Arrow, Citrix Report Lower ProfitsBy Kathleen A. Martin | Posted 2009-04-29 Email Print
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Electronics and IT distributor Arrow's sales fell by 15 percent year over year, while virtualization vendor Citrix's revenues fell by 2 percent. Citrix did better than analysts expectations, while Arrow did worse.
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.