Shares in NetScout Systems Inc. soared in regular trading today after the cybersecurity company delivered a strong earnings beat in its fiscal third quarter.

For the quarter that ended Dec. 31, NetScout reported earnings before costs such as stock compensation of $73 million, or $1 per share, up from $66.5 million, or 89 cents per share, in the same quarter of the previous year. Revenue was $269.5 million, up from $262.2 million. Analysts had been expecting earnings per share of 68 cents on revenue of $240.59 million.

Product revenue in the quarter came in at $149.5 million, up from $144.3 million in the third quarter of fiscal 2022. Service revenue was $120.1 million, up from $117.8 million the previous year.

Net income from operations was $63.8 million in the quarter, while as of Dec. 31, NetScout at $416.2 million in cash, cash equivalents and marketable securities. Notably, the figure was down from $703.2 million as of March 31 because of an accelerated share repurchase program and the repayment of an outstanding debt balance in a revolving credit facility.

Highlights in the quarter include NetScout announcing the interoperability of its Omnis Cyber Intelligence with Amazon Security Lake, powered by Amazon Web Services Inc., to deliver customers advanced network detection and response insights. NetScout also announced the launch of the DPI Consortium, a nonprofit organization established to improve patent quality and deter frivolous patent claims.

“We advanced our strategic objectives and delivered solid financial results in the third quarter,” NetScout President and Chief Executive Officer Anil Singhal said in a statement. “Strong service assurance performance, supported by the acceleration of service provider orders previously forecast to occur in our fourth quarter, drove higher quarterly sales, margins and profitability year over year.”

NetScout predicted strong growth going forward, with adjusted earnings per share expected to be between $2.06 and $2.10 for its full fiscal year 2023 on revenue of between $905 million to $915 million. Analysts had been predicting adjusted earnings per share of $2 on revenue of $909 million.

Investors loved the numbers, and NetScout shares closed regular trading up almost 14%, to $36.06, on a day the Nasdaq Composite was up a far more moderate 1.8%.

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