NEW YORK (TheStreet) -- Shares of Citrix Systems Inc. are down by 2.95% to $62.75 in mid-morning trading on Friday, following Thursday afternoon's release of the business software company's preliminary 2015 first quarter financial results. The company slashed its earning guidance for the first quarter to a range between 15 cents and 17 cents per diluted share, from its previous forecast of earnings between 20 cents and 22 cents per diluted share. Citrix is now expecting its non-GAAP net income for the quarter to be between 63 cents and 65 cents per diluted share, while its earlier guidance called for adjusted earnings of 70 cents to 72 cents per diluted share. Revenue for the first quarter is anticipated to be in a range of $755 million to $760 million, below the $780 million to $790 million the company had guided for earlier. Company CEO Mark Templeton said he is disappointed with Citrix's first quarter 2015 results adding that "We underestimated the impact caused by our restructuring, organizational evolution, and changes to our field and channel strategies, which were the result of important decisions made to get the business ready for our next phase of growth. Additionally, the increase in foreign exchange volatility impacted results and customer-buying behavior to a larger extent than anticipated in the quarter." Additionally, analysts at William Blair downgraded Citrix to "market perform" from "outperform" this morning, as a result of the company's adjusted guidance. Separately, TheStreet Ratings team rates CITRIX SYSTEMS INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation: "We rate CITRIX SYSTEMS INC (CTXS) a HOLD. The primary factors that have impacted our rating are mixed-some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, weak operating cash flow and feeble growth in the company's earnings per share." Highlights from the analysis by TheStreet Ratings Team goes as follows: Despite its growing revenue, the company underperformed as compared with the industry average of 9.9%. Since the same quarter one year prior, revenues slightly increased by 6.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share. Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock. The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Software industry. The net income has significantly decreased by 31.3% when compared to the same quarter one year ago, falling from $138.64 million to $95.23 million. Net operating cash flow has decreased to $190.43 million or 22.90% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower. You can view the full analysis from the report here: CTXS Ratings Report Must Read: Warren Buffett's Top 25 Stocks for 2015
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