Citrix boasts solid Q2 earnings; Q3 outlook hovers around target

Citrix boasts solid Q2 earnings; Q3 outlook hovers around target

Summary: Citrix beats expectations on Q2 earnings but Q3 projections don't line up exactly.

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TOPICS: Tech Industry
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Citrix posted fairly impressive numbers for second quarter earnings on Wednesday afternoon, with revenue shooting up by 16 percent from the same time last year.

The virtualization solutions provider reported a second quarter net income of $92 million, or 49 cents a share (statement). Non-GAAP earnings were 71 cents a share on a revenue of $615 million.

Wall Street was expecting second quarter earnings of 59 cents a share on revenue of $613 million.

CEO Mark Templeton boasted in prepared remarks about how well Citrix did -- especially compared to other tech giants reporting earnings over the last few weeks -- amid the "uncertain economic climate":

So, I’m pleased with our execution, and our strong market positions. As the rapid transformation from PC Era to Cloud Era continues, we’re delivering solutions that make it easy for customers to build new clouds, connect to cloud services, and empower their users to work from anywhere.

For the outlook, projections differ slightly when it comes to earnings per share. Citrix is predicting a net revenue of $645.0 million to $655.0 million at the end of Q3 2012 with non-GAAP earnings between 64 to 66 cents a share.

But for the third quarter, Wall Street is looking for earnings of at least 71 cents a share on revenue of $646.1 million. Nevertheless, Citrix asserted in the earnings report that these figures are "inclusive of the impact of the Bytemobile acquisition."

As for the year, Citrix is projecting revenue to land between $2.56 billion and $2.58 billion with shares in the range of $2.78 to $2.81.

By the numbers:

  • Product and licenses revenue increased 10 percent.
  • Software as a service revenue increased 18 percent.
  • Revenue from license updates and maintenance increased 18 percent.
  • International revenue shot up across the board. Revenue increased in the Pacific region by 24 percent, increased in the EMEA region by 21 percent, and increased in the Americas region by 11 percent

Key points:

  • Citrix completed its acquisition of Bytemobile, a provider of data and video optimization solutions for mobile network operators, for approximately $435 million.
  • Citrix unveiled a number of new products, including a new team collaboration platform as a result of the merger with Podio as well as the Citrix CloudPlatform, the first commercially-supported cloud orchestration system based on Apache CloudStack.

Topic: Tech Industry

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