Citrix Systems Q3 revenue up 6%, net income drops 38% to $48 mn

Citrix Systems today said its third quarter 2014 revenue grew 6 percent to $759 million, while net income dropped 38 percent to $48 million.

Third quarter result include 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.

Citrix has concerns about desktop and app virtualization business going by the current trend. Citrix reduced current full year expectations for total revenue growth. Citrix said its full revenue will be in the range of $3.13 billion to $3.14 billion.

Mark Templeton, CEO of Citrix, said: “While our results were clearly mixed, we 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.”

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Citrix said its product and license revenue decreased 4 percent, software as a service revenue increased 12 percent, revenue from license updates and maintenance grew 9 percent and professional services revenue increased 25 percent.

Citrix third quarter revenue increased 8 percent in the EMEA region, 4 percent in Americas region and 4 percent in the Pacific region.

Citrix said it closed 40 transactions worth $1 million plus each, up slightly from last year. About half of these deals came from the mobile and desktop business, including a few from the new workspace suite and one for XenMobile as a primary solution. Mobile and desktop grew 3 percent in Q3 2014 to $393 million.

75 percent of Citrix XenMobile customers have opted for XenApp EMM edition showing the value of its integrated offering versus standalone MDM technologies.

XenMobile business grew more than 90 percent in Q3. Citrix said XenMobile 9, which was released last quarter, will continue to improve competitive differentiation and pipeline closure rates.

XenApp subscription-based business now services over 500,000 users and grew more than 50 percent, now represented about 7 percent of app and desktop license mix.

Citrix revenue from SaaS delivered mobile apps rose 12 percent to $165 million. Collaboration remains the largest part of this business contributing over 60 percent of the mix and growing 13 percent in Q3. ShareFile product grew 50 percent, surpassing 50,000 customers and over 10 million unique users.

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