−Removed: We are an industry leader with over three decades of experience in providing service assurance and cybersecurity solutions that are used by customers worldwide to protect their digital business services against disruption.
+Added: We are an industry leader with over three decades of experience in providing service assurance and cybersecurity solutions that are based on our pioneering deep packet inspection technology at scale, which are used by many Fortune 500 companies to protect their digital business services against disruption.
Service providers and enterprises, including local, state and federal government agencies, rely on our solutions to achieve the visibility and protection necessary to optimize network performance, ensure the delivery of high-quality, mission-critical applications and services, gain timely insight into the end user experience and protect their networks from attack.
With our offerings, customers can quickly, efficiently and effectively identify and resolve issues that result in downtime, interruptions to services, poor service quality or compromised data, thereby reducing meantime-to-resolution of issues and driving compelling returns on their investments in their networks and broader technology initiatives.
−Removed: Some of the more significant technology trends and catalysts for our business include the evolution of customers' digital transformation initiatives such as the migration to cloud environments, the rapidly evolving cybersecurity threat landscape, business intelligence and analytics advancements, and the 5G evolution in both the service provider and enterprise customer verticals.
−Removed: Our operating results are influenced by a number of factors, including, but not limited to, the mix and quantity of products and services sold, pricing, costs and availability of materials used in our products, growth in employee-related costs, including commissions, and the expansion of our operations.
+Added: Some of the more significant technology trends and catalysts for our business include the evolution of customers' digital transformation initiatives such as the migration to "edge" environments, like the cloud, the rapidly evolving cybersecurity threat landscape, business intelligence and analytics advancements, and the 5G evolution in both the service provider and enterprise customer verticals.
+Added: Our operating results are influenced by a number of factors, including, but not limited to, the mix and quantity of products and services sold, pricing, costs and availability of materials used in our products, growth in employee-related costs,
+Added: including commissions, and the expansion of our operations.
Factors that affect our ability to maximize our operating results include, but are not limited to, our ability to introduce new products and enhance existing products, the marketplace acceptance of those new or enhanced products, continued expansion into international markets, expansion into new or adjacent markets, development of strategic partnerships, competition, successful acquisition integration efforts, and our ability to control costs and make improvements in a highly competitive industry.
1 unchanged sentence
Our cybersecurity solutions are used by enterprises and service providers to identify and mitigate advanced, volumetric, and application-specific distributed denial of service (DDoS) attacks, as well as assist enterprise security teams in rapidly identifying, isolating, investigating, and resolving other advanced network threats.
+Added: These combined solutions provide a powerful platform to address both service assurance and cybersecurity challenges for our customers.
Enterprise Market
−Removed: Within the enterprise market, NetScout's nGeniusONE, ISNG, and Omnis offerings enable IT organizations to support a growing range of performance management and cybersecurity use cases including:
+Added: Within the enterprise market, NetScout's nGeniusONE, ISNG, Omnis, and Arbor Edge Defense offerings enable IT organizations to support a growing range of performance management and cybersecurity use cases including:
• Network Performance Management - Our nGeniusONE analytics and our ISNG real-time information platform provide the necessary insight to optimize network performance, restore service and understand the quality of the users’ experience.
15 unchanged sentences
DDoS Protection and Omnis Cyber Intelligence - Computer networks continue to be targeted for cyberattacks that are aimed at disrupting, damaging, or otherwise destroying an enterprise’s ability to conduct its business or gaining unauthorized access to corporate applications and restricting or stealing valuable information.
−Removed: We provide a range of network security solutions under the NetScout Arbor brand that enable enterprises to protect their networks from high-volume and application-specific DDoS attacks, which are aimed at either overwhelming the network with traffic or over-exercising specific functions or features of a website with the intention to disable those
−Removed: functions or features.
−Removed: We have also developed new cybersecurity solutions for enterprises with our Omnis suite of products that provide greater deep-dive forensic capabilities as well as analytics that can provide visibility into anomalous behavior on the network that may be indicative of an advanced threat.
−Removed: These security analytics enable existing enterprise customers to leverage their historical investments in NetScout's service assurance solutions by using the Adaptive Service Intelligence (ASI) data already being generated to support service assurance as well as cybersecurity use cases.
+Added: We provide a range of network security solutions under the NetScout Arbor brand that enable enterprises to protect their networks from high-volume and application-specific DDoS attacks, which are aimed at either overwhelming the network with traffic or over-exercising specific functions or features of a website with the intention to disable those functions or features.
