Citrix Systems Cuts Outlook on Restructuring, Forex Impacts

By Lauren Pollock 

Citrix Systems Inc. slashed its outlook for the first quarter, saying it underestimated the effects of restructuring and foreign exchange volatility on its results.

"The increase in foreign exchange volatility impacted results and customer-buying behavior to a larger extent than anticipated in the quarter," Chief Executive Mark Templeton said.

He added the company's restructuring and changes to its field and channel strategies also hurt results, but Citrix is still committed to its previous plan.

In January, the company said its layoff plans would affect about 700 full-time workers and 200 contractor positions, leading to $40 million to $45 million in severance costs.

The Fort Lauderdale, Fla., company specializes in virtualization, networking and cloud infrastructure and has benefited from increased demand for desktop visualization, a crucial step in cloud computing.

Citrix projected earnings of 63 cents to 65 cents a share, excluding restructuring, amortization and other charges, on revenue of $755 million to $760 million. It previously guided for earnings of 70 cents to 72 cents a share on revenue of $780 million to $790 million.

Citrix plans to report results April 22.

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