earnings

Citrix Reports Q2 2010 Financial Results, Shares Soar

July 29, 2010 by Robin Wauters Leave a Comment

Citrix Systems today reported financial results for the second quarter ended June 30, 2010, sending its shares soaring.

In the second quarter of fiscal 2010, Citrix achieved revenue of $458 million, compared to $393 million in the second quarter of fiscal 2009, representing 17 percent revenue growth.

Net income for the second quarter of fiscal 2010 was $48 million, or $0.25 per diluted share, compared to $43 million, or $0.23 per diluted share, for the second quarter of fiscal 2009.

Net income for the second quarter of fiscal 2010 includes approximately $13 million in income tax expense, or approximately $0.07 per diluted share, for the settlement in principle the company reached with the Internal Revenue Service related to transfer pricing issues as previously announced.

Non-GAAP net income in the second quarter of fiscal 2010 was $78 million, or $0.41 per diluted share, compared to $72 million, or $0.39 per diluted share, in the comparable period last year. Non-GAAP net income for the second quarter of fiscal 2010 includes the $13 million tax expense, or approximately $0.07 per diluted share, as noted above.

Both periods exclude the effects of amortization of intangible assets primarily related to business combinations, stock-based compensation expenses, charges recorded in connection with the restructuring program that the company implemented in January 2009 and the tax effects related to those items.

In reviewing the second quarter results of 2010, compared to the second quarter of 2009:

Product license revenue increased 15 percent;
Revenue from license updates grew 13 percent;
Online services revenue grew 18 percent;
Technical services revenue, which is comprised of consulting, education and technical support, grew 35 percent;
Revenue increased in the America’s region by 17 percent, increased in the EMEA region by 11 percent and increased in the Pacific region by 31 percent;
Deferred revenue totaled $686 million, compared to $538 million on June 30, 2009;
GAAP operating margin was 16 percent for the quarter and non-GAAP operating margin was 26 percent for the quarter, excluding the effects of amortization of intangible assets primarily related to business combinations, stock-based compensation expense and charges recorded in connection with the 2009 restructuring program;
Other income decreased 83 percent primarily due to losses on the re-measurement of non U.S. dollar denominated financial statement balances;
Cash flow from operations was $103 million, compared with $86 million in the second quarter of 2009; and
The company repurchased 2.2 million shares at an average price of $46.74 or $101 million.

Citrix management expects to achieve the following results during its third fiscal quarter of 2010 ending September 30, 2010:

Net revenue is expected to be in the range of $450 million to $460 million; and
GAAP diluted earnings per share is expected to be in the range of $0.31 to $0.32. Non-GAAP diluted earnings per share is expected to be in the range of $0.48 to $0.49, excluding $0.08 related to the effects of amortization of intangible assets primarily related to business combinations, $0.16 related to the effects of stock-based compensation expenses, certain charges recorded in conjunction with the company’s 2009 restructuring program, and $(0.06) to $(0.08) for the effect of the differential between the GAAP and non-GAAP tax rates and tax effects related to these items.
Interest income is expected to be $4 million.
Adjusted tax rate is expected to be in the range of 23% to 24%.

The above statements are based on current expectations. These statements are forward-looking, and actual results may differ materially.

Earnings: VMware’s Q2 2009

July 23, 2009 by Robin Wauters Leave a Comment

VMware today announced financial results for the second quarter 2009 (emphasis ours):

Revenues for the second quarter were $456 million, flat from the second quarter of 2008.
Non-GAAP operating income for the second quarter was $96 million, a decrease of 14% from the second quarter of 2008. GAAP operating income for the second quarter was $38 million, a decrease of 38% from the second quarter of 2008.
Non-GAAP net income for the quarter was $80 million, or $0.20 per diluted share, compared to $92 million, or $0.23 per diluted share, for the second quarter of 2008. GAAP net income for the second quarter was $33 million, or $0.08 per diluted share, compared to $52 million, or $0.13 per diluted share, for the second quarter of 2008.
Cash and cash equivalents were $2.3 billion and total deferred revenues were $934 million as of June 30, 2009. Compared to the same period a year ago, cash increased 48% and deferred revenue increased 30%. Since the beginning of 2009, cash increased 24% and deferred revenue increased 7%.
Non-GAAP operating cash flows for the quarter were $233 million, an increase of 19% from the second quarter of 2008. GAAP operating cash flows were $243 million, an increase of 62% from the second quarter of 2008. For the trailing twelve months ended June 30, 2009, non-GAAP operating cash flows were $910 million and GAAP operating cash flows were $1 billion.

US revenues for the second quarter declined 3% to $234 million from the second quarter of 2008. International revenues for the second quarter grew 3% to $222 million from the second quarter of 2008.

Services revenues, which include software maintenance and professional services, were $228 million, an increase of 32% from the second quarter of 2008. Driven by the challenging macro economic environment, license revenues were $228 million, a decline of 20% from last year.

