Citrix Shareholders Should Hibernate This Summer
It's likely to be a rough ride until the end of the year.
As expected, Citrix Systems (CTXS) turned in a horrid quarter. Understandably, shareholders are glad to see a rough quarter come to a close. But investors may have to wait until fourth-quarter financial results are released to learn how effectively Citrix is getting business back on track.
The developer of application-server software has lost nearly 45% of its market value since its June 12 announcement that it would fall short of expectations. After the market close on Wednesday, the company announced net income in line with expectations of $0.10 per share. Sales of $106.1 million landed toward the bottom of the $105 to $110 million range forecasted earlier by management. These numbers represent a sharp drop-off from first-quarter figures: Sales decreased 16.8%, while income was pared down 61.2%.
George Nichols does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.
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