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Ixia Announces Financial Results for 2016 First QuarterIxia (News - Alert) (Nasdaq: XXIA) today reported its financial results for the first quarter ended March 31, 2016. Total revenue for the 2016 first quarter was $112.7 million, compared with $121.0 million reported for the 2015 first quarter and $138.5 million reported for the 2015 fourth quarter. "While our results in the quarter were impacted by some near-term headwinds, we remain confident in our product portfolio and go-to-market strategy," said Bethany Mayer, Ixia's president and chief executive officer. "We believe we are well positioned to capitalize on the growing technology trends across enterprise, service provider, and cloud networks by leveraging our security expertise and IP across our test and visibility products. We are continuing to focus on investing in leading edge technologies that address ongoing complex networking and security challenges and foster growth for our business over the long term." On a GAAP basis, the company recorded a net loss for the 2016 first quarter of $2.7 million, or $0.03 per diluted share, compared with a net loss of $9.6 million, or $0.12 per diluted share, for the 2015 first quarter, and net income of $5.8 million, or $0.07 per diluted share, for the 2015 fourth quarter. Non-GAAP net income for the 2016 first quarter was $7.4 million, or $0.09 per diluted share, compared with non-GAAP net income of $9.7 million, or $0.12 per diluted share, for the 2015 first quarter, and non-GAAP net income of $18.7 million, or $0.22 per diluted share for the 2015 fourth quarter. Additional non-GAAP information and GAAP to Non-GAAP reconciliation information may be found in the attached financial tables. Ixia ended the 2016 first quarter with $80.9 million in cash, cash equivalents, and investments, compared with $67.0 million at December 31, 2015. Conference Call and Webcast Information Ixia will host a conference call today at 1:30 p.m. Pacific time (4:30 p.m. Eastern time) for analysts and investors to discuss the company's 2016 first quarter and its business outlook and guidance for the 2016 second quarter. 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 Following the live webcast, an archived version will be available in the "Investors" section of the Ixia website for at least 90 days.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 this press release, and additional supplemental financial information will be posted just prior to the start of the conference call. Non-GAAP Financial Measures To supplement our consolidated financial results prepared in accordance with Generally Accepted Accounting Principles ("GAAP"), we have included certain non-GAAP financial measures in this press release and in the attachments hereto. Specifically, we have provided non-GAAP financial measures (i.e., non-GAAP net income and non-GAAP diluted earnings per share) that exclude certain non-cash and/or non-recurring income and expense items such as expenses relating to internal investigations and any related remediation efforts, the pending securities class action and shareholder derivative action against the company and certain of its current and former officers and directors as well as an ongoing SEC (News - Alert) investigation, the amortization of acquisition-related intangible assets, stock-based compensation expenses, acquisition and other related costs, restructuring expenses, and the related income tax effects of these items, as well as certain other non-cash income tax impacts such as changes in the valuation allowance recorded against certain deferred tax assets. The aforementioned items represent income and expense items that may be difficult to estimate from period to period and/or that we believe are not directly attributable to and/or reflective of the underlying performance of our business operations. We believe that, by excluding these items, our non-GAAP measures provide supplemental information to both management and investors that is useful in assessing our core operating performance, evaluating our ongoing business operations, identifying and assessing financial and business trends, and comparing our results of operations on a consistent basis from period to period. These non-GAAP financial measures are provided to enhance the user's overall understanding of our financial performance. These non-GAAP financial measures are also used by management to plan and forecast future periods and to assist management in making operating and strategic decisions. The presentation of this additional information is not prepared in accordance with GAAP. The information may not necessarily be comparable to that of other companies that may calculate their non-GAAP financial measures differently and should be considered as a supplement to, and not a substitute for or superior to, the corresponding measures calculated in accordance with GAAP. Investors are encouraged to review the reconciliations of GAAP to non-GAAP financial measures, which are included below in the attached financial tables and also posted on our website. Safe Harbor under the Private Securities Litigation Reform Act of 1995 Certain statements made in this press release may be deemed to be forward-looking statements including, without limitation, statements regarding the company's go-to-market strategy, positioning to capitalize on growing technology trends, and focus on investing in leading edge technologies. In some cases, such forward-looking statements can be identified by words such as "may," "will," "should," "could," "would," "expect," "plan," "anticipate," "believe," "estimate," "project," "predict," "potential," or the like. These statements reflect our current views with respect to future events and are based on assumptions and are subject to risks and uncertainties. These risks and uncertainties, as well as other factors, may cause our future results, performance, or achievements to be materially different from those expressed or implied by such forward-looking statements. Factors that could cause the actual results to differ materially from those expressed or implied in such forward-looking statements include, among others: our success in developing, producing, and introducing new products and in keeping pace with the rapid technological changes that characterize our market; our success in developing new sales channels and customers; market acceptance of our products; competition; changes in the global economy and in market conditions; consistency of orders from significant customers; our success in leveraging our intellectual property portfolio, expertise and market opportunities; our expectations regarding the transition into Software Defined Networks (SDN) and Network Functions Virtualization (NFV); material weaknesses in our internal controls; and war, terrorism, political unrest, natural disasters, cybersecurity attacks, and other circumstances that could, among other consequences, reduce the demand for our products, disrupt our supply chain, impact the delivery of our products, and/or change our business strategy, market positioning, and business plans and focus and/or affect our ability to execute on such strategy and plans. The factors that may cause future results to differ materially from our current expectations also include, without limitation, the risks identified in our Annual Report on Form 10-K for the year ended December 31, 2015 and in our other filings with the 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. About Ixia Ixia (Nasdaq: XXIA) provides testing, visibility, and security solutions, strengthening applications across physical and virtual networks for enterprises, service providers, and network equipment manufacturers. Ixia offers companies trusted environments in which to develop, deploy, and operate. Customers worldwide rely on Ixia to verify their designs, optimize their performance, and ensure protection of their networks to make their applications stronger. Learn more at www.ixiacom.com. Ixia and the Ixia logo are trademarks or registered trademarks of Ixia in the United States and other jurisdictions.
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