Electronics and IT distributor Arrow Electronics (NYSE: ARW)
and virtualization vendor Citrix Systems (NASDAQ: CTXS)
both posted double-digit declines in net income Tuesday. Citrix did better than
analysts' expectations, while Arrow did worse.
Arrow Electronics (NYSE: ARW) reported a
decline of 70 percent in net income year over year. First-quarter 2009
net income was $26.7 million on sales of $3.42 billion, compared with net
income of $85.9 million on sales of $4.03 billion in the first quarter of 2008.
Sales decreased 15 percent year over year.
"We executed well in the first quarter, despite the persistent backdrop of
global economic uncertainty and turbulence, with sales and earnings per share
in line with our expectations. Cash flow generation was again a bright spot, as
we generated more than $230 million in cash flow from operations, marking our
10th consecutive quarter of positive cash flow generation," said William
E. Mitchell, chairman and chief executive officer, in a prepared statement issued
by the company.
Arrow’s stock has lost approximately 40 percent of its value approximately in
the past eight months, closing at $22.56 on April 29.
Citrix Systems (NASDAQ: CTXS) reported net
income of $6.9 million for the quarter, down from $34.4 million during the same
period a year ago. In the first quarter of fiscal 2009, Citrix achieved
revenue of $369 million, compared with $377 million in the first quarter of
fiscal 2008, representing a 2 percent decrease in revenue.
"I’m pleased with our Q1 execution in the toughest macro environment we’ve
seen in years," said Mark Templeton, president and chief executive
officer, in a prepared statement issued by the company. "Smaller IT
budgets are the new reality. We believe this makes our enterprise and SaaS
products even more compelling because they lower IT costs while offering
much-needed business flexibility."
Citrix closed at $27.25 today, down 29 percent from its 52-week high of $36.20.
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