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Citrix Systems Profit Down, Revenue Outlook Weak; Shares Fall 5%
[October 22, 2014]

Citrix Systems Profit Down, Revenue Outlook Weak; Shares Fall 5%


(dpa-AFX International Compact Via Acquire Media NewsEdge) FORT LAUDERDALE (dpa-AFX) - Enterprise software maker Citrix Systems Inc. (CTXS), Wednesday reported a drop in profit for the third quarter, hurt largely by a charge related to a patent lawsuit even as revenues grew 6 percent. Earnings for the quarter came in ahead of Wall Street estimates, but revenues fell short of expectations.



Shares of the company slipped five percent in after-hours trade on the Nasdaq, after it issued a full-year revenue outlook below market estimates.

Fort Lauderdale, Florida-based Citrix' third-quarter profit dropped to $48 million or $0.29 per share from $77 million or $0.41 per share last year.


Citrix' bottom line for the quarter was weighed down by a charge of about $21 million related to a previously disclosed patent lawsuit, as well as a restructuring charge of $3 million for severance costs incurred to better align resources to strategic initiatives.

Adjusted earnings for the quarter declined to $125 million or $0.75 per share from $132 million or $0.70 per share last year. On average, 31 analysts polled by Thomson Reuters expected earnings of $0.73 per share for the quarter. Analysts' estimates typically exclude special items.

Citrix' revenues for the third quarter grew six percent to $759 million from $713 million last year. Analysts had a consensus revenue estimate of $771.79 million for the quarter.

Chief Executive Mark Templeton said, "While our results were clearly mixed, we executed well in many important areas including product releases, go-to market investments and partnership initiatives, all while maintaining focus on operational refinements and profitability." Looking forward to the full year 2014, Citrix now expect earnings of $1.57 to $1.58 per share, adjusted earnings of $3.22 to $3.25 per share and revenues of $3.13 billion to $3.14 billion. Analysts currently expect earnings of $3.24 per share on revenues of $3.18 billion for the year.

Earlier, the company expected earnings in the range of $1.62 to $1.67 per share, adjusted earnings of $3.20 to $3.25 per share and net revenue to grow 8.5 percent to 10 percent.

CTXS closed Wednesday's trading at $64.78, down $1.22 or 1.85%. The stock further dropped $3.33 or 5.14%, in the after-hours trade.

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