Citrix Systems Inc. (CTXS) said its quarter ending this month
would include charges from settling an IRS examination of its taxes
in 2004 and 2005.
The virtualization- and infrastructure-software company said the
second quarter would include at 6-cent to 8-cent charge because of
the settlement, according to a filing with the Securities and
Exchange Commission.
In April, Citrix had predicted it would report either 44 cents
or 45 cents a share in earnings for the second quarter.
The company, which improves computer efficiency by allowing
multiple systems to operate on one computer, reported strong
results in it most recent quarterly report in April. After
restructuring costs weighed on the bottom line a year earlier,
first-quarter profit surged while revenue rose across all the
company's businesses.
In the filing Wednesday, the company said that last year, the
IRS concluded Citrix was deficient in its 2004 and 2005 taxes by
about $81.3 million, including interest. The company appealed an
adjustment in the IRS's examination related to transfer pricing,
which it said would affect its tax liabilities in years after
2005.
This month, it reached a settlement in principle that concludes
the tax examination. The process of the settlement could take a
couple more months to complete, the company said Wednesday.
Citrix shares were flat at $42.23 after hours. The stock has
risen 32% in the last year, better than the broader market.
-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291;
joan.solsman@dowjones.com