Shares of Citrix Systems Inc. (CTXS) plunged more than 11 percent in extended trade on Wednesday after the enterprise infrastructure software maker reported results for the first quarter that missed analysts' expectations. The company also provided earnings guidance for the second quarter, below Street view, and lowered its earnings outlook for the full-year 2013, while maintaining annual revenue outlook.
"In spite of the macro factors negatively impacting IT spending, we executed well in Q1. Consistently, CIOs everywhere tell me they are challenged by the transformation, consumerization and fragmentation taking place in computing. These forces are creating even more interest in mobility and cloud services," President and CEO Mark Templeton said in a statement.
The Fort Lauderdale, Florida-based cloud computing solutions provider reported net income of $59.69 million or $0.32 per share for the first quarter, lower than $68.27 million or $0.36 per share in the prior-year quarter.
Excluding items, adjusted earnings for the quarter was $117.05 million or $0.62 per share, compared to $110.66 million or $0.59 per share in the year-ago quarter. On average, 32 analysts polled by Thomson Reuters expected the company to report earnings of $0.63 per share for the quarter. Analysts' estimates typically exclude special items.
Total net revenues for the quarter grew 14 percent to $672.90 million from $589.50 million in the same quarter last year, but missed twenty-nine Wall Street analysts' consensus estimate of $676.90 million by a whisker.
Product and licenses revenue for the quarter increased 8 percent to $193 million, software as a service revenue grew 14 percent to $138 million, and license updates and maintenance revenues advanced 19 percent to $316 million from the year-ago quarter. Professional services revenues were up 2 percent to $27 million from last year.
Revenue increased in the Americas region by 17 percent, grew 15 percent in the Pacific region, and advanced 9 percent in the EMEA region.
Deferred revenue at the end of the quarter totaled $1.2 billion, up 25 percent from $983 million at the end of the prior-year quarter.
Looking ahead to the second quarter, Citrix projects adjusted earnings in a range of $0.62 to $0.63 per share, on projected net revenues between $705 million and $715 million. Analysts currently expect earnings of $0.70 per share for the quarter, on revenues of $711.48 million.
For fiscal 2013, Citrix lowered its adjusted earnings guidance to a range of $3.08 to $3.11 per share from the prior forecast in the range of $3.12 to $3.15 per share, while continuing to project revenues between $2.95 billion and $2.98 billion. Street is currently looking for full-year 2013 earnings of $3.14 per share on annual revenues of $2.97 billion.
CTXS closed Wednesday's regular trading session at $67.66, down $0.16 or 1.24% on a volume of 3.42 million shares. The stock plunged a further $7.66 or 11.32% in after-hours trading.
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