CALABASAS, CA — (Marketwire) — 07/21/11 — (NASDAQ: XXIA) today reported its financial results for the second quarter ended June 30, 2011.
Total revenue for the 2011 second quarter was $69.0 million, compared with $66.1 million reported for the 2010 second quarter and $78.5 million reported for the first quarter of 2011.
On a GAAP basis, the company recorded net income for the 2011 second quarter of $0.5 million, or $0.01 per diluted share, compared with a net loss of $0.4 million, or $0.01 per share, for the 2010 second quarter.
Non-GAAP net income for the 2011 second quarter was $5.8 million, or $0.08 per diluted share, compared with non-GAAP net income of $6.8 million, or $0.10 per diluted share, for the 2010 second quarter.
Additional non-GAAP information and a reconciliation of our non-GAAP measures to comparable GAAP measures for the second quarter and six months ended June 30, 2011 and 2010, respectively, may be found in the attached financial tables.
“Although we are disappointed with our results this quarter, the trends driving our markets and business, including the upgrade to next-generation networks and the convergence of wired and wireless networks, remain substantially intact,” commented Atul Bhatnagar, Ixia-s president and chief executive officer. “As we previously announced, the weakness we experienced in the second quarter related mainly to delays and reductions in spending by certain large network equipment makers, a large wireless order received too late in the quarter to ship and soft sales in the Asia Pacific region. While we are carefully monitoring market conditions and spending trends, we remain focused on continuing our efforts to develop innovative high performance testing solutions for emerging next generation media rich networks.
“The recent momentum in orders for our wireless test solutions is very encouraging,” continued Mr. Bhatnagar. “In the second quarter we secured record bookings for our IxCatapult solutions, which consisted primarily of orders for our LTE products. Last Monday, we closed the acquisition of Wi-Fi test solution provider VeriWave, which complements our LTE strategy. Our product portfolio now provides an end-to-end test solution for the converged Wi-Fi, LTE, Ethernet and IP networks.”
Ixia ended the second quarter with approximately $369 million in cash and investments, compared with $354 million at March 31, 2011.
Ixia will host a conference call today, at 5:00 p.m., Eastern Time, for analysts and investors to discuss its 2011 second quarter results and its business outlook for the 2011 third 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 (). 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 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/4G 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 .
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, 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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