Monday, July 8, 2013

Ixia Misses Q2 Revenue Guidance

Ixia announced that its revenue for Q2 will be in the range of $114 million to $116 million, below the company's previous guidance of $119 million to $122 million.

The company cited lower sales from network equipment manufacturers but said revenue from recently-acquired Anue Systems and BreakingPoint Systems are expected to be at the high end of the previously given range of $28 million to $32 million.

"We are disappointed with our topline performance this quarter, which was impacted by several factors, including lower than expected revenue from network equipment manufacturers and certain service providers as customers extended review cycles and certain large deals that were pushed into future quarters," said Vic Alston, president and CEO of Ixia.

"We did, however, see several positive trends in the quarter. Sales to our two largest customers, AT&T and Cisco, were strong and in line with expectations, and our overall book-to-bill ratio was in excess of one. Additionally, the performance of our 2012 acquisitions, Anue and BreakingPoint, was very encouraging and revenue is expected to register at the high end of our expectations for the second quarter. These indicators give us confidence that our competitive position remains strong although we remain cautious about the near-term spending environment," continued Alston.

Full results are expected on July 30, 2013 after the market closes.

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