Seeking Alpha

Citrix's guidance better than feared, $500M added to buyback plan

  • Citrix (CTXS) expects Q4 revenue of $800M-$810M and EPS of $0.95-$1. That's below a consensus of $819.7M and $1.05, but expectations had fallen in the wake of the company's Q3 warning.
  • In addition, Citrix is adding $500M to its buyback plan, raising its available authorization to $679M. That's good for repurchasing 6% of outstanding shares at current levels. $55.3M was spent on buybacks in Q3.
  • Product/license revenue (28% of total) only rose 3% Y/Y in Q3, down from 10% in Q2. Also, professional services growth fell to 9% from 37%. SaaS/cloud revenue +14% vs. +18% in Q2, license updates/maintenance +16% vs. +18%.
  • Americas sales +9%, EMEA +15%, Asia-Pac +7%.
  • A bright spot: the deferred revenue balance rose 21% Y/Y (exceeding rev. growth of 11%) to $1.27B.
  • Citrix says some customers are delaying buying decisions as they evaluate new PC (thin client/virtualization) and mobile software offerings. Rival VMware's own issues in this space suggest Citrix isn't alone here.
  • CTXS +5.4% AH. Q3 results, PR.

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