Q3'16 investor-deck 20161111

1 | © 2016 IXIA AND/OR ITS AFFILIATES. ALL RIGHTS RESERVED.
WE MAKE
APPLICATIONS STRONGER
Investor Presentation – Q3 2016

Certain statements made in this presentation may be deemed to be forward-looking statements, including, without limitation, statements
regarding the growth in cloud outsourcing, data usage, and the number of connected devices, customer base growth and diversification, the
company’s target model for the relative sizes of its customer market segments, growth drivers, and the company’s financial target model. In
some cases, such forward looking statements can be identified by terms such as “may,” “will,” “should,” “could,” “would,” “expect,” “plan,”
“anticipate,” “believe,” “estimate,” “project,” “predict,” “potential,” and variations of these words and similar expressions. These statements
reflect our current views with respect to future events and are based on assumptions and are subject to risks and uncertainties. These risks
and uncertainties, as well as other factors, may cause our future results, performance, or achievements to be materially different from those
expressed or implied by such forward-looking statements. Factors that could cause our actual results to differ materially from the results
predicted include, among others: the risk that cloud outsourcing, data usage, and the number of connected devices will not grow as
contemplated by the company and/or third parties; changes with respect to the sales momentum for our network visibility solutions; changes
in our business strategy and/or in our execution of or investment in such strategy; our success in developing, producing, and introducing
new products and in keeping pace with the rapid technological changes that characterize our market; our success in developing new sales
channels and customers; market acceptance of our products; competition; changes in the global economy and in market conditions;
consistency of orders from significant customers; our success in leveraging our intellectual property portfolio, expertise and market
opportunities; our expectations regarding the transition into Software Defined Networks (SDN) and Network Functions Virtualization (NFV);
a material weakness in our internal controls; and war, terrorism, political unrest, natural disasters, cybersecurity attacks, and other
circumstances that could, among other consequences, reduce the demand for our products, disrupt our supply chain, impact the delivery of
our products, and/or change our business strategy, market positioning, and business plans and focus and/or affect our ability to execute on
such strategy and plans. The factors that may cause future results to differ materially from our current expectations also include, without
limitation, the risks identified in our Annual Report on Form 10-K for the year ended December 31, 2015, and in our other filings with the
U.S. Securities and Exchange Commission. Many of these risks and uncertainties are outside of our control and are difficult for us to
forecast or mitigate. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future
events, or otherwise.
SAFE HARBOR STATEMENT

To supplement our consolidated financial results prepared in accordance with Generally Accepted Accounting
Principles ("GAAP"), we have included certain non-GAAP financial measures in this presentation. Specifically, we
have provided non-GAAP financial measures (e.g., non-GAAP operating income, non-GAAP operating expenses,
non-GAAP operating margin, and non-GAAP diluted earnings per share) that exclude certain non-cash and/or non-
recurring expense items such as expenses relating to internal investigations and any related remediation efforts, the
securities class action and shareholder derivative action that have recently been settled, as well as an ongoing SEC
investigation, the amortization of acquisition-related intangible assets, stock-based compensation expenses,
acquisition and other related costs, restructuring expenses, and the related income tax effects of these items, as well
as certain other non-cash income tax impacts such as changes in the valuation allowance recorded against certain
deferred tax assets. The aforementioned items represent expense items that may be difficult to estimate from period
to period and/or that we believe are not directly attributable to and/or reflective of the underlying performance of our
business operations. We believe that by excluding these items, our non-GAAP measures provide supplemental
information to both management and investors that is useful in assessing the operating performance of our core
business, identifying and assessing financial and business trends affecting our business that might otherwise be
obscured or distorted, and comparing our results of operations on a consistent basis from period to period by
eliminating certain items that may vary independent of business performance. These non-GAAP financial measures
are provided to enhance the user's overall understanding of our financial performance and to provide to our investors
greater transparency with respect to key metrics used by management to operate our business. These non-GAAP
financial measures are used by management, in conjunction with and in addition to our results prepared in
accordance with GAAP, to plan, budget, and forecast for future periods and in making operating and strategic
decisions. The company also uses these measures in evaluating the performance and making determinations
regarding executive compensation. The presentation of this additional information is not prepared in accordance with
GAAP. The information may not necessarily be comparable to that of other companies that may calculate their non-
GAAP financial measures differently and should be considered as a supplement to, and not a substitute for, or
superior to, the corresponding measures calculated in accordance with GAAP. A reconciliation of GAAP to non-GAAP
results is provided at the end of this investor presentation. Note that unless specifically noted otherwise, all numbers
in this presentation are on a non-GAAP basis.
NON-GAAP INFORMATION

