represents the change in fair value of derivative contracts due to changes in spot rates. |
LONG-TERM DEBT
LONG-TERM DEBT | 3 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT On July 27, 2021, the Company amended and extended its existing credit facility (as amended, the Second Amended and Restated Credit Agreement) with a syndicate of lenders by and among: the Company; JPMorgan Chase Bank, N.A. (JPMorgan), as administrative agent and collateral agent; JPMorgan, Wells Fargo Securities, LLC, BofA Securities Inc., RBC Capital Markets, PNC Capital Markets LLC and Mizuho Bank, Ltd., as joint lead arrangers and joint bookrunners; Santander Bank, N.A., U.S. Bank National Association, Fifth Third Bank National Association, Silicon Valley Bank and TD Bank, N.A., as co-documentation agents; and the lenders party thereto. The Second Amended and Restated Credit Agreement provides for a five-year, $800.0 million senior secured revolving credit facility, including a letter of credit sub-facility of up to $75.0 million. The Company may elect to use the credit facility for general corporate purposes (including to finance the repurchase of shares of the Company's common stock). The commitments under the Second Amended and Restated C redit Agreement will expire on July 27, 2026, and any outstanding loans will be due on that date. During the three months ended June 30, 2024, the Company repaid $25.0 million of borrowings under the Second Amended and Restated Credit Agreement. At June 30, 2024, $75.0 million was outstanding under the Second Amended and Restated Credit Agreement. On February 22, 2023, the Company entered into a First Amendment Agreement (First Amendment) of its Second Amended and Restated Credit Agreement with its syndicate of lenders. The Company entered into the First Amendment in order to remove and replace the LIBOR-based interest rate benchmark provisions for U.S. dollar-denominated loans with interest rate benchmark provisions for U.S. dollar-denominated loans based on a term secured overnight financing rate (SOFR). The First Amendment provides that U.S. dollar-denominated advances under the Second Amended and Restated Credit Agreement will bear interest at a term SOFR rate plus a credit spread adjustment of 0.10% or an Alternate Base Rate (defined in a customary manner), at the option of the Company, plus a margin that ranges from 1.00% per annum for Alternate Base Rate loans and 2.00% per annum for term SOFR loans if the Company's consolidated gross leverage ratio is greater than 3.50 to 1.00, down to 0% per annum for Alternate Base Rate loans and 1.00% per annum for term SOFR loans if the Company's consolidated gross leverage ratio is equal to or less than 1.50 to 1.00. For the period from the delivery of the Company's financial statements for the quarter ended March 31, 2024, until the Company has delivered financial statements for the quarter ended June 30, 2024, the applicable margin will be 1.00% per annum for Term Benchmark Revolving loans and 0% per annum for Alternate Base Rate loans, and thereafter the applicable margin will vary depending on the Company's consolidated gross leverage ratio, ranging from 1.00% per annum for Alternate Base Rate loans and 2.00% per annum for Term Benchmark Revolving loans if the Company's consolidated gross leverage ratio is greater than 3.50 to 1.00, down to 0% per annum for Alternate Base Rate loans and 1.00% per annum for Term Benchmark Revolving loans if the Company's consolidated gross leverage ratio is equal to or less than 1.50 to 1.00. The Company's consolidated gross leverage ratio is the ratio of its consolidated total debt compared to its consolidated EBITDA as defined in the Second Amended and Restated Credit Agreement (adjusted consolidated EBITDA). Adjusted consolidated EBITDA includes certain adjustments, including, without limitation, adjustments relating to extraordinary, unusual or non-recurring charges, certain restructuring charges, non-cash charges, certain transaction costs and expenses and certain pro forma adjustments in connection with material acquisitions and dispositions, all as set forth in detail in the Second Amended and Restated Credit Agreement. Commitment fees will accrue on the daily unused amount of the credit facility. For the period from the delivery of the Company's financial statements for the quarter ended March 31, 2024, until the Company has delivered financial statements for the quarter ended June 30, 2024, the commitment fee will be 0.15% per annum, and thereafter the commitment fee will vary depending on the Company's consolidated gross leverage ratio, ranging from 0.30% per annum if the Company's consolidated gross leverage ratio is greater than 2.75 to 1.00, down to 0.15% per annum if the Company's consolidated gross leverage ratio is equal to or less than 1.50 to 1.00. Letter of credit participation fees are payable to each lender providing the letter of credit sub-facility on the amount of such lender's letter of credit exposure, during the period from the closing date of the Second Amended and Restated Credit Agreement to, but excluding, the date which is the later of (i) the date on which such lender's commitment terminates or (ii) the date on which such lender ceases to have any letter of credit exposure, at a rate per annum equal to the applicable margin for term SOFR loans assuming such loans were outstanding during the period. Additionally, the Company will pay a fronting fee to each issuing bank in amounts to be agreed to between the Company and the applicable issuing bank. Interest on Alternate Base Rate loans is payable at the end of each calendar quarter. Interest on term SOFR loans is payable at the end of each interest rate period or at the end of each three-month interval within an interest rate period if the period is longer than three months. The Company may also prepay loans under the Second Amended and Restated Credit Agreement at any time, without penalty, subject to certain notice requirements. The loans and other obligations under the credit facility are (a) guaranteed by each of the Company's wholly-owned material domestic restricted subsidiaries, subject to certain exceptions, and (b) are secured by substantially all of the assets of the Company and the subsidiary guarantors, including a pledge of all the capital stock of material subsidiaries held directly by the Company and the subsidiary guarantors (which pledge, in the case of any foreign subsidiary, is limited to 65% of the voting stock), subject to certain customary exceptions and limitations. The Second Amended and Restated Credit Agreement generally prohibits any other liens on the assets of the Company and its restricted subsidiaries, subject to certain exceptions as described in the Second Amended and Restated Credit Agreement. The Second Amended and Restated Credit Agreement contains certain covenants applicable to the Company and its restricted subsidiaries, including, without limitation, limitations on additional indebtedness, liens, various fundamental changes, dividends and distributions, investments (including acquisitions), transactions with affiliates, asset sales, including sale-leaseback transactions, speculative hedge agreements, payment of junior financing, changes in business and other limitations customary in senior secured credit facilities. The Second Amended and Restated Credit Agreement requires the Company to maintain a certain consolidated net leverage ratio and removes the previous requirement under the Company's previous amended credit agreement that the Company maintain a minimum consolidated interest coverage ratio. The Company's consolidated net leverage ratio is the ratio of its Consolidated Total Debt minus the lesser of unrestricted cash and 125% of adjusted consolidated EBITDA compared to its adjusted consolidated EBITDA. The Company's maximum consolidated net leverage ratio is 4.00 to 1.00. These covenants and limitations are more fully described in the Second Amended and Restated Credit Agreement. At June 30, 2024, the Company was in compliance with all covenants, including the specified total consolidated net leverage ratio range of 4.00 to 1.00. The Second Amended and Restated Credit Agreement provides that events of default will exist in certain circumstances, including failure to make payment of principal or interest on the loans when required, failure to perform certain obligations under the Second Amended and Restated Credit Agreement and related documents including a failure to meet the maximum total consolidated net leverage ratio covenant, defaults under certain other indebtedness, certain insolvency events, certain events arising under ERISA, a change of control and certain other events. Upon an event of default, the administrative agent with the consent of, or at the request of, the holders of more than 50% in principal amount of the loans and commitments, may terminate the commitments and accelerate the maturity of the loans and enforce certain other remedies under the Second Amended and Restated Credit Agreement and the other loan documents. |
RESTRUCTURING CHARGES
RESTRUCTURING CHARGES | 3 Months Ended |
