Virtualization Technology News and Information
Article
RSS
Citrix Reports 2016 Second Quarter Financial Results

Citrix Systems, Inc. (NASDAQ:CTXS) today reported financial results for the second quarter of fiscal year 2016 ended June 30, 2016.

Financial Results

For the second quarter of fiscal year 2016, Citrix achieved revenue of $843 million, compared to $797 million in the second quarter of fiscal year 2015, representing 6 percent revenue growth.

GAAP Results

Net income for the second quarter of fiscal year 2016 was $121 million, or $0.77 per diluted share, compared to $103 million, or $0.64 per diluted share, for the second quarter of fiscal year 2015. GAAP net income includes net tax benefits of approximately $21 million, or $0.13 per diluted share, for the second quarter of fiscal year 2015 primarily related to the closing of audits with the IRS for certain tax years. In addition, net income for the second quarter of fiscal year 2016 includes $14 million in separation costs associated with the previously announced spin-off of the GoTo business.

Non-GAAP Results

Non-GAAP net income for the second quarter of fiscal year 2016 was $188 million, or $1.20 per diluted share, compared to $163 million, or $1.00 per diluted share for the second quarter of fiscal year 2015. Non-GAAP net income for the second quarter of fiscal years 2016 and 2015 excludes the effects of stock-based compensation expense, amortization of acquired intangible assets, amortization of debt discount, restructuring charges, and the tax effects related to these items. Non-GAAP net income for the second quarter of fiscal year 2016 also excludes separation costs associated with the previously announced spin-off of the GoTo business and the tax effect related to this item.

“I am very encouraged by our performance this quarter. It’s a clear signal that our renewed focus on the strategy to deliver the world’s best integrated technology services for secure delivery of apps and data is resonating well with our customers and the market,” said Kirill Tatarinov, president and CEO of Citrix. “Our restructuring efforts and continued progress on creating a ‘new Citrix’ are producing strong results.”

Q2 Financial Summary

In reviewing the results for the second quarter of fiscal year 2016 compared to the second quarter of fiscal year 2015:

  • Product and license revenue increased 7 percent;
  • Software as a service revenue increased 14 percent;
  • Revenue from license updates and maintenance increased 3 percent;
  • Professional services revenue, which is comprised of consulting, product training and certification, decreased 6 percent;
  • Net revenue decreased in the Pacific region by 9 percent, increased in the Americas region by 11 percent, and decreased in the EMEA region by less than 2 percent;
  • Deferred revenue totaled $1.6 billion as of June 30, 2016, compared to $1.5 billion as of June 30, 2015, an increase of 6 percent; and
  • Cash flow from operations was $228 million for the second quarter of fiscal year 2016, compared with $201 million for the second quarter of fiscal year 2015.

During the second quarter of fiscal year 2016:

  • GAAP gross margin was 83 percent. Non-GAAP gross margin was 85 percent, excluding the effects of amortization of acquired product related intangible assets and stock-based compensation expense; and
  • GAAP operating margin was 18 percent. Non-GAAP operating margin was 28 percent, excluding the effects of stock-based compensation expense, amortization of acquired intangible assets, separation costs related to the previously announced spin-off of the GoTo business and costs associated with the 2015 restructuring program.

Financial Outlook for Third Quarter 2016

Citrix management expects to achieve the following results at the consolidated level for the third quarter of fiscal year 2016 ending September 30, 2016:

  • Net revenue is targeted to be in the range of $820 million to $830 million.
  • GAAP diluted earnings per share is targeted to be in the range of $0.71 to $0.74. Non-GAAP diluted earnings per share is targeted to be in the range of $1.18 to $1.20, excluding $0.29 related to the effects of stock-based compensation expenses, $0.15 related to the effects of amortization of acquired intangible assets, $0.05 related to the effects of amortization of debt discount, $0.09 related to separation costs associated with the previously announced spin-off of the GoTo business, $0.03 related to restructuring charges and $0.12 to $0.17 for the tax effects related to these items.

Financial Outlook for Fiscal Year 2016

Citrix management expects to achieve the following results at the consolidated level for the fiscal year ending December 31, 2016:

  • Net revenue is targeted to be in the range of $3.37 billion to $3.39 billion.
  • GAAP diluted earnings per share is targeted to be in the range of $2.86 to $2.99. Non-GAAP diluted earnings per share is targeted to be in the range of $5.00 to $5.10, excluding $1.15 related to the effects of stock-based compensation expenses, $0.57 related to the effects of amortization of acquired intangible assets, $0.21 related to the effects of amortization of debt discount, $0.64 related to separation costs associated with the previously announced spin-off of the GoTo business, $0.35 related to restructuring charges and $0.68 to $0.91 for the tax effects related to these items.

The above statements are based on current targets. These statements are forward-looking, and actual results may differ materially.

Published Wednesday, July 27, 2016 8:16 AM by David Marshall
Filed under:
Comments
There are no comments for this post.
To post a comment, you must be a registered user. Registration is free and easy! Sign up now!
Calendar
<July 2016>
SuMoTuWeThFrSa
262728293012
3456789
10111213141516
17181920212223
24252627282930
31123456