Citrix revenues up in third quarter

Growth may decline as company moves toward internet

FORT LAUDERDALE — Citrix Systems, a Fort Lauderdale-based global software company that has laid off employees and changed leadership this year, saw a 3 percent increase in third-quarter revenues, the company said Wednesday.

Citrix’s quarterly revenue, from continuing operations, was $691 million, compared with $669 million in the same quarter in 2016. Quarterly net income was $127 million, or 82 cents a share, compared with $112 million, or 71 cents a share for the third quarter last year.

The latest quarter’s net income includes restructuring charges of $9 million for severance and $12 million for office closing costs.

“i am pleased with our execution this quarter and our renewed discipline in managing our business,” said david henshall, president and ceo.

On a conference call with analysts on Wednesday, Henshall said Citrix’s recent restructuring was geared to free up capital and enlist the talent it needs for the future. “It wasn’t simply a cost exercise, but more forward-looking in terms of where we’re going,” he said.

He said Citrix is moving toward a subscription model for services, which will provide recurring revenue. But he warned there will be a “temporary decline” in growth rate and profitability in the interim.

Citrix stock closed at $82.43 a share, down 76 cents or 0.91 percent, Wednesday on Nasdaq. The financial results, announced at the stock market’s close, slightly missed revenue estimates, though they exceeded Wall Street’s earnings expectations.

In early October, Citrix notified regulators that it planned layoffs and office consolidations beginning in the current fourth quarter and continuing into 2018. The company didn’t disclose how many workers were affected.

But none of the office consolidations occurred in Fort Lauderdale, where Citrix owns three buildings and leases one. Layoffs were “across most functions,” said Stacy St. Louis, spokeswoman for Citrix.

St. Louis said as Citrix broadens its services on the cloud, where the internet is used to maintain data and applications, the company will be hiring people with the skills it needs to make that transformation.

The company has employees worldwide, with major operations in Santa Clara, Calif.

Citrix has been undergoing rapid changes in the past year, including replacement of its CEO with chief financial officer Henshall in July.

This spring, Citrix reportedly had bids from private equity interests — Bain Capital, The Carlyle Group and Thoma Bravo — to take the company private. But no buyer has emerged.

In 2015, activist hedge fund Elliott Management bought a 7.1 percent stake in Citrix and began urging changes, including the sale of certain assets. Last year, Citrix spun off its GoTo family of businesses to LogMeIn.

Founded in 1989, Citrix is one of South Florida’s largest technology companies with 1,600 employees in Fort Lauderdale alone.

In 2013, Citrix renovated its Fort Lauderdale offices, making a $7.5 million investment, and promised more than 200 jobs in return for $1.65 million in potential state and local incentives. The contract remains active.