Citrix delivers strong Q1, curbs expectations for Q2

Summary:Citrix's first quarter shined, but the company said the second quarter will be lighter than current expectations.

Citrix reported a better-than-expected first quarter as the company delivered growth in its major units, but the company curbed expectations for the second quarter.

The virtualization player reported first quarter earnings of $56 million, or 30 cents a share, on revenue of $751 million, up 12 percent from a year ago. Non-GAAP earnings in the quarter were 64 cents a share. Net earnings included a restructuring charge.

Wall Street was looking for first quarter earnings of 58 cents a share on revenue of $732.2 million.

In a statement, CEO Mark Templeton said mobility, cloud networking and software as a service drove results as customers focused on revamping their information technology. Separately, Citrix said it will float $1.25 billion in convertible bonds in part to pay for a $1.5 billion share repurchase. 

As for the outlook, Citrix said that it expects to report non-GAAP second quarter earnings of 57 cents a share to 59 cents a share on revenue between $765 million to $775 million. Wall Street was expecting earnings of 67 cents a share on revenue of $785.1 million.

For 2014, Citrix expects revenue growth of 8.5 percent to 10 percent and non-GAAP earnings of $2.90 a share to $2.95 a share. Wall Street was looking for $2.91 a share.

ctxs q1

 

Topics: Enterprise Software, Virtualization

About

Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic. He was most recently Executive Editor of News and Blogs at ZDNet. Prior to that he was executive news editor at eWeek and news editor at Baseline. He also served as the East Coast news editor and finance editor at CN... Full Bio

zdnet_core.socialButton.googleLabel Contact Disclosure

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Related Stories

The best of ZDNet, delivered

You have been successfully signed up. To sign up for more newsletters or to manage your account, visit the Newsletter Subscription Center.
Subscription failed.