Ixia Shares Popped: What You Need to Know
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Ixia (NAS: XXIA) are enjoying gains of as much as 11% today after the company reported third-quarter earnings results last night.
So what: Revenue for the quarter was $77.3 million, which translated into non-GAAP earnings per share of $0.16. Both figures toppled the consensus estimates of $76.5 million in revenue and $0.12 in earnings per share.
Now what: The networking specialist saw healthy demand in the third quarter. As Ixia CEO Atul Bhatnagar said, "Revenue rebounded from the prior quarter driven by stronger carrier sales in both the U.S. and Japan, as well as increased government business." During the quarter, Ixia completed its acquisition of VeriWave, and ended with a healthy cash and investments balance of $367 million. Ixia should be a beneficiary as carriers increase spending to beef up their networks and transition toward 4G.
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