Citrix delivers strong Q1, curbs expectations for Q2

Citrix's first quarter shined, but the company said the second quarter will be lighter than current expectations.
Written by Larry Dignan, Contributor

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.

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