Earnings Coverage - Citrix Systems

LONDON, November 12, 2014 /PRNewswire/ --

Investor-Edge.com has issued free earnings coverage on Citrix Systems Inc. (NASDAQ: CTXS). On October 22, 2014, the company reported its financial results for Q3 FY14 (period ended September 30, 2014). Click on http://www.investor-edge.com/FreeReports to read our free earnings review on Citrix Systems Inc. (Citrix). During Q3 FY14, Citrix Systems achieved revenue growth of 6% on a Y-o-Y basis and its non-GAAP diluted EPS increased $0.05 from Q3 FY13. Our free coverage report can be accessed at:

http://www.investor-edge.com/register

Earnings Overview 

During Q3 FY14, Citrix reported revenue of $758.99 million, compared to $712.73 million in Q3 FY13. The company's revenue during the reported quarter came below Bloomberg analysts' forecast of $771.96 million. The company's product and license revenue decreased 4% Y-o-Y to $193.15 million in Q3 FY14. Its revenue from software as a service increased 12% Y-o-Y to $165.25 million. Further, the company's revenue from license updates and maintenance grew 9% Y-o-Y to $358.27 million, and its professional services revenue surged 25% Y-o-Y to $42.32 million in Q3 FY14. The free research on CTXS can be downloaded as in PDF format at:

http://www.Investor-Edge.com/CTXSFreeReport

Citrix's GAAP gross margin increased to $623.00 million in Q3 FY14 from $588.80 million in Q3 FY13. On the other hand, GAAP operating income decreased to $58.60 million from $87.37 million in Q3 FY13. Further, GAAP net income narrowed to $47.53 million, or $0.29 per diluted share, in Q3 FY14 from $76.73 million, or $0.41 per diluted share, in Q3 FY13. Analysts from Bloomberg had expected the company to report GAAP net income of $52.15 million, or $0.31 per diluted share, in Q3 FY14. GAAP results for Q3 FY14 included a charge of approximately $21 million related to a previously disclosed patent lawsuit as well as a restructuring charge of $3 million for severance costs incurred to better align resources to strategic initiatives. On a non-GAAP basis, net income for Q3 FY14 was $124.62 million, or $0.75 per diluted share, compared to $131.82 million, or $0.70 per diluted share, in Q3 FY13.

Commenting on the results, the CEO of Citrix, Mark Templeton, said that he is pleased with the company's operational and strategic performance in Q3 FY14. He further stated that while Citrix's results were clearly mixed, the company executed well in many important areas, including product releases, go-to market investments and partnership initiatives, all while maintaining focus on operational refinements and profitability. Sign up and read the free analyst's notes on CTXS at:

http://www.Investor-Edge.com/CTXS-12112014

Citrix also announced that during Q3 FY14 the company repurchased 1.5 million shares at an average price of $69.48.

In its guidance for FY14, the company expects net revenue in the range of $3.13 billion to $3.14 billion. Further, GAAP diluted EPS for FY14 is anticipated to be in the range of $1.57 to $1.58. Non-GAAP diluted EPS is targeted in the range of $3.22 to $3.25, excluding $0.96 related to the effects of amortization of acquired intangible assets, $1.00 related to the effects of stock-based compensation expense, $0.12 related to the charge for a previously disclosed patent lawsuit, $0.12 related to the effects of amortization of debt discount, $0.12 related to the effects of restructuring charges, and $(0.64) to $(0.68) for the tax effects related to these items.

Stock Performance 

On the day following the earnings release, October 23, 2014, Citrix's stock witnessed a decline of 4.54%, thus ending the session at $61.84. The stock has recovered its losses since then with mostly a positive movement. On the last close, Tuesday, November 11, 2014; it finished at $66.67, 0.21% below its previous day's closing price, after vacillating between $66.55 and $67.18. A total of 0.96 million shares were traded, which was much below its three months average volume of 2.10 million shares. Over the previous three trading sessions and last one month, the company's shares have advanced 1.03% and 1.54%, respectively. Also, the stock has gained 5.41% from the beginning of 2014. Shares in Citrix closed above their 200-day moving average. The stock's 50-day moving average of $67.93 is greater than its 200-day moving average of $63.27. Furthermore, the stock traded at a PE ratio of 37.26 and has a Relative Strength Index (RSI) of 55.61. Visit Investor-Edge and access the latest research on CTXS at:

http://www.Investor-Edge.com/CTXSEarningsCoverage

Sneak Peek to Corporate Insider Trading 

In the last one month, there were 8 insider transactions by 3 individuals. On October 24, 2014, Stephen M. Dow, Director at Citrix, bought 8,495 shares of the company at a price of $43.16 per share and sold an equal number of shares at $61.70 per share on the same day. Additionally, on October 27, 2014, Mr. Dow purchased 1,505 shares at $43.16 per share. On October 30, 2014, Murray J. Demo, Director at Citrix, sold 1,000 shares at $63.03 per share. On November 03, 2014, David J. Henshall, COO and CFO of Citrix, bought a total of 45,000 shares at an average price of $53.69 per share and sold an equal number of shares at an average price of $64.59 per share on the same day. Complimentary in-depth research on CTXS is available at:

http://www.Investor-Edge.com/CTXSInsiderTrading

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