Click here to close now.



Welcome!

News Feed Item

Ixia Announces Intention to Restate 2013 First and Second Quarters, SEC Filings Update and Nasdaq Extension of Time to Regain Compliance

Ixia (Nasdaq: XXIA) announced today that the Audit Committee of the company’s Board of Directors (the “Audit Committee”) has concluded that the company’s previously issued condensed consolidated financial statements contained in its Quarterly Reports on Form 10-Q for the quarters ended March 31, 2013 and June 30, 2013 should no longer be relied upon and should be restated.

As previously reported, on February 26, 2014, the Audit Committee completed an internal investigation, which included performing procedures to assess the company’s recording of financial transactions and the corresponding impact on the company’s financial reporting. Through the internal investigation and the company’s own internal accounting review, the company identified certain errors, as described below.

Certain identified errors in the company’s revenue recognition practices involved the company’s incorrect assessment of and accounting for certain sales transactions which led to revenue being recognized prematurely for: 1) an extended maintenance and warranty arrangement that included a fixed fee to cover products owned by the customer at the date of execution of the arrangement as well as extended coverage for any additional products purchased by the customer over the multi-year term of the applicable arrangement, 2) multiple-element arrangements that included separate customer purchase orders for products and related professional services, or arrangements that included future deliverables that were committed to be provided to the customers but were not considered, and 3) an arrangement with a customer involving the extension of payment terms beyond the company’s customary terms. Additional information regarding these matters can be found in the company’s Current Report on Form 8-K filed today with the SEC.

The correction of the errors is expected to reduce total revenues by approximately $2.0 million and $4.5 million for the quarters ended March 31, 2013 and June 30, 2013, respectively. Further, the correction of the errors is expected to increase deferred revenues by approximately $2.0 million and $6.5 million as of March 31, 2013 and June 30, 2013, respectively. The company’s restated condensed consolidated financial statements for the affected periods will also reflect the correction of errors related to the income tax effects of the revenue errors, as well as the correction of certain other tax items. The restatement will result in revenue recognition timing differences between quarterly periods and will not have any impact on the total revenue to be recognized over the life of the applicable arrangements. As part of the restatement process, the company is continuing to assess the estimated errors identified above and will assess any other potential identified errors for correction as needed.

In connection with the restatement of the company’s previously issued condensed consolidated financial statements for the quarters ended March 31, 2013 and June 30, 2013, the company’s management has reassessed its evaluation of the effectiveness of the company’s disclosure controls and procedures and internal control over financial reporting as of each of March 31, 2013 and June 30, 2013. Based on such reassessment and review, management has concluded, and the company expects to report in its amended filing for each quarter, that due to the identified errors and material weaknesses in the company’s internal controls, the company did not maintain effective disclosure controls and procedures or effective internal control over financial reporting as of either March 31, 2013 or June 30, 2013.

The company plans to amend its previously filed Quarterly Reports on Form 10-Q for the quarters ended March 31, 2013 and June 30, 2013 as soon as practicable and at or about the same time the company files its Quarterly Report on Form 10-Q for the quarter ended September 30, 2013 (the “Form 10-Q”) and its Annual Report on Form 10-K for the fiscal year ended December 31, 2013 (the “Form 10-K”).

Updated Plan to Regain Compliance with Nasdaq Listing Rule

As previously reported, as a result of Ixia’s delayed filing of its Form 10-Q and Form 10-K, the company is not in compliance with Nasdaq Listing Rule 5250(c)(1) (the “Listing Rule”), which requires the timely filing with the SEC of all required periodic financial reports. The company announced today that, as requested by the company in an updated plan to regain compliance with the Listing Rule, The Nasdaq Stock Market LLC (“Nasdaq”) has granted the company through April 30, 2014 to regain compliance with the Listing Rule, which will permit the continued listing of our common stock on the Nasdaq Global Select Market.

Under the terms of the extension granted by Nasdaq, the company is required to file the Form 10-Q and Form 10-K on or before April 30, 2014 to regain compliance with the Listing Rule. If the company does not make the filings on or before April 30, 2014, Nasdaq has advised that it will notify the company that its stock will be delisted. If Ixia receives such a notice, the company will have an opportunity to appeal the delisting decision to a Nasdaq Hearings Panel. Under Nasdaq’s rules and procedures, a company’s request for such a hearing is generally due within seven calendar days after receipt of the delisting notification, and such a request automatically stays any delisting (and suspension of trading) for an additional 15 calendar days from the deadline to request a hearing. Upon receiving any such notification, the company intends to timely request a hearing and to request an additional stay (beyond the 15 calendar days) should it become necessary.

