Citrix Systems Reports Results for First Quarter 2001 Thursday 19 April 2001 PDF Print Net revenues total $132.8 million Adjusted earnings per share of $0.17 Citrix Systems, Inc. today reported results for the first quarter ended 31 March 2001. FINANCIAL RESULTS Net revenues for the first quarter ending 31 March 2001 were $132.8 million, up 7.7% sequentially from $123.4 million in the fourth quarter, and up 4.2% from $127.5 million in the comparable period of the prior year. Net income was $28.9 million for the first quarter of 2001, or $0.15 per share, as compared with net income of $19.4 million, or $0.10 per share, in the fourth quarter, and compared to $38.5 million, or $0.19 per share, in the comparable period of the prior year. Net income, adjusted to exclude the amortisation of intangible assets relating to business combinations, was $33.9 million for the first quarter, or $0.17 per share, as compared to $31.7 million, or $0.16 per share, in the fourth quarter (which also excluded the effect of a technology write-down), and $43.9 million, or $0.21 per share, in the comparable period of the prior year. "We are extremely pleased with the positive results reported for this quarter, especially, given the ongoing volatility in the marketplace," said Mark Templeton, Citrix president. "In addition to meeting our financial objectives, we made significant progress in Q1 with our strategic goals in launching our MetaFrame XP family of products, announcing our intention to acquire leading portal software provider Sequoia, and bolstering the management team with the hiring of a new Chief Technology Officer and a new Vice President for the Europe/Middle East/Africa region." FINANCIAL HIGHLIGHTS * The company experienced sequential quarterly revenue growth of 7.7% and comparable quarterly year-over-year revenue growth of 4.2%. * Electronic delivery of licenses this quarter amounted to 19% of product sales compared to 24% in the previous quarter. * Operating margins, excluding the amortisation of intangible assets relating to business combinations and technology write-down, increased during the quarter to 31.6%. * Cash flow from operations was $56.9 million for the quarter. * The company's cash and investments totaled $877.6 million at the end of the quarter. * The company repurchased approximately 1.6 million shares of its common stock during the quarter. CUSTOMER WINS The company entered into customer agreements across a broad range of industry segments as a testament to the value provided to its diverse customer base. Significant customer deals and implementations during the quarter include Shell, Voicestream Wireless, Hilton Hotel Corporation, The Cleveland Clinic, Dana Corporation, Mercury Insurance Services, Bravida Norge ASA, Statoil, and Maersk. PRODUCT ANNOUNCEMENTS & AWARDS During the quarter, Citrix introduced the next generation of MetaFrame(tm) for Windows® operating systems with the launch of MetaFrame XP(tm) - the company's most powerful application serving and management platform to date. During the quarter, Citrix received notable recognition for its products, including the following: * Citrix® NFuse(tm), which enables existing, interactive applications to be quickly published without rewrites via a Web portal to users on any standard browser, won a Crossroads 2001 A-List award from Open Systems Advisors in January. * Citrix NFuse software was also awarded the Editor's Choice designation by Network Computing Magazine in a 19 February 2001 comparative review of Web browser-based thin-client software. * Citrix won the Midsize Enterprise Innovation Award for Excellence in Technology for its new Citrix MetaFrame XP for Windows family of application server software and for Citrix NFuse 1.5 application portal software. Citrix was selected for the award from a field of 60 technology vendors by 300 senior-level IT executives who attended the Midsize Enterprise Summit, which featured sessions led by Gartner Group analysts. PENDING ACQUISITION OF SEQUOIA SOFTWARE * On 21 March 2001, Citrix and Sequoia Software Corporation announced that the two companies signed a definitive agreement for Citrix to acquire Sequoia. By adding Sequoia's portal products and technology to Citrix' existing application serving software, Citrix will be better positioned to deliver a more complete application services platform - one that provides users with secure access to any information source, business process or application, whether it's a Web, Windows or UNIX® application. The transaction is expected to close in the second quarter. OTHER HIGHLIGHTS * From a partnership perspective, the company announced that it signed a mySAP.com global Technology Partner Agreement with SAP AG. The agreement encompasses coordination of worldwide marketing and technical