UPDATE 2-Citrix Systems Q3 earnings rise

jueves 18 de octubre de 2007 02:15 CEST

(Adds analyst comments, details, updates share movement)

By Purwa Khandelwal

BANGALORE Oct 17 (Reuters) - Business software maker Citrix Systems Inc (CTXS.O: Cotización) reported a 39 percent jump in third-quarter net income based on strong revenue growth across all businesses, but shares fell 7 percent on concerns that operating margins might fall next year.

"They are accelerating their investment, so that's going to reduce their operating margin guidance," Lazard analyst Joel Fishbein Jr, who has a "buy" rating on the company, said by phone.

He expected the 2008 operating margin to fall to a 22 percent range, down from the 24 percent range a year ago.

Citrix shares have leaped 55 percent since the start of the year, during which the company has posted strong quarterly results, closed a stock-option probe and announced plans to take over XenSource Inc.

XenSource develops system virtualization technology, which helps present the resources of a single computer as if it were a collection of separate computers.

Fishbein said the market is over reacting to Wednesday's news, and the stock would continue its upward trajectory after people digest the numbers.

Net income for the third quarter rose to $61 million, or 33 cents a share, from $44 million, or 23 cents a share, a year ago. Excluding items, the company earned 41 cents a share. Revenue rose 26 percent to $350 million.   Continuación...