Shares of Citrix Systems (NASDAQ:CTXS) have been struggling lately. The stock has underperformed its industry in the first eight months of the year. The stock has depreciated 12.4%, as against the industry’s rally of 25.1% in the same period.
Apart from other headwinds that is limiting bottom-line growth, the frequent management changes at Citrix also do not seem to bode well as far as investors’ confidence in the stock is concerned. Last week, Citrix announced the appointment of Mark J. Ferrer as its executive vice president and chief revenue officer. Also, the company announced a change in the composition of its board by roping in Dr. Ajei S. Gopal. Gopal as the president and chief executive officer (CEO) of ANSYS Inc. ( (NASDAQ:ANSS) ).
Additionally, Citrix has been making frequent changes to its CEO position. In July 2017, the company appointed David J. Henshall as its new president and CEO. Henshall has succeeded Kirill Tatarinov as the CEO. Notably, Kirill Tatarinov had joined Citrix from Microsoft (NASDAQ:MSFT) .
In fact, the appointment of Henshall implies that Citrix has had four CEOs in less than two years. Only time will tell, whether the appointment of Henshall yields the desired results as Citrix expects to increase its profitability and find favor with shareholders.
The frequent management changes apart, Citrix’s bottom line has been hurt by high costs as well. Declining revenues from products and licenses also pose a severe challenge to the company. However, strong Software-as-a-Service (SaaS) revenues are boosting the company. Citrix apart, other players in the SaaS market include the likes of Oracle (NYSE:ORCL) .
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