Wednesday, Infrastructure software provider Citrix Systems, Inc. (CTXS) reported an increase in its profit for the third quarter ended September 30, helped by revenue growth in license updates and Online services segments.
The Fort Lauderdale, Florida-based company reported net income of $53.42 million or $0.29 per share, up from $49.15 million or $0.26 per share in the year-ago quarter. However, non-GAAP net income, which excludes amortization of intangible assets, stock-based compensation expense and restructuring charges, remained flat at $80 million or $0.43 per share.
Income from operations increased to $56.10 million from $47.70 million a year earlier. Net revenues for the quarter increased to $401.04 million from $398.89 million in the previous year quarter.
On average, twenty-nine analysts polled by Thomson Reuters expected the company to report earnings of $0.41 per share, on revenues of $400.07 million, for the quarter. Analysts' estimates typically exclude special items.
Mark Templeton, president and chief executive officer said, "Our sales, product and operational teams executed very well in a tough economic climate to not only post good results, but to strengthen Citrix leadership in the web collaboration, desktop virtualization and datacenter transformation markets."
In the sequentially preceding second quarter, net income increased to $42.52 million or $0.23 per share from $34.65 million or $0.18 per share, and total net revenues increased slightly to $392.83 million from $391.73 million a year ago.
Revenues for product license, the company's largest segment, dropped 18% to $129.06 million from $157.54 million a year earlier. License updates revenues rose to $151.04 million from $141.25 million for the same period last year. Online services revenues increased to $78.88 million from $64.95 million a year-ago and technical services revenue rose to $42.06 million from $35.16 million last year.
Citrix, which develops virtualization software that allows a single computer to act like many "virtual" machines reported a rise in total cost of net revenues to $45.42 million from $42.29 million last year, mainly due to a rise in cost of product license revenues to $13.19 million from $10.55 million last year.
Total operating expenses declined to $299.52 million from $308.91 million for the year earlier period, due to a drop in research and development expenses and general and administrative expenses.
For the nine months, the company reported a decline in net income to $102.87 million or $0.56 per share from $118.18 million or $0.63 per share a year earlier. Total net revenues were slightly lower at $1.16 billion, compared to $1.17 billion for the year-ago period.
Looking ahead to the fourth quarter, the company expects net revenues to increase 3% - 4% from last year. For full year, the company said it now expects net revenues to increase modestly, compared to its earlier expectations of flat revenues. Analysts currently project revenue of $1.59 billion for the year 2009. Non-GAAP operating margin for the full year is expected to increase by as much as 100 basis points year-over-year, the company said.
For fiscal year 2010, the company anticipates net revenue to increase by 8% to 9%, and non-GAAP operating margin to increase by as much as 100 basis points year-over-year. Analysts estimate revenues of $1.73 billion for 2010.
Amongst peers, VMware Inc. (VMW) today reported a decline in net income for the third quarter to $38.22 million or $0.90 per share from $83.29 million or $0.21 per share in the year-ago period. Revenues were $489.75 million, up 4% from last year's $472.12 million.
Wednesday, CTXS closed at $41.36, down $0.25 or 0.60%, on a volume of 3.69 million on Nasdaq. In after hours, the stock drifted further lower and was last trading at $39.57, down $1.79 or 4.33%. In the past 52 weeks, the stock trended in a broad range of $19.52 - $43.78, with a three-month average volume of 2.98 million shares. VMW closed at $44.93, up $0.29 or 0.65%, on a volume of 3.07 million on NYSE.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.