About Ixia

Ixia develops amazing products so its customers can connect the world. Ixia helps its customers provide an always-on user experience through fast, secure delivery of dynamic, connected technologies and services. Through actionable insights that accelerate and secure application and service delivery, Ixia's customers benefit from faster time to market, optimized application performance, and higher-quality deployments. Learn more at http://www.ixiacom.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, statements regarding the expected impact of the identified errors on the company’s previously issued unaudited consolidated financial statements; the manner in which the company will effect the restatements in its filings with the SEC and the anticipated timing of the filing of the amended Quarterly Reports, the Form 10-Q and the Form 10-K; and the company’s intention to appeal to a Nasdaq Hearings Panel any notification from Nasdaq that the company’s common stock will be delisted. In some cases, such forward-looking statements can be identified by terms such as “may,” “will,” “expect,” “plan,” “believe,” “estimate,” “predict” or the like. Such statements reflect the company’s current intent, belief and expectations and are subject to risks and uncertainties that could cause the company’s actual results to differ materially from those expressed or implied in the forward-looking statements. Factors that may cause future results to differ materially from our current expectations include risks that the completion and filing of the amended Quarterly Reports, the Form 10-Q and the Form 10-K will take longer than anticipated; that prior to making such filings the company will identify additional issues or considerations that relate to such filings, such as additional errors in the company’s accounting practices, that will require additional adjustments to the company’s previously issued financial statements; and that, if necessary, the company will be unable to timely appeal any delisting notification to a Nasdaq Hearings Panel. Factors that may cause future results to differ materially from our current expectations also include those identified in our Annual Report on Form 10-K for the year ended December 31, 2012 and in our other filings with the SEC. There can be no assurance that the final impact of the restatement and the effect of the changes in our accounting practices will not differ materially from our expectations as described herein or that any other information set forth herein regarding the restatement will not change materially before we complete the filing of our restated unaudited consolidated financial statements. The company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
SYS-CON Events announced today that Alert Logic, Inc., the leading provider of Security-as-a-Service solutions for the cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Alert Logic, Inc., provides Security-as-a-Service for on-premises, cloud, and hybrid infrastructures, delivering deep security insight and continuous protection for customers at a lower cost than traditional security solutions. Ful...
@DevOpsSummit taking place June 7-9, 2016 at Javits Center, New York City, and Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 18th International @CloudExpo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @DevOpsSummit at Cloud Expo New York Call for Papers is now open.
SYS-CON Events announced today that VAI, a leading ERP software provider, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. VAI (Vormittag Associates, Inc.) is a leading independent mid-market ERP software developer renowned for its flexible solutions and ability to automate critical business functions for the distribution, manufacturing, specialty retail and service sectors. An IBM Premier Business Part...
SYS-CON Events announced today that Catchpoint Systems, Inc., a provider of innovative web and infrastructure monitoring solutions, has been named “Silver Sponsor” of SYS-CON's DevOps Summit at 18th Cloud Expo New York, which will take place June 7-9, 2016, at the Javits Center in New York City, NY. Catchpoint is a leading Digital Performance Analytics company that provides unparalleled insight into customer-critical services to help consistently deliver an amazing customer experience. Designed...
Let’s face it, embracing new storage technologies, capabilities and upgrading to new hardware often adds complexity and increases costs. In his session at 18th Cloud Expo, Seth Oxenhorn, Vice President of Business Development & Alliances at FalconStor, will discuss how a truly heterogeneous software-defined storage approach can add value to legacy platforms and heterogeneous environments. The result reduces complexity, significantly lowers cost, and provides IT organizations with improved effi...
SYS-CON Events announced today that Pythian, a global IT services company specializing in helping companies adopt disruptive technologies to optimize revenue-generating systems, has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. Founded in 1997, Pythian is a global IT services company that helps companies compete by adopting disruptive technologies such as cloud, Big Data, advanced analytics, and DevO...
SYS-CON Events announced today that Men & Mice, the leading global provider of DNS, DHCP and IP address management overlay solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. The Men & Mice Suite overlay solution is already known for its powerful application in heterogeneous operating environments, enabling enterprises to scale without fuss. Building on a solid range of diverse platform support,...
One of the bewildering things about DevOps is integrating the massive toolchain including the dozens of new tools that seem to crop up every year. Part of DevOps is Continuous Delivery and having a complex toolchain can add additional integration and setup to your developer environment. In his session at @DevOpsSummit at 18th Cloud Expo, Miko Matsumura, Chief Marketing Officer of Gradle Inc., will discuss which tools to use in a developer stack, how to provision the toolchain to minimize onboa...
The cloud promises new levels of agility and cost-savings for Big Data, data warehousing and analytics. But it’s challenging to understand all the options – from IaaS and PaaS to newer services like HaaS (Hadoop as a Service) and BDaaS (Big Data as a Service). In her session at @BigDataExpo at @ThingsExpo, Hannah Smalltree, a director at Cazena, will provide an educational overview of emerging “as-a-service” options for Big Data in the cloud. This is critical background for IT and data profes...
With an estimated 50 billion devices connected to the Internet by 2020, several industries will begin to expand their capabilities for retaining end point data at the edge to better utilize the range of data types and sheer volume of M2M data generated by the Internet of Things. In his session at @ThingsExpo, Don DeLoach, CEO and President of Infobright, will discuss the infrastructures businesses will need to implement to handle this explosion of data by providing specific use cases for filte...
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...
The principles behind DevOps are not new - for decades people have been automating system administration and decreasing the time to deploy apps and perform other management tasks. However, only recently did we see the tools and the will necessary to share the benefits and power of automation with a wider circle of people. In his session at DevOps Summit, Bernard Sanders, Chief Technology Officer at CloudBolt Software, explored the latest tools including Puppet, Chef, Docker, and CMPs needed to...
SYS-CON Events announced today that AppNeta, the leader in performance insight for business-critical web applications, will exhibit and present at SYS-CON's @DevOpsSummit at Cloud Expo New York, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. AppNeta is the only application performance monitoring (APM) company to provide solutions for all applications – applications you develop internally, business-critical SaaS applications you use and the networks that deli...
Fortunately, meaningful and tangible business cases for IoT are plentiful in a broad array of industries and vertical markets. These range from simple warranty cost reduction for capital intensive assets, to minimizing downtime for vital business tools, to creating feedback loops improving product design, to improving and enhancing enterprise customer experiences. All of these business cases, which will be briefly explored in this session, hinge on cost effectively extracting relevant data from ...
Advances in technology and ubiquitous connectivity have made the utilization of a dispersed workforce more common. Whether that remote team is located across the street or country, management styles/ approaches will have to be adjusted to accommodate this new dynamic. In his session at 17th Cloud Expo, Sagi Brody, Chief Technology Officer at Webair Internet Development Inc., focused on the challenges of managing remote teams, providing real-world examples that demonstrate what works and what do...