"We are disappointed with our first quarter results. Our topline performance was primarily impacted by an unexpected and marked slowdown in network test spending from our
These are preliminary results and remain subject to the completion of the company's customary quarterly financial closing and review procedures. Material adjustments may arise between the date of this press release and the dates on which
2016 First Quarter Conference Call
The call will be open to the public, and interested parties may listen to the call by dialing (844) 858-9864. A live audio webcast of the conference call will be accessible from the "Investors" section of the company's website (www.ixiacom.com/investors). Following the live webcast, an archived version will be available in the "Investors" section of the
Certain supplemental financial information will be posted promptly to the website following the issuance of Ixia’s 2016 first quarter results press release, and certain additional supplemental financial information will be posted just prior to the start of the conference call.
Non-GAAP Financial Measures
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 earnings per diluted share measures, which exclude certain non-cash and/or non-recurring income and expense items such as expenses relating to internal investigations and any related remediation efforts, the pending securities class action and shareholder derivative action against the company and certain of its current and former officers and directors as well as an ongoing
Safe Harbor under the Private Securities Litigation Reform Act of 1995
Certain statements made in this press release may be deemed to be forward-looking statements including, without limitation, statements regarding the company’s expectations regarding certain of its financial results for the first quarter of 2016 and regarding the company’s strategy to grow its business and financial discipline. In some cases, such forward-looking statements can be identified by words such as "may," "will," "should," "could," "would," "expect," "plan," "anticipate," "believe," "estimate," "project," "predict," "potential," or the like. These statements reflect our current views with respect to future events and are based on assumptions and are subject to risks and uncertainties. These risks and uncertainties, as well as other factors, may cause our future results, performance, or achievements to be materially different from those expressed or implied by such forward-looking statements. Factors that could cause the actual results to differ materially from those expressed or implied in such forward-looking statements include, among others: any changes to our expected financial results resulting from the completion of our quarterly financial close and review procedures, our success in developing, producing, and introducing new products and in keeping pace with the rapid technological changes that characterize our market; our success in developing new sales channels and customers; market acceptance of our products; competition; changes in the global economy and in market conditions; consistency of orders from significant customers; our success in leveraging our intellectual property portfolio, expertise and market opportunities; our expectations regarding the transition into Software Defined Networks (SDN) and Network Functions Virtualization (NFV); material weaknesses in our internal controls; the company’s ability to manage expenses; and war, terrorism, political unrest, natural disasters, cybersecurity attacks, and other circumstances that could, among other consequences, reduce the demand for our products, disrupt our supply chain, and/or impact the delivery of our products. The factors that may cause future results to differ materially from our current expectations also include, without limitation, the risks identified in our Annual Report on Form 10-K for the year ended
Learn more at www.ixiacom.com.
Non-GAAP Information and Reconciliation to Most Directly Comparable GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP diluted earnings (loss) per share - Current Expectations:
|Three Months Ended
March 31, 2016
|Low end of range||High end of range|
|GAAP diluted loss per share||$||(0.05||)||$||(0.03||)|
|Stock-based compensation (a)||0.06||0.06|
|Amortization of intangible assets (b)||0.12||0.12|
|Investigations, shareholder litigation and related matters (c)||0.01||0.01|
|Income tax effect (d)||(0.09||)||(0.08||)|
|Non-GAAP diluted earnings per share||$||0.05||$||0.08|
Reconciliation of GAAP to Non-GAAP diluted earnings (loss) per share - Previous Expectations:
|Three Months Ended
March 31, 2016
|Low end of range||High end of range|
|GAAP diluted loss per share||$||(0.04||)||$||0.00|
|Stock-based compensation (a)||0.05||0.07|
|Amortization of intangible assets (b)||0.13||0.13|
|Investigations, shareholder litigation and related matters (c)||0.00||0.00|
|Income tax effect (d)||(0.04||)||(0.06||)|
|Non-GAAP diluted earnings per share||$||0.10||$||0.14|
(a) This reconciling item represents stock-based compensation. As stock-based compensation represents a non-cash charge that is not directly attributable to the underlying performance of our business operations, we believe that by excluding stock-based compensation, we provide investors supplemental information that is useful in comparing our operating results from period to period and in evaluating our core operations and performance. While we expect to continue to recognize stock-based compensation in the future, management also excludes this expense when evaluating current performance, forecasting future results, measuring core operating results, and making operating and strategic decisions.
(b) This reconciling item represents the amortization of intangible assets related to the acquisitions of various businesses and technologies. As amortization expense represents a non-cash charge that is not directly attributable to the underlying performance of our business operations, we believe that by excluding the amortization of acquisition-related intangible assets, we provide investors with supplemental information that is useful in evaluating our ongoing operations and performance. While the amortization of acquisition-related intangible assets is expected to continue in the future, management also excludes this expense when evaluating current performance, forecasting future results, measuring core operating results, and making operating and strategic decisions.
(c) This reconciling item represents costs incurred related to (i) internal investigations and any related remediation efforts, (ii) the securities class action against the company and certain of its current and former officers and directors as well as a shareholder derivative action, and (iii) an
(d) This adjustment represents the income tax effects of the reconciling items noted in footnotes (a), (b), and (c), as well as certain other non-cash income tax impacts such as changes in the valuation allowance relating to certain deferred tax assets.
The Blueshirt Group
Maria Riley, 415-217-7722