* 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.
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."
* 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
* The company repurchased approximately 1.6 million shares of its
common stock during the quarter.
* 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
* The company's board of directors authorised the repurchase of an
additional $200 million of Citrix common stock.
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
* 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
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.
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
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.
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.
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