NetScout Systems Inc (NASDAQ:NTCT) slumped 20% in overnight trading as the cyber security specialist warned orders were not translating into sales.
As a result, full-year earnings are expected to be lower than previously guided at between US$2-2.20 per share with revenues now forecast at US$840-860 million.
Previous guidance had been for earnings of up to US$2.32 and sales of US$915-945 million.
“We believe this is related to industry and economic headwinds facing our customers that began to affect our revenue in the last month of the second fiscal quarter and is expected to impact the second half of fiscal year 2024,” Anil Singhal, chief executive, said in a statement.
Second-quarter earnings will be between 60 cents to 62 cents on revenue of US$195 million to US$197 million, NetScout added.