One analyst on record. says CTXS will meet but not exceed.
Citrix Falls on Fears It Will Miss 1st-Qtr Estimates (Update1)
By Dina Bass
Citrix Falls on Fears It Will Miss 1st-Qtr Estimates (Update1)
(Updates with closing share price.)
Fort Lauderdale, Florida, March 30 (Bloomberg) -- Shares of
Citrix Systems Inc., a pioneer in adapting Microsoft Corp.'s
Windows software to networks, fell 16 percent on concerns it will
post lower-than-expected first-quarter results.
Shares fell 13 3/4 to 72 1/8 in Nasdaq trading of 20
million, more than five times its three-month daily trading
average.
Investors are concerned Citrix won't meet revenue and
earnings estimates for the quarter due to slower sales in
January, said Michael Cristinziano, an analyst at Gerard Klauer
Mattison who rates the stock ``buy.' The company declined to
comment.
``There's valid concern that the quarter's coming together
later than it typically does,' he said. ``January was weak in
the entire industry. February was better and March better still.
But the question is will March be strong enough to compensate for
January.'
Cristinziano, who expects Citrix to have revenue of $127
million and earnings of 19 cents a share, said the company will
likely meet estimates, but not exceed them as it has in past
quarters. Shares have gained 260 percent in the past year.
Citrix is expected to post earnings of 19 cents a share, the
average estimate from a survey of analysts by First Call/Thomson
Financial. It's will report earnings next month.
Fourth-quarter net income totaled $34 million, or 34 cents a
share, on revenue of $118.1 million. Sales rose 56 percent from
the fourth quarter a year ago.
The Fort Lauderdale, Florida-based company specializes in
software that allows companies to store application programs,
such as business-management software, on networks instead of
personal computers.
Microsoft owns a 5 percent stake in Citrix, whose MetaFrame
and WinFrame software works with Microsoft's Windows NT system to
help run servers, the powerful computers used to operate
corporate networks and Web sites. Citrix software can control
most devices linked to a network, regardless of location,
connection, or type of machine. This lets companies store
programs needed to do business in a single location.
The company also wants to sell software that operate devices
such as handheld computers. |
