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Citrix Q3 better than expected as focus pays

Citrix's move to focus on its core units and merge GoTo with LogMeIn appears to be paying off.

Citrix reported better than expected fiscal third quarter earnings and raised it outlook.

The company reported third quarter earnings of $132 million, or 84 cents a share, on revenue of $841 million, up 3 percent from a year ago. Non-GAAP earnings were $1.32 a share.

Wall Street was looking for earnings of $1.19 a share on revenue of $827 million.

Citrix has refocused the company on core businesses and announced a deal to merge its GoTo unit with LogMeIn. Kirill Tatarinov, CEO of Citrix, said the strategy is paying off. The company's Workspace Services unit showed growth and software as a service sales were up 9 percent.

As for the outlook, Citrix projected fiscal 2016 revenue between $3.4 billion and $3.41 billion. Excluding the GoTo business revenue will be between $2.71 billion and $2.72 billion. Non GAAP earnings will be $5.18 a share to $5.20 a share. The outlook was ahead of Wall Street forecasts.

For 2017, Citrix sees revenue growth of 3 percent to 4 percent once the GoTo business is separated.