Citrix cites ‘strong’ first quarter

Reform is paying off, analyst says

Fort Lauderdale-based software company Citrix Systems reported 4 percent lower earnings for its first quarter on revenues thatwere up1 percent.

The company’s shares closed down $2.68 or by more than 3 percent to $81.44 in trading Thursday on the New York Stock Exchange.

Net income from continuing operations was lower for the quarter: $70 million, or 44 cents per share, compared with $73 million, or 47 cents per share, in the first quarter of 2016. Earnings reflect $8 million and $46 million, in the 2017 and2016 quarter respectively, in restructuring charges for severance and closing offices.

But that restructuring is paying off, one analyst says.

In a note to investors, analyst Rob Oliver of Robert W. Baird & Co., said the results were in-line with expectations and that Citrix’s improvements are “starting to bear fruit.”

Citrix revenue was $663 million in the quarter ended March 31 compared with $659 million in the same period a year ago.

The quarterly results reflect Citrix’s continuing operations after completing the $1.8million sale of California-based GoTo business to Massachusetts-based Log- MeIn. GoTo was known best for its GoToMeeting online conference tool. The sale of GoTo was completed on Jan. 31.

Twenty-eight-year-old Citrix has been exiting businesses that don’t fit its mobile and cloud-delivered strategy.

CEO Kirill Tatarinov said in a news release that the quarter was “strong” and that Citrix’s “momentum to cloud transformation is accelerating.” Citrix delivers applications that allow people and organizations to connect anywhere and on any device.

In November 2015, Citrix announced itwould lay off 1,000 employees worldwide; only 50 of those were in Fort Lauderdale.

One of South Florida’s oldest and largest technology companies, Citrix employs about 1,700 people in Fort Lauderdale.

Citrix’s stock closed at $84.12, up 7 cents or 0.08 percent, in Nasdaq trading Wednesday.