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Law Offices of Howard G. Smith Announces Investigation On Behalf of Investors of Ixia



  Law Offices of Howard G. Smith Announces Investigation On Behalf of
  Investors of Ixia

Business Wire

BENSALEM, Pa. -- April 15, 2013

Law Offices of Howard G. Smith announces that it is investigating potential
claims against Ixia (“Ixia” or the “Company”) (NASDAQ:XXIA) concerning
possible violations of federal securities laws. The investigation focuses on
allegations that certain statements issued by Ixia misrepresented the
Company’s financial performance.

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, 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 impact on 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 Howard G. Smith,
Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112,
Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, Toll Free at
(888) 638-4847, or by email to howardsmith@howardsmithlaw.com, or visit our
website at http://www.howardsmithlaw.com.

Contact:

Law Offices of Howard G. Smith
Howard G. Smith, Esquire
(215) 638-4847
(888) 638-4847
howardsmith@howardsmithlaw.com
www.howardsmithlaw.com
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