+Added: We have also recently developed enhanced cybersecurity solutions for enterprises with our Omnis suite of products that provide greater deep-dive forensic capabilities as well as analytics that can provide visibility into anomalous behavior on the network that may be indicative of an advanced threat.
+Added: These security analytics enable existing enterprise customers to leverage their historical investments in NetScout's service assurance solutions by using the Adaptive Service Intelligence (ASI) data already being generated to support service assurance for cybersecurity use cases.
Government Markets
1 unchanged sentence
Similar to our enterprise customers, government agencies are focused on streamlining and transforming IT into more efficient and more easily managed environments.
−Removed: To accomplish this, agencies are turning to IT solutions that will help simplify managing and assuring their IT environments as well as reduce costs.
+Added: To accomplish this, agencies are turning to IT solutions that will help simplify managing and assuring their IT environments as well as reducing costs.
However, governmental markets differ from enterprise markets primarily due to their purchasing cycles being influenced by potential changes in government administrators, budgetary priorities and allocated funding for key projects.
4 unchanged sentences
• Service Assurance for Mobile, Fixed Line and Cable Operators - The fundamental transformation of the mobile network to all-IP enables mobile operators to build highly-scalable service delivery environments to offer new services to meet the growing subscriber demand for data, voice and video-centric services and to consolidate and simplify network operations.
−Removed: Mobile operators use our offerings to gain real-time, detailed IP packet-level insight and core-to-access visibility, which enables them to ensure services offered over the network and meet certain pre-defined quality levels for an optimal subscriber experience.
+Added: Mobile operators use our offerings to gain real-time, detailed IP packet-level insight and core-to-access visibility, which enables them to ensure services offered over the network meet certain pre-defined quality levels for an optimal subscriber experience.
NetScout's service assurance solutions help service providers effectively manage capacity, assess overall network quality, take proactive steps to modify the network before issues impact subscribers, and quickly identify and troubleshoot network problems.
6 unchanged sentences
NetScout's analytics deliver timely insights into a service provider's subscribers, services, networks, and applications, as well as easy export capabilities so that this information can be integrated into their data lakes and third-party analytic platforms.
−Removed: • DDoS Protection - Over the past decade, Internet Service Providers (ISPs), including leading telecommunications providers, cable multi-service operators and cloud providers, have seen significant increases in the sophistication, scale and frequency of high-volume and application-specific DDoS attacks on their networks.
−Removed: DDoS attacks are aimed at disrupting the online services of an ISP's business customer by overwhelming the network with traffic or by over-exercising specific functions or features of a website with the intention to disable those functions or features.
+Added: • DDoS Protection - Internet Service Providers (ISPs), including leading telecommunications providers, cable multi-service operators and cloud providers, have seen significant increases in the sophistication, scale and frequency of high-volume and application-specific DDoS attacks on their networks.
+Added: DDoS attacks are aimed at disrupting the
+Added: online services of an ISP's business customer by overwhelming the network with traffic or by over-exercising specific functions or features of a website with the intention to disable those functions or features.
NetScout Arbor smart DDoS solutions are used by a wide range of ISPs around the world to help protect their networks against DDoS attacks, and to resell certain DDoS offerings to their enterprise customers.
3 unchanged sentences
Our offerings can help customers quickly identify and troubleshoot network and application performance issues, defend their networks from DDoS and other cybersecurity attacks, and rapidly find and isolate advanced network threats.
−Removed: Our solutions are typically deployed by customers as integrated hardware and software, as software only that is then integrated into commercial off-the-shelf hardware, in a virtualized environment as software only, or as a Software as a Service (SaaS) form factor.
+Added: Our solutions are deployed by customers in one of four form factors:
+Added: as integrated hardware and software, as software only that is then integrated into commercial off-the-shelf hardware, in a virtualized environment as software only, or as a Software as a Service (SaaS) solution.
Our solutions help our customers meet the increasing demands and an ever-changing technology landscape of IP networks, service, applications, and cybersecurity threats.
−Removed: In recent years, to further elevate our value proposition and address the near- and long-term needs of customers and prospects, we have delivered major product upgrades across our product lines by integrating key functionality from acquired product lines, increasing the deployment flexibility of our solutions, and adding new features and capabilities that enable us to address a broader range of use cases.
