Citrix
Systems, Inc. (NASDAQ:CTXS) today reported financial results for the
second quarter of fiscal year 2018 ended June 30, 2018.
Financial Results
For
the second quarter of fiscal year 2018, Citrix achieved revenue of $742
million, compared to $693 million in the second quarter of fiscal year
2017, representing 7 percent revenue growth.
GAAP Results
Net
income for the second quarter of fiscal year 2018 was $107 million, or
$0.73 per diluted share, compared to $109 million, or $0.70 per diluted
share, for the second quarter of fiscal year 2017. Net income for the
second quarter of fiscal years 2018 and 2017 includes restructuring
charges of $7 million and $2 million, respectively, primarily for
facility closing costs.
Non-GAAP Results
Non-GAAP
net income for the second quarter of fiscal year 2018 was $178 million,
or $1.28 per diluted share, compared to $158 million, or $1.03 per
diluted share for the second quarter of fiscal year 2017. Non-GAAP net
income for the second quarter of fiscal years 2018 and 2017 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 2017 also excludes separation costs and
the tax effect related to this item. Non-GAAP net income per diluted
share for the second quarter of fiscal years 2018 and 2017 reflects the
anti-dilutive impact of the company's convertible note hedges.
"Q2
was yet another strong quarter for Citrix, posting upside to financial
expectations and, at the same time, continuing to execute on our
operational transformation across the company and in our go-to-market,"
said David Henshall, president and CEO. "Our customers and partners are
embracing our cloud strategy, which is driving the multi-year plan that
we introduced last year and the progress we've made so far in 2018."
Q2 Financial Summary
The results for the second quarter of fiscal year 2018 compared to the second quarter of fiscal year 2017 are as follows:
- Subscription revenue increased 49 percent;
- Product and license revenue increased 1 percent;
- Support and services revenue increased 3 percent; and
- Net
revenue increased in the EMEA region by 8 percent; increased in the
Americas region by 7 percent; and increased in the APJ region by 7
percent.
During the second quarter of fiscal year 2018:
- GAAP gross margin was 85 percent and non-GAAP gross margin was 87 percent;
- GAAP operating margin was 20 percent and non-GAAP operating margin was 30 percent;
- Subscription revenue as a percentage of total revenue was 15%;
- Deferred
and unbilled revenue totaled $1.94 billion as of June 30, 2018,
compared to $1.77 billion as of March 31, 2018, an increase of 10
percent;
- Cash flow from operations was $170 million; and
- The company repurchased approximately 1.8 million shares during the second quarter.
Financial Outlook for Third Quarter 2018
Citrix management expects to achieve the following results for the third quarter of fiscal year 2018:
- Net revenue is targeted to be in the range of $715 million to $725 million.
- GAAP diluted earnings per share is targeted to be in the range of $0.72 to $0.74.
- Non-GAAP diluted earnings per share is targeted to be in the range of $1.23 to $1.26.
Financial Outlook for Fiscal Year 2018
Citrix management expects to achieve the following results for the fiscal year ending December 31, 2018:
- Net revenue is targeted to be in the range of $2.92 billion to $2.95 billion.
- GAAP diluted earnings per share is targeted to be in the range of $3.40 to $3.49.
- Non-GAAP diluted earnings per share is targeted to be in the range of $5.30 to $5.40.
- In
addition, Citrix management is targeting GAAP operating margin to be in
the range of 20 percent to 21 percent, and non-GAAP operating margin to
be in the range of 30 percent to 31 percent.
The
above statements are based on current targets. These statements are
forward-looking, and actual results may differ materially.