Press Releases
Ixia Announces 2009 First Quarter Results
CALABASAS, CA— April 23, 2009-- Ixia (Nasdaq: XXIA) today reported its financial results for the first quarter ended March 31, 2009.
Total revenues for the 2009 first quarter were $37.1 million compared to $41.7 million in the 2008 first quarter. On a GAAP basis, the Company recorded a net loss for the 2009 first quarter of $4.0 million, or $0.06 per share, compared to net income of $106,000, or $0.00 per diluted share, for the 2008 first quarter.
Non-GAAP net income for the 2009 first quarter was $385,000, or $0.01 per diluted share, compared to net income of $2.8 million, or $0.04 per diluted share, for the 2008 first quarter. Ixia’s non-GAAP 2009 first quarter results exclude non-cash charges of $3.8 million related to stock-based compensation, $1.3 million for the amortization of acquired intangible assets, $1.4 million for the impairment of the Company’s auction rate securities and a net tax benefit of $2.2 million related to these items. Non-GAAP results for the 2008 first quarter exclude non-cash charges of $2.9 million related to stock-based compensation, $1.5 million for the amortization of acquired intangible assets and a net tax benefit of $1.7 million related to these items.
“Despite the challenging business conditions during the first quarter, we generated positive cash flow from our operations, and were encouraged by year-over-year top line growth in some key markets,” commented Atul Bhatnagar, Ixia’s president and chief executive officer. “Revenues in the Asia Pacific region hit new levels led by record quarters in Japan and China. We also saw an increase in our service provider business where bookings were up by 19% over last year. However, the uncertainty of the global economy continues to impact the buying decisions of many of our customers, particularly in the United States where some network equipment manufacturers and carriers delayed or reduced spending during the first quarter. We believe that the remainder of 2009 will continue to be challenging, but we are prepared to meet these challenges by focusing on key product innovation, customer delight and cost controls. We are committed to maintaining and enhancing our profitability and positive operating cash flow while meeting the needs of our customers.”
Under the $25 million share repurchase program announced in late November 2008, Ixia repurchased approximately 1.1 million shares of its common stock at an average purchase price of $5.00 per share, or a total of approximately $5.3 million, during the 2009 first quarter. Since the inception of the share repurchase program through March 31, 2009, Ixia has repurchased approximately 1.5 million shares of its common stock at an average purchase price of $5.28 per share, or a total of approximately $8.1 million.
As of March 31, 2009, Ixia had cash, cash equivalents and investments of $202.2 million and no debt. Of this total, over $180 million is invested in short-term debt obligations of the U.S. government. The Company also owns interest bearing auction rate securities with a current value of $1.8 million.
Ixia will host a conference call today for analysts and investors to discuss its 2009 first quarter results and its business outlook for the 2009 second quarter at 5:00 p.m. Eastern Time. Open to the public, a live Web cast of the conference call, along with supplemental financial information, will be accessible from the “Investors” section of Ixia’s Web Site (
www.ixiacom.com). Following the live Web cast, an archived version will be available in the “Investors” section on the Ixia Web Site for 90 days.
Non-GAAP Information
To supplement our consolidated financial results prepared in accordance with Generally Accepted Accounting Principles (“GAAP”), we have included certain non-GAAP financial measures in this press release and in the attachments hereto. Specifically, we have provided non-GAAP financial measures (e.g., non-GAAP cost of revenues, non-GAAP operating expenses, non-GAAP operating income, non-GAAP income tax expense, non-GAAP net income, and non-GAAP diluted earnings per share) that exclude certain non-cash expenses such as stock-based compensation, the amortization of acquisition-related intangible assets, and the impairment charges related to certain investments, as well as the related income tax effects of such items. Stock-based compensation, the amortization of acquisition-related intangible assets and the impairment charges related to certain investments represent non-cash charges that may be difficult to estimate from period to period and that are not directly attributable to the underlying performance of our business operations. These non-GAAP financial measures are provided to enhance the user’s overall understanding of our financial performance. We believe that by excluding certain non-cash charges, as well as the related income tax effects, our non-GAAP measures provide supplemental information to both management and investors that is useful in assessing our core operating performance, in evaluating our ongoing business operations and in comparing our results of operations on a consistent basis from period to period. These non-GAAP financial measures are also used by management to plan and forecast future periods and to assist in making operating and strategic decisions. The presentation of this additional information is not prepared in accordance with GAAP. The information therefore may not necessarily be comparable to that of other companies and should be considered as a supplement to, not a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP. Investors are encouraged to review the reconciliations of GAAP to non-GAAP financial measures which are included below in this press release.
About Ixia
Ixia is a leading provider of IP performance test systems and service verification platforms for IP-based infrastructure and services. Ixia’s test systems are used by network and telephony equipment manufacturers, semiconductor manufacturers, service providers, governments and enterprises to validate the performance and reliability of complex IP networks, devices, and applications. Ixia’s multiplay test systems address the growing need to test voice, video, and data services and network capability under real-world conditions.
For more information, contact Ixia at 26601 W. Agoura Road, Calabasas, CA 91302; (818) 871-1800, Fax: (818) 871-1805; Email: info@ixiacom.com or visit our Web Site at http://www.ixiacom.com.
Ixia and the Ixia four petal logo are trademarks and/or registered trademarks of Ixia. Other trademarks are the property of their respective owners.
Safe Harbor Under the Private Securities Litigation Reform Act of 1995:
Certain statements made in this press release are forward‑looking statements, including, without limitation, statements regarding possible future revenues, growth and profitability and future business and market share. In some cases, such forward-looking statements can be identified by terms such as “may,” “will,” “expect,” “plan,” “believe,” “estimate,” “predict” or the like. Such statements reflect our current intent, belief and expectations and are subject to risks and uncertainties that could cause our actual results to differ materially from those expressed or implied in the forward‑looking statements. Factors that may cause future results to differ materially from our current expectations include those identified in our Annual Report on Form 10-K for the year ended December 31, 2008, and in our other filings with the Securities and Exchange Commission. We undertake no obligation to update any forward‑looking statements, whether as a result of new information, future events or otherwise.
To read the entire press release, including all financial information, please click here.
For more information, contact:
Tom Miller
Chief Financial Officer
(818) 444-2325
tmiller@ixiacom.com
This material is for informational purposes only and subject to change without notice. It describes Ixia's present plans to develop and make available to its customers certain products, features and capabilities. Ixia is only obligated to provide those deliverables specifically included in a written agreement between Ixia and the customer.
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