Citrix Systems has announced plans to cut approximately 10% of its global workforce as part of a restructuring program to reduce its annual operating expenses.
It also reported a 4% decline in net income to $60.1m for the fourth quarter 2008, compared to $62.76m in the year-ago quarter, on revenue up 4% at $415.69m.
Operating income during the quarter grew 28% to $63.12m, while diluted EPS remained flat at $0.26. Cash flow from operations was $166m compared to $113m in the same period last year. It repurchased 2.2 million shares at an average share price of $25.89.
The company said product license revenue fell 9% to $162.26m, while license updates revenue grew 13% to $146.87m. Online services revenue grew 18% to $69.44m, while technical services revenue grew 13% to $37.11m. Geographically, Pacific revenue fell 6%, while Americas revenue grew 3% and EMEA region revenue grew 2%.
For fiscal 2008, the company reported 17% decline in net income to $178.27m compared to $214.4m a year ago, on revenue up 14% at $1.58 billion.
Mark Templeton, president and chief executive at Citrix, said: While being fiscally cautious, we are more confident than ever in our vision and business strategy. Citrix products have a long track record of reducing IT costs, while simplifying enterprise computing – exactly what customers need.
It expects to achieve annualized pre-tax savings of approximately $50m, and incur a pre-tax charge of $19m to $23m in the first quarter 2009 as a result of the restructuring. It expects first-quarter revenue to be down 5% on the year-ago quarter. For fiscal 2009, it expects revenue to be flat compared to 2008.
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