The NetScaler business inside Citrix has reported four good quarters in a row, but executives are still leery of saying the division will be a consistent moneymaker for the remade company.

That's because NetScaler plays in a market that's traditionally inconsistent, they said on Citrix's second-quarter earnings call yesterday. Moreover, while NetScaler is attracting cloud business, that sector "does have a higher concentration" than the enterprise, said CFO David James Henshall on yesterday's earnings call. "So we'll continue to be conservative on our outlook."

Still, he acknowledged that NetScaler is in a good position. "The part of the [NetScaler] business that is associated with buildout of public cloud and cloud services is the part that has been really outperforming over the last four quarters, Henshall said.

Citrix's conservatism might have been a little disappointing for analysts, since it's clear that NetScaler, an application delivery controller (ADC) vendor that gives Citrix a stake in cloud networking and containers, will be a key part of the company post-restructuring.

The company has been under fire from hedge fund Elliott Management to reshape itself. Elliot gained a board seat last year. In November, Citrix announced a layoff of 1,000, and in January, it hired Microsoft executive Kirill Tatarinov as CEO.

Citrix's delivery networking business — comprised of NetScaler, including its software-defined wide-area networking (SD-WAN) offering — reported second-quarter revenues of $195 million, up 11 percent from the same quarter a year ago. Cloud infrastructure and cloud service providers represented about half of that figure, while enterprise ADC sales were about one-third of it.

The rest of Citrix, meanwhile, is still undergoing restructuring — which took an interesting turn yesterday.

Citrix announced that its GoTo division will be merged with competitor LogMeIn, a transaction worth an estimated $1.8 billion.

Citrix had already announced a pending spinoff of the GoTo suite, which includes the GoToMeeting conferencing platform. But rival LogMeIn is stepping in to acquire the GoTo business in a tax-free scheme known as a Reverse Morris Trust transaction.

The deal is expected to close in the first quarter of 2017 and will result in Citrix shareholders owning roughly 50.1 percent of the combined GoTo/LogMeIn.

For its second quarter, which ended June 30, Citrix reported revenues of $843 million, compared with $797 million a year ago.

Net income was $121 million, or 77 cents per share, compared with $103 million, or 64 cents per share, a year ago.

Non-GAAP net income of $1.20 per share beat the analysts' estimate of $1.14, according to Thomson Financial.

Citrix was upbeat about the coming six months. For its third quarter, the company is predicting revenues of $820 million to $830 million. And for the full year, Citrix now expects revenues of $3.37 billion to $3.39 billion. That's up from the company's previous forecast, which had a midpoint of $3.35 billion.

Citrix's stock is down 2.5 percent at $87.07 this morning.

Earnings-call transcript provided by Seeking Alpha.