Ixia Announces Preliminary First Quarter Results

CALABASAS, Calif.--(Business Wire)--
Ixia (Nasdaq:XXIA) today reported certain preliminary financial
results for the first quarter ended March 31, 2008.

Total revenues for the first quarter of 2008 are expected to be in
the range of $41.0 to $42.0 million, slightly below the low end of the
Company's previous guidance of $42.0 to $46.0 million. Sales to Ixia's
largest account, Cisco Systems, were up more than 20 percent
sequentially from the 2007 fourth quarter to approximately $10.5
million, and sales in the Asia Pacific region remained strong. First
quarter 2008 revenues were impacted by larger than anticipated
decreases in Europe and Canada as compared to the fourth quarter of
2007. Lower than expected revenues from carriers in North America and
Europe also contributed to the shortfall.

Earnings per diluted share on a GAAP basis for the first quarter
of 2008 are expected to be between a loss of $0.01 to breakeven as
compared to the Company's guidance of between a loss of $0.01 to a
profit of $0.02. Excluding the impact of non-cash charges for the
amortization of acquired intangible assets, stock-based compensation,
and the related income tax effects, non-GAAP earnings per diluted
share for the first quarter of 2008 are expected to be approximately
$0.03 to $0.04, as compared to the Company's guidance of $0.04 to
$0.07.

"We are confident that Ixia's business and strategy remain on
sound footing," said Atul Bhatnagar, president and CEO of Ixia. "In
some instances, however, the general turmoil in the financial markets
and near term uncertainty about the economy are impacting our
customers' buying decisions and lengthening the time that they take to
make purchasing decisions. At the same time, we are encouraged by a
sequential increase in revenues from network equipment manufacturers
in the U.S. market and continued strength in the Asia Pacific region.
While we are optimistic about these and certain other trends in our
business, we are taking a cautious approach to operating expenses and
capital expenditures at this time. We want to position ourselves to
take advantage of the positive leverage in our operating model when
the business environment improves."

As of March 31, 2008, we estimate that our cash, cash equivalents
and investments totaled approximately $244 million.

Ixia will host a conference call for analysts and investors to
discuss its quarterly results on April 24, 2008 at 5 p.m. Eastern
Time. Open to the public, a live Web cast of the conference call will
be accessible from the "Investors" section of Ixia's Web site
(www.ixiacom.com). Following the live Web cast, an archived version
will be available in the "Investors" section on the Ixia Web site for
90 days.

Non-GAAP Information

To supplement our consolidated financial results prepared in
accordance with Generally Accepted Accounting Principles ("GAAP"), we
have included certain non-GAAP financial measures in this press
release. Specifically, we have provided non-GAAP earnings per diluted
share measures that exclude non-cash charges for the amortization of
acquired intangible assets and stock-based compensation, as well as
the related income tax effects of such items. The amortization of
acquired intangible assets and stock-based compensation represent
non-cash charges that may be difficult to estimate from period to
period and that are not directly attributable to the underlying
performance of our business operations. These non-GAAP financial
measures are provided to enhance the user's overall understanding of
our financial performance. We believe that by excluding certain
non-cash charges, as well as the related income tax effects, our
non-GAAP earnings per diluted share measures provide supplemental
information to both management and investors that is useful in
assessing our core operating performance, in evaluating our ongoing
business operations and in comparing our results of operations on a
consistent basis from period to period. These non-GAAP financial
measures are also used by management to plan and forecast future
periods and to assist in making operating and strategic decisions. The
presentation of this additional information is not prepared in
accordance with GAAP. The information therefore may not necessarily be
comparable to that of other companies and should be considered as a
supplement to, not a substitute for, or superior to, the corresponding
measures calculated in accordance with GAAP. Investors are encouraged
to review the reconciliations of GAAP to non-GAAP earnings per diluted
share measures which are included below in this press release.

About Ixia

Ixia is a leading provider of performance test systems for
IP-based infrastructure and services and IP service verification
platforms. Ixia's test systems are used by network and telephony
equipment manufacturers, semiconductor manufacturers, service
providers, governments, and enterprises to validate the capabilities
and reliability of complex IP networks, devices, and applications.
Ixia's triple-play test systems address the growing need to test
voice, video, and data services and network capability under
real-world conditions.

For more information, contact Ixia at 26601 W. Agoura Road,
Calabasas, CA 91302; (818) 871-1800, Fax: (818) 871-1805; Email:
info@ixiacom.com or visit our Web Site at http://www.ixiacom.com.

Ixia, the Ixia four petal logo and IxLoad are trademarks and/or
registered trademarks of Ixia. Other trademarks are the property of
their respective owners.

Safe Harbor Under the Private Securities Litigation Reform Act of
1995:

Certain statements made in this press release are forward-looking
statements, including, without limitation, statements regarding
possible future revenues, growth and profitability and future business
and market share. 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
our current intent, belief and expectations and are subject to risks
and uncertainties that could cause our 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 those identified in our Annual
Report on Form 10-K for the year ended December 31, 2007 and in our
other filings with the Securities and Exchange Commission. We
undertake no obligation to update any forward-looking statements,
whether as a result of new information, future events or otherwise.

-0-
*T
Reconciliation of GAAP to Non-GAAP diluted earnings per share -
Current Expectations:

Three months ended
March 31, 2008
------------------

GAAP diluted (loss) earnings per share $(0.01) - $ 0.00
Stock-based compensation 0.04 - 0.04
Amortization of acquired intangible assets 0.02 - 0.02
Income tax effect (0.02) - (0.02)
-------- -------
Non-GAAP diluted earnings per share $ 0.03 - $ 0.04
======== =======
*T

-0-
*T
Reconciliation of GAAP to Non-GAAP diluted earnings per share -
Previous Guidance:

Three months ended
March 31, 2008
------------------

GAAP diluted (loss) earnings per share $(0.01) - $ 0.02
Stock-based compensation 0.05 - 0.04
Amortization of acquired intangible assets 0.02 - 0.02
Income tax effect (0.02) - (0.01)
-------- -------
Non-GAAP diluted earnings per share $ 0.04 - $ 0.07
======== =======
*T

Ixia
Tom Miller
Chief Financial Officer
818-444-2325
tmiller@ixiacom.com

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