Cloud computing software maker Citrix Systems Inc (CTXS.O) forecast a lower-than-expected profit for the current quarter as its customers reduce IT spending and delay orders, sending its shares down 10 percent in extended trading.
Citrix said it expected an adjusted profit of 62 cents-63 cents per share in the second quarter on revenue of $705 million-$715 million.
Analysts were looking for an adjusted profit of 70 cents per share and revenue of $711.5 million, according to Thomson Reuters I/B/E/S.
"The timing of closing of large engagements as well as the specific contract terms of those deals will cause recognition of revenue to be uneven throughout the year," Chief Financial Officer David Henshall said on a analyst call.
Citrix also cut its full-year profit forecast range by 4 cents per share to $3.08-$3.11 per share.
The Fort Lauderdale, Florida-based company's cloud computing software allows customers to access applications remotely from a central server, and reduces costs by eliminating the need to upgrade and install software on each individual computer on site.
Rival VWware Inc (VMW.N) on Tuesday forecast current-quarter revenue below analysts' estimates, suggesting that they expect more business in the second half of the year.
Citrix's first-quarter operating margin fell 6 percentage points to 8 percent while operating costs jumped 19 percent to $501.4 million from a year earlier.
Net income fell to $59.7 million, or 32 cents per share, from $68.3 million, or 36 cents per share, a year earlier. Excluding items, it earned 62 cents per share. Revenue rose 14 percent to $672.3 million.
Analysts on average had expected earnings of 63 cents per share on revenue of $676.9 million, according to Thomson Reuters I/B/E/S.
Citrix's shares, which have gained about 6 percent in the last six months, closed at $67.66 on the Nasdaq on Wednesday. They were down at $60.19 after the bell.
(Reporting by Sayantani Ghosh and Supantha Mukherjee in Bangalore; Editing by Don Sebastian)