By Lauren Pollock
Citrix Systems Inc. slashed its outlook for the first quarter,
saying it underestimated the effects of restructuring and foreign
exchange volatility on its results.
"The increase in foreign exchange volatility impacted results
and customer-buying behavior to a larger extent than anticipated in
the quarter," Chief Executive Mark Templeton said.
He added the company's restructuring and changes to its field
and channel strategies also hurt results, but Citrix is still
committed to its previous plan.
In January, the company said its layoff plans would affect about
700 full-time workers and 200 contractor positions, leading to $40
million to $45 million in severance costs.
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 projected earnings of 63 cents to 65 cents a share,
excluding restructuring, amortization and other charges, on revenue
of $755 million to $760 million. It previously guided for earnings
of 70 cents to 72 cents a share on revenue of $780 million to $790
million.
Citrix plans to report results April 22.
Write to Lauren Pollock at lauren.pollock@wsj.com
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