By Mark Long / Data Storage Today. Updated October 27, 2011.
Citrix Systems reported Thursday that third quarter revenues at the virtual computing technology provider reached $565 million -- a 20 percent rise in comparison with the same quarter last year.
Company executives said the robust growth was fueled by demand for new technologies pertaining to desktop virtualization and cloud networking, as well as a recent expansion in the capabilities and footprint of Citrix Systems' software-as-a-service (SaaS) business.
Third quarter revenue from the company's desktop solutions business grew 14 percent year over year to $316 million, including product license growth of 24 percent. What's more, third quarter sales of the company's XenDesktop offering increased by more than 65 percent.
"We have strong positions across SaaS and collaboration, virtualization and desktop, networking and cloud platform markets," Citrix Systems CEO Mark Templeton noted.
"And the investments we've made over the past year in people, infrastructure, innovation and go-to-market is powering growth through geographical reach and business model diversity," Templeton said.
Record XenDesktop Sales
Citrix posted record XenDesktop sales in excess of $22 million, with the range of customers spanning the healthcare, retail, insurance, government, and education markets.
"In total, over 3,000 different customers purchased XenDesktop, including 174 transactions for more than 1,000 seats each and 24 deals for over 5,000 seats each," said Citrix Systems CFO David James Henshall.
Third quarter SaaS revenues rose 20 percent to $110 million -- fueled by demand for Citrix collaboration products, which accounted for more than 50 percent of the total. Moreover, third quarter revenue at Citrix Systems' datacenter and cloud business grew 32 percent year over year to $111 million.
"Growth here was again led by NetScaler with license revenue up 48% year-on-year," Henshall told investors during a conference call Thursday.
Leveraging Recent Acquisitions
Moving forward, Citrix intends to leverage additional capabilities that the company has acquired through recent acquisitions, such as its third quarter deals for cloud platform provider Cloud.com and RingCube -- a developer of personalization technology for virtual desktops. The company also reported big plans for the data storage, sharing and collaboration capabilities it gained through its acquisition of ShareFile, in a deal that closed earlier this month.
"As customers and partners build on this platform, they will be able to easily add follow-me-data services to their software, leverage the data that other apps store there, and instantly inherit all the management, mobility and scalability that's in the ShareFile infrastructure," Templeton said.
For example, the Follow-Me-Data to Citrix Receiver, unveiled this week at Citrix Synergy 2011 in Barcelona, promises to enable IT professionals to give employees easy, secure access to business documents from any company-owned or personal device. "The easier users can access and share data while IT effectively manages and secures it in the background, the more productive businesses can be," said Enterprise Strategy Group Senior Analyst Mark Bowker.
In Barcelona this week, Citrix also took the wraps off Follow-Me-Data Fabric -- an extensible platform for sharing business data across a wide range of apps, devices and cloud services. "We think of it as iCloud for business," Templeton said.
The Follow-Me-Data Fabric gives third-party developers open APIs to help integrate common data services -- such as search, share, sync, secure and remote wipe -- into their offerings.