IXIA (NASDAQ:XXIA) Files An 8-K Results of Operations and Financial Condition
Item2.02 Results of Operations and Financial Condition.
On February21, 2017, Ixia (the Company) issued a press release
(the Earnings Release) announcing its preliminary financial
results for the fiscal fourth quarter and year ended December31,
2016. A copy of the Earnings Release was furnished as Exhibit99.1
to the Companys Current Report on Form8-K dated February21, 2017
(the Initial 8-K), as filed with the Securities and Exchange
Commission (the Commission) on February21, 2017.
The Company is filing this Amendment on Form 8-K/A to the Initial
8-K in order to conform certain information included in the
Earnings Release with information that is included in the
Companys Annual Report on Form 10-K for the year ended
December31, 2016 (the 2016 Form 10-K), as filed with the
Commission on March1, 2017.
At the time the Company issued the Earnings Release and as
reported therein, the Company was continuing to evaluate whether
in the fiscal quarter ended December31, 2016 its U.S. deferred
tax assets required an additional valuation allowance of up to
$42.9 million. The Company further reported in the Earnings
Release that, if the Company concluded that an additional
allowance was required, then on a GAAP basis, the Companys net
income for the fiscal quarter and year ended December31, 2016, as
reported in the Earnings Release, could change to net losses of
up to $37.5 million and $33.9 million, respectively, and that the
Companys diluted earnings per share for such periods, as reported
in the Earnings Release, could change to losses per share of up
to $0.46 and $0.42, respectively.
As the Company reports in the 2016 Form 10-K, prior to the fourth
quarter of 2016, the Company maintained a valuation allowance
against its net U.S. deferred tax assets of $1.1 million related
to the Companys realized capital loss carryforwards. As the
Company also reports in the 2016 Form 10-K, for the fourth
quarter of 2016, the Company completed its evaluation of the need
for an additional valuation allowance against the Companys
remaining net deferred tax assets in the U.S. and concluded that
a full valuation allowance was warranted due to the realization
of a three-year cumulative pre-tax book loss in the U.S. As a
result, a non-cash income tax charge of $42.9 million was
recorded as of December31, 2016 to establish a valuation
allowance against the Companys remaining net deferred tax assets
in the U.S.
Consistent with the information provided in the Earnings Release,
for the fiscal quarter and year ended December31, 2016, the 2016
Form 10-K reflects:
| (i) |
net losses of $37.5 million and $33.9 million, |
| (ii) |
diluted losses per share of $0.46 and $0.42, respectively, |
The Companys full financial results for the fiscal year ended
December31, 2016 are included in the 2016 Form 10-K.
The additional income tax provision does not impact the Companys
financial position, cash flows, or non-GAAP financial results as
reported in the Earnings Release.
The information in this Item2.02 is furnished and shall not be
deemed filed for purposes of Section18 of the Securities Exchange
Act of 1934, as amended (the Exchange Act), or otherwise subject
to the liabilities of that Section, nor shall it be deemed
incorporated by reference into any registration statement or
other document filed under the Securities Act of 1933, as
amended, or the Exchange Act.
About IXIA (NASDAQ:XXIA)
Ixia is a provider of physical and virtual network application performance and security resilience solutions. The Company’s product solutions consist of its hardware platforms, software applications and services, including warranty and maintenance offerings and professional services. The Company helps its customers to validate the performance and security resilience of their applications and networks. The Company offers network test hardware platforms with interchangeable interfaces, using a common set of applications and Application Programing Interfaces (APIs). The Company provides its solutions to network equipment manufacturers (NEMs), service providers, and enterprise and government organizations. The Company’s product solutions consist of its hardware platforms, such as chassis, interface cards and appliances, software application tools, and services, including its warranty and maintenance offerings and professional services. IXIA (NASDAQ:XXIA) Recent Trading Information
IXIA (NASDAQ:XXIA) closed its last trading session down -0.05 at 19.55 with 1,413,425 shares trading hands.
