Citrix, Arrow Earnings Help Confirm Growth Trend in Tech Sector
Technology distributor Arrow Electronics and virtualization stalwart Citrix both posted positive numbers for first quarter 2011, representing an ongoing trend of growth and financial gains in the tech sector. Read on for the details and the effect on the Wall Street milieu …
For its Q1 2011 revenues Citrix posted an increased to $491 million, compared to $414 million in Q1 2010, an 18 percent increase. Citrix’s net income for Q1 2011 was $74 million, up from $47 million in the year-ago period and a boost of 36 percent. Citrix president and CEO Mark Templeton attributed much of the company’s success from solid demand of Citrix’s core products, with a considerable appetite for its technology in the Americas and the Pacific. Technical service engagements also were a factor. Wall Street liked what it saw, sending Citrix stock to almost $78 a share, almost a percentage point, despite some concerns that Citrix is overvalued and its stock price is beyond its earnings.
Arrow Electronics, meanwhile, noted a Q1 2011 increase in net income, to $136.3 million compared with $87 million in Q1 of 2010. Its Q1 revenues hit $5.2 billion, above expectations. Arrow’s Wall Street “cred” saw a boost, with stocks closing at $45.63, up a little more than 2 percent. A general “return to IT spending” was one of a few reasons Arrow cited for its growth.