Tomahawk, WI 10/30/2013 (BasicsMedia) – Citrix Systems, Inc. (NASDAQ:CTXS) has published its third quarter financial results for 2013. In it, one can see that compared to the same period last year, CTXS has announced 11% increase in revenue, which currently stand at $713 million. The company’s revenue from product licenses also shot up during this quarter compared to the same period in 2012, by around 3%. Its cash flow operations improved from last year by around 23% as well. Overall, the third quarter financials have been quite good and there is a lot of expectation regarding CTXS going forward.

CTXS Closes 38 New Deals Worth More Than $38 Million

One item I noticed when CTXS released its third quarterly financial results is that the company managed to close 38 new deals during this 3-month period. All the deals were worth $ 1 million each, or more. It received more customers from three main sectors; namely, healthcare, technology and retail. Therefore, it is safe to say that CTXS depends on these three industries to propel it forward. Overall, CTXS reported that its customers were rather cautious and unwilling to make capital spending, and this had an adverse effect on its financials for this 3-month period.

CTXS Revenue from Product Licenses Drops

CTXS’ revenue from product licenses was quite low in the American region. The same revenue was a bit negative in the Pacific region, while its results in EMEA indicate that there was a tiny growth. The company is not pleased with these results, which failed to meet its expectations. One needs to remember that CTXS rarely fails to meet the company’s own estimates, and that this has been the trend for the last 10 years. This is the first time in the last 10 years that CTXS financial results have been lower than what the top executives had estimated earlier in the year.

CTXS performance in its Mobile and Desktop business is commendable. This business reported growth of around 8% during the latest 3-month period to settle at $391 million. Many of the areas where CTXS reported growth, as well as the businesses where it had no growth to report, are still in transition. The potential for growth is great in all these areas, and it is worth mentioning that CTXS reported losses in areas that are traditionally not core part of its business. This means the company still enjoys remarkable potential in many of its current businesses.

CTXS Stock Suffers Dip In Performance

CTXS’ stock has suffered because of the disappointments with its third quarter financial results. Its gross margins for the latest results are 82.6%. It is clear that CTXS never made losses, since its net income was $76.7 million in its GAAP business. The company’s total revenue was $712.7% as was mentioned above. However, there was an increase in its operating expenses from $452.9 million in the same quarter in 2012, to a high of $501.4 million in 2013. These are just some of the areas where CTXS need to work hard on to enjoy better fiscal results in future.

Overall, CTXS is doing well. The company has great prospects going forward and I think it will outperform in 2014.

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