##### Table of Contents



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, DC 20549
 FORM 10-Q
  þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period ended June 30, 2008
 OR
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the transition period from  to
 Commission File Number 000-31523
 IXIA
 (Exact name of Registrant as specified in its charter)
 California
    
    95-4635982(State or other jurisdiction of 
incorporation or organization)
    
    (I.R.S. Employer Identification No.)
 26601 West Agoura Road, Calabasas, CA 91302  (Address of principal executive offices, including zip code)
 (818) 871-1800  (Registrants telephone number, including area code)
 þ o
  Large accelerated filer o
    
    Accelerated filer
þ
    
    Non-accelerated filer o
    
    Smaller reporting company o(Do not check if a smaller reporting company)
 o þ
  Common Stock
    
    63,431,834(Class of Common Stock)
    
    (Outstanding at August 4, 2008)




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##### 



IXIA
 TABLE OF CONTENTS
  
 Page NumberPART I.
    
    FINANCIAL INFORMATIONItem 1.
    
    Financial Statements (unaudited)Condensed Consolidated Balance Sheets as of June 30,
2008 and December 31, 2007
    
    
    3Condensed Consolidated Statements of Income for the
three and six months ended June 30, 2008 and 2007
    
    
    4Condensed Consolidated Statements of Cash Flows for
the six months ended June 30, 2008 and 2007
    
    
    5Notes to Condensed Consolidated Financial Statements
    
    
    6Item 2.
    
    Managements
Discussion and Analysis of Financial
Condition and Results of Operations
    
    
    12Item 3.
    
    Quantitative and Qualitative Disclosures about Market Risk
    
    
    21Item 4.
    
    Controls and Procedures
    
    
    22PART II.
    
    OTHER INFORMATIONItem 1A.
    
    Risk Factors
    
    
    23Item 2.
    
    Unregistered
Sales of Equity Securities and Use of Proceeds
    
    
    23Item 4.
    
    Submission of Matters to a Vote of Security Holders
    
    
    23Item 5.
    
    Other Information
    
    
    24Item 6.
    
    Exhibits
    
    
    24SIGNATURES
    
    
    
    
    
    
    25EXHIBIT 31.1EXHIBIT 31.2EXHIBIT 32.1
  2




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IXIA
 
 Condensed Consolidated Balance Sheets
 (in thousands)
 June 30,
    
    
    December 31,2008
    
    
    2007(unaudited)AssetsCurrent assets:Cash and cash equivalents
    
    $
    168,457
    
    
    $
    188,892Short-term investments in marketable securities
    
    
    4,996
    
    
    
    4,999Accounts receivable, net of allowance for
doubtful accounts of $760 and $614 as of June
30, 2008 and December 31, 2007, respectively
    
    
    35,888
    
    
    
    32,405Inventories
    
    
    9,658
    
    
    
    12,731Deferred income taxes
    
    
    5,593
    
    
    
    5,613Prepaid expenses and other current assets
    
    
    4,139
    
    
    
    3,385Total current assets
    
    
    228,731
    
    
    
    248,025Investments in marketable securities
    
    
    47,508
    
    
    
    54,609Property and equipment, net
    
    
    20,392
    
    
    
    21,433Deferred income taxes
    
    
    13,244
    
    
    
    13,543Intangible assets, net
    
    
    11,357
    
    
    
    14,147Goodwill
    
    
    16,728
    
    
    
    16,728Other assets
    
    
    2,200
    
    
    
    955Total assets
    
    $
    340,160
    
    
    $
    369,440Liabilities and Shareholders EquityCurrent liabilities:Accounts payable
    
    $
    3,410
    
    
    $
    2,474Accrued expenses
    
    
    19,533
    
    
    
    19,440Deferred revenues
    
    
    20,514
    
    
    
    18,748Income taxes payable
    
    
    750
    
    
    
    1,304Total current liabilities
    
    
    44,207
    
    
    
    41,966Deferred revenues
    
    
    6,716
    
    
    
    7,167Other liabilities
    
    
    5,711
    
    
    
    3,807Total liabilities
    
    
    56,634
    
    
    
    52,940Shareholders equity:Common stock, without par value; 200,000
shares authorized, 63,362 and 68,171 shares
issued and outstanding as of June 30, 2008 and
December 31, 2007, respectively
    
    
    93,281
    
    
    
    132,092Additional paid-in capital
    
    
    102,704
    
    
    
    98,157Retained earnings
    
    
    90,964
    
    
    