support activities, as well as technical integration and joint development work to optimise the performance of SAP's cross-industry solution, mySAP Workplace, deployed on Citrix technology. * In the wireless arena, Citrix is to provide application serving software for the Nokia 9210 Communicator, offering customers higher performance access to business applications running on Citrix MetaFrame servers over wireless connections. * Additionally, Citrix and Ericsson Mobile Communications announced a licensing agreement to incorporate Citrix ICA technology in Ericsson's mobile information devices, offering high-performance mobile Internet and multimedia communication - with access to applications running on Citrix MetaFrame servers over wireless connections. * Citrix also announced it is strengthening support for wireless information access with a new Citrix ICA client for Symbian, providing high-performance access to mission-critical applications and information on next-generation Symbian-based Wireless Information Devices. ABOUT CITRIX Founded in 1989, Citrix Systems, Inc. is a global leader in application server software and services that offer "Digital Independence" - the ability to run any application on any device over any connection, wireless to Web. Its products, including MetaFrame application server software, NFuse application portal software and Independent Computing Architecture (ICA®), a core application-server technology, have been widely adopted by the corporate mainstream to achieve key business goals. The firm, which markets its solutions through value-added resellers, system integrators and OEM licensees, is headquartered in Fort Lauderdale, Florida. Citrix is traded on The Nasdaq Stock MarketSM under the symbol CTXS and is part of the Standard & Poor's 500 Index. 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 regarding current or future financial performance, management's plans and objectives for future operations, product plans and performance, management's assessment of market factors, as well as statements regarding the strategy and plans of the company and its strategic partners, 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, risks associated with the following: the success of the company's MetaFrame product line and the acceptance of the company's ICA protocol; the company's ability to develop and commercialise new products and services; the company's success in expanding into new geographic markets; the company's ability to expand its core business in large enterprise accounts; the company's ability to succeed in the transition to a paper/electronic licensing model; the size, timing and recognition of revenue from significant orders; increased competition, including potential competition from Microsoft and other companies; the results of the company's iBusiness and other new licensing programs; the rate of growth of the ASP market, and the company's ability to continue to develop and market products to meet the requirements of this market; the proportion of revenues derived from distributors, OEMs and other channels; changes in the company's pricing policies or those of its competitors, including Microsoft; the costs of developing, acquiring, or integrating new technologies or enhancement to existing products; the company's ability to successfully integrate and manage merged or acquired companies, including Sequoia Software Corporation; the company's ability to develop new products, extend existing products, and maintain or develop such company's customer and employee relationships as a result of such merger or acquisition; the company's reliance upon its strategic relationships with Microsoft and other strategic partners; management of growth; the possibility of undetected software errors; dependence on proprietary technology; risks that the company's portal strategy will not succeed in the manner anticipated; as well as risks of downturns in economic conditions generally, and in the software industry specifically, 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. -ends- Citrix®, ICA®, MetaFrame(tm), MetaFrame XP(tm), NFuse(tm) and Digital Independence(tm) are registered trademarks or trademarks of Citrix Systems, Inc. in the U.S. and other countries. All other trademarks and registered trademarks are property of their respective owners. Victoria Bartolome AxiCom UK Direct: +44 (0)20 8600 4659 Email: email@example.com Cambridge House, Cambridge Grove, London W6 0LE T: +44 (0)20 8600 4600 F: +44 (0)20 8600 4620 This press release was distributed by ResponseSource Press Release Wire on behalf of AxiCom in the following categories: Consumer Technology, Personal Finance, Business & Finance, Computing & Telecoms, for more information visit https://pressreleasewire.responsesource.com/about.