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TMCNet:  Citrix Systems Q2 Results Beat View; Lifts 2014 Earnings Outlook

[July 23, 2014]

Citrix Systems Q2 Results Beat View; Lifts 2014 Earnings Outlook

(dpa-AFX International Compact Via Acquire Media NewsEdge) FORT LAUDERDALE (dpa-AFX) - Citrix Systems Inc. (CTXS) on Wednesday reported an 18 percent decline in profit for the second quarter from last year as higher revenues were offset by a restructuring charge and an increase in expenses. However, both revenue and adjusted earnings per share for the quarter beat analysts' expectations.


Looking ahead, the enterprise software maker forecast financial results for the third quarter below Street expectations, but raised its fiscal 2014 earnings outlook.

The Fort Lauderdale, Florida-based company's net income for the second quarter was $53.02 million or $0.31 per share, down from $64.46 million or $0.34 per share in the year-ago period.

Excluding impairment charges, a restructuring charge and a tax benefit, adjusted net income for the quarter was $142 million or $0.83 per share, compared to $124 million or $0.66 per share in the same period last year.

On average, 30 analysts polled by Thomson Reuters expected the company to report earnings of $0.61 per share for the quarter. Analysts' estimates typically exclude special items.

Total net revenues for the quarter grew 7 percent to $781.56 million from $730.38 million in the year-ago period. Analysts had a consensus revenue estimate of $772.60 million.

Product and license revenue for the quarter increased 2 percent to $231.79 million, while software as a service revenue increased 12 percent to $160.78 million and revenue from license updates and maintenance increased 7 percent to $347.04 million.

Professional services revenue, which is comprised of consulting, product training and certification, increased 15 percent to $41.95 million.

Revenue increased in the EMEA and Pacific regions by 8 percent,and grew in the Americas region by 4 percent.

Deferred revenue at the end of the second quarter totaled $1.4 billion, up 12 percent from $1.3 billion at the end of the prior-year quarter.

Looking ahead to the third quarter, Citrix forecasts reported earnings per share in a range of $0.32 to $0.36, adjusted earnings per share of $0.70 to $0.73, and net revenue of $765 million to $775 million.

Analysts expect the company to report third-quarter earnings of $0.76 per share on revenue of $785.80 million.

For fiscal 2014, Citrix now expects reported earnings in a range of $1.62 to $1.67 per share, adjusted earnings of $3.20 to $3.25 per share, and net revenue to grow 8.5 percent to 10 percent.

Earlier, the company forecast full-year reported earnings of $1.60 to $1.65 per share and adjusted earnings in a range of $3.07 to $3.12 per share.

Analysts now expect the company to report fiscal 2014 earnings of $3.10 per share on revenue growth of 9.4 percent to $3.19 billion.

CTXS closed Wednesday's regular trading session at $64.10, up $0.02 or 0.03 percent on a volume of 3.14 million shares. In after-hours, the stock further gained $0.84 or 1.31 percent to $64.94.

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