    89,077Accumulated other comprehensive loss
    
    
    (3,423
    )
    
    
    (2,826
    )Total shareholders equity
    
    
    283,526
    
    
    
    316,500Total liabilities and shareholders equity
    
    $
    340,160
    
    
    $
    369,440
  3




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##### Table of Contents



IXIA
 
 Condensed Consolidated Statements of Income
 (in thousands, except per share data)
  Three months ended
    
    
    Six months endedJune 30,
    
    
    June 30,2008
    
    
    2007
    
    
    2008
    
    
    2007Revenues:Products
    
    $
    38,783
    
    
    $
    36,864
    
    
    $
    73,717
    
    
    $
    71,579Services
    
    
    7,137
    
    
    
    6,135
    
    
    
    13,854
    
    
    
    12,123Total revenues
    
    
    45,920
    
    
    
    42,999
    
    
    
    87,571
    
    
    
    83,702Costs and operating
expenses:(1)Cost of revenues  products
    
    
    8,658
    
    
    
    8,379
    
    
    
    16,840
    
    
    
    16,234Cost of revenues  amortization of purchased
technology
    
    
    1,220
    
    
    
    1,427
    
    
    
    2,440
    
    
    
    2,756Cost of revenues  services
    
    
    1,134
    
    
    
    916
    
    
    
    2,188
    
    
    
    2,060Research and development
    
    
    12,530
    
    
    
    10,942
    
    
    
    24,516
    
    
    
    22,610Sales and marketing
    
    
    15,027
    
    
    
    13,466
    
    
    
    29,729
    
    
    
    28,309General and administrative
    
    
    6,138
    
    
    
    5,847
    
    
    
    13,142
    
    
    
    12,331Amortization of intangible assets
    
    
    207
    
    
    
    614
    
    
    
    468
    
    
    
    1,145Impairment of purchased technology and
intangible assets
    
    
    
    
    
    
    3,263
    
    
    
    
    
    
    
    3,263Total costs and operating expenses
    
    
    44,914
    
    
    
    44,854
    
    
    
    89,323
    
    
    
    88,708Income (loss) from operations
    
    
    1,006
    
    
    
    (1,855
    )
    
    
    (1,752
    )
    
    
    (5,006
    )Interest and other income, net
    
    
    1,756
    
    
    
    2,912
    
    
    
    4,533
    
    
    
    5,611Income before income taxes
    
    
    2,762
    
    
    
    1,057
    
    
    
    2,781
    
    
    
    605Income tax expense (benefit)
    
    
    981
    
    
    
    (343
    )
    
    
    894
    
    
    
    (36
    )Net income
    
    $
    1,781
    
    
    $
    1,400
    
    
    $
    1,887
    
    
    $
    641Earnings per share:Basic
    
    $
    0.03
    
    
    $
    0.02
    
    
    $
    0.03
    
    
    $
    0.01Diluted
    
    $
    0.03
    
    
    $
    0.02
    
    
    $
    0.03
    
    
    $
    0.01Weighted average number of common and common
equivalent shares outstanding:Basic
    
    
    65,343
    
    
    
    67,834
    
    
    
    66,646
    
    
    
    67,625Diluted
    
    
    66,265
    
    
    
    69,232
    
    
    
    67,594
    
    
    
    69,161(1) Stock-based compensation included in:Cost of revenues  products
    
    $
    91
    
    
    $
    84
    
    
    $
    248
    
    
    $
    226Cost of revenues  services
    
    
    35
    
    
    
    32
    
    
    
    95
    
    
    
    86Research and development
    
    
    774
    
    
    
    839
    
    
    
    1,883
    
    
    
    2,260Sales and marketing
    
    
    860
    
    
    
    656
    
    
    
    1,774
    
    
    
    2,366General and administrative
    
    
    672
    
    
    
    445
    
    
    
    1,368
    
    
    
    960
  4




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IXIA
 
 Condensed Consolidated Statements of Cash Flows
 (in thousands)
  Six months endedJune 30,2008
    
    
    2007Cash flows from operating activities:Net income
    
    $
    1,887
    
    
    $
    641Adjustments to reconcile net income to net cash provided by
operating activities, net of effect of acquisitions:Depreciation and amortization
    
    
    5,876
    
    
    
    5,644Amortization of purchased technology and intangible assets
    
    
    2,908
    
    
    
    3,901Impairment of purchased technology and intangible assets
    
    
    
    
    
    
    3,263Stock-based compensation
    
    
    5,368
    
    
    
    5,898Deferred income taxes
    
    
    693
    
    
    
