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Citrix Reports Third Quarter Earnings Results

  • 20 October, 2005 10:01

<p>Citrix Systems has reported financial results for its third quarter of fiscal 2005 ended 30 September 2005. Citrix achieved revenue of US$226.9 million, compared to US$187.6 million in the third quarter of fiscal 2004, representing 21 percent revenue growth.</p>
<p>The Pacific region grew in revenue by 11 percent, compared to the third quarter in 2004, continuing on from the strong growth in this year’s second quarter of 10 percent.</p>
<p>For further information or if you would like to speak to a Citrix spokesperson, please contact Kate Andrews or Linda Poretti on +61 2 8281 3810 or pr@howorth.com.au.</p>
<p>Year-over-year Quarterly Revenue Growth of 21%</p>
<p>Diluted Earnings Per Share of US$0.23;</p>
<p>Adjusted Diluted Earnings Per Share of US$0.29</p>
<p>FORT LAUDERDALE, Fla. — 20 October 2005 — Citrix Systems, Inc., the global leader in access infrastructure solutions, today reported financial results for its third quarter of fiscal 2005 ended September 30, 2005.</p>
<p>FINANCIAL RESULTS</p>
<p>In the third quarter of fiscal 2005, Citrix achieved revenue of US$226.9 million, compared to US$187.6 million in the third quarter of fiscal 2004, representing 21 percent revenue growth.</p>
<p>GAAP Results</p>
<p>Net income for the third quarter of fiscal 2005 was US$41.0 million, or US$0.23 per diluted share – which includes a US$7.0 million expense charge for in-process research and development associated with the NetScaler acquisition – compared to net income of US$38.4 million, or US$0.22 per diluted share, for the third quarter of fiscal 2004.</p>
<p>Non-GAAP Results</p>
<p>Net income, adjusted to exclude the effects of amortisation of intangible assets, amortisation of deferred stock-based compensation and in-process research and development, was US$52.2 million for the third quarter of fiscal 2005, or US$0.29 per diluted share, compared to US$42.3 million, or US$0.24 per diluted share, in the comparable period last year.</p>
<p>“Our third quarter results were excellent,” said Mark Templeton, president and chief executive officer for Citrix. “Good momentum drove solid growth in revenue, adjusted earnings per share and cash flow.</p>
<p>“We saw strong performance and accelerating momentum from our new products, especially with our online services, gateways and application networking product lines. The results indicate that customers are finding our much broader portfolio of products and services to be the most compelling set of access infrastructure solutions on the market.</p>
<p>“We just kicked off the fourth quarter with Citrix iForum, explaining our vision for access to a record number of customers and previewing new technologies and capabilities. The excitement and interest was high, and we look forward to capitalising on the momentum generated at iForum in the coming quarters.”</p>
<p>Q3 Financial Summary</p>
<p>In reviewing the third quarter results of 2005:</p>
<p>· The Americas region grew revenue 18 percent; the EMEA region grew 14 percent, and the Pacific region grew 11 percent, compared to the third quarter of 2004.</p>
<p>· Product license revenue increased 10 percent, compared to the third quarter of 2004.</p>
<p>· Online services contributed US$26.2 million of revenue, up 86 percent year over year on a GAAP basis and 63 percent when considering purchase accounting adjustments compared to the third quarter of 2004.</p>
<p>· Revenue from license updates grew 20 percent, compared to the third quarter of 2004.</p>
<p>· Technical services revenue, which is comprised of consulting, education and technical support, grew 30 percent, compared to the third quarter of 2004.</p>
<p>· Deferred revenue totalled US$255 million, compared to US$202 million in the third quarter of 2004.</p>
<p>· Operating margin was 20 percent for the quarter; adjusted operating margin was 27 percent for the quarter excluding the effects of amortisation of intangible assets, amortisation of deferred stock-based compensation, and the write off of in-process research and development related to business combinations.</p>
<p>· Cash flow from operations was over US$76 million, compared to US$62 million in the third quarter of 2004. This brings total trailing twelve months cash flow from operations to US$295 million.</p>
<p>· In its stock repurchase activity, the company repurchased 3.4 million shares of its common stock at an average net price per share of US$23.99. The company has over US$100 million remaining under the current repurchase authorisation.</p>
<p>Financial Outlook for Fourth Quarter 2005</p>
<p>Citrix management offers the following guidance for the fourth quarter of 2005.</p>
<p>· Net revenue is expected to be in the range of US$243 million to US$251 million.</p>
<p>· Total adjusted operating expenses are expected to increase 7 percent to 8 percent sequentially.</p>
<p>· GAAP diluted earnings per share is expected to be in the range of US$0.25 to US$0.27, and diluted earnings per share adjusted to exclude the effects of amortisation of intangible assets and amortisation of deferred stock-based compensation is expected to be in the range of US$0.30 to US$0.32.</p>
<p>The above statements are based on current expectations. These statements are forward-looking, and actual results may differ materially.</p>
<p>Financial Outlook for Fiscal Year 2005</p>
<p>Citrix management offers the following guidance, which includes the impact of the NetScaler acquisition, for the fiscal year 2005.</p>
<p>The company expects net revenue to be in the range of US$883 million to US$891 million. The company expects GAAP diluted earnings per share to be in the range of US$0.85 to US$0.87, and adjusted diluted earnings per share to be in the range of US$1.10 to US$1.12. Adjusted diluted earnings per share excludes the effects of amortisation of intangible assets, amortisation of deferred stock-based compensation, the write down of in-process research and development and tax provision related to the repatriation of foreign earnings under the American Jobs Creation Act (AJCA).</p>
<p>The above statements are based on current expectations. These statements are forward-looking, and actual results may differ materially.</p>
<p>Company, Product and Alliance Highlights</p>
<p>During the third quarter 2005, Citrix:</p>
<p>· Received Microsoft’s Global ISV Partner of the Year Award for 2005. In the three years that Microsoft has bestowed this award, Citrix won the top honor in 2003 and 2005, and was a finalist in 2004.</p>
<p>· Announced the general availability of Citrix Access Essentials™ specifically developed, packaged and priced to bring secure application virtualisation and efficient centralised management of information resources within easy reach of small and mid-sized businesses.</p>
<p>· Announced powerful new tools in Citrix® GoToMeeting™ 2.0 for conducting online meetings, training sessions and group presentations with fast, secure and reliable on-demand performance.</p>
<p>· Completed the acquisition of privately held NetScaler Inc., strengthening Citrix’s customer value proposition by improving the performance of any application delivered through the Citrix Access Platform.</p>
<p>· Announced the validation of the integration of Citrix Access Suite™ version 4.0 with Oracle’s JD Edwards EnterpriseOne version 8.11.</p>
<p>About Citrix</p>
<p>Citrix Systems, Inc. (Nasdaq:CTXS) is the global leader and most trusted name in on-demand access. More than 160,000 organisations around the world use the Citrix Access Platform to provide the best possible access experience to any application for any user. Citrix customers include 100% of the Fortune 100 companies and 98% of the Fortune Global 500, as well as hundreds of thousands of small businesses and individuals. Citrix has approximately 6,200 channel and alliance partners in more than 100 countries. Citrix annual revenues in 2004 were US$741 million. Learn more at http://www.citrix.com.</p>

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