Ixia has reported total revenues of $175.8 million for the year-end 2008, compared with the total revenues of $174.1 million in the previous year-end. It has also reported a net loss of $15.9 million, or $0.24 per diluted share, for the year-end 2008, compared with the net income of $7 million, or $0.10 per diluted share, in the previous year-end.
Total revenues for the 2008 fourth quarter were $41.0 million compared to $46.4 million in the 2007 fourth quarter. For the 2008 full year, total revenues increased to $175.9 million from $174.1 million in 2007.
On a GAAP basis, the company recorded a net loss for the 2008 fourth quarter of $18.3 million, or $0.29 per share, compared to net income of $4.4 million, or $0.06 per diluted share, for the 2007 fourth quarter. The company’s 2008 fourth quarter net loss includes an impairment charge of $15.8 million for the write down of auction rate securities. The company’s 2008 fourth quarter operating expenses include $2.1 million of non-recurring charges, consisting primarily of costs associated with certain strategic initiatives and severance-related charges.
Non-GAAP net income for the 2008 fourth quarter was $1.4 million, or $0.02 per diluted share, compared to $7.7 million, or $0.11 per diluted share, for the comparable period in 2007. Ixia’s 2008 fourth quarter non-GAAP results exclude non-cash charges of $2.9 million related to stock-based compensation, $1.4 million for the amortization of acquired intangible assets, $15.9 million for the impairment of certain investments (primarily auction rate securities) and a net tax benefit of $0.6 million related to these items. Non-GAAP results for the 2007 fourth quarter exclude non-cash charges of $3.3 million related to stock-based compensation, $1.6 million for the amortization of acquired intangible assets and a net tax benefit of $1.6 million related to these items.
“Although our 2008 fourth quarter and full year results were adversely impacted by the global economic slowdown and write downs of impaired investments, we continued to generate positive cash flow from our operations,” commented Atul Bhatnagar, Ixia’s president and chief executive officer. “While we expect 2009 to be a challenging year, we are committed to delivering innovative and quality products to the market place and supporting our customers. We believe that we have a competitive advantage in the market, and that this advantage will help drive business when the economy recovers. Also, we recently announced an agreement with a new partner who will assist us with our manufacturing and supply chain management. By leveraging their operational expertise and purchasing power, we expect to realize financial benefits commencing in the second half of the year.”
On a GAAP basis, the company realized a net loss for the 2008 full year of $15.9 million, or $0.24 per share, compared to net income of $7.0 million, or $0.10 per diluted share, for the 2007 full year.
Ixia’s 2008 full year GAAP results include non-cash charges of $10.6 million related to stock-based compensation, $5.7 million for the amortization of acquired intangible assets, $20.2 million for the impairment of certain investments and a net tax benefit of $5.8 million related to these items. Excluding the effects of these items, non-GAAP net income for the 2008 full year was $14.9 million, or $0.23 per diluted share, compared to $22.2 million, or $0.32 per diluted share, for the 2007 full year. Non-GAAP results for the 2007 full year exclude non-cash charges of $13.0 million related to stock-based compensation, $7.1 million for the amortization of acquired intangible assets, $3.3 million for the impairment of certain acquired intangible assets and a net tax benefit of $8.2 million related to these items.
Under the $25 million share repurchase program announced in late November 2008, Ixia repurchased around 472,000 shares of its common stock at an average purchase price of $5.92 per share, or a total of around $2.8 million, during the 2008 fourth quarter.
As of December 31, 2008, Ixia had cash, cash equivalents and investments of $206.3 million and no debt. Of this total, over $185 million is invested in short-term debt obligations of the US government. The company currently also owns interest bearing auction rate securities with a current value of $3.2 million.