Citrix sees strong 2011, targets consumer market

BANGALORE, INDIA: Citrix Systems Inc forecast a market-topping 2011 as it bets on increasing demand for its online virtualization software that helps consumers access their desktops remotely on tablets and mobile phones.

The company's online software-as-a-service business, which features products like GoToMyPC, grew 17 per cent in 2010 and constituted a fifth of its total revenue.

"Around the globe, web, audio, and video collaboration continue to go main stream ... moving toward mass market appeal, fueled by solid economic globalization trends," CEO Mark Templeton said on a call with analysts.

He said the company is planning more partner application integrations and expanded mobile device support, including a GoToMyPC app for iPad.

For 2011, the company forecast earnings of $2.29-$2.33 a share, excluding items, and revenue of $2.10-$2.14 billion.

Analysts were expecting adjusted profit of $2.28 a share, on revenue of $2.07 billion.

Fourth-quarter revenue from Citrix's desktop virtualization business grew 16 per cent, indicating robust spending at large companies turning to virtualization products to cut costs.

The company bagged 29 contracts over $1 million, including 15 from its desktop virtualization business.

Earlier this week, the company's larger rival VMware Inc forecast strong sales of its products but warned of margin contraction as it plans to invest in international markets and new hires.

For the fourth quarter, the company posted a 7 per cent increase in net income to $94.4 million, or 49 cents a share.