    (1,447
    )Tax shortfall from stock option transactions
    
    
    (821
    )
    
    
    (89
    )Excess tax benefits from stock-based compensation
    
    
    (29
    )
    
    
    (149
    )Changes in operating assets and liabilities, net of
effect of acquisitions:Accounts receivable, net
    
    
    (3,483
    )
    
    
    5,480Inventories
    
    
    3,073
    
    
    
    (904
    )Prepaid expenses and other current assets
    
    
    (754
    )
    
    
    864Other assets
    
    
    (1,245
    )
    
    
    (466
    )Accounts payable
    
    
    936
    
    
    
    100Accrued expenses
    
    
    174
    
    
    
    (219
    )Deferred revenues
    
    
    1,315
    
    
    
    172Income taxes payable and other liabilities
    
    
    1,350
    
    
    
    (661
    )Net cash provided by operating activities
    
    
    17,248
    
    
    
    22,028Cash flows from investing activities:Purchases of property and equipment
    
    
    (4,844
    )
    
    
    (4,972
    )Purchases of available-for-sale securities
    
    
    
    
    
    
    (27,300
    )Proceeds from available-for-sale securities
    
    
    2,001
    
    
    
    24,000Purchases of held-to-maturity securities
    
    
    (8,924
    )
    
    
    (20,217
    )Proceeds from held-to-maturity securities
    
    
    13,065
    
    
    
    24,130Purchases of other intangible assets
    
    
    (118
    )
    
    
    (84
    )Payments in connection with acquisitions
    
    
    (81
    )
    
    
    (1,729
    )Net cash provided by (used in) investing activities
    
    
    1,099
    
    
    
    (6,172
    )Cash flows from financing activities:Proceeds from exercise of stock options and employee stock
purchase plan options
    
    
    1,998
    
    
    
    3,487Repurchase of common stock
    
    
    (40,809
    )
    
    
    Excess tax benefits from stock-based compensation
    
    
    29
    
    
    
    149Net cash (used in) provided by financing activities
    
    
    (38,782
    )
    
    
    3,636Net (decrease) increase in cash and cash equivalents
    
    
    (20,435
    )
    
    
    19,492Cash and cash equivalents at beginning of period
    
    
    188,892
    
    
    
    64,644Cash and cash equivalents at end of period
    
    $
    168,457
    
    
    $
    84,136
  5




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IXIA
 
 Notes to Condensed Consolidated Financial Statements
 (unaudited
 1. Business
  2. Basis of Presentation
    3. Inventories
  June 30,
    
    
    December 31,2008
    
    
    2007Raw materials
    
    $
    2,151
    
    
    $
    2,276Work in process
    
    
    2,574
    
    
    
    6,680Finished goods
    
    
    4,933
    
    
    
    3,775$
    9,658
    
    
    $
    12,731
 6




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4. Shareholders Equity
 Stock-Based Compensation
   Three Months Ended
    
    Six Months EndedJune 30,
    
    June 30,2008
    
    2007
    
    2008
    
    2007Expected lives (in years)
    
    
    4.0
    
    
    
    4.5
    
    
    
    4.1
    
    
    
    4.5Risk-free interest rates
    
    
    2.9
    %
    
    
    4.8
    %
    
    
    2.6
    %
    
    
    4.8
    %Dividend yield
    
    
    0.0
    %
    
    
    0.0
    %
    
    
    0.0
    %
    
    
    0.0
    %Expected volatility
    
    
    49.5
    %
    
    
    54.2
    %
    
    
    49.7
    %
    
    
    55.6
    %
   WeightedWeighted
    
    
    AverageAverage
    
    
    Remaining
    
    
    AggregateNumber
    
    
    Exercise Price
    
    
    Contractual
    
    
    Intrinsicof Options
    
    
    Per Share
    
    
    Life (in years)
    
    
    ValueOutstanding as of December 31, 2007
    
    
    9,905
    
    
    $
    10.67Granted
    
    
    1,067
    
    
    
    7.66Exercised
    
    
    (228
    )
    
    
    4.02Forfeited/canceled
    
    
    (1,287
    )
    
    
    12.24Outstanding as of June 30, 2008
    
    
    9,457
    
    
    $
    10.27
    
    
    
    4.06
    
    
    $
    4,357Exercisable as of June 30, 2008
    
    
    5,839
    
    
    $
    10.58
    
    
    
