Sales from two companies acquired last year lifted profits for Ixia Inc. in the first quarter, narrowly beating analyst expectations despite a recent restatement of prior earnings, the company announced Tuesday.
The Calabasas maker of network-testing products reported net income of $20.3 million (25 cents a share) for the quarter ended March 31, compared with $12.2 million (16 cents) for the same quarter a year earlier. Earnings were reported on a pro forma basis, excluding restructuring and other charges.
Revenue rose nearly 29 percent to $122.8 million.
The seven analysts polled by Thomson/First Call on average expected earnings of 22 cents on revenue of $122.2 million.
In April, the company announced that it was lowering its revenue expectations for the quarter due to restatements. The company said its prior quarterly results “have been restated to correct certain revenue recognition practices, including with respect to an implied warranty arrangement with a customer.”
Chief Executive Vic Alston noted that combined revenue from the two acquired companies, Anue Systems Inc. and BreakingPoint Systems, grew revenue 70 percent from the first quarter of last year. In May, it acquired network monitoring company Anue Systems for $145 million and in August BreakingPoint for $160 million.
“We believe these market trends will continue to drive demand for Ixia’s mobility, security and data center solutions, and that we are well positioned for long-term growth,” Alston said in a statement.
Ixia has operations in 30 countries. Its biggest client is Cisco Systems Inc., followed by AT&T Inc. In March, it announced that its products had been selected by Microsoft Corp. for an infrastructure-testing contract.
Shares rose 32 cents, or 2 percent, to close at $16.47 on the Nasdaq.