Citrix Systems 2Q profit rises, 3Q view misses
Citrix Systems Inc. said Wednesday that its second-quarter profit climbed as demand rose for the business software maker's virtualization, networking and cloud computing software offerings. The results beat Wall Street expectations, but the company's third-quarter outlook for adjusted earnings missed analyst views.
Citrix shares fell 5 percent in extended trading.
In the April-June quarter, Citrix earned $82 million, or 43 cents per share, compared with $48 million, or 25 cents per share, in the same quarter a year earlier. Excluding one-time items, Citrix earned 57 cents per share, which is 2 cents higher than what analysts polled by FactSet were expecting, on average.
Revenue jumped 15 percent to $530.8 million, beating analyst estimates for $522.8 million. Citrix said revenue from product licenses rose 15 percent to $171.3 million, while revenue from license updates rose 9 percent to $183.9 million. The company's online services revenue climbed 19 percent to $106.5 million.
The company predicted revenue in the current quarter will total $540 million to $547 million, and Citrix expects net income of 39 to 41 cents per share, or 56 to 58 cents per share. Analysts have been expecting adjusted net income of 61 cents per share on $543.2 million in revenue.
For all of 2011, Citrix raised its revenue expectations, saying it now expects $2.16 billion to $2.19 billion in revenue. The company still expects net income of $2.38 to $2.41 per share, excluding special items. Analysts are looking for adjusted net income of $2.41 per share on $2.16 billion in revenue.
Shares of Citrix fell $3.26 to $67.68 in after-hours trading. The stock finished regular trading down $3.57, or 4.8 percent, at $70.94.