Citrix Systems (CTXS) has reported 52.24 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $199.85 million, or $1.26 a share in the quarter, compared with $131.27 million, or $0.84 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $255.43 million, or $1.61 a share compared with $258.65 million or $1.66 a share, a year ago.
Revenue during the quarter went up marginally by 0.40 percent to $908.36 million from $904.76 million in the previous year period. Gross margin for the quarter expanded 720 basis points over the previous year period to 84.79 percent. Total expenses were 74.54 percent of quarterly revenues, down from 87.58 percent for the same period last year. This has led to an improvement of 1304 basis points in operating margin to 25.46 percent.
Operating income for the quarter was $231.29 million, compared with $112.41 million in the previous year period.
Recently appointed president and chief executive officer for Citrix, Kirill Tatarinov, said: "I am very excited to be part of Citrix. We have an amazing opportunity ahead of us. And a solid and focused plan in place to capitalize on key market trends and drive sustained profitable growth. I look forward to leading the next chapter in Citrix’s growth story and create even greater value for our customers, partners, and employees."
For the first-quarter, Citrix Systems forecasts revenue to be in the range of $655 million to $665 million. The company expects diluted earnings per share to be in the range of $0.02 to $0.03. On an adjusted basis, the company expects diluted earnings per share to be in the range of $0.93 to $0.95.
For fiscal year 2017, Citrix Systems forecasts revenue to be in the range of $2,810 million to $2,840 million. The company expects diluted earnings per share to be in the range of $2.49 to $2.74, the company expects diluted earnings per share to be in the range of $4.60 to $4.65 on adjusted basis.
Operating cash flow improvesCitrix Systems has generated cash of $1,115.83 million from operating activities during the year, up 7.86 percent or $81.28 million, when compared with the last year. The company has spent $484.20 million cash to meet investing activities during the year as against cash outgo of $224.42 million in the last year.
The company has spent $38.03 million cash to carry out financing activities during the year as against cash outgo of $691.45 million in the last year period.
Cash and cash equivalents stood at $956.96 million as on Dec. 31, 2016, up 159.68 percent or $588.44 million from $368.52 million on Dec. 31, 2015.
Working capital turns negative
Working capital of Citrix Systems has turned negative to $537.07 million on Dec. 31, 2016 from positive $2.98 million on Dec. 31, 2015. Current ratio was at 0.83 as on Dec. 31, 2016, down from 1 on Dec. 31, 2015.
Cash conversion cycle (CCC) has decreased to 13 days for the quarter from 15 days for the last year period. Days sales outstanding went up to 37 days for the quarter compared with 34 days for the same period last year.
Days inventory outstanding has increased to 4 days for the quarter compared with 2 days for the previous year period. At the same time, days payable outstanding went up to 28 days for the quarter from 22 for the same period last year.
Debt moves up marginallyCitrix Systems has witnessed an increase in total debt over the last one year. It stood at $1,348.16 million as on Dec. 31, 2016, up 2.83 percent or $37.09 million from $1,311.07 million on Dec. 31, 2015. Short-term debt stood at $1,348.16 million as on Dec. 31, 2016. Total debt was 21.10 percent of total assets as on Dec. 31, 2016, compared with 23.92 percent on Dec. 31, 2015. Debt to equity ratio was at 0.52 as on Dec. 31, 2016, down from 0.66 as on Dec. 31, 2015. Interest coverage ratio improved to 20.39 for the quarter from 10.26 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
