[THIN] Re: ARTICLE: Citrix to pink slip 10 per cent
- From: "Jan Broucinek" <tinybeetle@xxxxxxxxx>
- To: <thin@xxxxxxxxxxxxx>
- Date: Thu, 18 Jul 2002 18:02:27 -0400
I saw that yesterday in reseller news. So I guess it is true.
Jan Broucinek, System Manager
Arthur Rutenberg Homes, Inc.
(727) 536-5900 voice
(727) 536-7168 x245 direct
(727) 538-9089 fax
www.arhomes.com
----- Original Message -----
From: "Jim Kenzig http://thethin.net"; <jimkenz@xxxxxxxxxxxxxx>
To: <thin@xxxxxxxxxxxxx>
Sent: Thursday, July 18, 2002 5:50 PM
Subject: [THIN] ARTICLE: Citrix to pink slip 10 per cent
> From theregister...hmmm.
> JK
>
> Citrix to pink slip 10 per cent
> By IT Analysis
> Posted: 15/07/2002 at 09:33 GMT
> http://www.theregister.co.uk/content/53/26186.html
>
> With its Q2 figures due to be announced on July 17th, Citrix has given a
> broad hint as to the likely outcome and is pre-empting the results by
> announcing that it expects to layoff around 10 percent of its staff.
>
> This time last year, Citrix earned revenues of $147 million for the second
> quarter. The expectation for 2002 is somewhere between $116 million and
$118
> million. Profits will dip from 12 cents per share to somewhere between 5
and
> 6 cents. This may be adjusted to exclude amortization charges and
> write-offs, giving earnings of between 6 and 7 cents per share.
>
> Citrix is not seeing this as a temporary blip. The estimate for Q3
revenues
> is set between $110 million and $115 million and the full year figures are
> expected to come in at around $490 million. It is not surprising,
therefore,
> that it has felt the need to take quick action.
>
> The immediate consequence of the reduced profitability is that the
> world-wide headcount will be reduced by 10 percent. It is believed that
the
> current staffing levels are just below 2000 and so we can expect 200 job
> losses to occur. In addition to this, there will be a significant
reduction
> in sales and marketing expenses but will focus more on direct sales, so it
> shouldn't be too difficult to work out where the lay-offs will be
focussed.
>
> The interesting part of the announcement, made by President and CEO, Mark
> Templeton, is his analysis of where things might be going wrong. The
> indications are that revenues from electronic licenses and software
> subscriptions are increasing by 15 percent. The problem seems to lie in
the
> acquisition of new small customers.
>
> This is an area where Citrix has, traditionally, done reasonably well as
> small business look to MetaFrame as a solution to their terminal server
> requirements. In times of hardship, it seems, that they turn to the free
of
> charge option from Microsoft. Microsoft Terminal Server is another of
those
> bundled layers that offers the connectivity options that these small
> businesses need but without some of the added value that Citrix usually
> looks to provide.
>
> Templeton expects that these companies will, eventually turn to Citrix
once
> they realise that they need that extra value. This has the effect of
> lengthening the sales cycle for Citrix - in the shrink-wrap market that
> usually has no sales cycle at all.
>
> Does this mean that one quarter or two quarters down the road, we should
see
> those revenue levels picking up again as the Microsoft Terminal Server
users
> move across to MetaFrame? Clearly the next quarter prediction doesn't
assume
> so. The problem may be a long-term issue and maybe Citrix needs to do
> something to maintain the attention of that audience.
>
> Shame about those marketing staff.
>
>
>
>
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