Citrix announces Q1 2015 results

Citrix announced its financial results for first quarter 2015.

The revenues for the first quarter were $761 million for an increase of 1% compared to Q1 2014.

Net income was $29 million and non-GAAP operating income was $106 million, a decrease compared to $119 million for Q1 2014.

Examining the results in contrast with the same quarter 2014:

  • Product and license revenue decreased 12 percent;
  • Software as a service revenue increased 8 percent;
  • Revenue from license updates and maintenance increased 8 percent;
  • Professional services revenue, which is comprised of consulting, product training and certification, decreased 13 percent;
  • Net revenue increased in the EMEA region by 1 percent and decreased in the Pacific region by 2 percent and in the Americas region by 1 percent;
  • Deferred revenue totaled $1.5 billion as of March 31, 2015, compared to $1.4 billion as of March 31, 2014, an increase of 7 percent; and
  • Cash flow from operations was $292 million for the first quarter of fiscal year 2015, compared with $288 million for the first quarter of fiscal year 2014.

Analyzing the poor results for the first quarter of fiscal year 2015, compared to the first quarter of fiscal year 2014, we can safely state that Citrix is still under-performing, especially considering the lay off of 900 employees with the alleged restructuring program announced at the beginning of the year.
The decline is evident if we look at VMware which is giving signs of moderate growth and renewal with its new hybrid cloud strategy, even more if compared to other competitors of its size, such as Red Hat’s which is  is in constant double digit growth and undergoing a consistent renovation of its portfolio and strategy.

Mark Templeton, president and CEO for Citrix, commented on the results:

While I’m disappointed in our Q1 results, our confidence in the financial, operational and strategic initiatives that we announced last quarter remains strong, while these changes position us for our next phase of growth, they had a greater near-term impact on our execution than we anticipated.  Our commitment to margin expansion, however, remains unchanged. Looking beyond Q1, I’m excited about the innovations I see across our workspace services, delivery networking and mobility apps businesses.  Through these innovations, we’ll continue our focus on enabling the software-defined workplace.