Citrix has replaced its CEO Kirill Tatarinov with its CFO, David Henshall, only a little over a year into Tatarinov’s tenure, suggesting a greater focus on profit, according to Mizuho, as it goes through a “transition to cloud.”
Shares of enterprise software provider Citrix Systems (CTXS) are down $2.93, or almost 4%, at $77, in late trading, after the company this afternoon said that its chief financial officer, David Henshall, will become its new CEO, replacing Kirill Tatarinov, who was appointed in January of last year, as part of an effort to speed up Citrix’s “transformation to a cloud-based subscription business.”
The announcement appears to have been a surprise to the Street.
In one of the first notes of coverage tonight, RBC Capital‘s Matthew Hedberg called this “an unexpected move.” Mizuho‘s Abhey Lamba, a bull on the stock, writes that the change suggests a greater focus on profit at the company.
Citrix affirmed its outlook for the June-ending Q2, expecting revenue of $658 million to $695 million, and EPS of 70 cents to 74 cents. Citrix is scheduled to report results on July 26th, after close of market.
Citrix’s chairman, Robert Calderoni, called Henshall, who has served as CFO since 2003, a “proven leader who knows our company inside and out.” He thanked Tatarinov for the “progress” under his “leadership” that Calderoni said “positioned Citrix well for the next phase of its corporate transformation.”
Mark Coyle, the senior VP for finance, will serve as CFO while a full-time replacement is sought, said Citrix.
Citrix also said its board of directors has created “an Operations and Capital Committee” to provide advice “on a comprehensive review of opportunities to drive margin expansion and return capital to shareholders.”