Thursday, January 29, 2009

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Citrix Systems Cutting Staff 10%; Guidance Disappoints

Citrix Systems (CTXS) this afternoon said it plans to cut its staff by about 10% as part of a cost-cutting program. The company has about 4,600 employees. It posted a 4.2% decrease in fourth-quarter net income as product-license sales fell, and the company said it would reduce about 10% of its global work force as it consolidates its facilities.

Meanwhile, Citrix's first-quarter and full-year revenue outlook missed analysts' estimates, sending shares down 7.4% to $22.40 in after-hours trading.

The latest results were in contrast to larger rival VMware Inc. (VMW), which on Monday reported a 43% surge in its fourth-quarter net income but also issued a first-quarter view below analysts' estimates.

The provider of virtualization software, which improves computer efficiency by allowing multiple systems to operate on one computer, has cut costs recently but, until the job cuts on Wednesday, Citrix said it would continue to add employees and wouldn't delay expansion.


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