By Maria Armental
Citrix Systems Inc. (CTXS) is restructuring operations, a move
the company expects will save it $90 million to $100 million a year
before taxes.
Layoffs will be part of the restructuring, which will affect
about 700 full-time workers and 200 contractor positions, the
company said. It will cost the company $40 million to $45 million
in severance and $9 million to $10 million to consolidate leased
facilities in the current year, it added.
Shares rose 3.40% to $61.20 in recent after-hours trading on the
news.
The Fort Lauderdale, Fla., company specializes in
virtualization, networking and cloud infrastructure and has
benefited from increased demand for desktop visualization, a
crucial step in cloud computing.
Citrix said it expects to make 70 cents to 72 cents a share on
revenue of $780 million to $790 million in the current quarter, and
to earn $3.60 to $3.65 a share on revenue of $3.29 billion to $3.33
billion for the year. Those numbers are below the consensus of 80
cents a share on revenue of $796.7 million for the quarter, and
$3.69 a share on $3.36 billion for the year, according to analysts
surveyed by Thomson Reuters.
For the latest quarter, Citrix reported a profit of $95.2
million, or 58 cents a share, down from $138.6 million, or 74 cents
a share, a year ago. Excluding stock-based compensation expenses
and other items, profit rose to $1.10 from $1.04 a year
earlier.
Revenue rose 6% to $851.5 million.
Analysts had expected $1.02 a share on $844.1 million in
revenue.
Professional-services revenue--which includes consulting,
product training and certification--rose 15%, while
software-as-a-service revenue rose 10%, and revenue from license
updates and maintenance, which includes annuity revenue from
subscriptions paid when new licenses are purchased, rose 9%.
Revenue from product and licenses, or new product purchases,
meanwhile, fell 1%.
By region, Citrix saw the largest gain in Europe, Middle East
and Africa with a 7% increase.
Deferred revenue rose 10% from the year-ago period to $1.56
billion as of the end of the quarter.
Gross margin fell to 79.5% from 83%, while operating expenses
rose 10.8%.
Through Wednesday's closing, the company's stock was up 0.78%
over the past 12 months.
Write to Maria Armental at maria.armental@wsj.com
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