By Don Clark and Neil Haggerty
Citrix Systems Inc. said Chief Executive Mark Templeton planned
to retire after two decades at the software maker, which announced
a series of leadership and potential structural changes in the wake
of pressure from investor Elliott Management Corp.
The company said it named Jesse Cohn, Elliott's head of activist
investments, to its board of directors and would add another board
member to be mutually agreed upon. The arrangement marks Mr. Cohn's
first stint on the board of a publicly held company.
Citrix on Tuesday also announced the formation of a board
committee that would undertake a comprehensive review of its
operations. Robert Calderoni, a director who was named executive
chairman Tuesday, was chosen to chair the group.
Mr. Calderoni would also chair a board committee heading the
search for a successor to Mr. Templeton, who planned to stay on
until a new CEO was found, the company said.
Mr. Cohn and the forthcoming addition to Citrix's board would
serve on both committees.
The news came as the company reported better-than-expected
earnings for the second quarter and raised its outlook for the
year. Shares rose nearly 4% in after-hours trading.
Citrix, based in Ft. Lauderdale, Fla., rose to prominence in the
1990s as a supplier of software that allowed multiple terminals run
PC programs installed on a server. Citrix expanded into related
businesses over the years and more recently grew through a series
of acquisitions.
Elliott, which has pushed for changes at a number of tech
companies, wrote a letter to Citrix in June arguing that the
company had lost its focus amid so many businesses. The investor
advocated measures that included selling or spinning off some
divisions, buying back shares, cutting costs and overhauling the
sales force.
Citrix on Tuesday disclosed that it had initiated a review of
strategic alternatives for its GoTo family, including a possible
sale or spinoff. The product line, which includes an online
conferencing service, had been identified by Elliott as a candidate
for divestiture.
The company also said it had engaged a financial adviser earlier
this year in connection with a possible sale of its ByteMobile
business, another Elliott target. Citrix said it was actively
discussing a sale with potential acquirers.
Mr. Templeton, 62 years old, joined Citrix in 1995 as vice
president of marketing before the company's initial public
offering. He served as president in 1998 and as chief executive
since 2001.
He took a leave of absence following the death of his son in
2013 and later announced his intention to retire. The following
year, however, he stated a multiyear commitment to remain CEO.
During a conference call with analysts Tuesday, Mr. Templeton
pointed to many changes under way before Elliott's suggestions,
including planning for a CEO succession.
"I can assure you I will be intensely focused on driving us
forward until we identify the best person to take the reins,
however long that may take," he said.
Mr. Calderoni assumes the chairman post from Thomas Bogan, who
held the post for 10 years, to become lead independent director.
Mr. Cohn takes a board seat formerly held by Asiff Hirji, who
decided to step down from the company's board, the company
said.
For the quarter ended June 30, Citrix reported earnings of
$103.3 million, or 64 cents a share, up from $53 million, or 31
cents a share, a year ago. Revenue rose 1.9% to $797 million. On an
adjusted basis, the company earned $1 a share, up from 83
cents.
Analysts polled by Thomson Reuters were looking for 82 cents a
share on $790 million in revenue in the second quarter.
Citrix also raised its guidance, saying it expected to earn
$3.65 to $3.75 a share on $3.22 billion to $3.25 billion in revenue
for the year, compared with its earlier view of $3.55 to $3.60 a
share on $3.22 billion to $3.25 billion.
Write to Don Clark at don.clark@wsj.com and Neil Haggerty at
neil.haggerty@wsj.com
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