Citrix Systems Inc.'s (CTXS) second-quarter profit surged 72% as
the virtualization and infrastructure software company reported
across-the-board revenue growth, led by online and technical
services, while margins jumped.
Shares fell 6.1% to $66.60 in after-hours trading, as the
per-share outlook for the current quarter narrowly missed Wall
Street's expectations.
The company forecast adjusted third-quarter earnings of 56 cents
to 58 cents a share on revenue of $540 million to $547 million.
Analysts surveyed by Thomson Reuters expected 61 cents and $543
million, respectively.
For the year, Citrix now sees revenue of $2.16 billion to $2.19
billion, up from the April view of $2.14 billion to $2.17 billion.
The company affirmed its adjusted earnings target.
Citrix's desktop-solutions business--which includes XenApp and
XenDesktop--has seen its growth rate accelerate the last few
quarters due to the increasing importance of desktop
virtualization. The company has used sales promotions to keep
active customers or upgrade inactive clients, and has had success
selling multi-product deals.
Citrix, which improves computer efficiency by allowing multiple
systems to operate on one computer, reported earnings of $81.9
million, or 43 cents a share, up from $47.6 million, or 25 cents a
share, a year earlier. Excluding stock-based compensation and other
impacts, earnings grew to 57 cents from 41 cents as revenue grew
16% to $530.8 million.
In April, Citrix forecast earnings of 54 cents to 55 cents on
revenue of $515 million to $525 million.
Operating margin grew to 18% from 16.1%.
Revenue from product licenses, or new product purchases, climbed
15%, while license updates, which includes annuity revenue from
subscription paid when new licenses are purchased, increased 9.1%.
Sales at the online services and technical services segments were
up 19% and 33%, respectively.
-By John Kell, Dow Jones Newswires; 212-416-2480;
john.kell@dowjones.com