Ixia Narrowly Beats Earnings ForecastWednesday, February 6, 2013
Sales from two recently acquired companies boosted profits 30 percent for Ixia Inc. in the fourth quarter, beating analyst expectations, the company announced Wednesday.
The Calabasas maker of network testing products reported net income of $19.5 million (24 cents a share) for the quarter ended Dec. 31, compared with $13.7 million (18 cents) for the same quarter a year earlier. Earnings were reported on a pro forma basis, excluding restructuring and other charges.
Revenue rose nearly 12 percent to $124.1 million.
Analysts on average expected earnings of 23 cents on revenue of $124 million, according to Thomson/First Call.
Chief Executive Vic Alston noted that Ixia purchased BreakingPoint Systems, an Internet security testing company, for $160 million. In May, it acquired network monitoring company Anue Systems for $145 million.
“In the quarter, demand was strong across our entire solution offering, with revenue from our Anue and Breaking Point solutions exceeding our expectations,” Alston said in a statement.
For the full year, the company reported net income of $47.3 million (61 cents), compared to $23.8 million (33 cents) for fiscal year 2011. Revenue rose 34 percent to $412 million, the most ever recorded by the company.
Ixia has operations in 30 countries. Its biggest client is Cisco Systems Inc., followed by AT&T Inc.
Shares of Ixia rose 25 cents, or 1.3 percent, to close at $19.80 on the Nasdaq.