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Citrix Reports Third Quarter Earnings

  • 23 October, 2003 10:55

<p>Citrix has released financial results for Q3 2003. During the quarter total revenue grew about 21% over the comparable period last year.</p>
<p>For further information please contact Skye Eggleton or Hilda Herterich on +61 2 9904 4533 or</p>
<p>- Reports Revenue of US$144 Million; Year-Over-Year Revenue Growth of 21%; Earnings Per Share of US$0.18, Up 89% Over Comparable Period Last Year; Adjusted Earnings Per Share of US$0.19, Up 94% Over Comparable Period Last Year -</p>
<p>FORT LAUDERDALE, Fla. – 23 October 2003 – Citrix Systems, Inc., the global leader in access infrastructure solutions, today reported results for the third quarter ended September 30, 2003.</p>
Revenues for the three months ended September 30, 2003 were US$144.3 million compared to US$118.9 million in the same period of the prior year. Net income was US$31.0 million for the third quarter of 2003, or US$0.18 per share, as compared to US$16.8 million, or US$0.10 per share, in the comparable period of the prior year. Net income, adjusted to exclude the effect of amortisation of intangible assets primarily related to business combinations, was US$32.8 million for the third quarter of 2003, or US$0.19 per share, as compared to US$17.4 million, or US$0.10 per share, in the comparable period of the prior year.</p>
<p>“We had a solid quarter, and I’m quite pleased with our performance,” said Mark Templeton, president and chief executive officer for Citrix. “We saw strong demand from large enterprises, which contributed to the strength in our top-line and an increase in deferred revenue.</p>
<p>“Overall, I believe our results demonstrate that we are executing well in selling to large enterprises, and that our customers see great value in access infrastructure for the on-demand enterprise.”</p>
- Total revenue grew about 21% over the comparable period last year.</p>
<p>- Deferred revenue balance grew by US$16.4 million, about 13%, during the quarter to approximately US$144.6 million.</p>
<p>- Operating margin was 26.8% for the quarter; adjusted operating margin was 28.8%, excluding the effect of amortisation of intangible assets primarily relating to business combinations.</p>
<p>- Cash flow from operations was approximately US$72.6 million for the quarter.</p>
<p>- Cash and investments totaled approximately US$810.7 million at the end of the quarter.</p>
<p>- During the quarter, the company repurchased about 1.9 million shares at an average net price per share of US$19.79.</p>
In September, Citrix launched a US$14 million global advertising campaign designed to raise the company’s overall visibility and build the Citrix brand as the leading provider of access infrastructure for the on-demand enterprise. The campaign marks the first global branding initiative in Citrix history and builds on the company’s introduction of a complete suite of access infrastructure software. Leveraging the strong loyalty Citrix has secured from its installed base of more than 120,000 customers globally, the company enlisted the help of customer CIOs to participate in the campaign and explain how Citrix software helps grow their businesses. Among the customer participants in the integrated campaign, which comprises print, online, billboard and radio advertising, are Delta Air Lines, AutoNation and smart, a brand of DaimlerChrysler.</p>
Citrix closed several large deals during the quarter in the financial services, insurance, telecommunications, medical, government and technology sectors.</p>
<p>In the financial services sector, Citrix signed a deal with Bankdata, one of the leading suppliers of banking information technology in Denmark. Bankdata will implement Citrix® MetaFrame® Presentation Server for Windows®, Enterprise Edition, to centralise information technology management and deploy applications more quickly to around 4,000 users at more than 100 locations.</p>
- In September, Citrix shipped MetaFrame Password Manager, the most efficient single sign-on and password security solution for accessing password-protected applications. MetaFrame Password Manager is a key part of the Citrix MetaFrame Access Suite, which gives users a single point of access to enterprise applications and information on demand anywhere, anytime, using any device, over any connection. Citrix also announced broad support for the new product from customers including Rockford Health System and Pressley Ridge, and partners including RSA, SAFLINK Corporation and Secure Computing.</p>
<p>- In other product news, Citrix announced international versions of MetaFrame Secure Access Manager for French, German and Spanish customers. MetaFrame Secure Access Manager is the most cost-effective way to get secure, remote, single-point access over the Web to any enterprise information resource, including client/server, legacy and Web applications, Internet and intranet sites, streaming media, documents, network file services, and XML-based Web services.</p>
<p>- At Citrix iForum™ 2003 held October 13 – 15, Citrix announced that:
o It was named by Microsoft as its first ever Global Independent Software Vendor Partner of the Year for delivering the best customer solutions as a Microsoft Global Gold Certified Partner for Software Products;</p>
<p>o It has signed a systems integration agreement with IBM, which will allow IBM sales personnel to offer the Citrix MetaFrame Access Suite of products to IBM eServer® xSeries customers; and,</p>
<p>o Customers now have the option to purchase the entire Citrix MetaFrame Access Suite as a bundle package for one price.</p>
