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Investing.com – Citrix Systems Inc (NASDAQ:CTXS) is proving that the Covid-19 work-from-home play doesn’t always pan out.
Shares dropped 11% from Wednesday’s record high after the company said that demand for Workspace and Networking products continued, “albeit at a less hurried pace than was experienced in the back half of the first quarter, during the early COVID-19 related stay-at-home orders.”
Citrix said that customers are focusing on immediate business critical needs rather than prioritizing larger, broader, longer-term digital transformation projects. “As a result, the uptake of transitioning and trading customers up to our cloud offering is not progressing at the rate we had anticipated coming into the year,” the company said. “This lag in the transition and trade-up motion will have an impact on revenue in the medium term.”
Earnings per share for the second quarter beat the estimate, coming in at $1.53 versus $1.23. Revenue came in at $799 million compared to the $769 million estimated by analysts surveyed by Investing.com.
Citrix has six buy ratings, six holds and one sell, according to data compiled by Investing.com.