(Source: Business Wire)
Ixia (Nasdaq: XXIA) today reported its financial results for the third
quarter ended September 30, 2009.
Total revenues for the 2009 third quarter were $46.4 million compared to
$47.3 million in the 2008 third quarter. Revenues for the 2009 third
quarter include $7.5 million attributable to Catapult Communications
Corporation ("Catapult"). On a GAAP basis, the Company recorded a net
loss for the 2009 third quarter of $6.2 million, or $0.10 per share,
compared to net income of $483,000, or $0.01 per diluted share, for the
2008 third quarter.
Non-GAAP net income for the 2009 third quarter was $1.5 million, or
$0.02 per diluted share, compared to non-GAAP net income of $6.3
million, or $0.10 per diluted share, for the 2008 third quarter. Ixia's
non-GAAP 2009 third quarter results exclude charges of $1.6 million
related to stock-based compensation, $880,000 for acquisition-related
costs, $3.8 million for the amortization of acquired intangible assets,
$2.5 million related to restructuring expenses, $1.0 million for certain
inventory write-downs and $1.4 million related to the impairment of
certain investments, and a net tax benefit of $3.4 million related to
these items. Non-GAAP results for the 2008 third quarter exclude charges
of $2.4 million related to stock-based compensation, $1.4 million for
the amortization of acquired intangible assets and $4.3 million related
to the impairment of certain investments, and a net tax benefit of $2.2
million related to these items.
"Ixia delivered solid revenues and executed on multiple fronts during
the quarter, including the Catapult integration and the release of our
next generation IxNetwork Layer 2-3 test solution," commented Atul
Bhatnagar, Ixia's president and chief executive officer. "The
integration of Catapult is nearly complete with unified sales and
engineering teams operating effectively around the globe. In our first
full quarter of operating Ixia and Catapult as one business, we
experienced meaningful sequential growth in orders, both for our core
wired products as well as for our wireless offerings. In addition, sales
of our 10 Gigabit Ethernet products hit a new high and our Asia Pacific
business rebounded nicely. On the cost side, we are starting to see some
benefits from the restructuring plan announced in the second quarter and
have moved quickly to realize cost synergies related to the Catapult
business. Going forward, we will continue to focus on improving our
operating results while also executing on critical initiatives to
strengthen our position in the market, such as our recently announced
acquisition of Agilent Technologies' N2X Data Network Testing Product
line. This acquisition, when completed on or about October 30, 2009,
will further fortify Ixia as a global leader in Converged Ethernet IP
and LTE testing."
As of September 30, 2009, Ixia had cash, cash equivalents and
investments of $129 million and no debt.
Ixia will host a conference call today, at 5:00 p.m., Eastern Time, for
analysts and investors to discuss its 2009 third quarter results and its
business outlook for the 2009 fourth quarter. 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
charges such as stock-based compensation expenses, acquisition related
costs incurred in 2009, the amortization of acquisition-related
intangible assets, restructuring expenses, certain inventory write-downs
and the impairment charges related to certain investments, as well as
the related income tax effects of such items. The aforementioned charges
represent 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 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 converged IP performance test systems and
service verification platforms for wireless and wired infrastructures
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 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, IxNetwork 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, cost savings, 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," "should,"
"could," "would," "expect," "plan," "anticipate," "believe," "estimate,"
"project," "predict," "potential," and variations of these words and
similar expressions are intended to identify forward-looking statements.
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, uncertainties and other factors may cause our future
results, performances or achievements to be materially different from
those expressed or implied by our forward-looking statements and
include, among other things: the current global economy, our success
with the integration of our recently completed acquisition of Catapult
and pending acquisition of Agilent Technologies' N2X Data Network
Testing Product line, competition, our ability to successfully defend
any claims from taxing authorities in the various countries where we
conduct business, consistency of orders from significant customers, our
success in developing and producing new products, market acceptance of
our products and our ability to realize all of the expected benefits of
our restructuring plan. 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 December 31, 2008, and in our other filings with the
Securities and Exchange Commission. Many of these risks and
uncertainties are outside of our control and are difficult for us to
forecast or mitigate. We undertake no obligation to update any
forward-looking statements, whether as a result of new information,
future events or otherwise.
IXIA Condensed Consolidated Balance Sheets (in thousands) (unaudited)
September 30, December 31,
2009 2008
Assets
Current assets:
Cash and cash equivalents $ 15,322 $ 192,791
Short-term investments in marketable securities 58,565 9,850
Accounts receivable, net 37,219 34,001
Inventories 16,182 14,966
Deferred income taxes 6,313 4,855
Prepaid expenses and other current assets 4,140 4,981
Total current assets 137,741 261,444
Investments in marketable securities 54,813 3,657
Property and equipment, net 18,056 18,506
Deferred income taxes 26,835 14,945
Intangible assets, net 52,032 10,592
Goodwill 39,194 16,728
Other assets 2,290 2,554
Total assets $ 330,961 $ 328,426
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $ 4,228 $ 4,729
Accrued expenses 20,612 18,823
Deferred revenues 24,481 19,558
Income taxes payable 673 452
Total current liabilities 49,994 43,562
Deferred revenues 4,681 6,109
Other liabilities 12,321 5,559
Total liabilities 66,996 55,230
Shareholders' equity:
Common stock, without par value; 200,000 shares authorized at September 30, 2009 and December 31, 2008; 62,635 and 63,391 shares issued and outstanding as of September 30, 2009 and December 31, 2008, respectively 85,717 92,386
Additional paid-in capital 116,155 107,882
Retained earnings 60,314 73,182
Accumulated other comprehensive income (loss) 1,779 (254 )
Total shareholders' equity 263,965 273,196
Total liabilities and shareholders' equity $ 330,961 $ 328,426
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