Citrix had predicted revenues of $755 million to $760 million, with the reality being $761 million, up one percent year over year.
Still, the results missed Citrix’s original guidance of $780 million to $790 million. The executive team was adamant that they underestimated the costs of restructuring, which totaled $34 million for severance and facility closing expenditures in the first quarter.
Non-GAAP net income came in at $106 million, or 65 cents per share (meeting analyst expectations, according to Thomson Financial), compared to $119 million, 64 cents per share, in last year’s first quarter.
Citrix cut its outlook for the year, and CEO and President Mark Templeton said Wednesday that the company will “streamline, restructure, and reorganize” in the coming year despite the setback. Citrix has already begun that restructuring plan, having announced layoffs for 900 employees and contractors along with its fourth-quarter earnings in January.
After hours trading had Citrix’s stock up 23 cents to $65.