Ixia (XXIA) has reported a 5.91 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $5.41 million, or $0.06 a share in the quarter, compared with $5.75 million, or $0.07 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $17.66 million, or $0.21 a share compared with $18.70 million or $0.22 a share, a year ago. Revenue during the quarter dropped 7.45 percent to $128.16 million from $138.48 million in the previous year period. Gross margin for the quarter contracted 20 basis points over the previous year period to 78.67 percent. Total expenses were 94.12 percent of quarterly revenues, up from 90.20 percent for the same period last year. That has resulted in a contraction of 392 basis points in operating margin to 5.88 percent.
Operating income for the quarter was $7.54 million, compared with $13.57 million in the previous year period.
"We achieved strong results in the fourth quarter with increased momentum for our network visibility solutions, and we expect earnings and revenue in-line with our guidance. Revenue for our network visibility solutions grew 22% year-over-year, driven by increased demand in the enterprise. With our continued focus on operational excellence and financial discipline we generated strong cash flow from operations during the quarter, bringing our total for the year to $81 million," said Bethany Mayer, Ixia’s president and chief executive officer.
Working capital increases sharply
Ixia has recorded an increase in the working capital over the last year. It stood at $134.83 million as at Dec. 31, 2016, up 93.38 percent or $65.11 million from $69.73 million on Dec. 31, 2015. Current ratio was at 1.79 as on Dec. 31, 2016, up from 1.35 on Dec. 31, 2015.
Debt comes down
Ixia has recorded a decline in total debt over the last one year. It stood at $33.59 million as on Dec. 31, 2016, down 10.51 percent or $3.95 million from $37.53 million on Dec. 31, 2015. Total debt was 4.23 percent of total assets as on Dec. 31, 2016, compared with 4.81 percent on Dec. 31, 2015. Debt to equity ratio was at 0.06 as on Dec. 31, 2016, down from 0.07 as on Dec. 31, 2015. Interest coverage ratio improved to 15.93 for the quarter from 9.17 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
