Wednesday, January 13, 2010

Ixia Increases Revenue Guidance and Announces Cost Reductions

Ixia currently expects revenues for the fourth quarter of 2009 to increase by approximately 32% year-over-year and approximately 16% sequentially to $54 million to $56 million. Fourth quarter results include a full quarter of contribution following the acquisition of Catapult Communications in June 2009 and two months of contribution following the acquisition of the N2X product line from Agilent, which closed on October 30, 2009. Previous revenue guidance for the fourth quarter of 2009 had been in the range of $50 million to $54 million.

"Contributions from our recent acquisitions were complemented by increasing sequential and year-over-year revenues from our core products," said Atul Bhatnagar, president and chief executive officer. "We are cautiously optimistic that we are starting to see a broader, positive trend in our market and are confident that we have the right products and larger addressable market opportunities."

Ixia also announced today a company-wide restructuring initiative estimated to yield annual cost savings of approximately $11 million. The cost savings announced today result mainly from the elimination of duplicate resources that arose from the October N2X product line acquisition. In addition to these direct cost savings, the company expects to realize scale efficiencies in its supply chain and administrative functions from the N2X acquisition and the acquisition of Catapult Communications. The restructuring plan includes a reduction in staffing that commenced in the first quarter of 2010 and should be complete by June 30, 2010. Approximately 80 positions will be eliminated.