Jun. 30, 2024 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING CHARGES | RESTRUCTURING CHARGES During the first quarter of fiscal year 2025, the Company implemented a voluntary separation program (VSP) for employees who met certain age and service requirements to reduce overall headcount. As a result of the related workforce reduction, during the three months ended June 30, 2024, the Company recorded restructuring charges totaling $16.6 million related to one-time termination benefits for one hundred sixteen employees who voluntarily terminated their employment with the Company during the three months ended June 30, 2024. The Company estimates that restructuring charges will be recorded in the second quarter of fiscal year 2025 in the range of $3.0 million to $5.0 million related to one-time termination benefits for thirty-four employees who are expected to voluntarily terminate their employment with the Company during the three months ending September 30, 2024. All one-time termination benefits are expected to be paid in full by the end of the third quarter of the fiscal year ending March 31, 2025. The following table provides a summary of the activity related to the restructuring plan and the related restructuring liability (in thousands): VSP Employee-related Balance at March 31, 2024 $ — Restructuring charges to operations 16,561 Payments (263) Balance at June 30, 2024 $ 16,298 |
LEASES
LEASES | 3 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
LEASES | LEASES The Company determines if an arrangement is a lease at inception. Right-of-use (ROU) assets represent the Company's right to use an underlying asset for the duration of the lease term. Lease liabilities represent the Company's contractual obligation to make lease payments over the lease term. The Company's policy is to combine lease and non-lease components and to not recognize ROU assets and lease liabilities for short-term leases. Leases with an initial term of twelve months or less are classified as short-term leases. ROU assets are recorded and recognized at commencement for the lease liability amount, plus initial direct costs incurred less lease incentives received. Lease liabilities are recorded at the present value of future lease payments over the lease term at commencement. The discount rate used is generally the Company's estimated incremental borrowing rate unless the lessor's implicit rate is readily determinable. Incremental borrowing rates are calculated periodically to estimate the rate the Company would pay to borrow the funds necessary to obtain an asset of similar value over a similar term. Lease expenses relating to operating leases are recognized on a straight-line basis over the lease term. The Company has operating leases for administrative, research and development, sales and marketing and manufacturing facilities and equipment under various non-cancelable lease agreements. The Company's leases have remaining lease terms ranging from 1 year to 7 years. The Co mpany's lease terms may include options to extend or terminate the lease where it is reasonably certain that the Company will exercise those options. The Company considers several economic factors when making this determination, including but not limited to, the significance of leasehold improvements incurred in the office space, the difficulty in replacing the asset, underlying contractual obligations, or specific characteristics unique to a particular lease. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company has asset retirement obligations (ARO) to return certain leased facilities to their original condition at the end of the respective lease term. The estimated fair value of these ARO liabilities is recognized in the period in which the liability is generated and a corresponding increase to the carrying value of the related asset is recorded and depreciated over the useful life of the asset. The Company's estimates of its ultimate AROs could change because of changes in regulations, the extent of environmental remediations required, the means of reclamation, cost estimates, exit or disposal activities or time period estimates. ARO liabilities totaled $2.2 million and $2.3 million at June 30, 2024 and March 31, 2024, respectively. There was a balance of $0.1 million included in accrued other and a balance of $2.1 million included in other long-term liabilities in the consolidated balance sheets at June 30, 2024, and a balance of $0.1 million included in accrued other and a balance of $2.2 million included in other long-term liabilities in the consolidated balance sheets for the fiscal year ended March 31, 2024. Accretion expense related to these liabilities was not material for any periods presented. Most of the Company's lease agreements contain variable payments, primarily for common area maintenance (CAM), which are expensed as incurred and not included in the measurement of the ROU assets and lease liabilities. The components of operating lease cost for the three months ended June 30, 2024 and 2023, respectively, were as follows (in thousands): Three Months Ended June 30, 2024 2023 Lease cost under long-term operating leases $ 2,961 $ 3,039 Lease cost under short-term operating leases 326 404 Variable lease cost under short-term and long-term operating leases 1,316 1,015 Total operating lease cost $ 4,603 $ 4,458 The table below presents supplemental cash flow information related to leases during the three months ended June 30, 2024 and 2023 (in thousands): Three Months Ended June 30, 2024 2023 Right-of-use assets obtained in exchange for new operating lease liabilities $ 50 $ 554 At June 30, 2024 and March 31, 2024, the weighted average remaining lease term in years and weighted average discount rate were as follows: June 30, 2024 March 31, 2024 Weighted average remaining lease term in years - operating leases 5.16 5.32 Weighted average discount rate - operating leases 4.2 % 4.2 % Future minimum payments under non-cancellable leases at June 30, 2024 are as follows (in thousands): Year ending March 31: 2025 (remaining nine months) $ 9,338 2026 11,455 2027 8,396 2028 7,277 2029 6,463 Thereafter 9,300 Total lease payments $ 52,229 Less imputed interest (5,139) Present value of lease liabilities $ 47,090 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES As previously disclosed, in March 2016, Packet Intelligence LLC (Packet Intelligence or Plaintiff) filed a Complaint against NetScout and two subsidiary entities in the United States District Court for the Eastern District of Texas asserting infringement of five United States patents. Plaintiff's Complaint alleged that legacy Tektronix GeoProbe products, including the G10 and GeoBlade products, infringed these patents. NetScout filed an Answer denying Plaintiff's allegations and asserting that Plaintiff's patents were, among other things, invalid, not infringed, and unenforceable due to inequitable conduct. In October 2017, a jury rendered a verdict finding in favor of the Plaintiff and that Plaintiff was entitled to $3.5 million for pre-suit damages and $2.3 million for post-suit damages. In September 2018, the Court entered judgment and "enhanced" the jury verdict in the amount of $2.8 million as a result of a jury finding. The judgment also awarded pre- and post-judgment interest, and a running royalty on the G10 and GeoBlade products until the expiration of the patents at issue, the last date being June 2022. Following the entry of final judgment, NetScout appealed, and in July 2020, the Court of Appeals for the Federal Circuit (Federal Circuit) issued a decision vacating the $3.5 million pre-suit damages award, affirming the $2.3 million post-suit damages award, vacating the $2.8 million enhancement award, and remanding to the district court to determine what, if any, enhancement should be awarded. In March 2021, NetScout filed a petition for a writ of certiorari to the United States Supreme Court, which was denied, challenging, among other issues, the basis for enhanced damages and the patentability of the claimed technology. On September 8 and 9, 2021, in proceedings initiated by third parties that did not involve NetScout, the Patent Trial and Appeal Board (PTAB) invalidated all the patent claims that were also asserted against NetScout in this case. After the PTAB decisions were issued, NetScout moved, among other things, to dismiss the case and enter judgment in its favor on the grounds that the PTAB decisions invalidating the asserted claims precluded Plaintiff from continuing to assert its patent infringement causes of action and from seeking damages from NetScout. The District Court denied NetScout’s motion with respect to its request to dismiss the case and enter judgment in its favor. The District Court entered an amended final judgment awarding Plaintiff $2.3 million in post-suit damages, $1.1 million in enhanced damages, pre- and post-judgment interest, and a running royalty on the G10 and GeoBlade products until the expiration of the patents at issue, the last expiration date being June 2022. On July 20, 2022, NetScout filed a notice of appeal to the Federal Circuit from, among other things, the amended final judgment. On May 2, 2024, in a separate action the Federal Circuit affirmed the PTAB decisions, which as a result found that all of the patent claims asserted by Packet Intelligence against NetScout were invalid. Also on May 2, 2024, the Federal Circuit ruled in NetScout's favor in its appeal, vacating the District Court's final judgment and remanding the case to the District Court to dismiss the case against NetScout as moot. As a result, during the year ended March 31, 2024, NetScout concluded that the risk of loss associated with damages that may result from this case was remote and recorded a $4.6 million reduction in contingent liabilities and legal fees. On June 26, 2024, the District Court issued its Order dismissing the case against NetScout. |
