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Citrix earnings beat expectations; interim CEO named

After the market closed Wednesday, Fort Lauderdale-based Citrix Systems reported better-than-expected earnings, sending shares sharply higher in after-hours trading.

The enterprise software company, which has been facing pressure from investors to revamp aspects of its business and sell off some product lines, reported third-quarter earnings of $55.9 million and said it had profit of 35 cents per share. Earnings, adjusted for amortization costs and stock option expense, were $1.04 per share. The results surpassed Wall Street expectations of 85 cents per share.

The cloud computing company posted revenue of $813.3 million in the period, which also beat Street forecasts of $785.9 million. Citrix said it expects full-year earnings in the range of $3.85 to $3.90 per share, with revenue in the range of $3.24 billion to $3.25 billion.

Citrix shares closed at $71.92 and have climbed 13 percent since the beginning of the year, while the Standard & Poor's 500 index has declined 2 percent. In after-hours trading minutes after the earnings were released, shares were trading above $77.30, an 8 percent gain.

“I’m very pleased with our performance for Q3,” said Citrix CEO Mark Templeton. “Our results are starting to reflect the benefits of the actions we have taken since the start of the year to improve our operating margin and drive integrations among our strategic products.”

Separately, Citrix announced it has appointed Robert Calderoni, Citrix’s executive chairman, as interim president and CEO, effective immediately. Calderoni will continue serving on the Citrix Board of Directors. Templeton, who announced his plans to retire in July, will serve in an advisory role through the end of the year, the company said.

“It has been an honor and a truly rewarding experience to lead this company and to work with the finest team in the industry, as well as the best customers and partners in the world,” said Templeton in a statement. “Every day that I have spent at Citrix has been a privilege, and I look forward to staying on in an advisory role to ensure a smooth transition.”

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