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Looking Ahead: Citrix’s Financial Outlook for 2016

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Fiscal 2016

Citrix Systems (CTXS) has targeted revenues in the range of $3.31 billion to $3.32 billion for fiscal 2016. It expects GAAP (generally accepted accounting principles) EPS (earnings per share) in the range of $2.50 to $2.60.

Non-GAAP diluted EPS is projected in the range of $4.65 to $4.75, “excluding $1.27 related to the effects of stock-based compensation expenses, $0.53 related to the effects of amortization of acquired intangible assets, $0.19 related to restructuring charges, $0.21 related to the effects of amortization of debt discount, $0.71 related to separation costs associated with the previously announced spin-off of the GoTo business and $0.66 to $0.86 for the tax effects related to these items.”

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Outlook for 1Q16

Citrix has targeted revenues in the range of $785 million to $790 billion for 1Q16. It expects GAAP EPS in the range of $0.28 to $0.31.

Non-GAAP diluted EPS is expected to be in the range of $0.91 to $0.93, “excluding $0.31 related to the effects of stock-based compensation expenses, $0.14 related to the effects of amortization of acquired intangible assets, $0.15 related to restructuring charges, $0.05 related to the effects of amortization of debt discount, $0.17 related to separation costs associated with the previously announced spin-off of the GoTo business and $0.17 to $0.22 for the tax effects related to these items.”

Analysts estimate application software sector peers Autodesk (ADSK), Adobe (ADBE), and Salesforce (CRM) will post revenues of $631 million, $1.3 billion. and $1.8 billion, respectively, in the next quarter.

In addition to announcing its quarterly and fiscal financial results, Citrix announced that its board of directors has authorized a $400 million repurchase of stock. As of December 31, 2015, approximately $333 million remained for repurchases from previous authorizations. Adobe constitutes 8.9% of the iShares North American Tech-Software ETF (IGV).

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