Every metric either met or exceeded past guidance, and they're obviously being conservative as evidenced by the growing deferred revenue. Also, last year's Q2 revenue and profit had the last portion of the Microsoft royalty income, and there was of course none this Q2.
It was the best Q2 ever after excluding the effect of the Microsoft income. Operating margin was 27% versus 29% in Q1 and 11% last Q2, but that's largely because the lower R&D expense in Q1.
They have nearly $800 million in the bank, and had $54 million positive cash flow from operations. Total positive cash flow was $67 million, including the repurchase of 2.1 million shares during the quarter.
I think the overreaction was caused by a 10 day increase in DSOs from Q1. It's now 53 days, which in more in line with past results. However, it was probably perceived to mean the quarter was back-end loaded. Yet, not one analyst on the CC even asked about it.
There were all kinds of positives, and hardly any negatives. The company is clicking on all cylinders during tough times in the IT space. While I'll admit CTXS was fully valued, I believe the sell off was grossly overdone, and calmer heads will prevail rather quickly. |
