FORT LAUDERDALE (dpa-AFX) - Citrix Systems Inc. (CTXS) Thursday lowered its financial guidance for the first quarter, as the enterprise software maker 'underestimated' the impact of the restructuring actions taken in January. Shares of the company fell over 7 percent in the extended trading hours, following the news.
Fort Lauderdale, Florida-based Citrix Systems' now expect earnings of $0.15 to $0.17 per share and adjusted earnings of $0.63 to $0.65 per share for the first quarter. Analysts polled by Thomson Reuters currently expect earnings of $0.98 per share for the first quarter. Analysts' estimates typically exclude special items.
Earlier, the company expected earnings of $0.20 to $0.22 per share and adjusted earnings of $0.70 to $0.72 per share for the quarter.
Revenues for the quarter is currently expected to be $755 million to $760 million, down from prior estimate of $780 million to $790 million. Analysts currently estimate revenues of $741.43 million for the quarter.
Chief Executive Mark Templeton said, 'We underestimated the impact caused by our restructuring, organizational evolution, and changes to our field and channel strategies, which were the result of important decisions made to get the business ready for our next phase of growth.'
In January, the company said it will cut about 700 full-time and 200 contractor positions under a restructuring program, which will result in severance charges of about $40 million to $45 million.
'Additionally, the increase in foreign exchange volatility impacted results and customer-buying behavior to a larger extent than anticipated in the quarter,' he added.
Citrix intends to report its first quarter results on April 22 after the close of market.
CTXS closed Thursday's trading at $64.65, up $0.28 or 0.44%, on the Nasdaq. The stock, however, dropped $4.56 or 7.05% in after-hours trade.
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