Ixia Shares Plunge on Lower RevenueTuesday, July 9, 2013
Ixia shares fell nearly 20 percent on Tuesday after the company reported lower-than-expected revenue and two analysts downgraded the stock.
The Calabasas maker of computer network equipment reported preliminary financial results for its second quarter after markets closed on Monday. It said total revenue for the quarter ended June 30 would range from $114 million to $116 million, below previous guidance of $119 million to $122 million.
The company blamed the shortfall on customers taking longer to make purchase decisions, thus postponing purchases until future quarters.
“We are disappointed with our top-line performance this quarter, which was impacted by several factors, including lower-than-expected revenue from network equipment manufacturers,” said Chief Executive Vic Alston, in a statement.
Analysts Patrick Newton of Stifel Nicolaus and Brian Modoff of Deutsche Bank both downgraded the stock to “hold” from “buy” after the announcement.
Shares lost $3.44, or 19 percent, to close at $14.30 on the Nasdaq.