+Added: To further elevate our value proposition and address the near- and long-term needs of customers and prospects, we have delivered major product upgrades across our product lines by integrating key functionality from acquired product lines, increasing the deployment flexibility of our solutions, and adding new features and capabilities that enable us to address a broader range of use cases.
Our primary products can be categorized as follows:
11 unchanged sentences
• DDoS Protection – We provide cybersecurity solutions that enable service providers and enterprises around the world to protect their networks against DDoS attacks under the Arbor brand.
−Removed: Dozens of service provider customers around the world also resell Arbor's solutions as a managed DDoS service to their enterprise customers.
+Added: Certain of our service provider customers around the world also resell Arbor's solutions as a managed DDoS service to their enterprise customers.
Our portfolio of DDoS solutions offers complete deployment flexibility spanning on-premise offerings and cloud-based capabilities to meet a broad array of customer needs, as well as specialized analytics and comprehensive threat intelligence information.
Our smart DDoS offerings for service providers include Arbor Sightline for DDoS visibility and threat detection, Arbor Threat Mitigation System for removing DDoS attack traffic from the network without disruption to key network services and Arbor Insight for advanced analytical and forensic information.
−Removed: Our smart DDoS offerings for enterprises include Arbor Edge Defense, a perimeter-based appliance for identifying and blocking incoming DDoS attacks and outbound malicious communications, and Arbor Cloud, a global, cloud-based traffic scrubbing service that quickly removes DDoS attack traffic.
+Added: Our smart DDoS offerings for enterprises include Arbor Edge Defense, a perimeter-based appliance for identifying and blocking incoming DDoS attacks and outbound malicious communications, and Arbor Cloud, a global, cloud-based traffic scrubbing service that
+Added: quickly removes DDoS attack traffic.
We plan to further enhance and expand these capabilities in ways that will enable greater adoption of our solutions by service provider and enterprise customers.
1 unchanged sentence
By collecting network traffic via our probes, we can expand our value proposition by providing specialized analytics for both service assurance and cybersecurity.
−Removed: We have introduced and will continue to advance solutions such as new packet forensic
−Removed: capabilities, such as Omnis Cyber Intelligence, designed specifically for security operations teams as well as new anomalous behavior analytics that security teams can use to identify and investigate potential advanced network threats.
+Added: We have introduced and will continue to advance solutions such as new packet forensic capabilities, which includes Omnis Cyber Intelligence, designed specifically for security operations teams.
+Added: This solution also creates anomalous behavior analytics that security teams can use to identify and investigate potential advanced network threats.
Our Omnis suite of products is focused on addressing cybersecurity use cases.
3 unchanged sentences
The third-party solution providers that we have integrated our solutions with include Cisco Systems, Cisco Sourcefire, Citrix Systems, Dell Technologies, Hewlett-Packard Company, IBM Tivoli, and VMWare.
−Removed: In addition, we have embedded NetScout Arbor DDoS mitigation capabilities on a blade within Cisco's market-leading ASR9000 router and will continue to evaluate partnership opportunities to integrate its smart DDoS capabilities within other network equipment platforms.
+Added: In addition, we have embedded NetScout Arbor DDoS mitigation capabilities on a blade within Cisco's market-leading ASR9000 router and will continue to evaluate partnership opportunities to support integration of its smart DDoS capabilities into various third-party platforms.
Growth Strategy
The following are key elements in our growth strategy for fiscal year 2024:
−Removed: • Drive Innovation - In order to support our customers' near-term and longer-term requirements, we plan to continue innovating by enhancing and expanding our product portfolio.
+Added: • Drive Platform Innovation - In order to support our customers' near-term and longer-term requirements, we plan to continue innovating by enhancing and expanding our product portfolio as well as developing an integrated platform to serve our customers combined service assurance and cybersecurity requirements.
In particular, we continue to invest in research and development, and leverage the strong technical and domain expertise across our organization.
17 unchanged sentences
Our support programs offer customers various levels of high-quality support services to assist in the deployment and use of our solutions.
−Removed: We have support personnel strategically deployed across the globe to deliver 24/7 support to our premium customers.
+Added: We have support personnel strategically deployed across the globe to deliver 24/7 support to our customers.
Certain support services, such as on-site support activities, are provided by qualified third-party support partners.
