Citrix Systems Inc.
) declared mixed financial results for the fourth quarter of
2013. While net income surpassed the Zacks Consensus Estimate,
total revenue missed the same. Following the results, management
significantly slashed its earnings per share projection for the
next quarter. As a result, the stock price of Citrix plummeted
4.95% or $2.85 yesterday in the aftermarket trade.
GAAP net income, in fourth-quarter 2013, was $138.6 million or 74
cents per share compared with $114 million or 60 cents per share
in the prior-year quarter. Quarterly adjusted earnings per share
of 87 cents easily beat the Zacks Consensus Estimate of 79 cents.
The total revenue was $802.4 million, up 8.4% year over year but
slightly below the Zacks Consensus Estimate of $807 million.
Gross margin in the said quarter was 83% compared with 84.1% in
the year-ago quarter. Operating expenses were around $504.9
million versus $477.2 million in the prior-year quarter.
Quarterly operating margin was 20.1% against 19.6% in the
prior-year quarter. At the end of the reported quarter, deferred
revenues were $1.4 billion, up 18% year over year. Citrix
repurchased 4.4 million of its common shares for a total
consideration of about $250 million.
During the fourth quarter of 2013, Citrix generated approximately
$229.7 million of cash from operations and free cash flow (cash
flow from operations less capital expenditures) was around $193.4
million. The company had nearly $734.7 million of cash and
marketable securities compared with $928.6 million at the end of
2012. The balance sheet remains free of any debt obligations.
Revenues by Product Mix
Product and Licenses revenues were $269.9 million, up 0.4% year
over year. License updates and maintenance revenues were $337
million, up 11.2% year over year. Software-as-a-Service revenues
came in at $153.3 million, a 13.2% increase from the prior-year
quarter while Professional Services revenues were $42.2 million,
up 28.3% year over year.
Revenues by Product Grouping
Mobile and Desktop revenues in the fourth quarter of 2013 were
$428.3 million, up 12.4% year over year. Networking and Cloud
Solutions revenues were $175.9 million, up 20.2% year over year.
Software-as-a-Service revenues were $153.3 million, an increase
of 3.4% over the prior-year quarter. Revenues from Other Products
were $45 million, up 12.6% year over year.
Revenues by Geography
Revenues in the Americas (both North & Latin America) region
were $338.3 million, up 8.2% year over year. Revenues in Europe,
Africa, and the Middle East region were $232.2 million, up 14.4%
year over year. Revenues in the Asia Pacific region were $78.6
million, down 11.7% year over year.
First Quarter of 2014 Financial Outlook
Management forecasted first-quarter 2014 net revenues to increase
in the range of 8-10%. GAAP earnings per share are expected to be
24-26 cents and non-GAAP earnings per share will likely be
between 57 cents and 60 cents, exclusive of stock-based
compensation expenses and effects of amortization of acquired
intangible assets of 26-19 cents per share. GAAP gross margin is
projected to be between 81% and 82% while Non-GAAP gross margin
is anticipated in the range of 84-85%.
2014 Financial Outlook
Management projected 2014 net revenue to increase in the range of
8-10%. Non-GAAP gross margin is expected to be in between 84 and
85%. Non-GAAP tax rate is projected to remain at 24% while
non-GAAP earnings per share will likely be in the $2.85 -$2.95
Other Stocks to Consider
Citrix Systems currently has a Zacks Rank #4 (Sell). Other stocks
worth considering in the Business Software & Services
American Software, Inc.
Open Text Corporation
Check Point Software Technologies Ltd.
). Both American Software and Open Text carry a Zacks Rank #1
(Strong Buy) while Check Point carries a Zacks Rank #2 (Buy).
AMER SOFTWARE A (AMSWA): Get Free Report
CHECK PT SOFTW (CHKP): Free Stock Analysis
CITRIX SYS INC (CTXS): Free Stock Analysis
OPEN TEXT CORP (OTEX): Free Stock Analysis
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