SYDNEY, 29 JANUARY 2009 - Software group Citrix will cut 10 per cent of its worldwide workforce and consolidate its facilities.
Citrix Australia New Zealand area vice president Rob Willis said planning for the redundancies had been underway worldwide. "It is a global effort," he said.
Mr Willis declined to detail how the changes might affect the Australian business or Citrix's business in other locations.
"Really our first responsibility now is to our people," he said. "We need to focus on that at this stage and we are not communicating any detail at this point."
The company said the headcount reduction would save it $US50 million per year, but would come with one-off costs of up to $US23 million.
Citrix announced the changes as it reported fourth-quarter and full year results for 2008.
Citrix's net profit fell 17 per cent from the $US214 million it recorded in 2007 to $US178 million for the 2008 full year. During the fourth quarter, net profit fell just under 5 per cent compared to the same period in 2007, dropping from $US63 million to $US60 million.
Citrix booked $US416 million in revenue for the fourth quarter a 4 per cent increase on the same period a year previous. Full-year revenue grew 14 per cent to $US1.58 billion.
In a statement, Citrix chief executive Mark Templeton said he was pleased with the fourth-quarter results, "especially in the face of an extraordinary worldwide environment".
During the quarter, Citrix's product licence revenue fell 9 per cent, but product licence update revenue grew 13 per cent. Online services revenue increased 18 per cent, while consulting and other technical services revenue increased 18 per cent, the company reported.
Citrix's guidance for the first quarter of its 2009 financial year predicted a revenue decline of 5 per cent compared to the same quarter in 2008, with net profit predicted to remain largely unchanged.
Mr Willis said the performance of the Australian business had been broadly in line with Citrix's global parent. "The Australian business reflects the worldwide business," he said.
"The world that we are living in is very different to what it was a year ago. One of the most difficult things about that has just been getting visibility on what is going to happen."
Mr Willis said the Australian business had been doing well for some time. But he said the fall of the value of the Australian dollar against the greenback had brought changes, as it had for many US businesses in Australia
"We have seen some significant changes in our pricing," he said. "We have seen some significant changes in our cost structures as well."
