Citrix delivers strong Q1, curbs expectations for Q2

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.