PENSION BENEFIT PLANS
PENSION BENEFIT PLANS | 3 Months Ended |
Jun. 30, 2024 | |
Retirement Benefits [Abstract] | |
PENSION BENEFIT PLANS | PENSION BENEFIT PLANS C ertain of the Company's non-U.S. employees participate in noncontributory defined benefit pension plans. None of the Company's employees in the U.S. participate in any noncontributory defined benefit pension plans. In general, these plans are funded based on considerations relating to legal requirements, underlying asset returns, the plan's funded status, the anticipated deductibility of the contribution, local practices, market conditions, interest rates and other factors . The following sets forth the components of the Company's net periodic pension cost of the noncontributory defined benefit pension plans recorded in operating expenses in the consolidated statements of operations for the three months ended June 30, 2024 and 2023, respectively, (in thousands): Three Months Ended June 30, 2024 2023 Service cost $ 47 $ 52 Interest cost 245 252 Amortization of net gain (116) (234) Net periodic pension cost $ 176 $ 70 Expected Contributions During the three months ended June 30, 2024, the Company made contributi o ns of $0.2 million to its defined benefit pension plans. During the fiscal year ending March 31, 2025, the Company's cash contribution requirements for its defined benefit pension plans are expected to be less than $1.0 million. As a majority of the participants within the Company's plans are all active employees, the benefit payments are not expected to be material in the foreseeable future. |
TREASURY STOCK
TREASURY STOCK | 3 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
TREASURY STOCK | TREASURY STOCK On October 24, 2017, the Company's Board of Directors approved a share repurchase program that enabled the Company to repurchase up to twenty-five million shares of its common stock (2017 Share Repurchase Program). Through March 31, 2024, the Company repurchased all of the authorized 25,000,000 shares for $694.1 million in the open market under the 2017 Share Repurchase Program. The Company did not repurchase any shares during the three months ended June 30, 2023. On May 3, 2022, the Company's Board of Directors approved an additional share repurchase program that enables the Company to repurchase up to twenty-five million shares of its common stock (2022 Share Repurchase Program). The 2022 Share Repurchase Program became effective in the third quarter of fiscal year 2024 when the 2017 Share Repurchase Program was completed. The Company is not obligated to acquire any specific amount of common stock within any particular timeframe as a result of the 2022 Share Repurchase Program. Through March 31, 2024, the Company repurchased 614,516 shares for $16.4 million under the 2022 Share Repurchase Program. The Company repurchased 1,347,900 shares for $25.0 million under this share repurchase program during the three months ended June 30, 2024. At June 30, 2024, 23,037,584 shares of common stock remained available to be purchased under the current program. In connecti on with the delivery of shares of the Company's common stock upon vesting of restricted stock units, the Company withheld 617,826 shares and 435,172 shares at a cost of $12.2 million and $13.4 million, respectively, related to minimum statutory tax withholding requirements on these restricted stock units during the three months ended June 30, 2024 and 2023, respectively. These withholding transactions do not fall under the share repurchase programs descr ibed above, and therefore do not reduce the number of shares that are available for repurchase under those programs. |
NET LOSS PER SHARE
NET LOSS PER SHARE | 3 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
NET LOSS PER SHARE | N ET LOSS PER SHARE Calculations of the basic and diluted net loss per share and potential common shares are as follows (in thousands, except for per share data): Three Months Ended June 30, 2024 2023 Numerator: Net loss $ (443,376) $ (4,200) Denominator: Denominator for basic net loss per share - weighted average common shares outstanding 71,467 71,540 Dilutive common equivalent shares: Weighted average restricted stock units and performance-based restricted stock units — — Denominator for diluted net loss per share - weighted average shares outstanding 71,467 71,540 Net loss per share: Basic net loss per share $ (6.20) $ (0.06) Diluted net loss per share $ (6.20) $ (0.06) The following table sets forth restricted stock units excluded from the calculation of dilute d net loss per sh are, since their inclusion would be anti-dilutive (in thousands): Three Months Ended June 30, 2024 2023 Restricted stock units 1,326 1,455 Basic net loss per share is calculated by dividing net loss by the weighted average number of shares outstanding during the period. Unvested restricted shares, although legally issued and outstanding, are not considered outstanding for purposes of calculating basic earnings per share. Diluted net loss per share is calculated by dividing net loss by the weighted average number of shares outstanding plus the dilutive effect, if any, of outstanding stock options, restricted shares and restricted stock units using the treasury stock method. The calculation of the dilutive effect of outstanding equity awards under the treasury stock method includes consideration of proceeds from the assumed exercise of stock options and unrecognized compensation expense as additional proceeds. As the Company incurred a net loss during the three months ended June 30, 2024 and 2023, all outstanding restricted stock units and performance-based restricted stock units have an anti-dilutive effect and are therefore excluded from the computation of diluted weighted average shares outstanding. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Generally, the Company's effective tax rate differs from the U.S. federal statutory income tax rate primarily due to foreign withholding taxes and U.S. taxation on foreign earnings, which are partially offset by research and development tax credits and the foreign derived intangible income deduction. The Company's effective tax rates were 2.3% and 21.3% for the three months ended June 30, 2024 and 2023, respectively. The effective tax rate for the three months ended June 30, 2024 differed from the effective tax rate for the three months ended June 30, 2023 primarily related to the goodwill impairment incurred during the three months ended June 30, 2024, a majority of which was not deductible for tax purposes. |
SEGMENT AND GEOGRAPHIC INFORMAT
SEGMENT AND GEOGRAPHIC INFORMATION | 3 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
SEGMENT AND GEOGRAPHIC INFORMATION | SEGMENT AND GEOGRAPHIC INFORMATION The Company reports revenues and income under one reportable segment. The Company manages its business in the following geographic areas: United States, Europe, Asia and the rest of the world. The Company's policies mandate compliance with economic sanctions and the export controls. Total revenue by geography is as follows (in thousands): Three Months Ended June 30, 2024 2023 United States $ 99,949 $ 127,902 Europe 31,394 33,971 Asia 11,890 16,014 Rest of the world 31,332 33,251 $ 174,565 $ 211,138 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||
Net loss | $ (443,376) | $ (4,200) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 shares | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | During the fiscal quarter ended June 30, 2024, none of our directors or officers adopted or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement," as those terms are defined in Regulation S-K, Item 408, except as described in the table below: Name & Title Date Adopted Character of Trading Arrangement (1) Aggregate Number of Shares of Common Stock to be Purchased or Sold Pursuant to Trading Arrangement Duration (2) Other Material Terms Date Terminated Jean Bua, Executive Vice President and Chief Financial Officer May 14, 2024 Rule 10b5-1 Trading Arrangement Up to 19205 shares to be sold August 21, 2024 N/A N/A Michael Szabados, Chief Operating Officer June 11, 2024 Rule 10b5-1 Trading Arrangement Up to 27000 shares to be sold May 20, 2025 N/A N/A (1) Except as indicated by footnote, each trading arrangement marked as a "Rule 10b5-1 Trading Arrangement" is intended to satisfy the affirmative defense of Rule 10b5-1(c), as amended (the "Rule"). (2) Represents the expiration date of the Rule 10b5-1 Trading Arrangement. Pursuant to the terms of the Rule 10b5-1 Trading Arrangement, the Rule 10b5-1 Trading Arrangement may terminate earlier upon the occurrence of certain events. |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Jean Bua [Member] | |
Trading Arrangements, by Individual | |
Name | Jean Bua |
Title | Executive Vice President and Chief Financial Officer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | May 14, 2024 |
Expiration Date | August 21, 2024 |
Arrangement Duration | 99 days |
Aggregate Available | 19,205 |
Michael Szabados [Member] | |
Trading Arrangements, by Individual | |
Name | Michael Szabados |
Title | Chief Operating Officer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | June 11, 2024 |
