Citrix Outperforms, Outlook Strong - Analyst Blog


Citrix Systems Inc. ( CTXS ) 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, VMware Inc. ( VMW ), 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 over 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 $89 million.

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 share.

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 industry are Compuware Corp. ( CPWR ) and CA Inc. ( CA ). 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 Report

CITRIX SYS INC (CTXS): Free Stock Analysis Report

VMWARE INC-A (VMW): Free Stock Analysis Report

To read this article on click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: CA , CPWR , CTXS , VMW

More from

Related Videos



Most Active by Volume

  • $15.65 ▼ 1.82%
  • $109.27 ▼ 1.00%
  • $9.49 ▼ 0.84%
  • $102.16 ▼ 1.19%
  • $22.75 ▼ 7.26%
  • $42.61 ▼ 2.05%
  • $24 ▼ 2.08%
  • $16.82 ▲ 1.39%
As of 9/4/2015, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by