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Citrix Systems Inc. delivered first-quarter 2019 non-GAAP earnings of $1.27 per share, beating the Zacks Consensus Estimate of $1.17 per share. However, the figure decreased by 2 cents from the year ago-quarter.
Revenues rose 3% from the year-ago quarter to $719.1 million and comfortably surpassed the Zacks Consensus Estimate of $712 million.
Product and license (18.8% of total revenues) decreased 16% year over year to almost $135 million. Subscription (19.7%) revenues surged 37% from the year-ago figure to $141.6 million. Support and services (61.5%) revenues rose 2% on a year-over-year basis to nearly $442.5 million.
During the quarter under review, SaaS revenue came in at $85 million (60% of total subscription business) and was up 43% year over year. Notably, SaaS revenues are the most significant part of subscription transition.
Subscription revenues during the reported quarter came in at $142 million, up 37% year over year
Workspace revenues increased 13% year over year to $515 million (72% of total revenues) on the back of rapid adoption of unified workspace solutions. Workspace subscription revenues increased 45% year over year during the first quarter. Management stated that approximately 62% of new product bookings were subscription based.
Networking revenues declined 18% from the year-ago to $171 million (24% of total revenues). Notably, decline in the SSP business negatively impacted networking revenue during the reported quarter. Management stated that approximately 25% of new product bookings were subscription based. The company anticipates shift toward software-based solutions from traditional hardware.
Professional Services revenues climbed 6.4% on a year-over-year basis to $33.3 million (4% of total revenues).
Geographic Revenues
Revenues in Americas decreased 3% year over year to $401.1 million. Europe, Middle East and Africa (EMEA) revenues advanced 10% from the year-ago quarter to $$236.8 million. Asia-Pacific and Japan (APJ) revenues increased 18% year over year to $81.2 million.
Margin Details
Non-GAAP gross margin during the reported quarter came in at 86.5%. Non-GAAP operating margin was reported at 28.2% during the reported quarter.
Balance Sheet & Cash Flow
As of Mar 31, 2019, cash and cash equivalents were $1.612 billion as compared with $618.8 million in the previous quarter. Long-term debt at the end of the quarter came in at $742.1 million. Cash flow from operations was reported at $267.6 million.
Deferred and unbilled revenues of $2.14 billion grew approximately 21% year over year.
Citrix repurchased shares worth $94 million during the first quarter. Moreover, roughly $670 million is still remaining under share repurchase authorization.
The company paid quarterly dividend of 35 cents worth $46 million during the quarter under review.
Guidance
For second-quarter 2019, Citrix anticipates revenues between $765 million and $775 million. The Zacks Consensus Estimate for revenues is pegged at $764.9 million.
Moreover, non-GAAP earnings are expected in the range of $1.30-$1.35 per share. The Zacks Consensus Estimate for earnings is pegged at $1.38 per share.
Citrix reiterated guidance for 2019. The company continues to expect revenues between $3.08 billion and $3.09 billion. The Zacks Consensus Estimate for revenues for 2019 is pegged at $3.08 billion.
Non-GAAP operating margin is anticipated to be in the range of 31.5% to 32%. Moreover, non-GAAP earnings are expected to be approximately $6.00 per share. The Zacks Consensus Estimate for earnings for 2019 is pegged at $5.99 per share.
Long-term earnings growth rate for Synopsys, Fortinetand KLA-Tencoris projected at 10%, 15.50% and 11.2%, respectively.
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Citrix (CTXS) Q1 Earnings & Revenues Surpass Estimates
Citrix Systems Inc. delivered first-quarter 2019 non-GAAP earnings of $1.27 per share, beating the Zacks Consensus Estimate of $1.17 per share. However, the figure decreased by 2 cents from the year ago-quarter.
Revenues rose 3% from the year-ago quarter to $719.1 million and comfortably surpassed the Zacks Consensus Estimate of $712 million.
Product and license (18.8% of total revenues) decreased 16% year over year to almost $135 million. Subscription (19.7%) revenues surged 37% from the year-ago figure to $141.6 million. Support and services (61.5%) revenues rose 2% on a year-over-year basis to nearly $442.5 million.
During the quarter under review, SaaS revenue came in at $85 million (60% of total subscription business) and was up 43% year over year. Notably, SaaS revenues are the most significant part of subscription transition.
Subscription revenues during the reported quarter came in at $142 million, up 37% year over year
Citrix Systems, Inc. Price
Citrix Systems, Inc. Price | Citrix Systems, Inc. Quote
Revenues as per Product Group
Workspace revenues increased 13% year over year to $515 million (72% of total revenues) on the back of rapid adoption of unified workspace solutions. Workspace subscription revenues increased 45% year over year during the first quarter. Management stated that approximately 62% of new product bookings were subscription based.
Networking revenues declined 18% from the year-ago to $171 million (24% of total revenues). Notably, decline in the SSP business negatively impacted networking revenue during the reported quarter. Management stated that approximately 25% of new product bookings were subscription based. The company anticipates shift toward software-based solutions from traditional hardware.
Professional Services revenues climbed 6.4% on a year-over-year basis to $33.3 million (4% of total revenues).
Geographic Revenues
Revenues in Americas decreased 3% year over year to $401.1 million. Europe, Middle East and Africa (EMEA) revenues advanced 10% from the year-ago quarter to $$236.8 million. Asia-Pacific and Japan (APJ) revenues increased 18% year over year to $81.2 million.
Margin Details
Non-GAAP gross margin during the reported quarter came in at 86.5%. Non-GAAP operating margin was reported at 28.2% during the reported quarter.
Balance Sheet & Cash Flow
As of Mar 31, 2019, cash and cash equivalents were $1.612 billion as compared with $618.8 million in the previous quarter. Long-term debt at the end of the quarter came in at $742.1 million. Cash flow from operations was reported at $267.6 million.
Deferred and unbilled revenues of $2.14 billion grew approximately 21% year over year.
Citrix repurchased shares worth $94 million during the first quarter. Moreover, roughly $670 million is still remaining under share repurchase authorization.
The company paid quarterly dividend of 35 cents worth $46 million during the quarter under review.
Guidance
For second-quarter 2019, Citrix anticipates revenues between $765 million and $775 million. The Zacks Consensus Estimate for revenues is pegged at $764.9 million.
Moreover, non-GAAP earnings are expected in the range of $1.30-$1.35 per share. The Zacks Consensus Estimate for earnings is pegged at $1.38 per share.
Citrix reiterated guidance for 2019. The company continues to expect revenues between $3.08 billion and $3.09 billion. The Zacks Consensus Estimate for revenues for 2019 is pegged at $3.08 billion.
Non-GAAP operating margin is anticipated to be in the range of 31.5% to 32%. Moreover, non-GAAP earnings are expected to be approximately $6.00 per share. The Zacks Consensus Estimate for earnings for 2019 is pegged at $5.99 per share.
Zacks Rank & Stocks to Consider
Citrix carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the same industry are Synopsys, Inc. (SNPS - Free Report) , Fortinet, Inc. (FTNT - Free Report) and KLA-Tencor Corporation (KLAC - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for Synopsys, Fortinetand KLA-Tencoris projected at 10%, 15.50% and 11.2%, respectively.
Radical New Technology Creates $12.3 Trillion Opportunity
Imagine buying Microsoft stock in the early days of personal computers… or Motorola after it released the world’s first cell phone. These technologies changed our lives and created massive profits for investors.
Today, we’re on the brink of the next quantum leap in technology. 7 innovative companies are leading this “4th Industrial Revolution” - and early investors stand to earn the biggest profits.
See the 7 breakthrough stocks now>>