Citrix Systems: Smart Moves Will Drive Robust GrowthCTXS) announced second quarter revenues of $843 million, up 2% from $826 million in first quarter and an increase of 6% year-over-year from $797 million in second quarter of 2015. The company estimates third quarter net revenues to be in the range of $820 million to $830 million.
Non-GAAP net income for the quarter came in at $189 million, or $1.20 per diluted share. That's up 16% year-over-year from $163 million, or $1.00 per diluted share, during the same period last year. The company estimates third quarter non-GAAP diluted earnings per share to be in the range of $1.18 to $1.20.
The stock price has been flat recently, but the company is setting the stage for strong future growth.
Key metrics look solidThe cloud services enabling products maker reported continued sequential and year-over-year growth in both its top and bottom lines, primarily driven by healthy gains in license products, software as a service, license maintenance and updates and superior revenue contribution from the company’s professional services.
Citrix also posted solid sequential and year-over-year top line growth across all the key geographies, including the Americas, EMEA, and the Pacific.
Growth in its Mobility Apps segment signifies expanding usage of cloud services to successfully meet the exploding global data storage space requirements. Citrix appears positioned to meet the gradual growth in storage space needs.
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Citrix’s growth was hugely enabled by impressive growths across three of its core operating segments including, SaaS, cloud networking, desktop and mobile businesses that in total delivered significant operating cash flows.
Smart moves will create tailwindsThe extremely well-diversified revenue streams of Citrix Systems both geographically and business segment wise is expected to continue to deliver sustainable long-term company growth.
A big driver of growth should stem from its merger agreement with LogMeIn Inc (LOGM). The combined company should become an industry-leading SAAS organization, with an innovative and diverse product portfolio.
Key applications to drive growthThe company's new NetScaler, XenDesktop and XenApp key applications are increasingly being used by major customers, like Montefiore Health Systems, to control operational costs. Citrix has also successfully implemented its innovative EPIC system across nearly 10,000 machines. The new system has proven to minimize the overall storage expenditures through attractive provisioning services.
These successful product launches, in conjunction with LogMeIn, should continue to expand its technology portfolio, attracting new corporate customers towards its advanced cloud products and services.
The outsized growth of cloud computing has only just begun. Citrix Systems remains well positioned.
Published on Oct 11, 2016By Vinay Singh