By Dow Jones Business News, October 09, 2013, 04:47:00 PM EDT
By John Kell
Citrix Systems Inc. ( CTXS ) cut the enterprise software maker's third-quarter sales and profit estimates, which sent
shares sharply lower in after-hours trading.
The stock slumped 12% to $58.65 in after-hours trading. Shares of peer VMware Inc. ( VMW ) were off 3.7% to $76.
For the third quarter, the company now sees an adjusted profit of 68 cents to 69 cents a share on revenue of $710
million to $712 million, below the July targets of 72 cents to 73 cents in per-share earnings on $730 million to $740
million in revenue.
The original July targets were also below Wall Street's expectations at the time.
President and Chief Executive Mark Templeton said the company was "disappointed that we fell short of our
expectations," though Citrix declined to detail why the guidance was lowered. The company said it would offer more
details during the third-quarter conference call on Oct. 23.
Citrix improves efficiency by allowing multiple systems to operate on one computer. The company has posted quarterly
double-digit revenue gains for more than three years as it benefits from increased demand for desktop virtualization, a
crucial step in cloud computing.
Citrix's implied new revenue guidance for the third quarter suggests it would still report a double-digit sales
increase from a year ago.
Write to John Kell at firstname.lastname@example.org
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