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Citrix's strong performance disappoints investors

Infrastructure software firm Citrix Systems has reported first quarter revenue of $414m, up 12% compared with the same period in 2009.

Net income was $47m, nearly seven times greater than $7m posted for the first quarter of 2009.

In further comparisons between the first quarter of 2010 and the same period in 2009, product licence revenue increased 10%, online services revenue grew 18%, technical services revenue rose 18%, and cashflow from operations increased 75%.

"We saw strong traction across our strategic markets - virtualisation, networking and collaboration - and showed good discipline in our operations, leading to solid increases in revenue and profitability," said Mark Templeton, president and chief executive officer for Citrix.

As the IT world moves away from distributed computing into the virtual computing era, Citrix is becoming more strategic with customers everyday, he said.

The company said its management has a positive outlook for the second quarter and expects net revenue of $430m to $440m .

Citrix also raised its full-year profit outlook by 1%. It now expects 2010 revenue of $1.77bn to $1.78bn, up from its earlier forecast of $1.74bn to $1.76bn.

Despite good results and positive forecasts, Citrix shares fell 3% in after hours trading because investors expected better performance in an improving IT spending environment, according to US reports.


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