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What: Shares of Internet specialist Ixia (NASDAQ: XXIA ) were getting booted out of investors' portfolios today, falling as much as 13% after a disappointing earnings report.
So what: Ixia's numbers were actually pretty strong on the surface, as revenue was up 43%, though all of that growth came from acquisitions. Without the addition of Anue Systems and BreakingPoint Systems last year, sales actually declined 2%. Adjusted earnings per share also beat estimates by $0.03, coming in at $0.25.
Now what: The market seems to be punishing Ixia for the drop in organic revenue, and management admitted to seeing a slowdown from some equipment manufacturer deals. Still, the company expects growth in its core business to increase 7% sequentially in the current quarter, and the stronger-than-expected growth from its acquisition should also not be overlooked. Given the growth potential there, Ixia looks like it should be able to bounce back.
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