Citrix may sell GoTo and ByteMobile businesses

Citrix may sell its GoTo and ByteMobile businesses as part of a major restructuring initiative.

Citrix has initiated a review of strategic alternatives for its GoTo business, and talks with buyers to sell ByteMobile business.
The company has appointed Qatalyst Partners and Goldman, Sachs & Co. as financial advisors to Citrix, while Goodwin Procter is serving as legal counsel.

Citrix is currently in active discussions with third parties regarding a potential sale of its ByteMobile business.

These initiatives are aimed to drive operating margin expansion through simplification, efficiency and portfolio refinements.
The company did not reveal further details.

Incidentally, Citrix Systems President and CEO Mark Templeton announced his decision to retire.

“I will continue to focus on leading Citrix and driving value-creating change until we are ready to make a smooth transition,” said Templeton.
Meanwhile, Citrix posted 2 percent increase in revenue to $797 million for the second quarter of fiscal year 2015. Net income for the second quarter of fiscal year 2015 rose to $103 million from $53 million.

“Through the additional actions we are announcing today, we’re taking steps to ensure that we are focusing all of our energy on our core secure app delivery offerings and setting the company up for even better execution, greater efficiency and profitable growth,” said Templeton.

Citrix said its product and license revenue decreased 12 percent in Q2. Software as a service revenue rose 11 percent. Revenue from license updates and maintenance grew 9 percent. Professional services revenue, which is comprised of consulting, product training and certification, fell 12 percent.

Excluding software as a service, net revenue increased in the Americas region by 1 percent, remained consistent in the EMEA region and decreased in the Pacific region by 8 percent.

Citrix expects to achieve net revenue of $780 million to $790 million in the third quarter 2015 and $3.22 billion to $3.25 billion for the full fiscal.

Baburajan K
[email protected]

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