Citrix's Q3: Customers delayed buying decisions

Summary:Citrix said customers held back on purchases to evaluate the company's new platforms and trimmed its fourth quarter outlook.

Citrix's third quarter results were disappointing and the company said that some customers delayed buying decisions to evaluate the company's new platforms.

The company, which previously warned its third quarter would miss expectations, reported third quarter earnings of $77 million, or 41 cents a share, on revenue of $713 million. Non-GAAP earnings were 70 cents a share.

David Henshall, Citrix's acting CEO, said:

A number of factors influenced our results for the third quarter. In addition to an uneven spending environment, we saw some customers delay buying decisions while they evaluate our newly released platforms in the desktop and mobile business. However, we are very encouraged by the strong interest in our solutions as evidenced by a record pipeline for these opportunities.

In other words, Citrix said the third quarter is a blip. The company also authorized its board to buy $500 million more of its stock.

As for the outlook, Citrix projected non-GAAP earnings to be 95 cents a share to $1 a share with revenue between $800 million and $810 million.

Wall Street was expecting earnings of $1.05 a share on revenue of $819.67 million.

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Topics: Virtualization, Enterprise Software, Mobility

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

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