Citrix Systems Reports Results for Second Quarter 2001 Friday 20 July 2001 PDF Print * Net revenues total $147.3 million * Adjusted earnings per share of $0.19 Citrix Systems, Inc. (Nasdaq: CTXS) today reported results for the second quarter ended 30 June 2001. FINANCIAL RESULTS Net revenues for the second quarter ending 30 June 2001, were $147.3 million, up 38.8% from $106.1 million in the comparable period of the prior year, and up 10.9% sequentially from $132.8 million in the first quarter. Net income was $22.9 million for the second quarter of 2001, or $0.12 per share, as compared to $15.0 million, or $0.07 per share, in the comparable period of the prior year, and compared with net income of $28.9 million, or $0.15 per share, in the first quarter. Net income, adjusted to exclude the effects of write-offs for in-process research and development and amortisation of intangible assets relating to business combinations, was $36.3 million for the second quarter, or $0.19 per share, as compared to $20.8 million, or $0.10 per share, in the comparable period of the prior year, and $33.9 million, or $0.17 per share, in the first quarter of 2001. For the first six months of 2001, net revenues were $280.1 million, up 19.9% from $233.6 million for the comparable six months of 2000. Net income for the first six months of 2001 was $51.8 million, or $0.27 per share, as compared with net income of $53.5 million, or $0.26 per share, for the comparable six months of 2000. Net income, adjusted to exclude the effects of write-offs for in-process research and development and amortisation of intangible assets relating to business combinations, was $70.2 million, or $0.36 per share, for the first six months of 2001, as compared to $64.7 million, or $0.31 per share, in the same period last year. "We are extremely pleased that we were able to post our fourth consecutive quarter of positive results, especially given the economic uncertainty that remains in the marketplace," said Mark B. Templeton, Citrix president and chief executive officer. "During this year, we've taken great strides by strengthening our management team, including hiring Bob Kruger as chief technology officer, and continuing the integration of Sequoia Software, a leader in portal software that will help Citrix continue to achieve its vision of expanding the virtual workplace everywhere for customers. The significant customer wins in the second quarter that contributed to our financial results are positive evidence that this vision makes sense for IT departments and end users alike." FINANCIAL HIGHLIGHTS * The company reported comparable quarterly year-over-year revenue growth of 38.8% and sequential quarterly revenue growth of 10.9%. * Electronic delivery of licenses this quarter amounted to 26% of product sales compared to 19% in the previous quarter. * Operating margin, excluding the effects of write-offs for in-process research and development and amortisation of intangible assets relating to business combinations, was 31.2% for the quarter. * Cash flow from operations was $56.0 million for the quarter. * Cash and investments totaled $737.5 million at the end of the quarter. * The company repurchased approximately 1.6 million shares of its common stock during the quarter. OTHER HIGHLIGHTS * Citrix completed the acquisition of Sequoia Software Corporation, a leading provider of XML-based portal software. By adding Sequoia's portal products and technology to Citrix's existing application serving software, the company will be better positioned to deliver a 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. * Marvin Adams, vice president and chief information officer for Ford Motor Company, joined Citrix's board of directors. Adams previously served as a director of Sequoia Software Corporation. * The company announced the creation of its Federal Systems Programme to expand sales of Citrix application serving and portal software to U.S government agencies. * The company's board of directors authorised the repurchase of an additional $200 million of Citrix common stock. CUSTOMER WINS Citrix signed significant customer agreements across a broad range of industry segments including the energy, health care, banking/finance/insurance, telecommunications, government, military, and education sectors. Key customer agreements during the quarter included Amdocs, AON Corporation, AT&T Broadband, Bank of East Asia, the Dufferin-Peel School Board, Geisinger System Services, M.D. Anderson Cancer Centre, the New Zealand Department of Corrections, Reliant Resources, Siemens Business, the State of New York, and Thai Farmers Bank. "We are seeing a broad range of applications being deployed in Citrix environments," commented John Burris, Citrix's senior vice president of worldwide sales and services. "Organisations deploying applications from vendors such as Microsoft, Oracle, SAP, Siebel Systems, Amdocs, and others continue to utilise Citrix technology to lower technology barriers and their cost of computing." STRATEGIC RELATIONSHIPS & ALLIANCES * Citrix recently announced an agreement with Microsoft enabling the company to leverage Microsoft Sharepoint Portal Server with Citrix® XPS(tm) portal software. Leveraging Sharepoint's search and document management functionality with Citrix portal solutions will improve user productivity through more efficient use of information sources, complementing the broad capabilities of Citrix XML-based portal software. The agreement is an important step for Citrix, which continues its ongoing relationship with Microsoft, as the company evolves its portal offerings and support for important Microsoft initiatives like .NET. * Citrix and EMC announced the formation of an alliance that will help customers and service providers centrally manage both applications and information as they deliver network access to end-users. The development alliance paves the way for a single point of control for managing applications and information to help customers reduce costs, simplify server management, and offer new services. * Citrix released the ICA® Client for the Nokia 9210 Communicator, which began shipping this quarter, and is available for download at http://www.citrix.com/download/. This offering provides high-performance access to mission-critical applications and information on Nokia's Communicator wireless information device based on the Symbian Operating System. * Citrix and Sierra Wireless announced a strategic relationship to provide wireless access to server-based applications on any device. This further enhances Citrix technology as a key enabler of successful application delivery in the wireless space through its ability to provide a full-featured, rich application experience over a low-bandwidth wireless connection. PRODUCT RECOGNITION & COMPANY AWARDS During the quarter, Citrix received the following awards and accolades: * In the annual Computerweek "Best of Breed 2001" award competition, IT managers rated Citrix as the top brand in the thin client or server-based computing software category. * Citrix won the XChange Xcellence Award for "Best Web Programme/Strategy" at the CMP Cyber XChange Conference. Citrix was recognised for its Web strategy featuring application serving and application portal products and services that enable creation of a virtual workplace - a Web-based work environment providing anywhere, anytime access to a complete, personalised array of applications and information. ABOUT CITRIX Citrix Systems, Inc. is a global leader in application serving and portal software and services that provide personalised access to any application or information source - whether Windows®, UNIX® or Web-based - through any device, over any connection. Companies worldwide use Citrix technologies to integrate applications, content and business processes into a pervasive digital environment - a virtual workplace - offering seamless connectivity and a consistent user experience across the Internet, intranets, extranets, WANs, LANs and wireless networks. Citrix solutions drive cost efficiency, productivity and enhanced e-business opportunities by enabling companies to leverage existing IT resources and extend personalised information access to employees, partners, customers and suppliers. Citrix products offer rapid, cost-effective deployment and include MetaFrame® application serving software, NFuse(tm) application portal software, XPS(tm) portal software, application management products, and Citrix Independent Computing Architecture (ICA®), a core application serving technology. The company markets its application serving products through a well-established reseller channel and sells its portal software products directly to customers to provide the level of customisation they need. Citrix is traded on the Nasdaq Stock MarketSM under the symbol CTXS, and is part of the Standard and Poor's 500 Index. Citrix is headquartered in Fort Lauderdale, Florida. For more information, please visit the Citrix Web site at http://www.citrix.com. 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 and portal software 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 an 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 programmes; 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 risks associated with third party licensing arrangements; the company's ability to successfully integrate and manage merged or acquired companies, including Sequoia Software Corporation; the company's ability to maintain or further develop Sequoia's customer and employee relationships following 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; 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®, MetaFrame XP(tm), XPS(tm) and NFuse(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: firstname.lastname@example.org 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.