(Updates from 2:46 p.m. ET 12/7/2012 with speculation that Cisco may be interested in Citrix.)NEW YORK ( TheStreet) -- It's a beautiful thing to see a company separate itself from its competitors and emerge as the "go-to" supplier for one of the biggest industries in the world. That's what Citrix Systems ( CTXS) has been steadily doing for at least the past eight years. It is just now getting some of the recognition and investor following it so richly deserves. On Dec. 5, Citrix announced it has entered into a definitive agreement to acquire Zenprise, a leading innovator in mobile device management. Following the close of the acquisition, expected during the first quarter of 2013, Citrix intends to integrate the Zenprise solution for mobile device management with its Citrix CloudGateway and Me@Work solutions for managing mobile apps and data. This combination will give Citrix the first solution in the industry for managing mobile devices, apps and data from a single, integrated enterprise mobility product line. That's the hallmark of CTXS. It finds holes that need filling in the world of mobile communications. Then it designs or cobbles together answers to the deficiencies, thus creating a "league" of its own in the mobility industry. Headquartered in Silicon Valley, Zenprise provides innovative and secure mobile device management. The company has an extensive list of global customers and partners that span a cross-section of countries and vertical industries including: aerospace and defense, financial services, health care, oil and gas, legal, telecommunications, retail, entertainment and federal, state and local governments. In 2011, Citrix passed the $2 billion revenue mark. As of Sept. 30, its revenue has grown to $2.47 billion. The Zenprise announcement extends the Citrix legacy of strategic acquisitions that expand its business, including ByteMobile in 2012, as well as ShareFile and Cloud.com in 2011, among others. It is with well-deserved enthusiasm I encourage you to take a tour of the company's fascinating Web site and explore all the ways it serves the business community as well as the individual mobile device user.
Jim Cramer and Stephanie Link actively manage a real money portfolio for his charitable trust. Enjoy advance notice of every trade, full access to the portfolio and deep coverage of the latest economic events and market movements.What's really impressive to this analyst is that CTXS has been acquiring all these strategically valuable companies and yet their balance sheet (as of Sept. 30) show that they have zero long-term debt.
First, the price-per-share for CTXS is about where it was at the beginning of 2012. Second, its quarterly revenue-per-share has been surging steadily. Last quarter was a downer for the company's earnings (down 15% year-over-year), but its trailing 12-month operating and levered free cash flow remained very healthy ($761 million and $464 million, respectively). As Citrix's blog commented after the latest acquisition agreement:
Given this momentum, today's news is huge. After the closing of the acquisition, Zenprise MDMHere's another reason why the stock may be doing so well Friday: Cisco Systems ( CSCO) CEO John Chambers was
Mobile Device Managementcombined with CloudGateway and the Me@Work mobile apps will deliver a comprehensive mobile solution -- offering mobile device, app and data management.
Looking at the mobile market, customers have many options. In many instances, they look to point solutions for MDM or secure email, which force IT to weave a solution together from piece-parts in order to manage and secure mobile apps, content, and devices. Our intent is to solve this problem with Citrix and Zenprise products together. With Zenprise and Citrix, our customers will be able to get a complete solution that equips IT to securely control all apps and data, empowering people to work from anywhere on any device, and enabling business productivity through mobile work styles.
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