Citrix (CTXS) Q3 Earnings And Revenues Beat; View Raised
Zacks Investment Research | Oct 20, 2016 07:27AM ET
Citrix Systems Inc. (NASDAQ:CTXS) posted encouraging results in the third quarter of 2016, both in terms of earnings and revenues.
The cloud computing company’s earnings (excluding special items) of $1.11 per share beat the Zacks Consensus Estimate of 97 cents. Higher-than-expected revenues contributed to the earnings beat.
Operating Results
Net revenue came in at $841 million, up 3% on a year-over-year basis. The top line also came in above the Zacks Consensus Estimate of $826.5 million. Gross margin was 86% in the quarter under review compared with 85% in the prior-year quarter. Quarterly operating margin was 30% as against 28% in the prior-year quarter. At the end of the reported quarter, deferred revenues grossed $1.6 billion compared with $1.5 billion a year ago.
During the third quarter, Citrix generated approximately $288 million of cash from operations compared with $260 million for the third quarter of 2015. The company exited the quarter with $1,309 million in cash and cash equivalents as against $368.5 million at the end of 2015.
Revenues by Product Mix
Product and Licenses revenues of $206.2 million were flat year over year. License updates and maintenance revenues totaled $398.2 million, up 5% year over year. Software-as-a-Service (SaaS) revenues came in at $207.1 million, reflecting a 9% increase from the prior-year quarter. Professional Services revenues declined 19% to $29.9 million in the reported quarter.
Revenues by Geography
Revenues in the Americas (both North & Latin America) were up 8% year over year. Revenues in Europe, Africa and the Middle East decreased 4% but increased less than 1% in the Asia Pacific region, on a year-over-year basis.
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