NEW YORK (TheStreet) -- Citrix Systems(CTXS) - Get Report stock continues to plummet, down by 8.35% to $71.87 on heavy trading volume on Wednesday, after the company announced it was spinning off its GoTo products into a separate company.

The Fort Lauderdale, FL-based enterprise software company announced on Tuesday that the spin-off of GoTo products, which offers a variety of services to businesses, should be completed in the second half of 2016.

Citrix said the spin-off will allow the company to focus on the secure and reliable delivery of applications and data.

Additionally, as part of its operational review, the company will cut about 1,000 jobs. After enacting the efficiency changes, the company said it expects to generate about $200 million in annualized pre-tax cost savings. 

"We are simplifying our business in all areas - product, marketing, sales, operations and development," Interim CEO Bob Calderoni said in a statement. "Focusing on our core strengths and simplifying how we work with customers and partners will help us improve execution, drive higher profit and begin investing for growth in areas in which we provide the greatest customer value."

So far today, 3.37 million shares of Citrix have traded, versus its 30-day average of 1.88 million shares.

Separately, TheStreet Ratings team rates CITRIX SYSTEMS INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

We rate CITRIX SYSTEMS INC (CTXS) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, increase in net income, good cash flow from operations and growth in earnings per share. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 17.3%. Since the same quarter one year prior, revenues slightly increased by 7.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Software industry. The net income increased by 17.6% when compared to the same quarter one year prior, going from $47.53 million to $55.93 million.
  • Net operating cash flow has significantly increased by 58.28% to $259.80 million when compared to the same quarter last year. In addition, CITRIX SYSTEMS INC has also vastly surpassed the industry average cash flow growth rate of -10.48%.
  • CITRIX SYSTEMS INC has improved earnings per share by 20.7% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, CITRIX SYSTEMS INC reported lower earnings of $1.48 versus $1.81 in the prior year. This year, the market expects an improvement in earnings ($3.88 versus $1.48).
  • You can view the full analysis from the report here: CTXS

Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.