Recent Strategic Announcements and Highlights:

On May 21, VMware announced the general availability of VMware vSphere 4 with the support of an extensive partner ecosystem and customers around the globe. In June, VMware vSphere 4 was named the Best of Interop 2009 Grand Prize Winner and won the Best of Interop Award in the Cloud Computing and Virtualization category at Interop Las Vegas.
VMware announced record storage performance for VMware vSphere 4, outperforming any virtualization solution on the market and nearly quadrupling its previous record. According to data collected with VMware Capacity Planner, most demanding databases usually require a few thousand IOPS in storage performance. For example, an Oracle database averages 1,280 IOPS for a 4-way Oracle virtual machine. VMware vSphere 4 exceeds this requirement from a single server — and can power up to: 700,000 Microsoft Exchange mailboxes, 273 4-way Oracle databases.
VMware and HP expanded the companies’ strong relationship with VMware signing an OEM agreement to integrate HP Discovery and Dependency Mapping software into the VMware vCenter(TM) suite and working with HP on new datacenter management initiatives. In addition, HP has integrated VMware ThinApp(TM) with the HP Client Automation policy-based management platform. Both of these initiatives will help customers seamlessly and cost-effectively manage their physical and virtual datacenter and desktop initiatives.
On July 13, VMware announced advancements in virtualization management with the general availability of two new products: VMware vCenter AppSpeed and VMware vCenter Chargeback. VMware also announced a major release of VMware vCenter Lab Manager 4. These new management products simplify and automate key IT processes such as application performance monitoring, chargeback, and management of dev/test environments to increase IT productivity in the datacenter — delivering more value to customers as they scale out their virtual environments.

Earnings: Citrix’ Q2 2009

July 23, 2009 by Robin Wauters Leave a Comment

Citrix today reported financial results for the second quarter of fiscal 2009 ended June 30, 2009. In the second quarter of fiscal 2009, Citrix achieved revenue of $393 million, compared to $392 million in the second quarter of fiscal 2008.

Non-GAAP net income in the second quarter of fiscal 2009 was $72 million, or $0.39 per diluted share, compared to $71 million, or $0.38 per diluted share, in the comparable period last year.

Non-GAAP net income excludes the effects of amortization of intangible assets primarily related to business combinations and stock-based compensation expense and the tax effects related to those items. In addition, Non-GAAP net income for the second quarter of 2009 excludes charges recorded in connection with the restructuring program that the company implemented in January 2009, and the tax effects related to those items.

In reviewing the second quarter results for 2009, compared to the second quarter of 2008:

Product license revenue decreased 15 percent;
Revenue from license updates grew 9 percent;
Online services revenue grew 18 percent;
Technical services revenue, which is comprised of consulting, education and technical support, grew 3 percent;
Revenue increased in the America’s region by 3 percent, decreased in the EMEA region by 12 percent, and decreased in the Pacific region by 4 percent;
Deferred revenue totaled $538 million, compared to $476 million on June 30, 2008;
GAAP operating margin was 10 percent for the quarter, and non-GAAP operating margin was 22 percent for the quarter, excluding the effects of amortization of intangible assets primarily related to business combinations, stock-based compensation expense and costs associated with the restructuring program;
Cash flow from operations was $86 million; and
The company repurchased 1.3 million shares at an average price of $30.32.

During the second quarter of 2009, Citrix:

Announced the availability of the Citrix Receiver application on the Apple App Store. The app gives iPhone and iPod touch users access to their Windows applications and documents from anywhere;
Unveiled Citrix NetScaler VPX, a new software-based virtual appliance version of its industry-leading NetScaler MPX hardware appliance product line;
Announced upgrades to Citrix Essentials for XenServer and Hyper-V that adds advanced virtualization management capabilities to two of the industry’s fastest growing virtualization platforms;
Announced nCore technology that allows its high-end Citrix NetScaler appliances to deliver rich Web 2.0 applications and cloud services for more users with no new hardware investments required;
Announced the addition of three new appliance models to its powerful Citrix NetScaler product line – NetScaler MPX 9500, MPX 7500 and MPX 5500;
Announced that LG-Nortel will distribute the Citrix NetScaler product line to enterprise customers in the Korean market; and
Unveiled Citrix Dazzle – a self-service “storefront” for enterprise applications. Dazzle gives corporate employees 24×7 self-service access to a broad array of applications, desktops and content, allowing them to choose exactly what they need, when they need it.

VMware: Fourth Quarter Disappointing But Still Better Than Expected

January 26, 2009 by Robin Wauters Leave a Comment

VMware today announced financial results for the fourth quarter and full year 2008.

