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What: Shares of Ixia (NASDAQ:XXIA) got crushed today, down by 25% at the low, after the company announced preliminary results.
So what: Revenue in the second quarter is expected in the range of $114 million to $116 million, shy of Ixia's previous guidance that was calling for $119 million to $122 million. The silver lining was that revenue from recent acquisitions is expected at the high end of guidance of $28 million to $32 million.
Now what: CEO Vic Alston was disappointed in the sales figures, attributing the weakness to lower-than-expected revenue from network equipment manufacturers and service providers. Customers have extended review cycles, causing some potential deals to be delayed. Stifel Nicolaus and Deutsche Bank both downgraded shares to "hold" on the news. Gabelli & Co. and Pacific Crest defended their respective "buy" and "outperform" ratings. Full results will be released on July 30.
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