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Citrix to cut about 900 jobs as net profit slumps
January 28, 2015 / 9:31 PM / 3 years ago

Citrix to cut about 900 jobs as net profit slumps

(Reuters) - Cloud-computing software maker Citrix Systems Inc said it would cut about 700 full-time and 200 contractor jobs as part of a restructuring to improve operational efficiency.

The company, which had 9,166 employees at the end of 2013, also reported a sharp fall in fourth-quarter net profit and issued a forecast for revenue and adjusted profit for the current quarter that fell short of analyst expectations.

Citrix reported a net profit of $95.2 million, or 58 cents per share, for the fourth quarter ended Dec. 31, down from $138.6 million, or 74 cents per share a year earlier.

However, the company beat estimates for revenue and adjusted earnings per share, which helped to boost its shares by about 4 percent in after-hours trading.

Citrix earned $1.10 per share on an adjusted basis, beating the average analyst estimate of $1.02, according to Thomson Reuters I/B/E/S. Revenue rose 6 percent to $851.5 million, exceeding the average forecast of $844.1 million.

Citrix said revenue was helped by higher income from its licensing and software-as-a-service businesses.

The company said it expected to incur pre-tax charges of $40-$45 million related to severance and $9-$10 million related to consolidation of leased facilities in 2015.

As a result of the restructuring, Citrix said it expected pre-tax savings of $90 million-$100 million a year.

Citrix shares closed at $59.19 on the Nasdaq on Wednesday.

(This version of the story corrects closing share price to $59.19 from $59.90

Reporting By Lehar Maan in Bengaluru; Editing by Savio D'Souza and Ted Kerr

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