Citrix Systems Q2 Profit Tops Estimates; CEO Mark Templeton To Retire

(RTTNews) - Citrix Systems, Inc. (CTXS) reported second quarter net income of $103 million, or $0.64 per share, compared to $53 million, or $0.31 per share, prior year. Non-GAAP net income for the second quarter of fiscal 2015 was $163 million, or $1.00 per share.

On average, 29 analysts polled by Thomson Reuters expected the company to report profit per share of $0.82 for the quarter. Analysts' estimates typically exclude special items.

Total net revenues were $796.76 million compared to $781.56 million, a year ago. Analysts expected revenue of $790.37 million for the quarter.

For third quarter 2015; Citrix management expects net revenue to be in the range of $780 million to $790 million; GAAP earnings per share to be in the range of $0.46 to $0.49; and non-GAAP earnings per share to be in the range of $0.83 to $0.85. Analysts expect the company to report earnings per share of $0.89 on revenue of $790.93 million.

For fiscal 2015, Citrix management expects net revenue to be in the range of $3.22 billion to $3.25 billion; GAAP earnings per share in the range of $2.11 to $2.20; and Non-GAAP earnings per share in the range of $3.65 to $3.75. Analysts expect the company to report earnings per share of $3.56 on revenue of $3.23 billion.

Citrix Systems announced that the company's president and chief executive officer, Mark Templeton, has informed the board of his plans to retire. Templeton will continue to serve as president and CEO and a director of the company until such time as a successor has been appointed. The Citrix Board has initiated a CEO search process.

Citrix announced that its board has formed an Operations Committee. The committee will be led by current board member Robert Calderoni, who will work closely with Templeton and the company's management team in a comprehensive review of its operations and capital structure. As part of this initiative, Calderoni has been appointed executive chairman of the board, effective immediately.

Citrix said, with the assistance of its independent advisors, it has initiated a review of strategic alternatives for the company's GoTo family of products. The strategic alternatives review for this business could result in, among other things, a possible sale or spin-off transaction.

Citrix Systems also announced that it has entered into a cooperation agreement with Elliott Management Corporation, an investment firm whose affiliated funds own approximately 7.5 percent of the company's common stock. Elliott's Jesse Cohn has been appointed to the Citrix board to replace Asiff Hirji. Citrix will commence a search for an additional independent board member, mutually agreeable to the company and Elliott, who will replace a current board member when appointed.