    2.88
    
    
    $
    4,356
  WeightedAverage GrantNumber
    
    
    Date Fair Valueof Awards
    
    
    Per ShareOutstanding as of December 31, 2007
    
    
    673
    
    
    $
    9.40Awarded
    
    
    79
    
    
    
    7.36Released
    
    
    (121
    )
    
    
    9.38Forfeited/canceled
    
    
    (48
    )
    
    
    9.42Outstanding as of June 30, 2008
    
    
    583
    
    
    $
    9.12
 7




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Stock Buyback Program
  Option Exchange Program
  5. Earnings Per Share
   Three months ended
    
    
    Six months endedJune 30,
    
    
    June 30,2008
    
    
    2007
    
    
    2008
    
    
    2007Numerator:Net income
    
    $
    1,781
    
    
    $
    1,400
    
    
    $
    1,887
    
    
    $
    641Denominator:Basic presentation:Weighted average common shares
    
    
    65,343
    
    
    
    67,834
    
    
    
    66,646
    
    
    
    67,625Denominator for basic calculation
    
    
    65,343
    
    
    
    67,834
    
    
    
    66,646
    
    
    
    67,625Diluted presentation:Shares used above
    
    
    65,343
    
    
    
    67,834
    
    
    
    66,646
    
    
    
    67,625Weighted average effect of
dilutive stock options and other
share-based awards
    
    
    922
    
    
    
    1,398
    
    
    
    948
    
    
    
    1,536Denominator for diluted calculation
    
    
    66,265
    
    
    
    69,232
    
    
    
    67,594
    
    
    
    69,161Basic earnings per share
    
    $
    0.03
    
    
    $
    0.02
    
    
    $
    0.03
    
    
    $
    0.01Diluted earnings per share
    
    $
    0.03
    
    
    $
    0.02
    
    
    $
    0.03
    
    
    $
    0.01
  8




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6. Concentrations
 Significant Customer
  Three months ended
    
    Six months endedJune 30,
    
    June 30,2008
    
    2007
    
    2008
    
    2007Amount of total revenues
    
    $
    9,177
    
    
    $
    9,385
    
    
    $
    19,745
    
    
    $
    21,665As a percentage of total revenues
    
    
    20.0
    %
    
    
    21.8
    %
    
    
    22.5
    %
    
    
    25.9
    %
  International Data
  Three months ended
    
    Six months endedJune 30,
    
    June 30,2008
    
    2007
    
    2008
    
    2007Amount of total revenues
    
    $
    17,037
    
    
    $
    15,515
    
    
    $
    30,853
    
    
    $
    28,587As a percentage of total revenues
    
    
    37.1
    %
    
    
    36.1
    %
    
    
    35.2
    %
    
    
    34.2
    %
  7. Fair Value Measurements
   9




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Quoted Prices inActive Markets
    
    
    Significant Other
    
    
    SignificantFair Value
    
    
    for Identical
    
    
    Observable
    
    
    UnobservableJune 30, 2008
    
    
    Assets (Level 1)
    
    
    Inputs (Level 2)
    
    
    Inputs (Level 3)Cash equivalents:Money market funds
    
    $
    157,771
    
    
    $
    157,771
    
    
    $
    
    
    
    $
    Long-term investments:Auction rate securities (1)
    
    
    13,383
    
    
    
    
    
    
    
    
    
    
    
    13,383Total financial assets
    
    $
    171,154
    
    
    $
    157,771
    
    
    $
    
    
    
    $
    13,383
 
 (1)
    
    Given the disruption in the auction process described below, there is no longer an
actively quoted market price for these securities. Accordingly, we utilized a model to
estimate the fair value of these auction rate securities based on, among other items: (i)
the underlying structure of each security; (ii) the present value of future principal and
interest payments discounted at rates considered to reflect current market conditions; (iii)
consideration of the probabilities of default, auction failure, or repurchase at par for
each period; and (iv) estimates of the recovery rates in the event of default for each
security. These estimated fair values could change significantly based on future market
conditions.  Investments inMarketableSecurities(Non-current)Balance at December 31, 2007
    
    $
    14,345Unrealized loss recorded to other comprehensive income
    
    
    (962
    )Balance at June 30, 2008
    
    $
    13,383
   10




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8. Recent Accounting Pronouncements
  11




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ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
  OVERVIEW
  Revenues.
  12




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13




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Stock-Based Compensation.
  Cost of Revenues
 14




