Apps & Software

Citrix Takes A Breather After Earnings (CTXS, VMW)

Citrix Systems Inc. (NASDAQ:CTXS) posted earnings of $0.41 non-GAAP EPS on revenues $350 million.  First Call had estimates at $0.38 EPS and revenues at $339.7 million.  GUIDANCE: next quarter guidance is $0.42 to $0.43 non-GAAP EPS on $374 to $382 million revenues; estimates are $0.45 EPS and $373 million; but there are charges even in these non-GAAP numbers.

In prior periods this might not have garnered enough enthusiasm for its own preview, but after it announced XenSource for $500 million it became a more focused interest as a virtualization stock. It should be noted that the company notes many charges fvor its XenSource and Ardence acquisitions and those revenues won’t start until Q1 2008.  If VMware (NYSE:VMW) investors were hoping for any additional robust virtualization comments, they are going to have to wait for the conference call questions and answers.

Citrix shares closed at $32.27 the day the XenSource deal was announced.  Shares closed today down 0.3% at $41.77 and its recent yearly high is $42.75.  Shares are down a little over 2% in immediate after-hours trading, probably as a result of no major driving comments above and beyond the huge recent gains.

Unfortunately, the complexities around virtualization mean that the report given here (including the guidance) might not be all that complete for the long-term expectations out of the company.

Jon C. Ogg
October 17, 2007

Get Ready To Retire (Sponsored)

Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.

Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.

Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future

Get started right here.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.