News

Citrix Makes Gains in 2013, But CEO To Retire

Citrix finished up fiscal 2013 with a mix of good news and bad news.

• By Michael Domingo
• 01/30/2014

Citrix finished up fiscal 2013 with a mix of good news and bad news.

The good news is that it's Q4 revenue topped out at $802 million, or 8 percent over the year ago quarter. Add that to the rest of the year's revenue and the company finished 2013 strong with $2.92 billion, which is 13 percent higher than 2012.

A breakdown of revenue by business lines looks like this:

• Mobile & Desktop: $428 million (4 percent higher than Q4 2012)
• Networking & Cloud: $176 million (13 percent higher...)
• Collaboration & Data: $153 million (13 percent higher...)

Other revenue-generating business to the tune of $42 million account for the rest.

Net income for Q4 2013 was $195 million, besting Q4 2012 by $26 million. Most global regions were positive, except for the APAC, which was the one blemish.

In an earnings webcast, acting CEO David Henshall said there was a bit of weakness in Mobile & Desktop, which he attributed to a "strong pivot" to an enterprise mobile strategy that is focusing on XenMobile, as well as many of its customers making the transition to XenDesktop 7 over the course of the next several months. He also said that there was a "general perception that XenApp was going away," as the company relaxed its message in that area of the business. Henshall said that customers want to see more development there, and Henshall said to expect more XenApp news in the coming months.

As for other lines, in short NetScaler was the major revenue driver in the Networking & Cloud lines, while ShareFile contributed a large chunk of revenue in the Collaboration & Data business.

If there's any bad news, the company did announce that Citrix CEO Mark Templeton intends to retire within the year, which means the company will be looking for a successor. He just returned to the company after a three-month absence to deal with family issues (read this report on RCPmag.com for details).

Templeton was a highly visible and public CEO up until his absence. At the beginning of his tenure in 2000, he was fired and then reinstated. Since then, the company has gone through fairly steady growth with him in charge.

Henshall is relinquishing his acting CEO role but is being promoted to chief operating officer. At the same time, he'll retain his executive vice president and chief financial officer responsibilities.

To listen to replay of the earnings call, go here.