Citrix Q4 earnings: Beats estimates; cloud rebounds

The enterprise software company gave stronger guidance than rival VMware, sending shares soaring. Here's a look.

Citrix Systems today reported its fiscal results for the fourth quarter, managing earnings of 90 cents per share on revenues of $740 million.

That tops Wall Street's expectations of 84 cents per share on revenue of $705.7 million, and is a 19 percent bump in revenue from the same quarter a year ago, for which it managed $619 million.

For the fiscal year 2012, Citrix reported annual revenues of $2.59 billion, compared to $2.21 billion for fiscal year 2011. That's a 17 percent increase.

Here's a look at how the fourth quarter broke down, compared to the same quarter in 2011:

  • Product and license revenue up 17 percent

  • Software-as-a-service revenue up 18 percent

  • Revenue from license updates and maintenance up 22 percent

  • Professional services (consulting, training, certification) revenue up 20 percent

  • Pacific region revenue up 52 percent

  • EMEA region revenue up 19 percent

  • Americas region revenue up 14 percent

  • Operating margin (non-GAAP) up 30 percent.

And here's how 2012 as a whole broke down, compared to 2011:

  • Product and license revenue up 12 percent

  • Software-as-a-service revenue up 19 percent

  • Revenue from license updates and maintenance up 20 percent

  • Professional services revenue up 30 percent

  • Pacific region revenue up 33 percent

  • EMEA region revenue up 20 percent

  • Americas region revenue up 12 percent

  • Operating margin (non-GAAP) up 25 percent.

The company's outlook for the first quarter of 2013 is earnings of 62 cents to 63 cents per share (non-GAAP) on earnings of between $670 million and $680 million. Wall Street was expecting Citrix to report 67 cents per share on revenue of $671 million.

The company's outlook for the fiscal year 2013 is earnings of $3.12 to $3.15 (non-GAAP) on revenue of $2.95 to $2.98 billion. Wall Street was expecting earnings of $2.13 per share (non-GAAP) on revenue of $2.91 billion.

On Monday, rival VMware's shares took a hit after the company issued disappointing guidance that fell short of investor expectations. The sentiment also took a small toll on Citrix shares. In after-hours trading today, Citrix shares were up more than 10 percent, suggesting that analysts were prepared for the worst from VMware's rival--and were pleasantly surprised by the results.

citrix-shares-013013-afterhours
(Credit: Citrix)

"CIOs are looking to mobility to help deal with IT consumerization, a multi-generational workforce, collaboration, consolidation, and disruption," chief executive Mark Templeton said. "Mobility and cloud services represent an accelerating transformation in the workplace."

citrix-4q12-earnings-table01
(Credit: Citrix)

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