Citrix Systems Inc.
), which offers cloud computing service to PC and laptop users,
continues to make inroads to more than 200,000 organizations with
their popular social networking application called Podio.
Higher adoption of this application will not only help the
employees to properly manage their work but will also help them
to save time. Alongside, they can easily stay in touch with their
co-workers through smartphones/tablets from anywhere and will
always get updated with any latest news within the
Users can access to more than 2.6 million apps in Podio apps
market, which not only make their task easy within the
organization but also improve their efficiency.
In April, this year, Citrix bought Podio, which besides
enriching its product portfolio will also help the company to
gain market traction in the cloud computing space.
Citrix foresees its top line to climb 14% year over year and
its non-GAAP operating margin to improve 0.5% year over year
mainly fuelled by strong demand of its popular cloud computing
products like GoToMeeting, GoToMyPC and Sharefile. Moreover, a
huge opportunity exists in the desktop virtualization market.
Market research firm Gartner estimated that desktop
virtualization will be applied in 100 million personal computers
However, the ongoing macroeconomic uncertainty may act as a
headwind for the company as it restricts several firms from their
targeted IT spending. Additionally, high cost associated with
virtualization may restrict the long-term prospect of Citrix.
Finally, increased competition from
) provides certain downside risks for the company.
Considering these factors, we maintain our long-term Neutral
recommendation on Citrix Systems. Currently, it has a Zacks #3
Rank, implying a short-term Hold rating on the stock.
CITRIX SYS INC (CTXS): Free Stock Analysis
VMWARE INC-A (VMW): Free Stock Analysis
To read this article on Zacks.com click here.