Citrix profit leaps 72% but disappoints investors

Citrix Systems has reported second quarter revenue of $531m, up 16% on a year ago, with a 72% increase in net profit to $82m...

Citrix Systems has reported second quarter revenue of $531m, up 16% on a year ago, with a 72% increase in net profit to $82m.

The growth is attributed mainly to the increasing importance of desktop virtualisation with licence revenues up 15% on the same period a year ago.

"Demand for our virtualisation, networking and cloud solutions continues to be strong across the board," said Mark Templeton, chief executive officer at Citrix.

"The transition from the PC era to the cloud era is driving rapid transformation in computing that strongly favours agile players like Citrix."

Growth was also driven by online services, with revenues 19% up on the same period a year ago, and technical services, which grew 33%.

Despite the leap in profit from 2010, second quarter financial results narrowly missed market expectations, sending Citrix shares down 6.1% in after-hours trading Wednesday, according to the Wall Street Journal.

The company expects adjusted third-quarter earnings of 56 cents to 58 cents a share on revenue of $540m to $547m, short of analysts' expectations of 61 cents on revenue of $543m.

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