Expiration Date | May 20, 2025 |
Arrangement Duration | 343 days |
Aggregate Available | 27,000 |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION The accompanying unaudited interim consolidated financial statements have been prepared by NetScout Systems, Inc. (NetScout or the Company). Certain information and footnote disclosures normally included in financial statements prepared under United States generally accepted accounting principles (GAAP) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). In the opinion of management, the unaudited interim consolidated financial statements include all adjustments, consisting of normal recurring adjustments, necessary for a fair statement of the Company's financial position and stockholders' equity, results of operations and cash flows. The year-end consolidated balance sheet data and statement of stockholders' equity were derived from the Company's audited financial statements, but do not include all disclosures required by GAAP. The results reported in these unaudited interim consolidated financial statements are not necessarily indicative of results that may be expected for the entire year. All significant intercompany accounts and transactions are eliminated in consolidation. These unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements, including the notes thereto, included in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2024 filed with the Securities and Exchange Commission on May 16, 2024. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09 is intended to enhance the transparency and decision usefulness of income tax disclosures. The amendments address investor requests for enhanced income tax information primarily through changes to the rate reconciliation and income taxes paid information. The amendments are effective retrospectively for fiscal years beginning after December 15, 2024. The amendments should be applied prospectively; however, retrospective application is also permitted. ASU 2023-09 is effective for NetScout beginning April 1, 2025. Early adoption is permitted. The Company is in the process of evaluating the impact that the adoption ASU 2023-09 will have to the financial statements and related disclosures. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which provides updates to qualitative and quantitative reportable segment disclosure requirements, including enhanced disclosures about significant segment expenses and increased interim disclosure requirements, among others. The amendments in ASU 2023-07 are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted, and the amendments should be applied retrospectively. The Company plans to adopt ASU 2023-07 beginning with its fiscal year ending March 31, 2025. The Company is in the process of evaluating the impact that the adoption ASU 2023-07 will have to the financial statements and related disclosures. |
Revenue Recognition Policy | Revenue Recognition Policy The Company exercises judgment and uses estimates in connection with determining the amounts of product and service revenues to be recognized in each accounting period. The Company derives revenues primarily from the sale of network management tools and cybersecurity solutions for service provider and enterprise customers, which include hardware, software, and service offerings. The Company's product sales consist of software only offerings and offerings which include hardware appliances with embedded software that are essential to providing customers the intended functionality of the solutions. The Company accounts for revenue once a legally enforceable contract with a customer has been approved by the parties and the related promises to transfer products or services have been identified. A contract is defined by the Company as an arrangement with commercial substance identifying payment terms, each party's rights and obligations regarding the products or services to be transferred and the amount the Company deems probable of collection. Customer contracts may include promises to transfer multiple products and services to a customer. Determining whether the products and services are considered distinct performance obligations that should be accounted for separately or as one combined performance obligation may require significant judgment. Revenue is recognized when control of the products or services are transferred to the Company's customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for products and services. Product revenue is typically recognized upon fulfillment, provided a legally enforceable contract exists, control has passed to the customer, and in the case of software products, when the customer has the rights and ability to access the software, and collection of the related receivable is probable. If any significant obligations to the customer remain post-delivery, typically involving obligations relating to installation and acceptance by the customer, revenue recognition is deferred until such obligations have been fulfilled. The Company's service offerings include installation, integration, extended warranty and maintenance services, post-contract customer support, stand-ready software-as-a-service (SAAS) and other professional services including consulting and training. The Company generally provides software and/or hardware support as part of product sales. Revenue related to the initial bundled software and hardware support is recognized ratably over the support period. In addition, customers can elect to purchase extended support agreements for periods after the initial software/hardware warranty expiration. Support services generally include rights to unspecified upgrades (when and if available), telephone and internet-based support, updates, bug fixes and hardware repair and replacement. Consulting services are recognized upon delivery or completion of performance depending on the terms of the underlying contract. Reimbursements of out-of-pocket expenditures incurred in connection with providing consulting services are included in services revenue, with the offsetting expense recorded in cost of service revenue. Training services include on-site and classroom training. Training revenues are recognized upon delivery of the training. Generally, the Company's contracts are accounted for individually. However, when contracts are closely interrelated and dependent on each other, it may be necessary to account for two or more contracts as one to reflect the substance of the group of contracts. Bundled arrangements are concurrent customer purchases of a combination of the Company's product and service offerings that may be delivered at various points in time. The Company allocates the transaction price among the performance obligations in an amount that depicts the relative standalone selling prices (SSP) of each obligation. Judgment is required to determine the SSP for each distinct performance obligation. The Company uses a range of amounts to estimate SSP for each of the products and services sold, based primarily on the performance obligation's historical pricing. The Company also considers its overall pricing objectives and practices across different sales channels and geographies, and market conditions. Generally, the Company has established SSP for a majority of its service performance obligations based on historical standalone sales. In certain instances, the Company has established SSP for services based upon an estimate of profitability and the underlying cost to fulfill those services. SSP has primarily been established for product performance obligations as the average or median selling price the performance obligation was recently sold for, whether sold alone or sold as part of a bundle transaction. The Company reviews sales of the product performance obligations on a quarterly basis and updates, when appropriate, its SSP for such performance obligations to ensure that it reflects recent pricing experience. The Company's products are distributed through its direct sales force and indirect distribution channels through alliances with resellers and distributors. Revenue arrangements with resellers and distributors are recognized on a sell-in basis; that is, when control of the product transfers to the reseller or distributor. The Company records consideration given to a customer as a reduction of revenue to the extent they have recorded revenue from the customer. With limited exceptions, the Company's return policy does not allow product returns for a refund. Returns have been insignificant to date. In addition, the Company has a history of successfully collecting receivables from its resellers and distributors. |
REVENUE (Tables)
REVENUE (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Allowance for Credit Losses | The following table summarizes the activity in the allowance for credit losses (in thousands): Balance at March 31, 2024 $ 479 Additions resulting in charges to operations 27 Recoveries of previously reserved balances (381) Deductions due to write-offs (9) Balance at June 30, 2024 $ 116 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Share-Based Compensation Expense | The following is a summary of share-based compensation expense including restricted stock units and performance-based restricted stock units granted pursuant to the Company's Amended 2007 Plan and the Amended 2019 Plan, and employee stock purchases made under the Company's 2011 Amended and Restated Employee Stock Purchase Plan (ESPP), based on estimated fair values within the applicable cost and expense lines identified below (in thousands): Three Months Ended June 30, 2024 2023 Cost of product revenue $ 431 $ 372 Cost of service revenue 2,889 2,539 Research and development 5,886 5,386 Sales and marketing 7,504 7,284 General and administrative 4,488 4,263 $ 21,198 $ 19,844 |