COMPANY OVERVIEW
Bethany Mayer, President and CEO

IXIA HAS A STRONG HISTORY OF PERFORMANCE
0
100
200
300
400
500
600
2009 2010 2011 2012 2013 2014 2015
REVENUE
BUSINESS NOW RELATES TO SECURITY
TO MARKET WITH 10G, 40G, 100G, 400G,
25G, 50G
OF EMPLOYEES IN R&D
($MM)
U.S. AND FOREIGN PATENTS PENDING
OR ISSUED
~45%
>400
1st
~35%
FOUNDED 1997
HEADQUARTERS CALABASAS, CA
EMPLOYEES ~1823
MARKET CAP* ~$1.0 BILLION
ENTERPRISE
VALUE*
~$933 MILLION
*As of 11-3-16

WE ARE PROUD TO SERVE
ENTERPRISESERVICE PROVIDERSNEMs
77
OF THE
FORTUNE 100
47
OF THE
TOP 50 CARRIERS
15
OF THE
TOP 15 NEMS

INTERNET OF THINGSCLOUD NETWORK SECURITY BIG DATA
MARKET DYNAMICS DRIVING
More Data, More Complexity, More to Secure
MOBILE DATA TRAFFIC
MOVES TO CLOUD APPS
BY 2019
90%
BILLION CONNECTED
THINGS REQUESTING
SUPPORT BY 2018
6GIGABYTES OF
NEW DATA PER
PERSON / DAY BY 2020
150GROWTH IN
GLOBAL SECURITY
INCIDENTS 2014 to 2015
38%

Jeep Hack
Forces 1.4M
Recalls; Drives
Congress
to Action
OPM Hack:
4 Million
Government
Workers Completely
Exposed
2.5 million people
have medical
device implants
with WiFi. Was
yours fully tested?
One out of three
Americans’
health records
were breached
CUSTOMER PAIN POINTS
The Cost of Inadequate Network Design, Monitoring and Security:

Network Design and Rollout
Financial Trading Exchange
• 10X DDoS response speed
• Prevented P1 service outage –
Priceless!
Payment Processing Company
• Ability to share security tools
freed $3M budget
• Delivered 10X ROI on cost of
Security Fabric
Network Operation
B I G D A T A C L O U D I o T
Network
Design
Network
Operations
Network
Rollout
I X V I S I O NI X T E S T I X S E C U R E
WE MAKE APPLICATIONS STRONGER
We challenge the infrastructure, harden security and visualize the applications

CloudL
ens
MGR.
INTRODUCING CLOUDLENS
One solution for visibility across
your physical network, data center
and cloud
Security
Admin
Application
Operations
Network
Operations
Forensics

END-TO-END APPLICATION STRENGTHENING
Across the Infrastructure
Across ALL Platforms
Flex Taps, iBypass,
Virtual Taps
802.11ac,
MU-MIMO
PerfectStorm
BPS vEPC
IxLoad/VE
IxNetwork/VE
Multis SDN
ThreatARMOR,
ATIP
Mobile Endpoint Network Data Center Cloud
Vision One,
NTO, Hawkeye,
xStream40,
Control Tower

Increased channel investment
Targeted markets and customers
~1000 partners worldwide and growing
CRN 5-Star Rating
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2011 2015 Target Model
CUSTOMER SEGMENTS*
NEM & Carrier Enterprise
CUSTOMER BASE CONTINUES
TO GROW AND DIVERSIFY
* Percentage based on estimated sales volume
CUSTOMER BASE EXPANSION

POW ER FU L
GR OW TH
D R IVER S
DEEP
A PPLIC ATION S
A N D
SEC U R ITY IP
EXPANDING
C U STOMER
B A SE
STRONG
FIN A N C IA L
MOD EL
WELL POSITIONED FOR GROWTH

FINANCIALS
Brent Novak, CFO

THIRD QUARTER 2016 SUMMARY
Just above the guidance range
of $113M - $123M
Record revenue in our
Enterprise customer vertical
Deferred revenue up 10%
year-over-year
R EVEN U E:
$123.9M
Up from 16.5% in Q3’15
(YoY)
Solid gross margin of
78.2%, flat YoY
Continued focus on
financial discipline
N ON - GA A P
OPER ATIN G
MA R GIN : 17.4%
Exceeded guidance
of $0.08 to $0.15
Up from $0.15 in Q3’15
(YoY)
Generated $22M in
cash flow from
operations
N ON - GA A P
EPS: $ 0 .1 8
Please refer to reconciliation of GAAP to Non-GAAP measures in Appendix and in the investor relations section of the company’s website.