2 unchanged sentences
Our support also includes updates to our software and firmware at no additional charge, if and when such updates are developed and made generally available to our commercial customer base.
−Removed: If ordered, support commences upon shipment or expiration of the standard warranty for software.
−Removed: For software, which also includes firmware, the standard warranty commences upon shipment and expires 60 to 90 days thereafter.
−Removed: With regard to hardware, the standard warranty commences upon shipment and expires 60 days to 12 months thereafter.
+Added: If ordered, support commences upon fulfilment or expiration of the standard warranty for software.
+Added: For software, which also includes firmware, the standard warranty commences upon fulfilment and expires 60 to 90 days thereafter.
+Added: With regard to hardware, the standard warranty commences upon fulfilment and expires 60 days to 12 months thereafter.
We believe our warranties are consistent with commonly accepted industry standards.
9 unchanged sentences
While certain components, such as computer network interface cards, are currently purchased from a single supplier, we have identified alternate suppliers that we believe can be qualified relatively quickly to fulfill our needs should an issue arise with the existing supplier.
−Removed: We continue to monitor the impact of the COVID-19 pandemic, the geopolitical environment, and other factors on our supply chain.
+Added: We continue to monitor the impact of the war in Ukraine, global geopolitical tension, worsening macroeconomic conditions and the COVID-19 pandemic, as well as other factors, on our supply chain.
Although we have been able to manage supply challenges in the past, there is no guarantee that we will be able to continue to manage these challenges without significant impacts to our business if our supply chain becomes increasingly strained.
2 unchanged sentences
However, since these forecasts have a high degree of variability because of factors that include time of year, overall economic conditions and sales employee incentives, we believe it is prudent to maintain inventory levels in advance of receipt of firm orders to ensure that we have sufficient stock to satisfy incoming orders.
−Removed: Our inventory management system has thus far enabled us to minimize the effects of the disruption caused by the global COVID-19 pandemic from a supply chain perspective.
−Removed: The potential impact of the COVID-19 pandemic and potential supply chain disruptions on our business are further described in Item 1A "Risk Factors."
+Added: The potential impacts of the global and macroeconomic conditions and potential supply chain disruptions on our business are further described in Item 1A "Risk Factors."
Sales and Marketing
1 unchanged sentence
Our direct sales force generally uses a "high-touch" sales model that consists of face-to-face or virtual meetings with customers to understand and identify their unique business challenges and requirements.
−Removed: In the global pandemic environment, although more difficult, our sales teams have been successful in engaging customers virtually to understand their requirements
−Removed: and effectively design solutions.
Our sales teams translate our customers' requirements into tailored business solutions that allow the customer to maximize the performance of its infrastructure and service delivery environment.
15 unchanged sentences
In many cases, there are multiple channel partners with the required contractual relationships, so dependence on any single channel partner is not significant.
−Removed: During the fiscal yea rs ended March 31, 2022, 2021 and 2020 , no direct customers or indirect channel partners accounted for more than 10% of our total revenue.
+Added: During the fiscal year ended March 31, 2023, one direct customer, Verizon, accounted for more than 10% of our total revenue, while no indirect channel partners accounted for more than 10% of our total revenue.
+Added: During the fiscal years ended March 31, 2022 and 2021, no direct customers or indirect channel partners accounted for more than 10% of our total revenue.
Our marketing organization drives our market research, strategy, product positioning and messaging, and produces and manages a variety of programs such as customer forums, trade shows, industry events, advertising, public and analyst relations, social media, direct mail, seminars and webinars, sales promotions and other online marketing programs.
9 unchanged sentences
Our continued investment in research and development is crucial to our business and our continued success in the market.
−Removed: We have assembled a team of highly skilled engineers with expertise in various technologies associated with our business and the technologies being deployed by our customers.
+Added: We have assembled a team of highly skilled engineers with expertise in various technologies associated with our business and the
+Added: technologies being deployed by our customers.
We plan to continue to enhance and expand our product offerings and capabilities in the near future while integrating key capabilities from acquired product lines as appropriate.
2 unchanged sentences
We have also acquired developed technology through business acquisitions.
−Removed: To promote industry standards and manifest technology leadership, we
−Removed: participate in and support the activities and recommendations of industry standards bodies, and we also engage in close and regular dialogue with our key customers and alliance partners.
