Business software and services provider Citrix Systems, Inc. (CTXS), Wednesday reported a rise in profit for the second quarter, helped by higher revenues across segments. Quarterly earnings fell short of analysts' estimates, while revenues surpassed expectations. Looking ahead, the company provided its guidance for the third quarter and revised its fiscal year 2010 guidance, lowering earnings range and lifting revenue expectations. Following the news, Citrix shares gained more than 4% in after hours' trade.
The Fort Lauderdale, Florida-based company's second quarter net income was $47.56 million or $0.25 per share, compared to $42.52 million or $0.23 per share in the prior-year quarter.
Net income for the quarter includes stock-based compensation of $28.15 million, amortization product related intangible assets of $12.42 million, amortization of other intangible assets of $3.78 million and tax effects of $14.42 million.
Non-GAAP net income for the second quarter was $77.81 million or $0.41 per share. Prior-year adjusted net income was $71.57 million or $0.39 per share.
On average, 22 analysts polled by Thomson Reuters expected the company to report earnings of $0.45 per share for the quarter. Analysts' estimate typically excludes special items.
Total revenues for the quarter was $458.43 million, up 17% from $392.83 million in the preceding year. Twenty-nine Street analysts expected revenues of $436.94 million for the quarter.
Revenues from product licenses increased to $148.73 million from $129.69 million last year. License updates revenue rose to $168.60 million from $149.33 million a year ago. Online services revenues for the quarter were $89.21 million, compared to $75.35 million in the prior-year quarter. Technical services revenues increased to $51.89 million from $38.45 million in the same period of the previous year.
During the quarter, the company repurchased 2.2 million shares at an average price of $46.74 or $101 million in aggregate.
Looking forward, the company expects GAAP earnings in the range of $0.31 to $0.32 per share for the third quarter of 2010. Quarterly non-GAAP earnings are expected in the range of $0.48 to $0.49 per share. Net revenue is expected to be in the range of $450 million to $460 million.
Street analysts currently expect earnings of $0.48 per share, on revenues of $446.12 million for the quarter.
For the full year 2010, the company now expects GAAP earnings in the range of $1.27 to $1.31 per share, with non-GAAP earnings expected in the range of $1.87 to $1.89 per share. Net revenue for the year is expected in the range of $1.81 billion to $1.83 billion for the full year.
Previously, the company expected full year GAAP earnings in the range of $1.29 to $1.34 per share and non-GAAP earnings in the range of $1.88 to $1.91 per share, with revenues in the range of $1.76 billion to $1.78 billion.
Street analysts currently expect earnings of $1.90 per share, on revenues of $1.79 billion for the year.
Among Citrix's peers, Palo Alto, California-based VMware Inc. (VMW), recently reported a surge in profit for the second quarter, reflecting significant growth in license as well as services revenues.
CTXS closed Wednesday's regular trading at $47.33, down $0.68 or 1.42%, on a volume of 3.46 million shares on the Nasdaq. In after hours, the stock gained $2.23 or 4.71%, trading at $49.56. In the past 52-week period, the stock trended in a range of $33.90 - $49.98, with a 3-month average volume of 3.49 million shares.
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