CASH, CASH EQUIVALENTS, MARKE_2
CASH, CASH EQUIVALENTS, MARKETABLE SECURITIES AND INVESTMENTS (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Marketable Securities | The following is a summary of marketable securities held by NetScout at June 30, 2024, classified as short-term and long-term (in thousands): Amortized Unrealized Fair Type of security: U.S. government and municipal obligations $ 8,879 $ (16) $ 8,863 Commercial paper 12,086 — 12,086 Certificates of deposit 2,829 — 2,829 Total short-term marketable securities 23,794 (16) 23,778 U.S. government and municipal obligations 1,014 (11) 1,003 Total long-term marketable securities 1,014 (11) 1,003 Total marketable securities $ 24,808 $ (27) $ 24,781 The following is a summary of marketable securities held by NetScout at March 31, 2024, classified as short-term and long-term (in thousands): Amortized Unrealized Fair Type of security: U.S. government and municipal obligations $ 10,523 $ (26) $ 10,497 Commercial paper 8,648 — 8,648 Certificates of deposit 2,807 — 2,807 Total short-term marketable securities 21,978 (26) 21,952 U.S. government and municipal obligations 1,004 (10) 994 Total long-term marketable securities 1,004 (10) 994 Total marketable securities $ 22,982 $ (36) $ 22,946 |
Schedule of Contractual Maturities of Marketable Securities | Contractual maturities of the Company's marketable securities held at June 30, 2024 and March 31, 2024 were as follows (in thousands): June 30, March 31, Available-for-sale securities: Due in 1 year or less $ 23,778 $ 21,952 Due after 1 year through 5 years 1,003 994 $ 24,781 $ 22,946 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Liabilities | The following tables present the Company's financial assets and liabilities measured on a recurring basis using the fair value hierarchy at June 30, 2024 and March 31, 2024 (in thousands): Fair Value Measurements at June 30, 2024 Level 1 Level 2 Level 3 Total ASSETS: Cash and cash equivalents $ 346,200 $ 16,013 $ — $ 362,213 U.S. government and municipal obligations 5,991 3,875 — 9,866 Commercial paper — 12,086 — 12,086 Certificates of deposit — 2,829 — 2,829 Equity investment in Napatech 20,176 — — 20,176 Derivative financial instruments — 9 — 9 $ 372,367 $ 34,812 $ — $ 407,179 LIABILITIES: Derivative financial instruments $ — $ (123) $ — $ (123) $ — $ (123) $ — $ (123) Fair Value Measurements at March 31, 2024 Level 1 Level 2 Level 3 Total ASSETS: Cash and cash equivalents $ 381,829 $ 7,845 $ — $ 389,674 U.S. government and municipal obligations 8,985 2,506 — 11,491 Commercial paper — 8,648 — 8,648 Certificates of deposit — 2,807 — 2,807 Equity investment in Napatech 11,507 — — 11,507 Derivative financial instruments — 11 — 11 $ 402,321 $ 21,817 $ — $ 424,138 LIABILITIES: Derivative financial instruments $ — $ (74) $ — $ (74) $ — $ (74) $ — $ (74) |
INVENTORIES AND DEFERRED COSTS
INVENTORIES AND DEFERRED COSTS (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consist of the following (in thousands): June 30, March 31, Raw materials $ 7,950 $ 8,175 Work in process 426 545 Finished goods 3,764 4,160 Deferred costs 2,854 1,215 $ 14,994 $ 14,095 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Carrying Amount of Goodwill | The following table summarizes the changes in the carrying amount of goodwill for the three months ended June 30, 2024 as follows (in thousands): Balance at March 31, 2024 $ 1,502,820 Goodwill impairment (426,967) Foreign currency translation impact 862 Balance at June 30, 2024 $ 1,076,715 |
Schedule of Intangible Assets | Intangible assets include the following amortizable intangible assets at June 30, 2024 (in thousands): Cost Accumulated Net Developed technology $ 248,098 $ (239,182) $ 8,916 Customer relationships 762,921 (485,971) 276,950 Distributor relationships and technology licenses 7,768 (7,717) 51 Definite-lived trademark and trade name 57,654 (48,462) 9,192 Core technology 7,192 (7,192) — Capitalized software 3,317 (3,317) — Other 1,208 (1,027) 181 $ 1,088,158 $ (792,868) $ 295,290 Intangible assets include the following amortizable intangible assets at March 31, 2024 (in thousands): Cost Accumulated Net Developed technology $ 248,385 $ (238,470) $ 9,915 Customer relationships 763,943 (475,592) 288,351 Distributor relationships and technology licenses 7,785 (7,463) 322 Definite-lived trademark and trade name 57,699 (47,814) 9,885 Core technology 7,192 (7,192) — Capitalized software 3,317 (3,317) — Other 1,208 (1,022) 186 $ 1,089,529 $ (780,870) $ 308,659 |
Schedule of Finite-lived Intangible Assets Amortization Expense | The following table provides a summary of amortization expense for the three months ended June 30, 2024 and 2023 , respectively (in thousands): Three Months Ended June 30, 2024 2023 Amortization of intangible assets included as: Cost of product revenue $ 1,266 $ 1,917 Operating expense 11,619 12,712 $ 12,885 $ 14,629 |
Schedule of Expected Future Amortization Expense | The following is the expected future amortization expense at June 30, 2024 for the fiscal years ending March 31 (in thousands): 2025 (remaining nine months) $ 37,874 2026 46,394 2027 43,515 2028 40,559 2029 31,356 Thereafter 95,592 $ 295,290 |
DERIVATIVE INSTRUMENTS AND HE_2
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts and Fair Values of Derivative Instruments on Consolidated Balance Sheet | The notional amounts and fair values of derivative instruments in the consolidated balance sheets at June 30, 2024 and March 31, 2024 were as follows (in thousands): Notional Amounts (a) Prepaid Expenses and Other Current Assets Accrued Other June 30, March 31, June 30, March 31, June 30, March 31, Derivatives Designated as Hedging Instruments: Forward contracts $ 10,937 $ 11,676 $ 9 $ 11 $ 123 $ 74 Derivatives Not Designated as Hedging Instruments: Forward contracts — — — — $ 9 $ 11 $ 123 $ 74 (a) Notional amounts represent the gross contract/notional amount of the derivatives outstanding. |
Schedule of Effect of Foreign Exchange Forward Contracts on OCI and Results of Operations | The following table provides the effect that foreign exchange forward contracts designated as hedging instruments had on other comprehensive income (OCI) and results of operations for the three months ended June 30, 2024 and 2023 (in thousands): Gain (Loss) Recognized in Gain (Loss) Reclassified from June 30, June 30, Location June 30, June 30, Forward contracts $ (117) $ 210 Research and development $ 1 $ — Sales and marketing 59 (74) $ (117) $ 210 $ 60 $ (74) (a) The amount represents the change in fair value of derivative contracts due to changes in spot rates. (b) The amount represents reclassification from other comprehensive income to earnings that occurs when the hedged item affects earnings. The following table provides the effect that foreign exchange forward contracts not designated as hedging instruments had on the Company's results of operations for the three months ended June 30, 2024 and 2023 (in thousands): Gain Recognized in Income Location June 30, June 30, Forward contracts General and administrative $ — $ 60 $ — $ 60 (a) The amount represents the change in fair value of derivative contracts due to changes in spot rates. |
RESTRUCTURING CHARGES (Tables)
RESTRUCTURING CHARGES (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Liability | The following table provides a summary of the activity related to the restructuring plan and the related restructuring liability (in thousands): VSP Employee-related Balance at March 31, 2024 $ — Restructuring charges to operations 16,561 Payments (263) Balance at June 30, 2024 $ 16,298 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Schedule of Components of Operating Lease Cost and Supplemental Cash Flow Information | The components of operating lease cost for the three months ended June 30, 2024 and 2023, respectively, were as follows (in thousands): Three Months Ended June 30, 2024 2023 Lease cost under long-term operating leases $ 2,961 $ 3,039 Lease cost under short-term operating leases 326 404 Variable lease cost under short-term and long-term operating leases 1,316 1,015 Total operating lease cost $ 4,603 $ 4,458 The table below presents supplemental cash flow information related to leases during the three months ended June 30, 2024 and 2023 (in thousands): Three Months Ended June 30, 2024 2023 Right-of-use assets obtained in exchange for new operating lease liabilities $ 50 $ 554 At June 30, 2024 and March 31, 2024, the weighted average remaining lease term in years and weighted average discount rate were as follows: June 30, 2024 March 31, 2024 Weighted average remaining lease term in years - operating leases 5.16 5.32 Weighted average discount rate - operating leases 4.2 % 4.2 % |
Schedule of Future Minimum Payments Under Non-Cancellable Leases | Future minimum payments under non-cancellable leases at June 30, 2024 are as follows (in thousands): Year ending March 31: 2025 (remaining nine months) $ 9,338 2026 11,455 2027 8,396 2028 7,277 2029 6,463 Thereafter 9,300 Total lease payments $ 52,229 Less imputed interest (5,139) Present value of lease liabilities $ 47,090 |
