Citrix shares were up 5 percent after-hours last night, as the company reported a healthy third quarter and upped its estimates for the fourth quarter.
It means Citrix’s turnaround — which includes a new focus on the cloud and the previously announced divestiture of the GoTo suite of office products — is working, executives said on yesterday’s earnings call.
“We’re taking share in all our core areas of business,” said CEO Kirill Tatarinov, who joined the company in January.
Revenues of $841 million topped Citrix’s own prediction of $820 million to $830 million. The company now says revenues for the full year 2016 will be $3.4 billion to $3.41 billion, up from the previous forecast of $3.37 billion to $3.39 billion.
The numbers painted a sunny contrast to Citrix’s situation a year ago, when the company announced layoffs of 1,000, roughly 10 percent of its headcount, and announced plans to spin off GoTo, which is now being merged with the company LogMeIn.
Delivery networking, which includes the NetScaler application delivery controller (ADC), remains a small portion of the business, growing 5 percent year-over-year to $191 million in the quarter. But it’s become a reliable source of growth for the company and, as usual, warranted a few shout-outs during the call.
Netscaler’s VPX, in terms of number of licenses sold, was the company’s fastest growing product in the quarter, officials said. Although Netscaler is still a small percentage of Citrix’s overall business, it’s helped boost the company’s standing in the service provider market, official said.
“We see the share of networking in that segment overall growing, and that’s all due to VPX,” Tatarinov said.
“Imagine the scenario of: Everything around you has a certain amount of compute capability and is connected to the Internet, and what kind of magical things you can do there,” he said.
Citrix’s third-quarter revenues of $841 million were up 3 percent compared with $813 million in the third quarter last year.
Net income was $132 million, or 84 cents per diluted share, compared with year-ago net income of $56 million, or 35 cents per share.
Non-GAAP net income of $1.32 substantially beat the analysts’ consensus of $1.19, according to Thomson Reuters.