Citrix management offers the following guidance for the quarter and year ending December 31, 2003:</p>
<p>- Revenue is expected to be in the range of US$147 million to US$157 million for the quarter ending December 31, 2003 for the fourth quarter 2003; for the full year 2003, revenue is expected to be in the range of US$577 million to US$587 million.</p>
<p>- Earnings per share is expected to be in the range of US$0.17 to US$0.19 for the quarter ending December 31, 2003; for the full year 2003, earnings per share is expected to be in the range of US$0.70 to US$0.72.</p>
<p>- Adjusted earnings per share, which excludes the effect of amortisation of intangible assets primarily related to business combinations, is expected to be in the range of US$0.18 to US$0.20 for the quarter ending December 31, 2003; for the full year 2003, adjusted earnings per share is expected to be in the range of US$0.74 to US$0.76.</p>
<p>The above statements are based on current expectations. These statements are forward-looking, and actual results may differ materially.</p>
<p>About Citrix
Citrix Systems, Inc. (Nasdaq:CTXS) is the global leader in access infrastructure solutions and the most trusted name in enterprise access. Citrix software enables people in businesses, government agencies, and educational institutions to securely, easily and instantly access the on-demand enterprise, from anywhere, anytime, using any device, over any connection. Nearly 50 million people in more than 120,000 organisations rely on the Citrix MetaFrame Access Suite to do their jobs. Citrix customers include 92% of Australia’s top 100 IT users, 100% of the Fortune 100 companies, 99% of the Fortune 500, and 92% of the Fortune Global 500. Based in Fort Lauderdale, Florida, Citrix has offices in 22 countries, and more than 7,000 channel and alliance partners in more than 100 countries. For more information visit</p>
<p>For Citrix Investors
This release contains forward-looking statements which are made pursuant to the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934. The forward-looking statements in this release do not constitute guarantees of future performance. Investors are cautioned that statements in this press release, which are not strictly historical statements, including, without limitation, statements by management, the statements contained in Business Outlook and in the reconciliation of non-GAAP measures to comparable U.S. GAAP measures concerning management’s forecast of revenue and earnings per share, statements regarding the company’s existing and new products, the potential size of product markets, and statements concerning internal operations, marketing, management’s plans, objectives and strategies, and management’s assessment of market factors, constitute forward-looking statements. Such forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated by the forward-looking statements, including, without limitation, the success of the company’s product lines; the company’s product concentration and its ability to develop and commercialise new products and services; the success of investments in foreign operations and markets; the success of acquisitions; the company’s success in expanding into new geographic and vertical markets; the company’s ability to maintain and expand its core business in large enterprise accounts; the size, timing and recognition of revenue from significant orders and other revenue recognition changes, including increases in deferred revenue; the company’s reliance on and the success of the company’s independent distributors and resellers for the marketing and distribution of the company’s products; increased competition, including potential competition from Microsoft and other companies; changes in the company’s pricing policies or those of its competitors; management of operations and operating expenses; charges in the event of the impairment of assets acquired through business combinations and licenses; the management of anticipated future growth and the recruitment and retention of qualified employees, as well as risks of downturns in economic conditions generally; political and social turmoil; and the uncertainty in and the effects of a weak IT spending environment which has impacted the overall demand for software and related services; and other risks detailed in the company’s filings with the Securities and Exchange Commission. Citrix assumes no obligation to update any forward-looking information contained in this press release or with respect to the announcements described herein.</p>
<p>Use of Non-GAAP Financial Measures
This press release contains non-GAAP financial measures as defined by SEC Regulation G. These non-GAAP financial measures should not be construed as superior to GAAP financial measures. The GAAP financial measure most directly comparable to each non-GAAP financial measure used or discussed in this press release (if available) and a reconciliation of the differences between each non-GAAP financial measure and the comparable GAAP financial measure are included in this press release after the condensed consolidated financial statements and can be found on the Investor Relations page of the Citrix corporate web site at</p>
<p>Citrix®, MetaFrame® and Citrix iForum™ are registered trademarks or trademarks of Citrix Systems, Inc. in the U.S. and other countries. Microsoft® and Windows® are registered trademarks of Microsoft Corporation in the U.S. and/or other countries. All other trademarks and registered trademarks are property of their respective owners.</p>

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