Citrix Systems Inc.
) declared solid financial results for the fourth quarter of
2012. GAAP net income, for the reported quarter, was $114 million
or 60 cents per share compared with $108.7 million or 58 cents
per share in the prior-year quarter. Quarterly adjusted earnings
per share of 73 cents were well above the Zacks Consensus
Estimate of 67 cents. Fourth-quarter net revenue was $740
million, up 19.5% year over year, breezing past the Zacks
Consensus Estimate of $707 million.
Furthermore, the company's financial guidance for the ensuing
first-quarter 2013 was robust. This was in sharp contrast to
Citrix's major competitor,
), which provided a tepid outlook for fiscal 2013, just a few
days ago. Consequently, in the after market trade on NASDAQ, the
stock price of Citrix rose $7.45 (11.12%) to $74.43. Citrix
currently has a Zacks Rank #3 (Hold) whereas VMware carries a
Zacks Rank #2 (Buy).
Gross margin in the fourth quarter of 2012 was 84.1% compared
with 86.7% in the year-ago quarter. Operating expenses in the
reported quarter were around $477.2 million compared with $401.5
million in the prior-year quarter. Quarterly operating margin was
19.7% compared with 21.9% in the prior-year quarter. At the end
of the fourth quarter, deferred revenue was $1,200 million, up
25% year over year. In the reported quarter, Citrix repurchased
1.2 million of its common shares for a total consideration of
about $76.72 million.
During the fourth quarter of 2012, Citrix generated over
$226.7 million of cash from operations and free cash flow (cash
flow from operations less capital expenditures) was approximately
$191.1 million. At the end of fiscal 2012, the company had nearly
$1,523.9 million of cash and marketable securities compared with
$1,477.6 million at the end of 2011. Balance sheet remains free
of any debt obligations.
Revenue by Product Mix
Product and Licenses revenue was $268.7 million, up 17.3% year
over year. License updates and maintenance revenue was $303
million, up 22% year over year. Software-as-a-Service revenue was
$135.4 million, up 18.4% over the prior-year quarter and
Professional Services revenue was $32.9 million, up 19.7% year
Revenue by Product Grouping
Mobile and Desktop revenue in the fourth quarter of 2012 was
$410.7 million, up 11.3% year over year. Networking and Cloud
Solutions revenue was $155.7 million, up by a significant 50.6%
year over year. Online Services revenue was $135.4 million, up
18.4% year over year. Revenue from Other Products was $38.2
million, up 17.5% year over year.
Revenue by Geography
Revenue in the Americas (North & Latin America) region was
$312.7 million. Revenue in Europe, Africa, and the Middle East
region was $202.9 million. Revenue in the Asia-Pacific region was
First Quarter of 2013 Financial Outlook
Management forecasted the company's first-quarter 2013 revenue
within the range of $670 million to $680 million. GAAP earnings
per share will be within the range of 31 cents to 33 cents and
non-GAAP earnings per share will be between 62 cents and 63
cents. Stock-based compensation expenses will be 23 cents per
Outlook for Fiscal 2013
Management expects the company's fiscal 2013 revenue to grow
14% year over year and non-GAAP operating margin to expand 0.5%
year over year.
Other Stocks to Consider
Other stocks to consider in the computer virtualization
). While Compuware currently has a Zacks Rank #1 (Strong Buy), CA
Inc. carries a Zacks Rank #2 (Buy).
CA INC (CA): Free Stock Analysis Report
COMPUWARE CORP (CPWR): Free Stock Analysis
CITRIX SYS INC (CTXS): Free Stock Analysis
VMWARE INC-A (VMW): Free Stock Analysis
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