Cloud Computing: Citrix guides results below expectations; shares dive
October 10, 2013
Grazed from ChicagoTribune. Author: Neha Alawadhi and Aditya Kondalamahanty.
Cloud computing software maker Citrix Systems Inc estimated quarterly results below analysts’ expectations as businesses delayed contracts, sending its shares down as much as 14 percent in extended trading. Cloud computing companies such as Citrix and VMware Inc have been facing delays in closing large deals as customers review IT budgets to prune discretionary spending.
Citrix’s warning could set the tone for other software companies as it comes just ahead of the third-quarter reporting season. VMware shares fell 3.3 percent after the bell. Cloud computing software allows customers to access applications remotely from a central server, and reduces costs by eliminating the need to upgrade and install software on each individual computer on site…
"It has been a soft spending environment for infrastructure software companies as seen recently by Oracle Corp and Red Hat Inc," FBR Capital Markets analyst Daniel Ives said. "Citrix is the latest victim."…
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