Citrix Systems reported Thursday that it expects its first quarter revenue to be below its earlier guidance, in part because of the impact of the company’s recent restructuring.
Citrix now expects first quarter revenue to be in the range of $755 million to $760 million, below the $780 million to $790 million it had earlier forecast. Net income is expected to be between 15 cents and 17 cents per share, compared to earlier guidance of 20 cents to 22 cents.
In a statement, CEO Mark Templeton said the company was disappointed with the results and underestimated the affect that the its recent restructuring would have on sales.
“Additionally, the increase in foreign exchange volatility impacted results and customer-buying behavior to a larger extent than anticipated in the quarter,” he said.
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Citrix announced in February plans to lay off 700 full-time employees and 200 contract workers, moves that are expected to generate annual pre-tax savings of $90 million to $100 million. The company’s Raleigh office, which employs about 600 people, was largely spared from the cuts, with fewer than five employees here losing their jobs.
Citrix software enables a company's employees to work from anywhere online. The primary focus of Raleigh site is the company’s ShareFile business, which provides software that enables businesses to share files confidentially over the Internet. That business has been growing at a rate of up to 60 percent annually in recent years, according to the company.
An analyst with William Blair downgraded Citrix stock to “market perform” on Thursday after the company lowered its guidance. The analyst, Bhavan Suri, cited the restructuring and foreign exchange volatility, but also said that decreases in the growth of the company’s NetScaler product as well a tough business environment for its XenApp and XenDestop products were also likely to blame.
He expects Citrix will lower its full-year revenue guidance, and not hit its earnings per share expectations for the year.
The company is scheduled to report first-quarter earnings on April 22.
Citrix shares closed Friday at $63.80, down 85 cents. The stock is up 3 percent this year.