Ixia announced a company-wide restructuring initiative expected to produce annual cost savings of approximately $6 million. The restructuring plan includes a reduction of staffing. Approximately 75 to 80 positions will be eliminated through this restructuring, which represents a 9 to 10% reduction in Ixia’s worldwide work force. The company will also write down approximately $1 to $2 million of slow moving and impaired inventory in the second quarter.
Ixia also reiterated its revenue guidance of $35 million to $40 million for the second quarter of 2009. Excluding the impact of the restructuring expenses and of the inventory write-down and other non-cash charges, the company expects non-GAAP earnings to be in a range of a loss of $0.02 per share to earnings of $0.03 per diluted share. On a GAAP basis, including all of these charges, we expect to report a loss in a range of $0.05 to $0.10 per share.
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