Shares of business software company Citrix Systems rose in after-hours trading after it reported fourth-quarter results that handily beat Wall Street’s estimates.
David Henshall, chief operating officer, told analysts during a conference call that the company is “making great progress on the operational initiatives we launched last year,” referring to restructuring that included two rounds of layoffs in 2015.
“Hard decisions have been made,” Henshall said. “That’s behind us. Now it’s about execution.”
The California-based company announced after the markets closed Wednesday that revenue rose 6 percent to $905 million. The consensus of analysts polled by Bloomberg News was that revenue would clock in at $877.2 million.
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“On the top line, the performance was impressive in and of itself, and even more so when you consider we were implementing a number of restructuring activities in the sales organization during the fourth quarter,” said Robert Calderoni, the company’s executive chairman.
Adjusted net income totaled $259 million, or $1.66 per share, up from $180 million a year ago and ahead of analysts’ estimates of $1.19 per share. The adjusted net income included a $21 million tax benefit in the fourth quarter, up from a $9 million tax benefit a year ago.
Citrix shares climbed as much as 4 percent in after-hours trading. Earlier in the day, shares closed at $65.90, down $2.29. The stock has fallen from a 52-week high of $84.17 in October.
After being pressured by activist investor Elliott Management, Citrix announced in November that it was selling the GoTo business, a suite of products that includes online meeting software GoToMeeting, into a separate public company. At the same time the company announced that it was eliminating about 1,000 jobs.
Those job cuts, as well as another round of layoffs earlier in 2015 that resulted in eliminating 700 full-time employees and 200 contractors, largely bypassed the company’s downtown Raleigh operations.
Citrix established a local presence in Raleigh when it acquired ShareFile for $54 million in 2011. The company has invested heavily in its local operations and today has about 600 employees in Raleigh.
ShareFile, which enables businesses to share files confidentially over the Internet, continues to be a stellar performer for the company. ShareFile’s subscription revenue rose nearly 30 percent in the quarter.
Citrix also announced that the company’s board of directors has authorized spending up to an additional $400 million to buy back the company’s shares. Last year the company repurchased more than 11 million shares.
For all of 2015, Citrix generated annual revenue of $3.28 billion, up 4 percent. Adjusted net income totaled $695 million, or $4.34 per share, versus $565 million in 2014.