+Added: To promote industry standards and manifest technology leadership, we participate in and support the activities and recommendations of industry standards bodies, and we also engage in close and regular dialogue with our key customers and alliance partners.
These activities provide early insight into the direction of network and application performance requirements and the changing cybersecurity landscape that impacts current and emerging technologies.
7 unchanged sentences
Service engagements are also included in certain orders.
−Removed: Customers generally may reschedule or cancel orders with little or no penalty.
−Removed: We believe that our backlog at any particular time is generally not meaningful because it is not necessarily indicative of future sales levels.
−Removed: Our combined product backlog at March 31, 2022 was $92.8 million compared to $27.9 million at March 31, 2021.
−Removed: A majority of the backlog relates to orders that were received late in the quarter and radio frequency propagation modeling projects.
+Added: Customers generally may reschedule or cancel unfulfilled orders with little or no penalty.
+Added: Our total backlog at any particular time is not necessarily indicative of future sales levels.
+Added: Within total backlog, fulfillable backlog includes what we consider to represent orders that are generally available to be delivered to customers as of the end of the reporting period.
+Added: Delivery of our fulfillable backlog typically occurs early in the subsequent quarter.
+Added: However, delivery may be delayed or accelerated due to various other reasons, including but not limited to, changes in timing of customer projects and product delivery schedules, which may not be within our control.
+Added: Our total combined product backlog at March 31, 2023 was $44.4 million compared to $92.8 million at March 31, 2022.
+Added: Combined product backlog included fulfillable backlog of $41.1 million and $51.5 million at March 31, 2023 and 2022, respectively.
+Added: Total backlog includes orders that were received late in the quarter and radio frequency propagation modeling projects.
In some cases, we have begun these projects but have not yet hit billable milestones.
−Removed: A radio frequency propagation modeling project order received in the third quarter of fiscal year 2022 allowed NetScout to bill for the entire project based upon partial delivery.
−Removed: At March 31, 2022, deferred revenue and accounts receivable each contained a gross balance of $19.9 million related to this radio frequency propagation modeling project.
−Removed: A majority of revenue for these projects is expected to be recognized into revenue throughout fiscal year 2023.
−Removed: At March 31, 2021 any radio frequency propagation modeling billings ahead of delivery were immaterial.
+Added: At March 31, 2023 and 2022, deferred revenue and accounts receivable each contained a gross balance of $8.3 million and $19.9 million, respectively, related to these radio frequency propagation modeling project orders.
+Added: Radio frequency propagation modeling project orders received in the third quarter of fiscal year 2022 allowed NetScout to bill for the entire projects based upon partial delivery.
+Added: At March 31, 2023, deferred revenue related to these radio frequency propagation modeling projects included a gross balance of $8.3 million compared to a gross balance of $19.9 million at March 31, 2022.
+Added: A majority of the revenue for these projects is expected to be recognized into revenue throughout the fiscal year ending March 31, 2024.
We compete with many companies in the markets we serve.
19 unchanged sentences
In the service provider market, we compete with traditional probe vendors, network equipment manufacturers, big data and analytics vendors, and virtualization vendors.
−Removed: These vendors include Anritsu, Cisco, Ericsson, Dell Technologies, EXFO, Huawei, IBM, Infovista, Niksun, Elisa Polystar, Radcom, Splunk, Nokia and Viavi.
+Added: These vendors include Anritsu, Cisco, Ericsson, EXFO, Huawei, IBM, Infovista, Niksun, Elisa Polystar, Radcom, Splunk, Nokia and Viavi.
We face additional competitive threats from startups and new entrants that seek to offer innovative solutions in an industry characterized by rapid technological change.
2 unchanged sentences
In the service provider DDoS solutions market, we compete under the NetScout Arbor brand with a broad range of vendors including Radware, Akamai, F5 Networks, A10 Networks, Fortinet, Fastly, Cloudflare and Corero Network Security.
−Removed: In the enterprise market for Network Detection and Response (NDR) solutions that utilize specialized threat analysis, traffic analysis, and packet forensics to detect and raise alerts of advanced network threats, we compete under the NetScout Omnis Security brand with a range of vendors including Darktrace, Vectra Networks, Extrahop, Viavi, Symantec, Cisco, and other specialist providers.
+Added: In the enterprise market for Network Detection and Response (NDR) solutions that utilize specialized threat analysis, traffic analysis, and packet forensics to detect and raise alerts of advanced network threats, we compete under the NetScout Omnis Security brand with a range of vendors including Darktrace, Vectra Networks, Extrahop, Cisco, and other specialist providers.
