Ixia (XXIA) Cuts Q1 Outlook

Ixia (Nasdaq: XXIA) reported certain preliminary financial results for the first quarter ended March 31, 2016.

Ixia currently expects revenue for the 2016 first quarter to be between $108 million and $111 million, below the company’s previous guidance of $121 million to $126 million. The company currently expects a GAAP loss for the quarter of between $0.03 and $0.05 per diluted share, compared with previous guidance of breakeven to a loss of $0.04 per diluted share. The company currently expects non-GAAP earnings for the quarter to be between $0.05 and $0.08 per diluted share, compared with previous guidance of between $0.10 and $0.14 per diluted share.

*** The Street sees Q1 revenue of $123.3 million and EPS of $0.12.

"We are disappointed with our first quarter results. Our topline performance was primarily impacted by an unexpected and marked slowdown in network test spending from our North America network equipment manufacturer customers in March, and we continued to experience delays in closing network visibility deals," said Bethany Mayer, Ixia’s president and chief executive officer. "Despite these near-term headwinds, we remain confident in our strategy to grow our business and are committed to financial discipline.”

These are preliminary results and remain subject to the completion of the company's customary quarterly financial closing and review procedures. Material adjustments may arise between the date of this press release and the dates on which Ixia announces its full 2016 first quarter results and files its Form 10-Q for the first quarter with the SEC.

2016 First Quarter Conference Call

Ixia will release its full financial results for the 2016 first quarter after the U.S. markets close on Tuesday, May 3, 2016.

Ixia will also host a conference call to discuss the company’s 2016 first quarter results and its business outlook and guidance for the 2016 second quarter on Tuesday, May 3, 2016, at 1:30 p.m. Pacific time (4:30 p.m. Eastern time).

The call will be open to the public, and interested parties may listen to the call by dialing (844) 858-9864. A live audio webcast of the conference call will be accessible from the "Investors" section of the company's website (www.ixiacom.com/investors). Following the live webcast, an archived version will be available in the "Investors" section of the Ixia website for at least 90 days.

Certain supplemental financial information will be posted promptly to the website following the issuance of Ixia’s 2016 first quarter results press release, and certain additional supplemental financial information will be posted just prior to the start of the conference call.

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