Citrix Systems reported positive second quarter fiscal 2017 earnings as the software provider continues to shift its attention on its networking and software-as-a-service (SaaS) businesses.
Netscaler is part of Citrix’s networking business unit. The NetScaler business is comprised of two segments: cloud infrastructure, which also includes Citrix’s software-defined wide area networking (SD-WAN) offering; and enterprise ADC, which includes the Xen family of products.
For the quarter, NetScaler’s cloud infrastructure segment saw a 14 percent increase in bookings compared to the same period last year. Similarly, its enterprise ADC segment’s booking increased “double digits” from the same period last year, said Citrix President and CEO David Henshall during the company’s earnings call. Overall, the company’s networking business accounted for $197 million of second quarter fiscal 2017 revenues compared to $193 million during the first quarter.
Citrix is making an effort to increase its SaaS offerings as the company saw 30 percent of its product bookings come from subscription-based services. SaaS accounted for $42 million worth of revenues during the quarter — a 27 percent increase year-over-year.
“Up until now, we’ve been trying to gradually manage this move to a more subscription-based model, but the rapid shift in demand from customers is showing that we need to be much more aggressive and speed up this transition moving forward,” said Henshall during the earnings call, according to a Seeking Alpha earnings transcript.
It’s also worth mentioning that this is the first earnings call with the company’s new CEO. In July, former Citrix CEO Kirill Tatarinov announced that he was leaving the company immediately. Henshall is the second CEO the company has had in a little over a year.
Running the Numbers
For the second quarter of fiscal 2017, Citrix reported revenues of $693 million, compared to $674 million in the second quarter of fiscal 2016. This falls within in its previously guided range of $685 million to $695 million.
GAAP net income for the second quarter 2017 was $109 million, or $0.70 per diluted share, compared to $106 million, or $0.68 per diluted share in the same period last year. Non-GAAP net income for the quarter was $158 million, or $1.03 per diluted share, compared to $157 million, or $1.00 per diluted share during the same period last year.
For the third quarter of fiscal 2017 the company is expecting revenues to be between $685 million and $695 million.