Enterprise infrastructure software maker Citrix Systems, Inc. (CTXS) said Wednesday after the bell that its third quarter profit fell 15% from last year, as higher costs and expenses more than offset a 13% increase in revenue.
The company's quarterly earnings per share, excluding items, came in above analysts' estimate, but its quarterly revenue fell short of analysts' forecast.
At the same time, the company cut its full year 2012 revenue outlook, but raised its earnings outlook for the year. "We executed well in Q3 in spite of the macro factors creating heightened uncertainty around IT spending," said Mark Templeton, president and chief executive officer for Citrix. "We continue to see a fundamental transformation of IT taking place."
Citrix shares are currently gaining 1.59% in after hours trading after closing the day's regular trading session at $64.08, up 27 cents. The shares trade in a 52-week range of $56.79 to $87.99. For the third quarter ended September 30, 2012, the company reported net income of $78.2 million or $0.41 per share, compared to $92.2 million or $0.49 per share for the year-ago quarter.
Excluding items, adjusted net income for the third quarter was $128.2 million or $0.68 per share, compared to $120.6 million or $0.64 per share in the prior year quarter.
On average, 35 analysts polled by Thomson Reuters expected the company to earn $0.65 per share for the third quarter. Analysts' estimates typically exclude special items.
Revenue for the third quarter rose 13% to $641.42 million from $565.35 million in the same quarter last year. Thirty-three analysts had a consensus revenue estimate of $650.43 million for the third quarter.
For the third quarter, product and licenses revenue increased 1% year-over-year, while software as a service revenue rose 18% and license updates and maintenance revenue surged 19%. Professional services revenue, which is comprised of consulting, product training and certification, jumped 34% from a year earlier.
The company's revenue from the America's region increased by 7% in the third quarter, while its revenue from the EMEA region rose by 20%. Third quarter revenue from the Pacific region grew 17%.
During the third quarter, the company repurchased 1.0 million shares of its common stock at an average price of $76.28.
Looking forward to the fourth quarter, the company forecast revenue of $700.0 million to $710.0 million, earnings of $0.55 to $0.57 per share and adjusted earnings of $0.83 to $0.85 per share. Analysts currently expect the company to earn $0.84 per share on revenue of $715.38 million for the fourth quarter.
For the full year 2012, the company now forecasts revenue of $2.55 billion to $2.56 billion, earnings of $1.81 to $1.83 per share and adjusted earnings of $2.80 to $2.82 per share. Previously, the company forecast revenue of $2.56 billion to $2.58 billion, earnings of $1.76 to $1.79 per share, adjusted earnings of $2.78 to $2.81 per share.
Analysts currently expect the company to earn $2.80 per share on revenue of $2.57 billion fort eh full year 2012.
The company also gave its preliminary outlook for the full year 2013, which calls for revenue growth of about 14%.
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