Our ability to sustain a competitive advantage depends on our ability to deliver continued technology innovation and adapt to meet the evolving needs of our customers.
9 unchanged sentences
and foreign trademark registrations to preserve and protect certain trademarks and trade names.
−Removed: We have also filed and obtained U.S.
+Added: filed and obtained U.S.
patents and international counterparts to protect certain unique NetScout inventions from being unlawfully exploited by other parties.
6 unchanged sentences
"Lean" decision-making puts the tough calls up front and puts employees and the long-term success of the company first.
−Removed: We believe our commitment to education, engagement, and communication has motivated our employees around the world and keeps our spirit thriving, and everyone, regardless of role, brings value to the organization.
−Removed: As of March 31, 2022, we had 2,331 employees worldwide – over 99% of whom were full time employees.
−Removed: Our employees are in over 35 countries with 64% of our employees located in the United States.
+Added: We believe our commitment to our culture and values, diversity, equity and inclusion, talent development, and health and safety, and providing for competitive total rewards has motivated our employees around the world and keeps our spirit thriving, and everyone, regardless of role, brings value to the organization.
+Added: Our Compensation Committee oversees our key human capital management strategies and programs and shares oversight of environmental, health, and safety matters, with the Nominating and Corporate Governance Committee of the Board of Directors.
+Added: At March 31, 2023, we had 2,355 employees worldwide – over 99% of whom were full time employees.
+Added: Our employees are in 35 countries with 64% of our employees located in the United States.
+Added: Culture & Values
+Added: We believe that our company culture is critical to our success and growth.
+Added: Our culture complements and acts as a multiplier to our technology, exceptional talent, and forward-thinking innovation.
+Added: As a result of our philosophy, we have pledged to be considerate, loyal and appreciative of our employees while also enacting decision-making processes and business strategies that result in efficient business outcomes.
+Added: We take seriously our mission as Guardians of the Connected World.
+Added: Our internal NETSCOUT WITHOUT BORDERS initiative is a key component in our employee engagement program and allows us to continuously communicate our mission and goals to all of our global employees through a series of town hall meetings that provide direct interaction with the CEO, in-depth focus groups, and follow-on development programs.
+Added: These meetings allow us to stay connected with all employees and ensure everyone is equipped with the knowledge and tools so all their efforts can be aligned with our vision, mission and goals as part of our ongoing internal efforts.
+Added: The Nominating and Corporate Governance Committee oversees these efforts as part of its comprehensive review of environmental, social and governance (ESG) matters.
Diversity, Equity & Inclusion
−Removed: Diversity, equity, and inclusion (DEI) are the cornerstones of our organizational excellence and complement our core values of performing with integrity, compassion, collaboration, and innovation.
+Added: Diversity, equity, and inclusion (DEI) are important to our organizational excellence and complement our core values of performing with integrity, compassion, collaboration, and innovation.
We embrace and encourage our employees' differences in age, color, disability, ethnicity, family or marital status, gender identity or expression, language, national origin, physical and mental ability, political affiliation, race, religion, sexual orientation, socio-economic status, veteran status, and other characteristics that make our employees unique.
4 unchanged sentences
We track our progress and make improvements to reach a broader, more diverse, talent base.
−Removed: We also partner with universities with diverse student enrollment to recruit our summer interns.
+Added: We also partner with universities with diverse student enrollment to recruit college hires and summer interns.
Talent Development
4 unchanged sentences
• Strengthen high-performing teams – For selected leaders, we partner with the Center for Higher Ambition Leadership to offer programs that strengthen high-performing teams.
−Removed: Culture & Values
−Removed: We believe that our company culture is critical to our success and growth.
−Removed: Our culture complements and acts as a multiplier to our technology, exceptional talent, and forward-thinking innovation.
−Removed: As a result of our philosophy, we have pledged to be considerate, loyal and appreciative of our employees while also enacting decision-making processes and business strategies that result in efficient business outcomes.
−Removed: We take seriously our mission as Guardians of the Connected World.
−Removed: In 2021, we launched our internal NETSCOUT WITHOUT BORDERS initiative, of which a key component is an employee engagement program to continuously communicate our mission and goals to all of our global employees through a series of town hall meetings that provide direct interaction with the CEO, in-depth focus groups, and follow-on development programs.