PENSION BENEFIT PLANS (Tables)
PENSION BENEFIT PLANS (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Retirement Benefits [Abstract] | |
Schedule of Net Periodic Pension Costs of Noncontributory Defined Benefit Pension Plans | The following sets forth the components of the Company's net periodic pension cost of the noncontributory defined benefit pension plans recorded in operating expenses in the consolidated statements of operations for the three months ended June 30, 2024 and 2023, respectively, (in thousands): Three Months Ended June 30, 2024 2023 Service cost $ 47 $ 52 Interest cost 245 252 Amortization of net gain (116) (234) Net periodic pension cost $ 176 $ 70 |
NET LOSS PER SHARE (Tables)
NET LOSS PER SHARE (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Calculations of the Basic and Diluted Net Loss Per Share and Potential Common Shares | Calculations of the basic and diluted net loss per share and potential common shares are as follows (in thousands, except for per share data): Three Months Ended June 30, 2024 2023 Numerator: Net loss $ (443,376) $ (4,200) Denominator: Denominator for basic net loss per share - weighted average common shares outstanding 71,467 71,540 Dilutive common equivalent shares: Weighted average restricted stock units and performance-based restricted stock units — — Denominator for diluted net loss per share - weighted average shares outstanding 71,467 71,540 Net loss per share: Basic net loss per share $ (6.20) $ (0.06) Diluted net loss per share $ (6.20) $ (0.06) |
Schedule of Antidilutive Securities Excluded from Computation of Diluted Net Income Per Share | The following table sets forth restricted stock units excluded from the calculation of dilute d net loss per sh are, since their inclusion would be anti-dilutive (in thousands): Three Months Ended June 30, 2024 2023 Restricted stock units 1,326 1,455 |
SEGMENT AND GEOGRAPHIC INFORM_2
SEGMENT AND GEOGRAPHIC INFORMATION (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Total Revenue by Geography | Total revenue by geography is as follows (in thousands): Three Months Ended June 30, 2024 2023 United States $ 99,949 $ 127,902 Europe 31,394 33,971 Asia 11,890 16,014 Rest of the world 31,332 33,251 $ 174,565 $ 211,138 |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) $ in Millions | Jun. 30, 2024 USD ($) |
Senior Secured Revolving Credit Facility | Line of Credit | |
Line of Credit Facility [Line Items] | |
Current borrowing capacity | $ 725 |
REVENUE - Narrative (Details)
REVENUE - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Mar. 31, 2024 | |
Disaggregation of Revenue [Line Items] | |||
Revenue recognized | $ 100.3 | ||
Deferred revenue | 399.8 | ||
Unrecognized accounts receivable and deferred revenue | 9.7 | $ 5.9 | |
Capitalized contract cost | 9.3 | 9.3 | |
Amortization of capitalized costs to obtain contracts | 1.7 | $ 1.7 | |
Prepaid Expenses and Other Current Assets | |||
Disaggregation of Revenue [Line Items] | |||
Capitalized contract cost | 5 | 4.8 | |
Other Assets | |||
Disaggregation of Revenue [Line Items] | |||
Capitalized contract cost | $ 4.3 | $ 4.5 | |
Minimum | |||
Disaggregation of Revenue [Line Items] | |||
Payment terms | 30 days | ||
Maximum | |||
Disaggregation of Revenue [Line Items] | |||
Payment terms | 90 days |
REVENUE - Performance Obligatio
REVENUE - Performance Obligations (Details) $ in Millions | Jun. 30, 2024 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 279.2 |
Revenue, remaining performance obligation, percentage | 70% |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 120.6 |
Revenue, remaining performance obligation, percentage | 30% |
Revenue, remaining performance obligation, expected timing of satisfaction, period |
REVENUE - Schedule of Allowance
REVENUE - Schedule of Allowance for Credit Losses (Details) $ in Thousands | 3 Months Ended |
Jun. 30, 2024 USD ($) | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
Allowance for credit losses, beginning balance | $ 479 |
Additions resulting in charges to operations | 27 |
Recoveries of previously reserved balances | (381) |
Deductions due to write-offs | (9) |
Allowance for credit losses, ending balance | $ 116 |
SHARE-BASED COMPENSATION - Narr
SHARE-BASED COMPENSATION - Narrative (Details) - shares | 3 Months Ended | |||
Sep. 14, 2023 | Aug. 24, 2022 | Sep. 10, 2020 | Jun. 30, 2024 | |
Performance Based Restricted Stock Units | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Award performance measurement period | 3 years | |||
ESPP | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Percentage of common stock price for employees | 85% | |||
2019 Amended Plan | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Number of new shares (in shares) | 5,900,000 | 7,000,000 | 4,700,000 | |
Number of shares reserved for issuance (in shares) | 8,263,547 | |||
Shares issued (in shares) | 5,900,000 | |||
Number of shares available for grant (in shares) | 2,363,547 | 4,391,209 | ||
2019 Amended Plan | Minimum | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based awards generally vesting years | 1 year |
SHARE-BASED COMPENSATION - Sche
SHARE-BASED COMPENSATION - Schedule of Share-Based Compensation Cost and Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Share-based compensation expense | $ 21,198 | $ 19,844 |
Cost of product revenue | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Share-based compensation expense | 431 | 372 |
Cost of service revenue | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Share-based compensation expense | 2,889 | 2,539 |
Research and development | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Share-based compensation expense | 5,886 | 5,386 |
Sales and marketing | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Share-based compensation expense | 7,504 | 7,284 |
General and administrative | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Share-based compensation expense | $ 4,488 | $ 4,263 |
CASH, CASH EQUIVALENTS, MARKE_3
CASH, CASH EQUIVALENTS, MARKETABLE SECURITIES AND INVESTMENTS- Schedule of Marketable Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 24,808 | $ 22,982 |
Unrealized Losses | (27) | (36) |
Fair Value | 24,781 | 22,946 |
Short-term Marketable Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 23,794 | 21,978 |
Unrealized Losses | (16) | (26) |
Fair Value | 23,778 | 21,952 |
Long-term Marketable Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,014 | 1,004 |
Unrealized Losses | (11) | (10) |
Fair Value | 1,003 | 994 |
U.S. government and municipal obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 9,866 | 11,491 |
U.S. government and municipal obligations | Short-term Marketable Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 8,879 | 10,523 |
Unrealized Losses | (16) | (26) |
Fair Value | 8,863 | 10,497 |
U.S. government and municipal obligations | Long-term Marketable Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,014 | 1,004 |
Unrealized Losses | (11) | (10) |
Fair Value | 1,003 | 994 |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 12,086 | 8,648 |
Commercial paper | Short-term Marketable Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 12,086 | 8,648 |
Unrealized Losses | 0 | 0 |
Fair Value | 12,086 | 8,648 |
Certificates of deposit | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 2,829 | 2,807 |
Certificates of deposit | Short-term Marketable Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 2,829 | 2,807 |
Unrealized Losses | 0 | 0 |
Fair Value | $ 2,829 | $ 2,807 |
CASH, CASH EQUIVALENTS, MARKE_4
CASH, CASH EQUIVALENTS, MARKETABLE SECURITIES AND INVESTMENTS - Schedule of Contractual Maturities of Marketable Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 |
Available-for-sale securities: | ||
Due in 1 year or less | $ 23,778 | $ 21,952 |
Due after 1 year through 5 years | 1,003 | 994 |
Available-for-sale Securities | $ 24,781 | $ 22,946 |
CASH, CASH EQUIVALENTS, MARKE_5
CASH, CASH EQUIVALENTS, MARKETABLE SECURITIES AND INVESTMENTS - Narrative (Details) - USD ($) $ in Thousands, shares in Millions | 1 Months Ended | 3 Months Ended | |||
Apr. 30, 2023 | Feb. 28, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Mar. 31, 2024 | |
Debt Securities, Available-for-sale [Line Items] | |||||
Change in fair value of derivative investment | $ 0 | $ 206 | |||
Foreign Exchange Forward | Napatech | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Number of shares acquired (in shares) | 6.2 | 6.2 | |||
Payment for common stock | $ 7,500 | ||||
Change in fair value of derivative investment | $ 200 | ||||
Fair value | 20,200 | $ 11,500 | |||
Increase (decrease) in fair value of equity investment | $ 8,800 | $ (400) |
FAIR VALUE MEASUREMENTS - Sched
FAIR VALUE MEASUREMENTS - Schedule of Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 |
ASSETS: | ||
Cash and cash equivalents | $ 362,213 | $ 389,674 |
Available-for-sale securities | 24,781 | 22,946 |
Equity investment in Napatech | 20,176 | 11,507 |
Derivative financial instruments | 9 | 11 |
Total assets | 407,179 | 424,138 |
LIABILITIES: | ||
Derivative financial instruments | (123) | (74) |
Total liabilities | (123) | (74) |
U.S. government and municipal obligations | ||
ASSETS: | ||
Available-for-sale securities | 9,866 | 11,491 |
Commercial paper | ||
ASSETS: | ||
