Citrix Asia Pacific posts net loss of AU$1.45m for FY19

This is despite revenue increasing by almost AU$20 million year on year.

Citrix Asia Pacific has reported a net loss of AU$1.45 million for the financial year ended 31 December 2019, a bigger net loss than the AU$788,000 and AU$1.16 million recorded in 2017 and 2018, respectively.  

This was despite revenue increasing by almost AU$20 million to just over AU$298 million year on year. 

The revenue uptick was primarily due to an increased demand for subscriptions, which contributed AU$48.7 million -- up by almost AU$20 million compared to the previous year. Meanwhile, product licenses for use of the company's Workspace Services solutions and networking products contributed AU$80.7 million, down from AU$86.4 million, while the company's support and services provided AU$168.8 million, which was a AU$3.7 million increase year on year.

Year-on-year cost of sales was also reduced in FY19, from AU$258 million to AU$252 million. Citrix will also pay around AU$1 million less in taxes for FY19 compared to the year prior, amounting to an almost AU$8.6 million tax figure. Over the past two years, Citrix has written down and paid over AU$11 million in foreign tax credits in Australia.

Gross profit for FY19 was almost AU$45.7 million, more than doubling the AU$22.4 million recorded a year prior.

The Asia Pacific arm of the company also upped its expenses during the year however, spending AU$41 million, compared to AU$16.7 million in 2018. This was attributed to the company only having a AU$1.7 million net foreign currency gain to offset expenses, while in 2018, it had AU$19.2 million.

Meanwhile, employees were paid AU$23 million for the 2019 financial year. Citrix Asia Pacific currently employs 136 staff. During the year, Citrix Asia Pacific reduced the debt owed to its immediate Irish-based parent, Citrix Systems International GmbH, by AU$69 million to AU$5.9 million. The ultimate parent is Citrix Systems in the US.

Citrix Asia Pacific's US-based parent company, Citrix Systems, on Monday posted a survey revealing that 70% of Australian IT leaders who responded believed the shift to remote work, due to COVID-19, has accelerated their organisations' digital transformation.

According to the survey, which polled 501 Australian IT leaders, more than two-thirds of them agreed that their organisations should have invested more in software and hardware with working-from-home capabilities, while 52% said their organisation already had a business continuity plan for moving the vast majority of its workforce to remote work prior to COVID-19.

Meanwhile, 44% of them anticipated the introduction of digital workspace platforms and 45% are looking to public cloud services to facilitate long-term remote working.

When Citrix CEO David Henshall announced the US-based company's Q1 financial results in April, he reported a surge in demand for Citrix's products and services during the novel coronavirus pandemic. 

"Once we come out of this, regardless of how long that takes, the expectation is that we'll land in a place that is somewhere between where we are and where we were when it comes to remote work," Citrix CEO David Henshall said. 

"Most of the customers that I talk to are realising a level of productivity benefits, cost savings, and employee engagement that they hadn't [expected] and so, they're going back and questioning some of their original assumptions, whether that is real estate footprint, travel, attendance at major conferences. And so longer term, I expect that these will -- this environment will -- continue to be a secular change that's very good for our business."

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