Citrix said Tuesday that it will spin off its GoTo family of products as a separate company, double down on its enterprise business and restructure in a move that will cut 1,000 full-time and contract jobs.
The company said last month that it would consider strategic options and named Robert Calderoni interim CEO. On a conference call with analysts, Calderoni said:
Our Litmus test was simple. If a product investment or function was tied directly to the strategy, we retained in it, or invested heavily in it. If it was not tied to the strategy, we developed a plan to exit it, phase it out, or eliminate it altogether.
Here are the moving parts:
When the moves are complete, Citrix said it will save $200 million a year in costs and 75 percent of those savings will be booked in fiscal 2016. Employee severance costs will be $65 million to $85 million in the fourth quarter and fiscal 2016.
According to Citrix, the revamped company will deliver revenue growth of 1 percent to 2 percent and have an operating margin of 17 percent. Earnings will be $4.40 to $4.50 on a non-GAAP basis and excluding various restructuring charges and a goodwill write-down.
For 2017, Citrix sees revenue growth of 4 percent to 5 percent with a non-GAAP operating margin of at least 30 percent.