LOS ANGELES, April 19, 2013 (GLOBE NEWSWIRE) -- Glancy Binkow & Goldberg LLP announces that it is investigating potential claims on behalf of purchasers of the securities of Ixia ("XXIA" or the "Company") concerning possible violations of federal securities laws.
Ixia provides converged Internet protocol (IP) network validation and network visibility solutions in the United States and internationally. The Company's solutions are used to design, verify, and monitor a range of Ethernet, Wi-Fi, and 3G/long-term evolution equipment and networks. The investigation concerns allegations that Ixia issued misleading statements or failed to disclose material adverse facts concerning the Company's operations and financial performance.
On April 3, 2013 in a filing with the Securities and Exchange Commission, the Company disclosed that it would need to restate its financial results for the fiscal years ended December 31, 2011 and 2010, the fiscal quarters ended March 31, 2011, June 30, 2011, September 30, 2011 and December 31, 2011, and the fiscal quarters ended March 31, 2012, June 30, 2012 and September 30, 2012, and that the Company's previously issued financial statements for the foregoing periods should no longer be relied upon.
According to the Company, the restatements are the result of an internal evaluation which identified errors in the Company's revenue recognition practices and "relate to the manner in which the Company recognizes revenues related to its warranty and software maintenance contracts, including a previous implied warranty and software maintenance arrangement with one of the Company's customers." In addition, Ixia disclosed that the Company "expects to disclose in its 2012 Form 10-K that the Company did not maintain effective disclosure controls and procedures and internal control over financial reporting as of December 31, 2012 because of the identified material weaknesses related to the accuracy with which the Company had historically recognized revenues related to its warranty and software maintenance contracts and arrangements."
Ixia had previously announced that it would delay filing its 2012 Form 10-K because it needed to correct an error related to the manner in which it recognizes revenues for its warranty and software maintenance contracts, and required additional time to evaluate the impact of the correction on its financial results for the year ended December 31, 2012 and certain prior periods and the Company's internal control over financial reporting.
The next day following the April 3, 2013 disclosures, shares of Ixia dropped $1.94 per share, or more than 9.5%, to close on April 4, 2013 at $18.37 per share on unusually heavy volume, and further dropped $0.58 per share on April 5, 2013, to a closing price that day of $17.79 per share, also on heavy trading volume.
If you purchased Ixia shares before April 3, 2013, if you have information or would like to learn more about these claims, or if you wish to discuss these matters or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Michael Goldberg, Esquire, of Glancy Binkow & Goldberg LLP, 1925 Century Park East, Suite 2100, Los Angeles, California 90067, by telephone at (310) 201-9150, Toll Free at (888) 773-9224, by e-mail to shareholders@glancylaw.com, or visit our website at http://www.glancylaw.com.
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