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Citrix Slides on Guidance Shortfall

An earnings beat can't carry the day.

SAN FRANCISCO -- Citrix Systems (CTXS) - Get Citrix Systems, Inc. Report handily beat third-quarter estimates but disappointed on fourth-quarter EPS projections.

The Fort Lauderdale, Fla. software company reported a top line of $349.9 million, up 26% from $277.9 million in revenue for the same period of 2006. Analysts were predicting revenue of $339.7 million, according to Thomson Financial.

EPS was 33 cents, up 10 cents from a year earlier. Net income was $60.7 million vs. $43.7 million in the year-ago period.

Excluding items, EPS was 41 cents. Analysts were expecting 38 cents.

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The company said license revenue during the third quarter increased 24% year on year, while online services was up 43%. Cash flow rose 23% year on year, to $86 million, giving the company a 12-month trailing cash flow of $415 million.

Citrix was down 92 cents, or 2.2%, to $40.85 in after-hours trading.

The company expects fourth-quarter revenue to range from $374 million to $382 million. The company expects earnings before items of 42 cents to 43 cents a share. Analysts were expecting revenue of $373 million and EPS of 45 cents.