Citrix Systems' 2Q profit drops as costs rise

For the quarter that ended June 30, Citrix reported net income of $34.6 million, or 18 cents a share, down from $53.4 million, or 29 cents a share, in the year-ago quarter. Revenue rose to $391.7 million from $334.4 million in the second quarter of 2007.

On an adjusted basis, earnings rose to $71 million, or 38 cents a share, from $70 million, or 38 cents a share, in the second quarter of 2007. The results are adjusted to exclude the effects of amortization of intangible assets, stock-based compensation costs and the related tax effects, the company said.

Analysts surveyed by Thomson Financial forecast, on average, earnings of 36 cents a share.

Total cost of revenues rose 44 percent year over year while operating expenses leaped 28 percent.

In the first six months, Citrix reported net income of $69 million, or 37 cents a share, compared with $91 million, or 49 cents a share, in the year-ago period. Revenue rose to $768.8 million from $642.5 million.

The Fort Lauderdale, Fla.-based company released earnings after the markets closed Wednesday. Its stock closed down 35 cents to $27.47 a share Wednesday.

___