Citrix results exceed expectations; company names interim CEO

Business software company Citrix Systems posted better-than-expected third quarter results and named an interim CEO who is taking over immediately from long-time chief executive Mark Templeton.

The California-based company, which has about 600 employees in Raleigh’s Warehouse District, named Robert Calderoni, the board’s executive chairman, as interim president and CEO.

Templeton, an N.C. State University graduate who has led the business for well over a decade, announced his retirement in July. At the same time, the company announced it was reviewing strategic alternatives for its GoTo products, including a possible sale or spin-off, as well as undertaking an overall review of the company’s operations and capital structure. Citrix said at that time that Templeton would continue to run the business until a successor was named.

During a conference call with analysts late Wednesday, however, Templeton said Calderoni has been driving the review process that will be “instrumental in shaping our 2016 plan and ongoing strategy.”

“As a result, the board and I believe this to be the right time for a transition, one that will ensure the continuity we need across the business in 2016 from financial, operational and succession perspectives,” he said.

Templeton is serving as an advisor to the company through the end of the year.

Regarding the company’s third-quarter performance, Templeton said, “I’m really pleased with the strong results we’re reporting today on my 70th and final Citrix earnings call.”

The company also boosted its outlook for revenue and earnings per share for the year.

Citrix shares rose 12 percent, or $8.66, to close Thursday at $80.58. The stock is up 26 percent this year.

Revenue rose 7 percent to $813 million. Product and license revenue was up 7 percent, while software as a service jumped 15 percent.

David Henshall, chief operating officer, told analysts that ShareFile subscription revenue rose nearly 40 percent. Citrix moved into the Triangle when it acquired Raleigh-based ShareFile for $54 million in 2011.

Adjusted net income totaled $168 million, or $1.04 per share, up from $125 million a year ago. Analysts, according to Bloomberg News, were anticipating 84 cents per share.

Calderoni is the former chairman and CEO of Ariba, a software company acquired by SAP for $4.3 billion in 2012.

Mizuho Securities analyst Abhey Lamba wrote in a research note that Calderoni “is a good fit for Citrix’s immediate operational and strategic goals.”

“Given Mr. Calderoni’s experience,” Lamba continued, “we expect significant cost cuts to be announced in mid-November along with potential spin-off of the GoTo business.” That business includes online meeting software GoToMeeting.

Earlier this year Citrix Raleigh said it was laying off 700 full-time employees and 200 contractors, about 9 percent of its workforce, but only a handful of employees in Raleigh were let go.

This story was originally published October 22, 2015 at 10:31 AM with the headline "Citrix results exceed expectations; company names interim CEO."