TARGET MODEL
100%
76 – 78%
58 – 53%
18 – 25%
12 – 16%
2014 2015
YTD
Q3’16
Revenue $464M $517M $357M
Gross Margin 76% 78% 79%
Operating
Expenses
65% 60% 63%
Operating Margin 11% 18% 16%
Net Margin 6% 11% 11%
Please refer to reconciliation of GAAP to Non-GAAP measures in Appendix and in the investor relations section of the company’s website.
NON-GAAP FINANCIALS AND MODEL

IN MILLIONS DEC. 2014 DEC. 2015 SEPT. 2016
Cash, cash equivalents
and marketable securities
$126 $67 $122
Total assets $869 $780 $770
Convertible debt $199 - -
Term loan - $38 $34
Shareholders’ equity * $481 $519 $537
Availability under Credit Facility - $75 $150
* On February 23, 2016, the company announced that its Board of Directors authorized a $25 million share repurchase program. As of September 30,
2016, the company has repurchased 707,332 shares under the share repurchase program for a total consideration of approximately $6.9 million.
BALANCE SHEET DETAILS

THANK YOU

RECONCILIATION OF GAAP TO NON-GAAP 1 OF 3
FY 2014 FY 2015 YTD Q3/16
Revenue 100% 100% 100%
GM %, GAAP 75.2% 78.0% 78.6%
Inventory adjustments (a)
0.3% 0.0% 0.0%
Stock-based compensation (b)
0.1% 0.1% 0.1%
GM %, non-GAAP 75.6% 78.1% 78.7%
Operating expense, GAAP 84.8% 73.5% 75.6%
Amortization of intangible assets (c)
-10.1% -8.2% -8.3%
Acquisition and other related (d)
-0.7% -0.1% 0.0%
Restructuring (e)
-2.2% 0.1% 0.1%
Stock-based compensation (b)
-3.5% -3.6% -3.7%
Legal, contract settlements, and other (f )
-3.3% -1.2% -0.5%
Operating expense, non-GAAP 65.0% 60.5% 63.2%
Operating Margin (loss), GAAP -9.6% 4.5% 3.0%
Effects of reconciling items (g)
20.2% 13.1% 12.5%
Operating Margin (loss), non-GAAP 10.6% 17.6% 15.5%
Net income (loss), GAAP -9.0% 1.2% 1.0%
Effects of reconciling items (h)
15.1% 9.8% 9.5%
Net income, non-GAAP 6.1% 11.0% 10.5%
Diluted earnings / (loss) per share, GAAP ($0.54) $0.07 $0.04
Effects of reconciling items (i) (j)
$0.90 $0.60 $0.41
Diluted earnings per share, non-GAAP $0.36 $0.67 $0.45

(a) These adjustments represent purchase price accounting adjustments related to the fair value of inventory as a result of our acquisitions.
(b) These adjustments represent non-cash stock-based compensation expenses.
(c) This adjustment represents the amortization of intangible assets related to the acquisitions of various businesses and technologies.
(d) This adjustment represents costs associated with acquisition-related activities. Acquisition and other related costs consist primarily of transaction and
integration related costs such as success-based banking fees, professional fees for legal, accounting, tax, due diligence, valuation and other related services,
change in control payments, consulting fees, required regulatory costs, certain employee, facility and infrastructure costs, and other related expenses.
(e) This adjustment represents costs associated with our restructuring plans/reorganization plans. These costs primarily relate to one-time employee termination
benefits consisting of severance, facility-related costs, and other costs.
(f) This reconciling item represents costs incurred related to (i) internal investigations and any related remediation efforts, (ii) the restatement of our financial
statements for the first quarter of 2013 and for the three and six months ended June 30, 2013, (iii) the securities class action and shareholder derivative
action that have been settled recently, and (iv) the ongoing SEC investigation. These costs consisted primarily of legal and accounting fees, recruiting and
consulting expenses, severance and retention costs, and other related expenses. The fourth quarter of 2014 also includes $1.0 million write-off for a one-time
item related to a certain contractual matter.
(g) These adjustments represent the effects of the adjustments noted in footnotes (a), (b), (c), (d), (e) and (f).
(h) These adjustments represent the income tax effects of the adjustments noted in footnotes (a), (b), (c), (d), (e) and (f), as well as certain other non-cash
income tax impacts such as changes in the valuation allowance relating to the company’s deferred tax assets.
(i) These adjustments represent the effects of the adjustments noted in footnotes (a), (b), (c), (d), (e), (f), and (h), on a per share basis.
(j) This adjustment, if applicable, includes the impact of the convertible senior notes if these were anti-dilutive for the equivalent GAAP earnings per share
calculations.

Target Model - Low Target Model - High
GAAP
Adjustments
(1)
Non-
GAAP GAAP
Adjustments
(1)
Non-
GAAP
Revenue 100% 0% 100% 100% 0% 100%
GM% 76% 0% 76% 78% 0% 78%
Operating expense 70% -12% 58% 66% -13% 53%
Operating income 6% 12% 18% 12% 13% 25%
Interest income and other, net 0% 0% 0% 0% 0% 0%
Interest expense -2% 0% -2% -1% -1% -2%
Income tax expense 1% 4% 5% 3% 4% 7%
Net income 3% 8% 12% 8% 8% 16%

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