SCIENCE

Ixia reported its financial results for the second quarter ended June 30, 2011.

Total revenue for the 2011 second quarter was $69.0 million, compared with $66.1 million reported for the 2010 second quarter and $78.5 million reported for the first quarter of 2011.

On a GAAP basis, the company recorded net income for the 2011 second quarter of $0.5 million, or $0.01 per diluted share, compared with a net loss of $0.4 million, or $0.01 per share, for the 2010 second quarter.

Non-GAAP net income for the 2011 second quarter was $5.8 million, or $0.08 per diluted share, compared with non-GAAP net income of $6.8 million, or $0.10 per diluted share, for the 2010 second quarter.

Additional non-GAAP information and a reconciliation of our non-GAAP measures to comparable GAAP measures for the second quarter and six months ended June 30, 2011 and 2010, respectively, may be found in the attached financial tables.

"Although we are disappointed with our results this quarter, the trends driving our markets and business, including the upgrade to next-generation networks and the convergence of wired and wireless networks, remain substantially intact," commented Atul Bhatnagar, Ixia's president and chief executive officer. "As we previously announced, the weakness we experienced in the second quarter related mainly to delays and reductions in spending by certain large network equipment makers, a large wireless order received too late in the quarter to ship and soft sales in the Asia Pacific region. While we are carefully monitoring market conditions and spending trends, we remain focused on continuing our efforts to develop innovative high performance testing solutions for emerging next generation media rich networks.

"The recent momentum in orders for our wireless test solutions is very encouraging," continued Mr. Bhatnagar. "In the second quarter we secured record bookings for our IxCatapult solutions, which consisted primarily of orders for our LTE products. Last Monday, we closed the acquisition of Wi-Fi test solution provider VeriWave, which complements our LTE strategy. Our product portfolio now provides an end-to-end test solution for the converged Wi-Fi, LTE, Ethernet and IP networks."