Ixia Slips To Loss In Q4; Sees Q1 Revenue Below View - Quick Facts

(RTTNews) - Ixia (XXIA) said that its net loss for the fourth-quarter of 2013 was $3.1 million or $0.04 per share, compared with net income of $3.7 million or $0.05 per share in the 2012 fourth quarter.

Non-GAAP net income for the fourth-quarter was $11.9 million or $0.15 per share, compared with non-GAAP net income of $20.1 million or $0.25 per share, for the 2012 fourth quarter.

Total revenue for the fourth-quarter was $120.6 million, compared with $125.5 million in the 2012 fourth quarter. The 2013 fourth quarter included $4.8 million in revenue attributable to Net Optics, which was acquired on December 5, 2013. Total 2013 fourth quarter revenue was below guidance previously announced for the fourth quarter primarily due to a higher than expected mix of warranty and ATI subscription bookings for which revenue is recognized ratably over the service periods.

Analysts polled by Thomson Reuters expected the company to report earnings of $0.19 per share and revenues of $120.37 million for the fourth quarter. Analysts' estimates typically exclude special items.

As the company previously indicated, certain errors in the company's revenue recognition practices that affect the timing of the company's recognition of revenue were identified which led to revenue being recognized prematurely.

The correction of the revenue errors had the certain impact on prior periods: Reduced total revenue by approximately $1.3 million and $3.9 million for the quarters ended March 31, 2013 and June 30, 2013, respectively. Increased deferred revenue by approximately $1.3 million and $5.2 million as of March 31, 2013 and June 30, 2013, respectively.

The company currently expects first quarter of 2014 revenue to be in the range of $109 million to $113 million. Analysts expect the company to report revenues of $126.81 million for the first quarter.

The first quarter revenue was negatively impacted by lighter Network Visibility Solutions or NVS bookings due to the impact of the sales integration activities, a larger than expected mix of warranty and ATI subscription bookings as part of its total bookings, continued market trends in the test market, as well as normal seasonal patterns.