Citrix surrenders to the House of Elliot

elliotCloud computing outfit Citrix Systems has given way to the activist investor Elliott Management.

Not only is it letting the House of Elliott’s Jesse Cohn onto its board, Chief Executive Mark Templeton has decided it is a good time to retire.

Elliott owns about 7.5 percent of Citrix’s stock and has been vocal about the company selling family silver slashing costs, buying back shares so shareholders can make tubs of money.

Cohn will replace Asiff Hirji who would step down, effective immediately.

The company also agreed to search for another independent board member, mutually agreeable to Citrix and Elliott, who will replace a current board member when appointed.

Citrix said its board has formed an operations committee, which will work closely with management to focus on improving the company’s margins, profitability and capital structure.

Templeton will continue to serve as president and CEO until a successor was appointed.

Citrix’s shares have been underperforming for the last six years. For the second quarter of fiscal year 2015, Citrix achieved revenue of $797 million, compared to $782 million in the second quarter of fiscal year 2014, representing two percent revenue growth.

Templeton has been carrying out a huge restructuring but it did not do that much. We guess asset stripping was seen as a better option.