The firm said it lowered its rating on the Internet Protocol, network validation, and network visibility solutions provider based on the company's weak outlook.
Ixia announced its preliminary 2014 first quarter financial results on August 5 and said it is expecting to report a net loss of -$18 million, or -24 cents per share, compared to a net income of $7.8 million, or 10 cents per diluted share for the 2013 first quarter.
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On a non-GAAP basis the company anticipates a decline in income to $5 million, or 6 cents per share, compared to $19.7 million, or 24 cents per share for the same period last year.
Revenue is also expected to decline to $114 million from $121 million for the year ago period.
The company said it first quarter earnings and revenue were impacted "by lower than expected network visibility solutions bookings due to sales integration activities related to our Net Optics acquisition and lower spending from our key service provider customers in North America."
Ixia also said that continued challenging market trends impacted its financial results.
It's estimated that the company will release its first quarter financial results on August 11.
Separately, TheStreet Ratings team rates IXIA as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate IXIA (XXIA) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity."
You can view the full analysis from the report here: XXIA Ratings ReportXXIA data by YCharts