Citrix Systems Inc.(CTXS), which offers cloud computing service to PC and laptop users, continues to make inroads to more than 200,000 organizations with their popular social networking application called Podio.
Higher adoption of this application will not only help the employees to properly manage their work but will also help them to save time. Alongside, they can easily stay in touch with their co-workers through smartphones/tablets from anywhere and will always get updated with any latest news within the organization.
Users can access to more than 2.6 million apps in Podio apps market, which not only make their task easy within the organization but also improve their efficiency.
In April, this year, Citrix bought Podio, which besides enriching its product portfolio will also help the company to gain market traction in the cloud computing space.
Citrix foresees its top line to climb 14% year over year and its non-GAAP operating margin to improve 0.5% year over year mainly fuelled by strong demand of its popular cloud computing products like GoToMeeting, GoToMyPC and Sharefile. Moreover, a huge opportunity exists in the desktop virtualization market. Market research firm Gartner estimated that desktop virtualization will be applied in 100 million personal computers by 2013.
However, the ongoing macroeconomic uncertainty may act as a headwind for the company as it restricts several firms from their targeted IT spending. Additionally, high cost associated with virtualization may restrict the long-term prospect of Citrix. Finally, increased competition from VMware Inc. (VMW) provides certain downside risks for the company.
Considering these factors, we maintain our long-term Neutral recommendation on Citrix Systems. Currently, it has a Zacks #3 Rank, implying a short-term Hold rating on the stock.Read the Full Research Report on VMW
More From Zacks.com
- Investment & Company Information