Available-for-sale securities | 12,086 | 8,648 |
Certificates of deposit | ||
ASSETS: | ||
Available-for-sale securities | 2,829 | 2,807 |
Level 1 | ||
ASSETS: | ||
Cash and cash equivalents | 346,200 | 381,829 |
Equity investment in Napatech | 20,176 | 11,507 |
Derivative financial instruments | 0 | 0 |
Total assets | 372,367 | 402,321 |
LIABILITIES: | ||
Derivative financial instruments | 0 | 0 |
Total liabilities | 0 | 0 |
Level 1 | U.S. government and municipal obligations | ||
ASSETS: | ||
Available-for-sale securities | 5,991 | 8,985 |
Level 1 | Commercial paper | ||
ASSETS: | ||
Available-for-sale securities | 0 | 0 |
Level 1 | Certificates of deposit | ||
ASSETS: | ||
Available-for-sale securities | 0 | 0 |
Level 2 | ||
ASSETS: | ||
Cash and cash equivalents | 16,013 | 7,845 |
Equity investment in Napatech | 0 | 0 |
Derivative financial instruments | 9 | 11 |
Total assets | 34,812 | 21,817 |
LIABILITIES: | ||
Derivative financial instruments | (123) | (74) |
Total liabilities | (123) | (74) |
Level 2 | U.S. government and municipal obligations | ||
ASSETS: | ||
Available-for-sale securities | 3,875 | 2,506 |
Level 2 | Commercial paper | ||
ASSETS: | ||
Available-for-sale securities | 12,086 | 8,648 |
Level 2 | Certificates of deposit | ||
ASSETS: | ||
Available-for-sale securities | 2,829 | 2,807 |
Level 3 | ||
ASSETS: | ||
Cash and cash equivalents | 0 | 0 |
Equity investment in Napatech | 0 | 0 |
Derivative financial instruments | 0 | 0 |
Total assets | 0 | 0 |
LIABILITIES: | ||
Derivative financial instruments | 0 | 0 |
Total liabilities | 0 | 0 |
Level 3 | U.S. government and municipal obligations | ||
ASSETS: | ||
Available-for-sale securities | 0 | 0 |
Level 3 | Commercial paper | ||
ASSETS: | ||
Available-for-sale securities | 0 | 0 |
Level 3 | Certificates of deposit | ||
ASSETS: | ||
Available-for-sale securities | $ 0 | $ 0 |
INVENTORIES AND DEFERRED COST_2
INVENTORIES AND DEFERRED COSTS (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 7,950 | $ 8,175 |
Work in process | 426 | 545 |
Finished goods | 3,764 | 4,160 |
Deferred costs | 2,854 | 1,215 |
Total inventories | $ 14,994 | $ 14,095 |
DIVESTITURES (Details)
DIVESTITURES (Details) - TO Business - Disposed of by Sale - USD ($) $ in Millions | 12 Months Ended | |
Sep. 08, 2023 | Mar. 31, 2024 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Proceeds from divestiture of a business | $ 7.8 | |
Gain on divestiture | $ 3.8 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Narrative (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2024 USD ($) reporting_unit | Jun. 30, 2023 USD ($) | Mar. 31, 2024 USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Number of reporting units | reporting_unit | 1 | ||
Goodwill impairment | $ 426,967 | $ 0 | $ 217,300 |
Goodwill | 1,076,715 | 1,502,820 | |
Carrying value of intangible assets | $ 295,290 | $ 308,659 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Schedule of Changes in Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | Mar. 31, 2024 | |
Goodwill [Roll Forward] | |||
Balance at March 31, 2024 | $ 1,502,820 | ||
Goodwill impairment | (426,967) | $ 0 | $ (217,300) |
Foreign currency translation impact | 862 | ||
Balance at June 30, 2024 | $ 1,076,715 | $ 1,502,820 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 |
Finite-Lived Intangible Assets [Line Items] | ||
Cost | $ 1,088,158 | $ 1,089,529 |
Accumulated Amortization | (792,868) | (780,870) |
Net | 295,290 | 308,659 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 248,098 | 248,385 |
Accumulated Amortization | (239,182) | (238,470) |
Net | 8,916 | 9,915 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 762,921 | 763,943 |
Accumulated Amortization | (485,971) | (475,592) |
Net | 276,950 | 288,351 |
Distributor relationships and technology licenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 7,768 | 7,785 |
Accumulated Amortization | (7,717) | (7,463) |
Net | 51 | 322 |
Definite-lived trademark and trade name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 57,654 | 57,699 |
Accumulated Amortization | (48,462) | (47,814) |
Net | 9,192 | 9,885 |
Core technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 7,192 | 7,192 |
Accumulated Amortization | (7,192) | (7,192) |
Net | 0 | 0 |
Capitalized software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 3,317 | 3,317 |
Accumulated Amortization | (3,317) | (3,317) |
Net | 0 | 0 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 1,208 | 1,208 |
Accumulated Amortization | (1,027) | (1,022) |
Net | $ 181 | $ 186 |
GOODWILL AND INTANGIBLE ASSET_5
GOODWILL AND INTANGIBLE ASSETS - Schedule of Amortization Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of acquired intangible assets | $ 12,885 | $ 14,629 |
Cost of product revenue | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of acquired intangible assets | 1,266 | 1,917 |
Operating expense | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of acquired intangible assets | $ 11,619 | $ 12,712 |
GOODWILL AND INTANGIBLE ASSET_6
GOODWILL AND INTANGIBLE ASSETS - Schedule of Expected Future Amortization Expense (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2025 (remaining nine months) | $ 37,874 | |
2026 | 46,394 | |
2027 | 43,515 | |
2028 | 40,559 | |
2029 | 31,356 | |
Thereafter | 95,592 | |
Net | $ 295,290 | $ 308,659 |
DERIVATIVE INSTRUMENTS AND HE_3
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Narrative (Details) | 3 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Managing period of hedging forecasted cash flows for operating expenses denominated in foreign currencies | 12 months |
Contract maturity period | 12 months |
DERIVATIVE INSTRUMENTS AND HE_4
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Schedule of Notional Amounts and Fair Values of Derivative Instruments on Consolidated Balance Sheet (Details) - Forward contracts - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 |
Derivatives, Fair Value [Line Items] | ||
Prepaid Expenses and Other Current Assets | $ 9 | $ 11 |
Accrued Other | 123 | 74 |
Derivatives Designated as Hedging Instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amounts | 10,937 | 11,676 |
Prepaid Expenses and Other Current Assets | 9 | 11 |
Accrued Other | 123 | 74 |
Derivatives Not Designated as Hedging Instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amounts | 0 | |
Prepaid Expenses and Other Current Assets | 0 | 0 |
Accrued Other | $ 0 |
DERIVATIVE INSTRUMENTS AND HE_5
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Schedule of Effect of Foreign Exchange Forward Contracts on Other Comprehensive Income and Results of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain Recognized in Income | $ 0 | $ 60 |
Forward contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in OCI on Derivative | (117) | 210 |
Gain (Loss) Reclassified from Accumulated OCI into Income | 60 | (74) |
Gain Recognized in Income | 0 | 60 |
Forward contracts | Research and Development Expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in OCI on Derivative | (117) | 210 |
Gain (Loss) Reclassified from Accumulated OCI into Income | 1 | 0 |
Forward contracts | Selling and Marketing Expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Reclassified from Accumulated OCI into Income | $ 59 | $ (74) |
LONG-TERM DEBT (Details)
LONG-TERM DEBT (Details) - Line of Credit | 3 Months Ended | ||
Feb. 22, 2023 | Jul. 27, 2021 USD ($) | Jun. 30, 2024 USD ($) | |
Senior Secured Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Debt term | 5 years | ||
Credit facility | $ 800,000,000 | ||
Repaid borrowings | $ 25,000,000 | ||
Amount outstanding under credit facility | $ 75,000,000 | ||
Commitment fee percentage | 0.15% | ||
Adjusted consolidated EBITDA percentage | 125% | ||
Maximum leverage ratio | 4 | 4 | |
Debt default, acceleration clause, required consent percentage | 50% | ||
Unamortized debt issuance costs | $ 2,300,000 | ||
Senior Secured Revolving Credit Facility | Prepaid Expenses and Other Current Assets | |||
Debt Instrument [Line Items] | |||
Unamortized debt issuance costs | 1,100,000 | ||
Senior Secured Revolving Credit Facility | Other Assets | |||
Debt Instrument [Line Items] | |||
Unamortized debt issuance costs | $ 1,200,000 | ||
Senior Secured Revolving Credit Facility | Maximum | |||
Debt Instrument [Line Items] | |||
Leverage ratio | 3.50 | 3.50 | |
Commitment fee percentage | 0.30% | ||
Senior Secured Revolving Credit Facility | Maximum | Foreign Subsidiaries | |||
Debt Instrument [Line Items] | |||
Voting stock pledge limit for any foreign subsidiary | 65% | ||
Senior Secured Revolving Credit Facility | Minimum | |||
Debt Instrument [Line Items] | |||
Leverage ratio | 1.50 | 1.50 | |
Commitment fee percentage | 0.15% | ||
Senior Secured Revolving Credit Facility | Term Benchmark Revolving Loans | |||
Debt Instrument [Line Items] | |||
Interest rate in excess of effective rate | 1% | ||
Senior Secured Revolving Credit Facility | Term Benchmark Revolving Loans | Maximum | |||
Debt Instrument [Line Items] | |||
Interest rate in excess of effective rate | 2% | ||
Senior Secured Revolving Credit Facility | Term Benchmark Revolving Loans | Minimum | |||
Debt Instrument [Line Items] | |||
Interest rate in excess of effective rate | 1% | ||
Senior Secured Revolving Credit Facility | SOFR | |||
Debt Instrument [Line Items] | |||
Interest rate in excess of effective rate | 0.10% | ||
