Why Is Citrix Systems Inc (NASDAQ:CTXS)’s New Strategy Not Working?
On Thursday, Citrix Systems, Inc (NASDAQ:CTXS) sent out warning signals to investors saying that the company’s profits and revenues would not meet the previously announced projections. The company shares plummeted 11.87% on the news. For the financial quarter that ended 30 September, the company is now expecting $710M-$712M in revenue in comparison to its previous projection of $730-$740M. Citrix Systems, Inc (NASDAQ:CTXS) is also now expecting its Q3 earnings to be in the range of 68-69cents/share in comparison to the earlier estimate of 72-73 cents/share.
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Mark Templeton, the company’s Chief Executive Officer said that the though they are truly disappointed that they have fallen short of their projections in the quarter, they are confident of both their strategy and their markets. He did not throw any light on the reason for the shortfall but added that they would provide some additional details in the earnings call that is slated to be held on 23 October.
However, he did mention that the company would continue spotlighting on mobility and cloud services. The company has been diversifying from server utilization and desktop to mobility. The warning that the company has issued may be an indication that this transition has not borne fruit as expected. For now, Citrix Systems, Inc (NASDAQ:CTXS) is biding its time and treading nimbly but keeping investors informed about what they could possibly expect.
In Thursday’s trading, Citrix Systems, Inc (NASDAQ:CTXS) dropped by 11.87%. The opening price of the shares was $58.36, which climbed to an intraday high of $59.49 and dipped to a close of $58.75. Approximately 15.45 million shares were traded on Thursday while an average volume of 1.38 million shares were traded over a 30 day period. The 52-week low of Citrix Systems, Inc (NASDAQ:CTXS) shares is $56.57 and its 52-week high is $77.16. The company has a market capitalization of $11.01 billion.