−Removed: This is a significant investment to stay connected with all employees, and to ensure everyone is equipped with the knowledge and tools so all their efforts can be aligned with our vision, mission and goals.
−Removed: COVID-19 Response
+Added: Environmental, Health, and Safety Regulatory Compliance
NetScout's Environment, Health, and Safety (EHS) Council is responsible for EHS policy, managing and coordinating EHS regulatory compliance, and tracking goals and results.
−Removed: The EHS Council reports to senior executives and its results are reported to the Nominating and Corporate Governance Committee of the Board of Directors as part of the committee's comprehensive review of corporate responsibility and ESG.
−Removed: During the COVID-19 pandemic, our top priority has been the safety and well-being of our employees and their families to ensure that they continue to be productive and keep our customers and the world connected.
−Removed: As the severity and scope of the pandemic became known in early calendar year 2020, we curtailed travel and required all employees, in all locations, to work from home, with only a limited number of employees with business-critical tasks provided access to our facilities.
−Removed: For those employees who needed to be on-site, we established multiple protective measures to ensure the safety of our employees.
−Removed: We have begun allowing our employees to return to work on-sites, in accordance with federal, state, and local government guidelines, as well as in accordance with foreign government guidelines in the countries in which we operate.
−Removed: Furthermore, the processes that we have implemented to enable our employees to return to work on-site are in accordance with prevailing health and science guidance, and in a manner that seeks to protect our employees, contractors, customers, suppliers, and our local communities.
−Removed: Throughout the course of the COVID-19 pandemic, we were able to maintain our unique culture, support our employees with well-being programs and uninterrupted salary and benefits, and maintain our market presence and unfailingly superior service levels to our customers.
−Removed: Compensation and Benefits
+Added: The EHS Council reports to senior executives and its results are reported to the Nominating and Corporate Governance Committee of the Board of Directors.
+Added: Total Rewards
We offer a competitive compensation and benefits package to attract, retain and motivate our employees.
Our compensation package includes market-competitive pay, cash and equity incentive compensation, an Employee Stock Purchase Plan, retirement benefits, health benefits, paid time off and leave benefits.
−Removed: Our Compensation Committee oversees our key human capital management strategies and programs.
Environmental Social Governance
−Removed: We believe our commitment to ESG is an important part of creating long-term business value.
−Removed: As set out in its Charter, the Nominating and Corporate Governance Committee of NetScout's Board of Directors oversees NetScout's ESG program.
−Removed: The Nominating and Corporate Governance Committee meets regularly and reviews and advises on ESG strategy and apprises the full Board, which also considers NetScout’s ESG program and strategy as well as its alignment with the Company’s mission.
+Added: We believe that effectively managing ESG matters is an important part of creating business value.
+Added: As set out in its Charter, our Nominating and Corporate Governance Committee oversees our ESG program.
+Added: The Nominating and Corporate Governance Committee meets regularly and reviews and advises on ESG strategy and apprises the full Board of Directors, which also considers our ESG program and strategy as well as its alignment with our mission.
Relatedly, the Audit Committee also regularly reviews ESG-related topics such as enterprise risk management, our anticorruption program, ethics and compliance issues, supply chain issues including human rights protections, and cybersecurity and data privacy.
−Removed: The ESG Steering Committee, under the strategic direction of the Chief Executive Officer and chaired by NetScout's General Counsel, is responsible for the development and implementation of the ESG program.
−Removed: With representation across all key business functions, the mandate of the ESG Steering Committee is to consider our existing ESG efforts, understand stakeholder perspectives, identify areas for improvement that align with our business, and work collaboratively to support programs designed to accelerate ESG initiatives.
−Removed: We have adopted four ESG pillars that lay out our current top ESG priorities, under pinned by a strong governance focus:
−Removed: Demonstrating product leadership through sustainability by design and helping our customers reduce their environmental footprint, through reducing electricity requirements of our products.
+Added: The ESG Steering Committee, under the strategic direction of the Chief Executive Officer and chaired by NetScout's General Counsel, provides guidance and management oversight for the ESG program.
+Added: The Office of ESG, chaired by our General Counsel in his role as Chief ESG Officer, is responsible for the development and implementation of the ESG program.