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
    
    changes in our pricing policies and those of our competitors;
    
    the pricing we are able to obtain from our component suppliers and contract
manufacturers;
    
    the mix of customers and sales channels through which our products are sold;
    
    the mix of our products sold, such as the mix of software versus hardware product
sales;
    
    new product introductions by us and by our competitors;
    
    demand for our products;
    
    expenses related to acquired technologies, such as royalties and amortization of
intangible assets; and
    
    production volume.
  Operating Expenses
     Interest and Other Income, Net.
 15




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Income Tax.
 RESULTS OF OPERATIONS
  Three months ended
    
    Six months endedJune 30,
    
    June 30,2008
    
    2007
    
    2008
    
    2007Revenues:Products
    
    
    84.5
    %
    
    
    85.7
    %
    
    
    84.2
    %
    
    
    85.5
    %Services
    
    
    15.5
    
    
    
    14.3
    
    
    
    15.8
    
    
    
    14.5Total revenues
    
    
    100.0
    
    
    
    100.0
    
    
    
    100.0
    
    
    
    100.0Costs and operating expenses:(1)Cost of revenues  products
    
    
    18.9
    
    
    
    19.5
    
    
    
    19.2
    
    
    
    19.4Cost of revenues  amortization of purchased
technology
    
    
    2.7
    
    
    
    3.3
    
    
    
    2.8
    
    
    
    3.3Cost of revenues  services
    
    
    2.5
    
    
    
    2.1
    
    
    
    2.5
    
    
    
    2.5Research and development
    
    
    27.2
    
    
    
    25.4
    
    
    
    28.0
    
    
    
    27.0Sales and marketing
    
    
    32.6
    
    
    
    31.3
    
    
    
    33.9
    
    
    
    33.8General and administrative
    
    
    13.4
    
    
    
    13.6
    
    
    
    15.1
    
    
    
    14.7Amortization of intangible assets
    
    
    0.5
    
    
    
    1.5
    
    
    
    0.5
    
    
    
    1.4Impairment of purchased technology and
intangible assets
    
    
    
    
    
    
    7.6
    
    
    
    
    
    
    
    3.9Total costs and operating expenses
    
    
    97.8
    
    
    
    104.3
    
    
    
    102.0
    
    
    
    106.0Income (loss) from operations
    
    
    2.2
    
    
    
    (4.3
    )
    
    
    (2.0
    )
    
    
    (6.0
    )Interest and other income, net
    
    
    3.8
    
    
    
    6.8
    
    
    
    5.2
    
    
    
    6.8Income before income taxes
    
    
    6.0
    
    
    
    2.5
    
    
    
    3.2
    
    
    
    0.8Income tax expense (benefit)
    
    
    2.1
    
    
    
    (0.8
    )
    
    
    1.0
    
    
    
    (0.0
    )Net income
    
    
    3.9
    %
    
    
    3.3
    %
    
    
    2.2
    %
    
    
    0.8
    %(1) Stock-based compensation included in:Cost of revenues  products
    
    
    0.2
    %
    
    
    0.2
    %
    
    
    0.3
    %
    
    
    0.3
    %Cost of revenues  services
    
    
    0.1
    
    
    
    0.1
    
    
    
    0.1
    
    
    
    0.1Research and development
    
    
    1.7
    
    
    
    2.0
    
    
    
    2.2
    
    
    
    2.7Sales and marketing
    
    
    1.9
    
    
    
    1.5
    
    
    
    2.0
    
    
    
    2.8General and administrative
    
    
    1.5
    
    
    
    1.0
    
    
    
    1.6
    
    
    
    1.1
 Comparison of Three and Six Months Ended June 30, 2008 and 2007
 Revenues.
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Cost of Revenues
  Research and Development Expenses.
  Sales and Marketing Expenses.
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General and Administrative Expenses.
  Amortization of Intangible Assets.
 Impairment of Purchased Technology and Intangible Assets.
 Interest and Other Income, Net.
 Income Tax.
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LIQUIDITY AND CAPITAL RESOURCES
      Investments inMarketableSecurities(Non-current)Balance at December 31, 2007
    
    $
    14,345Unrealized loss recorded to other comprehensive income
    
    
    (962
    )Balance at June 30, 2008
    
    $
    13,383
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SAFE HARBOR UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
 Interest Rate Sensitivity
   Exchange Rate Sensitivity
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ITEM 4. CONTROLS AND PROCEDURES
 Evaluation of Disclosure Controls and Procedures
  Changes in Internal Control over Financial Reporting
  Inherent Limitations on Effectiveness of Controls
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PART II. OTHER INFORMATION
 
