Ixia Announces Fourth Quarter and Fiscal Year 2011 Results
CALABASAS, CA, February 2, 2012 -- Ixia (Nasdaq:XXIA) today reported its financial results for the fourth quarter and year ended December 31, 2011.
Total revenue for the 2011 fourth quarter was a record $83.7 million, compared with $77.8 million reported for the 2010 fourth quarter and $77.3 million reported for the 2011 third quarter. Total revenue for the fiscal year 2011 was $308.4 million, an increase of 11 percent compared with $276.8 million reported for fiscal year 2010.
On a GAAP basis, the company recorded net income for the 2011 fourth quarter of $8.9 million, or $0.12 per diluted share, compared with net income of $5.8 million, or $0.08 per diluted share, for the 2010 fourth quarter. The company recorded GAAP net income for fiscal year 2011 of $22.9 million or $0.32 per diluted share, compared with $11.2 million, or $0.17 per diluted share, for fiscal year 2010.
Non-GAAP net income for the 2011 fourth quarter was $13.7 million, or $0.18 per diluted share, compared with non-GAAP net income of $13.2 million, or $0.18 per diluted share, for the 2010 fourth quarter. The company recorded non-GAAP net income for fiscal year 2011 of $43.8 million, or $0.59 per diluted share, compared with $33.1 million, or $0.49 per diluted share, for fiscal year 2010.
Additional non-GAAP information and a reconciliation of our non-GAAP measures to the most directly comparable GAAP measures for the 2011 and 2010 fourth quarters and fiscal years may be found in the attached financial tables.
Record revenue and bookings led a strong fourth quarter and finish to 2011,commented Atul Bhatnagar, Ixia's president and chief executive officer. "Accelerated demand for our 10G and high-speed Ethernet solutions drove growth in the quarter along with higher than expected sales of LTE and Wi-Fi testing solutions. We saw especially strong demand from equipment manufacturers and from customers in North America.
The competitive pressure placed on equipment manufacturers, service providers and enterprises to satisfy the ever-changing, ever-increasing quality requirements of end users will continue to expand new network technologies and deployments and should increase the demand for our products,continued Mr. Bhatnagar.Looking ahead, we are encouraged by the opportunities we see in 2012. Our end-to-end testing and simulation solutions across IP, LTE and Wi-Fi networks address key global trends, including mobile Internet, rich-media applications and next generation network upgrades.
Ixia ended the fourth quarter with approximately $385 million in cash and investments, compared with $367 million at September 30, 2011.
Conference Call and Webcast Information
Ixia will host a conference call today, at 5:00 p.m., Eastern time, for analysts and investors to discuss its 2011 fourth quarter and fiscal year results and its business outlook for the 2012 first quarter. Open to the public, investors may access the call by dialing (678) 825-8347. A live webcast 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 webcast, an archived version will be available in the "Investors" section on the Ixia web site for 90 days.
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 margin, non-GAAP interest income and other, net, non-GAAP income tax expense, non-GAAP net income, and non-GAAP diluted earnings per share) that exclude certain non-cash and/or non-recurring income and expense items such as proceeds and expenses from certain legal and contractual settlements, stock-based compensation expenses, acquisition and other related costs, the amortization of acquisition-related intangible assets, restructuring expenses, certain inventory adjustments, and the related income tax effects of these items, as well as the income tax impacts of the valuation allowance recorded against certain deferred tax assets. The aforementioned items represent income and expense items that may be difficult to estimate from period to period and/or that we believe 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 these items, 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 the attached financial tables.
Ixia provides the industry's most comprehensive converged IP services testing solution – from the wireless edge to the Internet core. Network equipment manufacturers, service providers, enterprises and government agencies use Ixia's industry-leading test and simulation platforms to design and validate a broad range of wired, Wi-Fi and 3G/LTE networking equipment and networks. Ixia's solutions create real-world conditions by emulating a full range of high-scaling networking protocols and generating media-rich application traffic to validate performance, conformance and security of cloud, core, data center, wireless and multiplay networks. For more information, visit http://www.ixiacom.com.
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 growth, profitability, financial performance and future business. In some cases, such forward-looking statements can be identified by terms such as may, will, should, 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 changes in the global economy, competition, consistency of orders from significant customers, our success in developing and producing new products, market acceptance of our products and war, terrorism, political unrest, natural disasters and other circumstances that could, among other consequences, reduce the demand for our products, disrupt our supply chain or impact the delivery of our products. Such factors also include the risk that the anticipated benefits of our acquisition of VeriWave will not be realized, as well as the factors identified in our Annual Report on Form 10-K for the year ended December 31, 2010, and in our other filings with the U.S. 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.
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The Blueshirt Group
Maria Riley 415-217-7722
Tom Miller, Chief Financial Officer
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.