Citrix shares are down nearly 6 percent today, at $89.90, after the company reported a first-quarter outlook that seems to have disappointed investors.
The company reported fourth-quarter revenues of $908 million and net income of $200 million, or $1.26 per share. That compares with revenues of $905 million and net income of $131 million, or 84 cents per share, in the same quarter a year earlier.
Non-GAAP net income of $1.61 per share beat the consensus estimate of $1.50 reported by Zacks.
For its first quarter, Citrix is predicting revenues of $655 million to $665 million. Analysts were predicting $846 million, according to Zacks.
But the numbers are difficult to compare, because Citrix is in the process of spinning out its GoTo businesses with LogMeIn, a transaction expected to be completed this month.
Citrix officials’ comments on yesterday’s conference call imply that GoTo contributed an average of $176 million per quarter to revenues last year.
Subtracting the $176-per-quarter figure from the Zacks estimate would mean analysts were expecting a forecast closer to $670 million.
With the exit of GoTo, Citrix will be putting more emphasis on its NetScaler business, which includes application delivery controllers (ADCs) and cloud infrastructure. NetScaler’s business also includes software-defined wide area networking (SD-WAN), which grew in “strong triple digits” during the fourth quarter but is “still not yet maturely significant,” CEO Kirill Tatarinov said on yesterday’s call.