Ixia (Nasdaq: XXIA) reported earnings on Oct. 24. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended Sep. 30 (Q3), Ixia beat expectations on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share grew significantly.

Gross margins dropped, operating margins contracted, net margins grew.

Revenue details
 Ixia tallied revenue of $109.6 million. The eight analysts polled by S&P Capital IQ predicted a top line of $107.0 million on the same basis. GAAP reported sales were 42% higher than the prior-year quarter's $77.3 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
 EPS came in at $0.20. The seven earnings estimates compiled by S&P Capital IQ averaged $0.20 per share. GAAP EPS of $0.15 for Q3 were 67% higher than the prior-year quarter's $0.09 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
 For the quarter, gross margin was 78.8%, 80 basis points worse than the prior-year quarter. Operating margin was 8.1%, 300 basis points worse than the prior-year quarter. Net margin was 10.4%, 210 basis points better than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $120.2 million. On the bottom line, the average EPS estimate is $0.22.

Next year's average estimate for revenue is $407.2 million. The average EPS estimate is $0.75.

Investor sentiment
 The stock has a two-star rating (out of five) at Motley Fool CAPS, with 60 members out of 71 rating the stock outperform, and 11 members rating it underperform. Among 21 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 19 give Ixia a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Ixia is outperform, with an average price target of $16.75.

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