WESTFORD, Mass. - NETSCOUT SYSTEMS, INC. (NASDAQ: NTCT), a company specializing in performance management and cybersecurity solutions, has recently expanded its Arbor Cloud DDoS mitigation network capacity to over 15 terabits per second and increased its global presence with the addition of a new scrubbing center in Toronto. This expansion is poised to serve Canadian enterprises and Internet Service Providers (ISPs) by offering reduced latency during DDoS attack mitigations and ensuring data privacy compliance.
The new Toronto facility is part of NETSCOUT's strategy to provide localized DDoS traffic scrubbing, which helps to keep Canadian traffic within national borders, adhering to the country's privacy and data sovereignty laws. The local scrubbing center will benefit businesses by shortening the distance attack data must travel for cleaning, thereby reducing the time to mitigate and redirect traffic back to its destination.
NETSCOUNT's Arbor Cloud service is designed to complement on-premises DDoS defenses with cloud-based scrubbing, integrated via automated cloud signaling. This approach aims to provide comprehensive protection against complex, multi-vector DDoS attacks. The service is supported by Arbor Sightline and the Arbor Threat Mitigation System (TMS), which work together to identify and remove attack traffic without affecting legitimate business operations.
The expansion comes in response to an increasing number of DDoS attacks in Canada, with NETSCOUT's Threat Intelligence Report citing over 130,000 attacks in the latter half of 2023, particularly targeting sectors such as financial services, education, insurance, healthcare, and government.
NETSCOUT emphasizes that its service differs from competitors by offering specialized protection against multi-vector DDoS attacks, rather than just high overall capacity. Sanjay Munshi, deputy chief operating officer at NETSCOUT, stated that Arbor Cloud operates as part of a multilayer protection strategy, which is crucial for maintaining security in complex IT environments.
The Arbor Cloud solution utilizes NETSCOUT's ATLAS Intelligence Feed for global visibility and DDoS threat intelligence to automatically counteract emerging DDoS threats. Additionally, the company's ASERT team provides expert mitigation support during attacks to minimize business disruption.
The information in this article is based on a press release statement from NETSCOUT SYSTEMS, INC.
In other recent news, NETSCOUT SYSTEMS, INC. reported a blend of financial results. The company's fourth-quarter figures showed a slight 2% decrease in overall revenue, settling at approximately $203 million. However, NETSCOUT's profitability improved, with non-GAAP diluted earnings per share rising by 45% to $0.55. RBC Capital adjusted its outlook on NETSCOUT, reducing the price target from $25.00 to $24.00, while maintaining a Sector Perform rating on the stock.
NETSCOUT also announced the extension of its partnership with Vodafone (NASDAQ:VOD), aiming to enhance network performance and customer experience across Vodafone's hybrid networks. The multi-year agreement utilizes NETSCOUT's InfinistreamNG technology to provide Vodafone with comprehensive monitoring solutions.
Lastly, NETSCOUT's cybersecurity segment showed significant growth, despite a dip in service assurance. The company anticipates continued challenges in the service provider vertical but remains optimistic about the prospects of the cybersecurity sector. These recent developments suggest a cautious but hopeful outlook for NETSCOUT.
InvestingPro Insights
As NETSCOUT SYSTEMS, INC. (NASDAQ: NTCT) fortifies its position in the cybersecurity landscape with the expansion of its Arbor Cloud DDoS mitigation network, it's essential to consider the company's financial health and market sentiment. Here are some key insights from InvestingPro that shed light on NETSCOUT's current financial metrics and strategic maneuvers:
NETSCOUT holds a market capitalization of approximately $1.28 billion, reflecting its standing in the market relative to peers. Despite facing a challenging period, with its revenue having decreased by 9.3% in the last twelve months as of Q4 2024, the company maintains a strong gross profit margin of 77.41%, indicating its ability to retain a significant portion of sales as gross profit.
InvestingPro Tips highlight that NETSCOUT is trading near its 52-week low, which could be a sign of a potential value opportunity for investors. Additionally, the company holds more cash than debt on its balance sheet, a reassuring sign of financial stability for stakeholders. With management actively buying back shares and analysts predicting profitability this year, there is an optimistic outlook for the company's financial performance.
For investors seeking a deeper dive into NETSCOUT's financials and strategic direction, there are additional InvestingPro Tips available. These include insights on the company's impressive shareholder yield and net income growth expectations for the year. To access these valuable tips and more, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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