+Added: With representation across key business functions, the mandate of the ESG Steering Committee is to consider our existing ESG efforts, understand stakeholder perspectives, identify areas for improvement that align with our business, and work collaboratively to support programs designed to accelerate ESG initiatives.
+Added: We have adopted four ESG pillars that lay out our current top ESG priorities, underpinned by a strong governance focus:
+Added: Demonstrating product leadership through sustainability by design and helping our customers reduce their environmental footprint, including through reducing electricity requirements of our products;
Reducing electricity use in our facilities, with emphasis on our engineering labs;
4 unchanged sentences
Information Security
−Removed: NetScout is vigilant in protecting personal data and complying with the highest standards of privacy and security.
−Removed: We take a layered defense approach to protect confidentiality and prevent data compromise and breaches, including, among other
−Removed: steps, technology safeguards, organizational safeguards including training and awareness programs, and physical safeguards.
+Added: Cybersecurity, data privacy and data protection are critical to our business.
+Added: As such, we have developed information security designed toward vigilant protection of personal data and maintaining vigorous standards of privacy and security.
+Added: We take a layered defense approach to protect confidentiality and prevent data compromise and breaches, including technology safeguards, organizational safeguards such as training and awareness programs, and physical safeguards.
We maintain a robust Information Security Program (ISP) to help ensure the confidentiality, integrity, and availability of corporate data and the systems storing this information.
−Removed: Our ISP also includes annual information security awareness training for employees and audits of our systems and enhanced training for specialized personnel, and we have instituted regular phishing email simulations for all employees and all contractors with access to corporate email systems to enhance awareness and responsiveness to such possible threats.
+Added: Our ISP also includes annual information security awareness training for employees and audits of our systems and enhanced training for specialized personnel, and we have instituted regular phishing email
+Added: simulations for all employees and all contractors with access to corporate email systems to enhance awareness and responsiveness to such possible threats.
Our ISP also includes review and assessment by external, independent third parties, and we achieved ISO 27001 certification demonstrating our adherence to ISP best practices, including risk assessment, protection against threats, legal compliance, and incident response and mitigation.
Our ISP also includes a data security incident response plan that provides controls and procedures for timely and accurate reporting of any material cybersecurity incident.
−Removed: NetScout is committed to managing its legal and contractual compliance obligations with respect to security and privacy laws, including the EU General Data Privacy Regulation and the California Consumer Privacy Act.
+Added: We are committed to managing our legal and contractual compliance obligations with respect to security and privacy laws, including the EU General Data Privacy Regulation and the California Consumer Privacy Act.
We have devoted considerable resources to ensuring compliance with applicable data privacy laws and developing our privacy policy and providing regular security training to employees.
−Removed: We review cybersecurity and data privacy issues regularly with the independent Audit Committee and with the full Board.
+Added: We review cybersecurity and data privacy issues regularly with the Audit Committee and with the full Board.
The Audit Committee is comprised entirely of independent directors, some of whom have work experience related to information security issues or oversight.
In the last three years, the expenses we have incurred from information security breach incidences, including penalties and settlements, of which there were none, were immaterial.
−Removed: We take our customers' information security and privacy commitments just as seriously.
+Added: We take our customers' information security and privacy commitments seriously.
The security features of our products are designed to mitigate data risks, such as loss or unauthorized access, destruction, use, modification, or disclosure.
−Removed: NetScout products allow customers to customize a security strategy in several ways, from the operating system and between system communications to access control of individual modules, role-based data visibility, and packet and data storage configurations.
+Added: Our products allow customers to customize a security strategy in several ways, from the operating system and between system communications to access control of individual modules, role-based data visibility, and packet and data storage configurations.
We have features in our products that allow masking of sensitive data, and, where possible, minimization through aggregation and measures to control data access.
−Removed: Our nGeniusONE and Omnis products are based on hardened Linux operating systems and updated software packages to reduce security vulnerabilities, and administrators can further secure the server and appliance hardware through such options as purchasing appliances with self-encrypting drives.
+Added: Our nGeniusONE and Omnis products are based on hardened Linux operating systems and updated software packages to reduce security vulnerabilities, and administrators can further secure the server and appliance hardware by purchasing appliances with self-encrypting drives.
NETSCOUT Arbor DDoS virtual and physical solutions provide similar operational protection.
+Added: For a discussion of the risks we face related to information security, see Part I, Item 1A.
+Added: "Risk Factors".
Corporate Information
9 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.