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Ixia fourth quarter revenues at top end of guidance

Ixia (Nasdaq:XXIA) said this morning that it expects revenues for the fourth quarter (Q4) of 2009 to increase by approximately 32% year-over-year to $54 million. The Q4 figure includes a contribution from Catapult Communications, which was acquired in June 2009, and two months contribution from the N2X product which was acquired from Agilent in October. Previous revenue guidance for Q4 2009 was $50 million to $54 million.

"Contributions from our recent acquisitions were complemented by increasing sequential and year-over-year revenues from our core products," said Atul Bhatnagar, president and chief executive officer. "We are cautiously optimistic that we are starting to see a broader, positive trend in our market and are confident that we have the right products and larger addressable market opportunities."

The company also announced a “company-wide restructuring initiative” aimed at saving US$11 million annually.  The savings will be made from removing duplicate resources that appeared after the company acquired the N2X product line.  Further efficiencies will also be made in the company’s supply chain and administration. Ixia expect to record a one-off charge related to the restructuring of $3-$4 million.

"Over the last twelve months, we have announced cost saving programs that should reduce our operating expenses by $22 million on an annualized basis, while continuing to invest prudently in R&D," said Tom Miller, chief financial officer. "We believe we are now optimally staffed to provide our customers with the high quality products and support that they have come to expect, and anticipate showing increased operating leverage in 2010 on a higher base of revenues."

Disclosure: The author holds no positions in the company