FRAMINGHAM (06/26/2000) - Formerly highflying Citrix Systems Inc. on Friday announced a high-level management shakeup, in the wake of a warning that revenues and profits are growing more slowly than expected.
The company's founder and long-time chairman, Edward Iacobucci has resigned, effectively immediately. He is replaced by Roger Roberts, who was Citrix's CEO from 1990 through 1998.
Rogers will also become chief operating officer, responsible for day-to-day operations with the company's current president, Mark Templeton.
Templeton surrenders the CEO title he carried, and the company has launched a search for a new CEO.
Another board member, Michael Brown, has also resigned. Brown had been a director since July 1997, and previously served on the board for about two years in the early 1990s.
The thin-client software vendor startled Wall Street earlier this month when it warned it expects the current quarter's revenues to be between US$105 million and $110 million, compared to $94.4 million for the same quarter last year.
Earnings are expected to be between nine and 11 cents per share, compared with 16 cents per share for the comparable quarter last year.
The company's stock plunged from around $60 to just over $20 almost at once.
Overall, the stock has been falling since March from a high of $100, hovering between $40 and $60 until the warning on earnings.
Earlier Friday afternoon, the NASDAQ-listed stock was trading at around $18.625, down just over 18 percent from the opening bell.
The warning also sparked a class-action lawsuit filed by disgruntled stockowners. The suit alleges Citrix made misstatements about the company's financial conditions and prospects.
Executives attributed the lower growth forecast to a much longer sales cycle, slower-than-expected growth among large enterprise accounts, and slower-than-expected sales in Asia.
Citrix offers server software, and a communications protocol, that lets various computing devices access applications running on multi-user versions of NT, or on the new Windows 2000 Server. The software is used to deploy thin clients, which lack the software and systems components, and hence the ongoing support costs, of desktop PCs.