UPDATE 2-Citrix Q4 profit dips, sees surprise Q1 rev fall

* Q4 adjusted EPS $0.48 beats estimate by 1 cent

* Sees Q1 rev down 5 pct vs Street view of 7 pct rise

* To cut 10 pct workforce, take charge

* Shares fall 8 pct after bell

Jan 28 (Reuters) - Infrastructure software maker Citrix Systems Inc CTXS.O posted a slight dip in quarterly profit and forecast a surprise fall in current-quarter revenue, sending shares down almost 7 percent.

The company, which develops virtualization software that allows a single computer to act like many “virtual” machines, said its expects first-quarter revenue to fall 5 percent while analysts were looking for a 7 percent rise in revenue.

Deals over million dollars slowed in the quarter as customers adjusting to lower budgets hesitated to make large capital commitments, CFO David Henshall said in a conference call with analysts.

The company’s application virtualization business, its largest revenue earner, fell 3 percent as customers delayed or reduced planned projects in the fourth quarter.

Citrix’s application networking business grew 13 percent, but Henshall said that revenue growth was curbed as customers’ businesses continued to be hurt by slow e-commerce sales and web-traffic growth.

Revenue from the server and desktop virtualization business grew 40 percent sequentially, but missed its full year target of $25 million set by the company.

Citrix, which has been aggressively clamping down on expenses over the last few months, said it would cut 10 percent jobs, consolidate facilities and reduce its contract workers.

The company said it would take a charge of $19 million to $23 million related to the job cuts in the first quarter.

Fourth quarter profit dipped to $60.1 million, compared with $62.3 million a year-ago. Earnings per share were flat a 33 cents a share.

Fourth-quarter sales growth slowed to 4 percent at $415.7 million. Analysts were expecting revenue of $431.8 million, according to Reuters Estimates.

Rival VMware Inc VMW.N had reported higher fourth-quarter earnings that beat Wall Street expectations on Monday. Shares of the company fell 6.6 percent to $22.6 in trading after the bell. They closed up 3.38 percent at $24.19 Wednesday on Nasdaq.

For the alerts, please double click on [ID:nWNAB5062] (Reporting by Sayantani Ghosh in Bangalore; Editing by Savio D’Souza)