Revenues for the fourth quarter were $515 million, an increase of 25% from the fourth quarter of 2007.
GAAP operating income for the fourth quarter was $102 million, an increase of 34% from the fourth quarter of 2007. Non-GAAP operating income for the fourth quarter was $135 million, an increase of 25% from the fourth quarter of 2007.
GAAP net income for the fourth quarter was $111 million, or $0.29 per diluted share, compared to $78 million, or $0.19 per diluted share, for the fourth quarter of 2007. Non-GAAP net income for the quarter was $142 million, or $0.36 per diluted share, compared to $103 million, or $0.26 per diluted share, for the fourth quarter of 2007.
Revenues for the full year 2008 were $1.9 billion, an increase of 42% from 2007.
GAAP operating income for the full fiscal year 2008 was $313 million, an increase of 33% from 2007. Non-GAAP operating income for the year 2008 was $469 million, an increase of 39% from 2007.
GAAP net income for the full fiscal year 2008 was $290 million, or $0.73 per diluted share, compared to $218 million, or $0.61 per diluted share, for 2007. Non-GAAP net income for the year 2008 was $416 million, or $1.05 per diluted share, compared to $295 million, or $0.82 per diluted share, for 2007.
Cash was more than $1.8 billion and deferred revenue was $870 million as of December 31, 2008. Since the beginning of 2008, cash increased 50% and deferred revenue increased 57%.

U.S. revenues for 2008 grew 37% to $988 million from 2007. International revenues grew 48% to $893 million from 2007.

License revenues for 2008 grew 30% to $1.2 billion from 2007. Services revenues grew 67% to $703 million from 2007.

(Release)

For analysis, read Tech Trader Daily and Between The Lines.

VMware (VMW): Second-Quarter 2008 Results (Updated)

July 22, 2008 by Robin Wauters 2 Comments

VMware reported its second-quarter 2008 results today, with an earnings conference call which was followed closely after the abrupt removal of Diane Greene two weeks ago (see our ‘the week after‘ post too for reference). Don’t feel too bad for her, we’ve just reported on her potential payout, which could be well over $50 million USD.

These are the results that were just announced, in bullet points:

Net income of $52.4 million, or 13 cents a share, compared with $34.2 million, or 10 cents a share, a year earlier.
Revenues for the second quarter were $456 million, an increase of 54% from the second quarter of 2007. Update: this is below Wall Street analysts expectations and estimates, who projected $458,6 to 460 million in revenue – (which the company also projected in April but revised later on). Shares going down.
GAAP operating income for the second quarter was $61 million, compared to $47 million for the same period last year.
Non-GAAP operating income was $112 million, an increase of 52% from the second quarter of 2007.
GAAP net income for the quarter was $52 million, or $0.13 per diluted share, compared to $34 million, or $0.10 per diluted share, for the second quarter of 2007.
Non-GAAP net income for the quarter was $92 million, or $0.23 per diluted share, compared to $52 million, or $0.16 per diluted share, for the second quarter of 2007.
Cash exceeded $1.5 billion and deferred revenue was $721 million as of June 30, 2008.

Second quarter U.S. revenues grew 43% to $240 million from the second quarter of 2007. International revenues grew 68% to $216 million from the second quarter of 2007 driven by strength in Europe and Australia.

Software license revenue grew 39% to $284 million from second quarter of 2007. Service revenues, which include support, subscription and professional services, were $172 million, an increase of 85% from the second quarter of 2007.

As for the financial outlook:

2008 revenues are targeted to grow approximately 42% to 45% compared to 2007. Update: this is rather modest.
Third quarter 2008 revenues are targeted to be within a range of approximately $462 to $468 million. Update: Analysts were projecting revenue of $497.3 million
Third quarter GAAP operating margin is targeted to be between 11% and 13%. This guidance includes stock-based compensation, employer payroll tax on employee stock transactions, amortization of intangible assets and capitalized software development costs which are targeted at 9% of projected revenue.

VMware is hosted a conference call today reviewing its results and discussing its financial outlook. The call was scheduled to begin at 2:00 p.m. PT/ 5:00 p.m. ET.

A noteworthy statement from Paul Maritz in the call was also the fact that VMware intends to make VMware ESXi completely free. The free version, officially called ESXi 3.5, will be available to download starting July 28. Maritz believes this approach to virtualization will help bring more customers into the VMware fold and make virtualization technology ubiquitous.

VMware

A Closer Look At VMware Financials

May 29, 2008 by Robin Wauters 1 Comment

Zachary Scheidt over at Seeking Alpha penned an excellent analysis of the current financial situation VMware is in. Scheidt correctly notes the corrent virtual monopoly the virtualization industry’s poster child holds, and dissects the company’s latest earnings releases.

A small excerpt:

In addition to the $438 million in revenue, the company announced an increase of $88 million in its deferred revenue which is essentially revenue the company has received for service not yet performed. The total is now $641 million which should help to stabilize future revenue as the company can draw on this balance during future periods. In fact, a Credit Suisse analyst had an interesting theory stating that this quarter was helped significantly by the company drawing on this deferred revenue base instead of new business actually driving the strong revenue number.

Read the whole article.