Citrix Systems Inc.
) declared mixed financial results for the first quarter of 2013.
Importantly, the company's future financial outlook is
significantly below the current Zacks Consensus Estimates. The
company cited reduction in IT spending and delay of orders as the
primary reasons for this sorry state of affairs.
As a result, in the after market trade on NASDAQ, the stock
price of Citrix was down $7.66 (11.32%) to $60. Recently, the
company's major competitor,
) also provided a tepid outlook for the near-term. Citrix
currently has a Zacks Rank #3 (Hold).
GAAP net income, in first-quarter 2013, was $59.7 million or
32 cents per share compared with $68.3 million or 36 cents per
share in the prior-year quarter. Quarterly adjusted earnings per
share of 46 cents managed to beat the Zacks Consensus Estimate of
45 cents. First-quarter net revenue was $672.9 million, up 14.2%
year over year, but fell below the Zacks Consensus Estimate of
Gross margin in the first quarter of 2013 was 82.9% compared
with 85.4% in the year-ago quarter. Operating expenses in the
reported quarter were around $501.4 million compared with $422.4
million in the prior-year quarter. Quarterly operating margin was
8.4% compared with 13.7% in the prior-year quarter. At the end of
the reported 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
During the first quarter of 2013, Citrix generated $249.5
million of cash from operations and free cash flow (cash flow
from operations less capital expenditures) was around $221.2
million. At the end of the reported quarter, the company had
nearly $1,405 million of cash and marketable securities compared
with $1,523.6 million at the end of 2012. Balance sheet remains
free of any debt obligations.
Revenue by Product Mix
Product and Licenses revenue was $193.1 million, up 8.3% year
over year. License updates and maintenance revenue was $315.7
million, up 19.4% year over year. Software-as-a-Service revenue
was $137.6 million, an increase of 13.9% over the prior-year
quarter, and Professional Services revenue was $26.5 million, up
2.5% year over year.
Revenue by Product Grouping
Mobileand Desktop revenue in the first quarter of 2013 was
$358 million, up 5.2% year over year. Networking and Cloud
Solutions revenue was $147.5 million, up by a significant 47.1%
year over year. Online Services revenue was $137.6 million, up
14.5% year over year. Revenue from Other Products was $29.8
million, up 6.1% year over year.
Revenue by Geography
Revenue in the Americas (North & Latin America) region was
$412.7 million. Revenue in Europe, Africa, and the Middle East
region was $191.2 million. Revenue in the Asia Pacific region was
Second Quarter of 2013 Financial Outlook
Management forecasted second-quarter 2013 revenues of $705
million to $715 million. GAAP earnings per share will be within
the range of 31 cents to 32 cents and non-GAAP earnings per share
will be between 62 cents and 63 cents. Stock-based compensation
expenses will be 26 cents per share.
Outlook for Fiscal 2013
Management forecasted full-year 2013 revenues of $2.95 billion
to $2.98 billion. GAAP earnings per share will be within the
range of $1.91 to $1.95 and non-GAAP earnings per share will be
between $3.08 and $3.11. Stock-based compensation expenses will
be $1.01 per share.
Other Stocks to Consider
Other stocks to consider in the computer virtualization
Progress Software Corp.
). Both of them currently carry a Zacks Rank #1 (Strong Buy).
CITRIX SYS INC (CTXS): Free Stock Analysis
PROGRESS SOFTWA (PRGS): Free Stock Analysis
SAP AG ADR (SAP): Free Stock Analysis Report
VMWARE INC-A (VMW): Free Stock Analysis
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