Attached files
file | filename |
---|---|
8-K - FORM 8-K - IXIA | v54876e8vk.htm |
Exhibit 99.1
Ixia Increases Fourth Quarter Revenue Guidance and Announces Cost Reduction
Initiative Following N2X Acquisition
Initiative Following N2X Acquisition
Company Expects to Realize $11 Million in Annual Cost Savings
CALABASAS, CA, January 14, 2010 Ixia (Nasdaq: XXIA) announced today that it 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. The company will record a charge for severance and other
related costs of approximately $3 million to $4 million on a pre-tax basis to reflect the impact of
this restructuring. Approximately 80 positions will be eliminated.
Over the last twelve months, we have announced cost saving programs that should reduce our
operating expenses by $22 million on an annualized basis, while continuing to invest prudently in
R&D, said Tom Miller, chief financial officer. We believe we are now optimally staffed to
provide our customers with the high quality products and support that they have come to expect, and
anticipate showing increased operating leverage in 2010 on a higher base of revenues.
About Ixia
Ixia is a leading supplier of test, measurement and service verification solutions to Internet
equipment manufacturers, carriers, service providers, government agencies and enterprises. Ixias
platform is used to test IP networking equipment of all types and sizes, with powerful and
flexible test applications that handle the widest range of Internet usage from routing and
switching to converged applications traffic to validating the service quality of live networks and
services. Ixias multiplay test solutions are acknowledged as the market leader addressing 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
and the Ixia four-petal logo are registered trademarks or trademarks of Ixia.
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 the expected cost savings of the restructuring plan and, expected
scale efficiencies, operating expense reductions, operating leverage, revenues and future business.
In some cases, such forward-looking statements can be identified by terms such as may, will,
expect, should, plan, believe, estimate, predict, guidance or the like. Such
statements reflect our current intent, belief and expectations and are subject to risks and
uncertainties that could cause our actual results to differ materially from those expressed or
implied in the forward-looking statements. Factors that may cause future results to differ
materially from our current expectations include, among others, the risk that the Company will not
realize all of the expected benefits of the restructuring and 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 U.S.
Securities and Exchange Commission. We undertake no obligation to update any forward-looking
statements, whether as a result of new information, future events or otherwise.
Editorial Contact:
Kelly Maloit
Director of Public Relations
818-444-2957
kmaloit@ixiacom.com
Director of Public Relations
818-444-2957
kmaloit@ixiacom.com
Financial Contact:
The Blueshirt Group
Investor Relations
Chris Danne or Jill Isenstadt
415-217-7722
Investor Relations
Chris Danne or Jill Isenstadt
415-217-7722
Tom Miller
Chief Financial Officer
818-444-2325
tmiller@ixiacom.com
Chief Financial Officer
818-444-2325
tmiller@ixiacom.com