 ITEM 1A. Risk Factors
  
 ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds
   Total Number of
    
    Approximate DollarShares Purchased
    
    Value of Sharesas Part of Publicly
    
    that mayAverage Price
    
    Announced
    
    yet be PurchasedTotal Number of
    
    Paid
    
    Plans or
    
    under the Plans orPeriod
    
    Shares Purchased
    
    Per Share
    
    Programs
    
    ProgramsApril 1 - April 30
    
    
    1,295,529
    
    
    $
    6.82
    
    
    
    1,295,529
    
    
    $
    23,779,987May 1 - May 31
    
    
    1,422,022
    
    
    
    7.73
    
    
    
    1,422,022
    
    
    
    12,786,176June 1 - June 30
    
    
    1,544,277
    
    
    
    8.16
    
    
    
    1,544,277
    
    
    
    187,8234,261,828
    
    
    $
    7.61
    
    
    
    4,261,828
    
    
    $
    187,823
 
 ITEM 4. Submission of Matters to a Vote of Security Holders
   Name of Director
    
    Votes Cast For Director
    
    Votes WithheldAtul Bhatnagar
    
    
    64,407,261
    
    
    
    1,013,801Jonathan Fram
    
    
    63,359,435
    
    
    
    2,061,627Errol Ginsberg
    
    
    59,259,376
    
    
    
    6,161,686Gail Hamilton
    
    
    63,405,860
    
    
    
    2,015,202Jon F. Rager
    
    
    63,130,365
    
    
    
    2,290,697
 (c)
    
    At the Annual Meeting, with 49,178,066 votes cast in favor and 10,758,892 votes cast against,
the shareholders approved the Companys 2008 Equity Incentive Plan under which a total of
6,000,000 shares of Common Stock is authorized and reserved for issuance. There were
5,380,785 broker non-votes with respect to this matter and 103,319 abstentions.(d)
    
    At the Annual Meeting, with 34,550,441 votes cast in favor and 25,387,942 votes cast against,
the shareholders approved a one-time stock option exchange program, including an amendment to
the 2008
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Equity Incentive Plan. There were 5,380,785 broker non-votes with respect to this
matter and 101,894 abstentions.(e)
    
    At the Annual Meeting, with 65,353,608 votes cast in favor and 56,399 votes cast against, the
shareholders ratified the appointment of PricewaterhouseCoopers LLP as the Companys
independent registered public accounting firm for the year ending December 31, 2008. There
were 11,055 abstentions with respect to this matter.
 
 ITEM 5. Other Information
  
 ITEM 6. Exhibits
 10.1
    
    Ixia 2008 Executive Officer Bonus Plan(1)10.2
    
    Ixia 2008 Equity Incentive Plan, including amendment No. 1 thereto(2)31.1
    
    Certification of Chief Executive Officer of Ixia pursuant to Section 302 of the
Sarbanes-Oxley Act of 200231.2
    
    Certification of Chief Financial Officer of Ixia pursuant to Section 302 of the
Sarbanes-Oxley Act of 200232.1
    
    Certifications of Chief Executive Officer and Chief Financial Officer of Ixia
pursuant to Rule 13a-14(b) under the Exchange Act and 18 U.S.C. Section 1350,
as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
 
 (1)
    
    Incorporated by reference to Exhibit 10.1 to the Companys Current Report on Form 8-K (File
No. 000-31523) dated April 10, 2008, as filed with the Commission on April 11, 2008.(2)
    
    Incorporated by reference to Exhibit 10.1 to the Companys Current Report on Form 8-K (File
No. 000-31523) dated May 28, 2008, as filed with the Commission on June 3, 2008. 24




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SIGNATURES
   Date: August 11, 2008
    
    By:
    
    /s/ Atul BhatnagarAtul BhatnagarPresident and Chief Executive OfficerDate: August 11, 2008
    
    By:
    
    /s/ Thomas B. MillerThomas B. MillerChief Financial Officer
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EXHIBIT INDEX
 Exhibit No.
    
    Description31.1
    
    Certification of Chief Executive Officer of Ixia pursuant to
Section 302 of the Sarbanes-Oxley Act of 200231.2
    
    Certification of Chief Financial Officer of Ixia pursuant to
Section 302 of the Sarbanes-Oxley Act of 200232.1
    
    Certifications of Chief Executive Officer and Chief Financial
Officer of Ixia pursuant to Rule 13a-14(b) under the Exchange
Act and 18 U.S.C. Section 1350, as adopted pursuant to Section
906 of the Sarbanes-Oxley Act of 2002
 26