Will Ixia (XXIA) Stock Be Negatively Impacted By This Ratings Downgrade?

NEW YORK (TheStreet) --Shares of Ixia (XXIA) are down by -1.29% to $9.95 at the start of trading on Thursday, following a downgrade to "hold' from "buy" at Jefferies Group (JEF).

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.  

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