Citrix Systems CEO Mark Templeton to Retire -- Update

By Neil Haggerty 

Citrix Systems Inc. announced the retirement of its long time chief executive, Mark Templeton, and the workplace-software company announced plans to appoint Jesse Cohn of Elliott Management Corp. to its board of directors.

The news comes as the company reported better-than-expected earnings in its most recent quarter and raised its outlook for the year.

Shares rose 3.8% in recent after-hours trading.

Mr. Cohn, who is a senior portfolio manager with Elliott, will also be part of a new committee that will review operations to improve the company's margins, profitability and capital structure. He replaces Asiff Hirji, who stepped down effective immediately.

Mr. Templeton will continue to serve in his role until the company appoints a successor. He joined Citrix in 1995 as vice president of marketing before its initial public offering. He served as president in 1998 and as chief executive since 2001, helping turn it into a $3 billion company.

Citrix also said it initiated a review of strategic alternatives to its GoTo family of products, which could result in a sale or spinoff transaction.

The company also raised its guidance, saying it now expects to earn $3.65 to $3.75 a share on $3.22 billion to $3.25 billion in revenue for the year, compared with its earlier view of $3.55 to $3.60 a share on $3.22 billion to $3.25 billion.

For the quarter ended June 30, Citrix reported earnings of $103.3 million, or 64 cents a share, up from $53 million, or 31 cents a share, a year ago. Revenue rose 1.9% to $797 million. On an adjusted basis, the company earned $1 a share, up from 83 cents.

Analysts polled by Thomson Reuters were looking for 82 cents a share on $790 million in revenue in the second quarter.

Professional-services revenue--which includes consulting, product training and certification--decreased 12%, and revenue from product and licenses, or new product purchases, decreased 12%. Software-as-a-service revenue increased 11%, and revenue from license updates and maintenance, which includes annuity revenue from subscriptions paid when new licenses are purchased, increased 9%.

Deferred revenue increased 8% to $1.5 billion at the end of the quarter.

Operating margins increased to 25% from 22%.

Write to Neil Haggerty at [e-mail]

Subscribe to WSJ: http://online.wsj.com?mod=djnwires