Wednesday, August 5, 2009

Ixia's Q2 Revenue Falls to $38.4 Million

Ixia posted Q2 revenue of $38.4 million compared to $45.9 million in Q2 2008. Revenues for Q2 2009 include $2.8 million recorded by Catapult Communications. There was a net loss (GAAP) of $2.7 million, or $0.04 per share, compared to net income of $1.8 million, or $0.03 per diluted share, a year ago.

"While the economic climate continues to be challenging, we believe that with the acquisition of Catapult and the cost reduction initiatives launched in Q2, we are well positioned going forward," commented Atul Bhatnagar, Ixia's president and chief executive officer. "The acquisition of Catapult puts Ixia in a leadership position in converged IP testing, and establishes Ixia as a competitive player in 4G wireless testing. During the second quarter, we commenced a restructuring plan related to our core Ixia business that should ultimately reduce expenses by approximately $6 million on an annual basis. And in the third and fourth quarters, we expect to realize cost synergies related to the Catapult business that should make the acquisition accretive by the end of the year. We are already integrating our sales teams and product development plans into a single unified effort. While economic uncertainties remain, we believe that the steps we have taken position the Company to develop innovative products, meet our customers' needs, and deliver improved operating results to enhance shareholder value."