Senior Secured Revolving Credit Facility | SOFR | Debt Instrument, Covenant, Leverage Ratio 1 | |||
Debt Instrument [Line Items] | |||
Interest rate in excess of effective rate | 2% | ||
Senior Secured Revolving Credit Facility | SOFR | Debt Instrument, Covenant, Leverage Ratio 2 | |||
Debt Instrument [Line Items] | |||
Interest rate in excess of effective rate | 1% | ||
Senior Secured Revolving Credit Facility | Base Rate | Debt Instrument, Covenant, Leverage Ratio 1 | |||
Debt Instrument [Line Items] | |||
Interest rate in excess of effective rate | 1% | ||
Senior Secured Revolving Credit Facility | Base Rate | Debt Instrument, Covenant, Leverage Ratio 2 | |||
Debt Instrument [Line Items] | |||
Interest rate in excess of effective rate | 0% | ||
Senior Secured Revolving Credit Facility | Base Rate | Base Rate Loans | |||
Debt Instrument [Line Items] | |||
Interest rate in excess of effective rate | 0% | ||
Senior Secured Revolving Credit Facility | Base Rate | Base Rate Loans | Maximum | |||
Debt Instrument [Line Items] | |||
Interest rate in excess of effective rate | 1% | ||
Senior Secured Revolving Credit Facility | Base Rate | Base Rate Loans | Minimum | |||
Debt Instrument [Line Items] | |||
Interest rate in excess of effective rate | 0% | ||
Letter of Credit Sub-facility | |||
Debt Instrument [Line Items] | |||
Credit facility | $ 75,000,000 | ||
Senior Secured Revolving Credit Facility Leverage Ratio Terms Two | Maximum | |||
Debt Instrument [Line Items] | |||
Leverage ratio | 2.75 | ||
Senior Secured Revolving Credit Facility Leverage Ratio Terms Two | Minimum | |||
Debt Instrument [Line Items] | |||
Leverage ratio | 1.50 |
RESTRUCTURING CHARGES - Narrati
RESTRUCTURING CHARGES - Narrative (Details) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 USD ($) employee | Jun. 30, 2023 USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 16,563 | $ 0 |
One-time Termination Benefits | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 16,561 | |
Number of employees terminated | employee | 116 | |
Number of employees expected to be terminated | employee | 34 | |
One-time Termination Benefits | Minimum | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and related cost, expected cost | $ 3,000 | |
One-time Termination Benefits | Maximum | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and related cost, expected cost | $ 5,000 |
RESTRUCTURING CHARGES - Schedul
RESTRUCTURING CHARGES - Schedule of Restructuring Liability (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Restructuring Reserve [Roll Forward] | ||
Restructuring charges to operations | $ 16,563 | $ 0 |
One-time Termination Benefits | ||
Restructuring Reserve [Roll Forward] | ||
Balance at March 31, 2024 | 0 | |
Restructuring charges to operations | 16,561 | |
Payments | (263) | |
Balance at June 30, 2024 | $ 16,298 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Mar. 31, 2024 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Asset retirement obligation | $ 2.2 | $ 2.3 |
Other Accrued Liabilities Current | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Asset retirement obligation | 0.1 | 0.1 |
Other Noncurrent Liabilities | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Asset retirement obligation | $ 2.1 | $ 2.2 |
Minimum | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Remaining lease terms | 1 year | |
Maximum | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Remaining lease terms | 7 years |
LEASES - Schedule of Components
LEASES - Schedule of Components of Operating Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Leases [Abstract] | ||
Lease cost under long-term operating leases | $ 2,961 | $ 3,039 |
Lease cost under short-term operating leases | 326 | 404 |
Variable lease cost under short-term and long-term operating leases | 1,316 | 1,015 |
Total operating lease cost | $ 4,603 | $ 4,458 |
LEASES - Schedule of Supplement
LEASES - Schedule of Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Mar. 31, 2024 | |
Leases [Abstract] | |||
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 50 | $ 554 | |
Weighted average remaining lease term in years - operating leases | 5 years 1 month 28 days | 5 years 3 months 25 days | |
Weighted average discount rate - operating leases | 4.20% | 4.20% |
LEASES - Schedule of Future Min
LEASES - Schedule of Future Minimum Payments Under Non-Cancellable Leases (Details) $ in Thousands | Jun. 30, 2024 USD ($) |
Leases [Abstract] | |
2025 (remaining nine months) | $ 9,338 |
2026 | 11,455 |
2027 | 8,396 |
2028 | 7,277 |
2029 | 6,463 |
Thereafter | 9,300 |
Total lease payments | 52,229 |
Less imputed interest | (5,139) |
Present value of lease liabilities | $ 47,090 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Jul. 31, 2020 USD ($) | Sep. 30, 2018 USD ($) | Oct. 31, 2017 USD ($) | Mar. 31, 2016 subsidiary patent | Jun. 30, 2024 USD ($) | Mar. 31, 2024 USD ($) | |
Commitments and Contingencies Disclosure [Line Items] | ||||||
Number of subsidiary entities | subsidiary | 2 | |||||
Number of patents allegedly infringed | patent | 5 | |||||
Reduction in contingent liabilities and legal fees | $ 4.6 | |||||
Pre-suit Damages | ||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||
Damages sought | $ 3.5 | $ 3.5 | ||||
Post-suit Damages | ||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||
Damages sought | $ 2.3 | $ 2.3 | ||||
Enhancement Award | ||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||
Damages sought | $ 2.8 | $ 1.1 |
PENSION BENEFIT PLANS - Narrati
PENSION BENEFIT PLANS - Narrative (Details) $ in Millions | 3 Months Ended |
Jun. 30, 2024 USD ($) employee | |
Defined Benefit Plan Disclosure [Line Items] | |
Contributions to defined benefit pension plans | $ 0.2 |
Expected cash contribution requirements for defined benefit pension plans, less than | $ 1 |
United States | |
Defined Benefit Plan Disclosure [Line Items] | |
Number of employees participating in noncontributory defined benefit pension plans | employee | 0 |
PENSION BENEFIT PLANS - Schedul
PENSION BENEFIT PLANS - Schedule of Net Periodic Pension Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Retirement Benefits [Abstract] | ||
Service cost | $ 47 | $ 52 |
Interest cost | 245 | 252 |
Amortization of net gain | (116) | (234) |
Net periodic pension cost | $ 176 | $ 70 |
TREASURY STOCK (Details)
TREASURY STOCK (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 77 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Mar. 31, 2024 | Mar. 31, 2024 | May 03, 2022 | Oct. 24, 2017 | |
Equity, Class of Treasury Stock [Line Items] | ||||||
Value of shares repurchased | $ 25,000 | $ 0 | ||||
Restricted Stock Units | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Shares paid for tax withholding (in shares) | 617,826 | 435,172 | ||||
Cost related to tax withholding | $ 12,200 | $ 13,400 | ||||
Share Repurchase Program, October 2017 | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Stock authorized to repurchase under stock repurchase program (in shares) | 25,000,000 | |||||
Shares repurchased during the period (in shares) | 0 | 25,000,000 | ||||
Shares repurchased | $ 694,100 | |||||
Share Repurchase Program, May 2022 | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Stock authorized to repurchase under stock repurchase program (in shares) | 25,000,000 | |||||
Shares repurchased during the period (in shares) | 1,347,900 | 614,516 | ||||
Value of shares repurchased | $ 25,000 | $ 16,400 | ||||
Stock remaining to be purchased (in shares) | 23,037,584 |
NET LOSS PER SHARE - Schedule o
NET LOSS PER SHARE - Schedule of Calculations of EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Numerator: | ||
Net loss | $ (443,376) | $ (4,200) |
Denominator: | ||
Denominator for basic net loss per share - weighted average common shares outstanding (in shares) | 71,467 | 71,540 |
Dilutive common equivalent shares: | ||
Weighted average restricted stock units and performance-based restricted stock units (in shares) | 0 | 0 |
Denominator for diluted net loss per share - weighted average shares outstanding (in shares) | 71,467 | 71,540 |
Net loss per share: | ||
Basic net loss per share (in dollars per share) | $ (6.20) | $ (0.06) |
Diluted net loss per share (in dollars per share) | $ (6.20) | $ (0.06) |
NET LOSS PER SHARE - Schedule_2
NET LOSS PER SHARE - Schedule of Antidilutive Securities Excluded from Computation (Details) - shares shares in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Restricted stock units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 1,326 | 1,455 |
INCOME TAXES (Details)
INCOME TAXES (Details) | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate | 2.30% | 21.30% |
SEGMENT AND GEOGRAPHIC INFORM_3
SEGMENT AND GEOGRAPHIC INFORMATION - Narrative (Details) | 3 Months Ended |
Jun. 30, 2024 segment | |
Segment Reporting [Abstract] | |
Number of segments | 1 |
SEGMENT AND GEOGRAPHIC INFORM_4
SEGMENT AND GEOGRAPHIC INFORMATION - Schedule of Total Revenue by Geography (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Segment Reporting Information [Line Items] | ||
Total revenue | $ 174,565 | $ 211,138 |
United States | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 99,949 | 127,902 |
Europe | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 31,394 | 33,971 |
Asia | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 11,890 | 16,014 |
Rest of the world | ||
Segment Reporting Information [Line Items] | ||
Total revenue | $ 31,332 | $ 33,251 |