Citrix Systems reported its fiscal first quarter 2017 earnings — the first quarter without its GoTo business, known for its GoToMeeting conferencing software.
The company has since shifted its focus to its networking business — the overarching unit governing its NetScaler — which includes application delivery controllers (ADCs), software-defined wide area networking (SD-WAN), and cloud infrastructure.
The NetScaler business is comprised of two segments: cloud infrastructure, known as its SSP business, which also includes its SD-WAN offering; and enterprise ADC, which includes the Xen family of products.
For the quarter, SSP license sales were down 20 percent year-over-year but were up 100 percent sequentially from fourth quarter, Citrix officials said on the call.
“In the networking space, in SD-WAN in particular, I would say that this is a new market, and I would say it’s driven by large transactions, and I think this is the place where proof of concepts are taking time, and people are really trying to asses what’s going on,” said Citrix CEO Kirill Tatarinov.
However, the company’s software-as-a-service (SaaS) business revenue was up 24 percent year-over-year. The largest aspect of this unit is its data platform, which includes Citrix Cloud services. Among its customer base, Citrix is seeing a shift toward subscription-based offerings, which helped boost SaaS sales this quarter.
Company officials also highlighted a partnership and multiple product integrations with Microsoft — including Azure — which has helped boost its subscription-based cloud services as well.
For the quarter, Citrix reported revenues of $663 million, compared to $659 million in the same period last year. This falls within in its previously guided range of $655 million to $665 million. Its non-GAAP net income for the quarter was $152 million, or $0.97 per diluted share, compared to $155 million, or $1.00 per diluted share for the first quarter of fiscal 2016.
Looking into its second quarter of the year, the company is expecting net revenues in the range of $685 million to $695 million. Citrix stock was down about 3 percent today.