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Pesky 'restructuring charges' make off with Citrix's cloudy cash

Otherwise all is well, insists corporate headshed

You win some, you lose some. Citrix has embiggened its quarterly revenues – while at the same time shrinking profits by a couple of million dollars. How did they manage that?

The firm on Wednesday reported revenues of $742m for the second quarter of fiscal year 2018, a 7 per cent increase on the year-ago quarter of $693m. Those revenues beat analysts' expectations, propelling the share price up a few percentage points once the results were out.

"Our subscription metrics, along with our deferred revenue and unbilled metrics, highlight our success in our cloud transition," boasted Drew Del Matto, Citrix's chief financial bod. "We're well on our way to achieving the 2022 metrics we communicated at Synergy in May."

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Profits, in contrast, were down from $109m to $107m, something the firm sought to blame on "restructuring charges" for closing down some facilities. Nonetheless, Del Matto was still chuffed with the "7 per cent to 8 per cent growth" in cloud and hybrid cloud revenues, which he claimed was a result of customers "realising the value of reduced infrastructure complexity, strengthened security and flexibility to align with their business initiatives".

Networking revenues, said Del Matto, were up 5 per cent year-on-year to $207m. David Henshall, chief exec, also said on the conference call announcing the results that all of the "top 10 largest Citrix Cloud deals this quarter exceeded $1m", adding that they bagged four sales "greater than $10m each in a quarter" for the first time.

Cost of subscription, support and services were up by $3m, from $64m to $67m compared to last year, while product and licence revenues increased by $2m.

Total operating expenditures ballooned from $462m in the second quarter of 2017 to $488m in the quarter just gone, even though general and admin spending fell from $81m to $77m. Most of the rise came from sales and marketing spending going up from $268m to $286m – an increase of 6 per cent. ®

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