Wednesday, July 6, 2011

Ixia Sees Weaker Q2

Ixia announced preliminary results for Q2 2011, saying it now expects total revenue to be in the range of $67.0 million to $69.0 million, below the company's previous guidance of $78.0 million to $82.0 million.

Ixia attributed the weaker than expected Q2 results to lower than expected revenue from Asia Pacific and from certain large equipment makers, as well as orders received late in the quarter that could not be fulfilled in the second quarter. Revenue from Cisco Systems, Ixia's largest customer, and from service providers was in line with expectations.

On a GAAP basis, Ixia expects to report breakeven net earnings per diluted share to a net loss of $0.01 per diluted share for the second quarter of 2011, compared with the company's prior guidance of net earnings of $0.08 to $0.12 per diluted share.

"We are disappointed with our revenue performance this quarter, which was impacted by several factors, including 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, said Atul Bhatnagar, president and CEO of Ixia. While we expected revenue from Japan to decline sequentially from the record first quarter, we experienced unexpected weakness in other parts of Asia Pacific, such as China and India."

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