SAN FRANCISCO -- Citrix Systems (CTXS) beat the Street's third-quarter earnings projection Wednesday, but profit fell from a year ago.

The Fort Lauderdale, Fla., virtualization software developer said net income fell to $49.1 million, or 26 cents a share, from $60.7 million, or 33 cents a share, a year earlier.

Excluding special items, EPS was 43 cents. Analysts were expecting earnings of 37 cents a share, less items.

Revenue rose 14% to $398.9 million, from $349.9 million for the same quarter of last year. Analysts were looking for $391.5 million, according to Thomson Reuters.

Research expenses rose 47% year over year to $72.5 million. All operating expenses rose 22%.

Shares were up more than 10% in recent after-hours trading to $22.

For the full year, Citrix projected revenue of $1.59 billion to $1.61 billion, implying fourth-quarter revenue of $422 million to $442 million. Fourth-quarter EPS, excluding special items, will be 46 cents to 48 cents. Analysts were predicting revenue of $434.5 million and EPS excluding items of 45 cents.

Citrix partners with Microsoft ( MSFT), which reports results Thursday after the bell. Both companies compete with virtualization leader VMware ( VMW), which reported 33% revenue growth Tuesday.

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