Citrix Sees 2Q Revenue Dip

The Fort Lauderdale-based software vendor employs about 1,900 people, according to the company.

Citrix also plans to curtail sales and marketing program expenses, said Mark Templeton, president and CEO of Citrix, during a call last week with analysts.

However, the company doesn't plan to increase direct sales, which currently account for about 5 percent of its revenue, he said.

"If anything, we'll be looking to bolster our partners, probably bring on some new regional systems integration relationships and then work with our Gold and Platinum partners around the world and try to shore them up," Templeton said.

One factor contributing to Citrix's revised outlook was lower-than-anticipated sales of packaged products, which dropped between 6 percent and 9 percent sequentially, he said.

In contrast, electronic licensing business with larger customers during the quarter was up about 15 percent from the first quarter, Templeton said. Renewals of software subscriptions were up 15 percent sequentially, he said.

The decline in packaged-product sales indicates that Citrix is finding success targeting larger customers, said Paul Kunze, director of sales at IntraSystems, a solution provider in Randolph, Mass.

IntraSystems is a member of the Citrix Global 2000 program, which the vendor launched in April to reward partners selling deeper into enterprise accounts. "As Citrix is pushing products into the enterprise, [customers are signing licenses rather than buying packaged products for smaller implementations," Kunze said.

GTC Systems, another member of the Citrix Global 2000 program, has seen increased opportunities resulting from the program and assistance from its Citrix rep, said Chris Alstrin, senior account executive at the San Diego solution provider.

According to preliminary results for the quarter ended June 30, Citrix expects revenue of between $116 million and $118 million, compared with $147.3 million for the year-ago quarter. The company expects second-quarter income to range from 5 cents to 6 cents per share, compared with 12 cents per share a year ago.