Citrix Reports First Quarter Earnings.Business Editors/High-Tech Writers FORT LAUDERDALE Fort Lauderdale (lô`dərdāl), residential, commercial, and resort city (1990 pop. 149,377), seat of Broward co., SE Fla., on the Atlantic coast; settled around a fort built (c.1837) in the Seminole War, inc. 1911. , Fla.--(BUSINESS WIRE)--April 21, 2004 First Quarter Revenues of $161.3 Million; GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). Earnings Per Share of $0.05 Include Debenture debenture (dəbĕn`chər), document acknowledging indebtedness. In Great Britain a debenture is practically the same as a bond, and debenture stock is similar to preferred stock. Redemption and Expertcity Acquisition Costs; Adjusted Earnings Per Share of $0.19 Citrix Systems Citrix Systems' (NASDAQ: CTXS) is an American technology company, based in Fort Lauderdale, Florida, with subsidiary operations in California and Massachusetts, with additional development centers in Australia, India and the UK. , Inc. (Nasdaq:CTXS CTXS Citrix Systems (NASDAQ stock ticker symbol) ), the global leader in access infrastructure solutions, today reported results for the first quarter ended March 31, 2004. FINANCIAL RESULTS Revenues for the three months ended March 31, 2004 were $161.3 million, compared to $143.5 million in the same period of the prior year, a 12.4% increase. Net income was $9.3 million for the first quarter of 2004, or $0.05 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share on a GAAP basis, compared to $30.3 million, or $0.18 per diluted share on a GAAP basis, in the comparable period of the prior year. As expected, GAAP net income and GAAP earnings per share were down in the first quarter of 2004 as compared to the comparable period of the prior year due to a charge for in-process research and development of $18.7 million in connection with the acquisition of Expertcity and a charge of approximately $7.2 million for the write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of deferred debt issuance costs associated with the redemption of the company's convertible subordinated debentures subordinated debenture An unsecured bond with a claim to assets that is subordinate to all existing and future debt. Thus, in the event that the issuer encounters financial difficulties and must be liquidated, all other claims must be satisfied before . Net income, adjusted to exclude the effects of these charges and the amortization of intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. primarily related to business combinations, was $32.8 million for the first quarter of 2004, or $0.19 per diluted share, compared to $32.2 million, or $0.19 per diluted share, in the comparable period of the prior year. "We're reporting solid results for the first quarter, and I am quite pleased," said Mark Templeton Mark Templeton (b. 1975) is Principal Trombone of the London Philharmonic Orchestra. Mark studied at the Guildhall School of Music and Drama 1994-1998 with Eric Crees, Simon Wills and Peter Gane. During this time he became principal of the Gustav Mahler Youth Orchestra. , president and chief executive officer for Citrix. "Our results for the first quarter demonstrate we are building on the progress and momentum we established last year. Our focus is paying off - access is a growing strategic priority for organizations, and Citrix access infrastructure is a compelling solution. The integration of Expertcity as the Citrix Online Citrix Online is a division of Citrix Systems, Inc. (Nasdaq: CTXS) that sells Web-based remote access, support, and collaboration software and services. Its products are GoToAssist, GoToMeeting, GoToMyPC, and GoToWebinar. Division is on track, giving us new access products, broader customer reach and additional subscription revenue. "We will continue to focus on defining, building and leading the access infrastructure market." FINANCIAL HIGHLIGHTS -- Net revenues for the first quarter increased approximately 12.4% over the comparable period last year. -- Deferred revenue increased by $18.6 million, or approximately 11%, during the quarter to a total of $183.7 million. -- Operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: was 10.4% for the quarter; adjusted operating margin was 24.3% for the quarter, excluding the effects of write-offs for in-process research and development and amortization of intangible assets primarily related to business combinations. -- Cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses was approximately $78 million for the quarter. -- Cash and investments totaled approximately $536 million at the end of the quarter. -- During the quarter, the company repurchased approximately 0.7 million shares at an average net price per share of $20.96. -- In March, the company redeemed re·deem tr.v. re·deemed, re·deem·ing, re·deems 1. To recover ownership of by paying a specified sum. 2. To pay off (a promissory note, for example). 3. its zero coupon convertible subordinated debentures due in March 2019 for a total of approximately $355.7 million for all outstanding debentures, resulting in a write-off of deferred debt issuance costs of approximately $7.2 million. -- In February, the company closed on its acquisition of Expertcity, paying approximately $231 million in cash and stock to Expertcity shareholders. CUSTOMER HIGHLIGHTS Citrix closed several large deals during the quarter, including Group Deutsche Post Deutsche Post AG (ISIN: DE0005552004, LSE: DPO) is a German post, logistics and courier headquartered in Bonn, previously the German state-owned mail monopoly. It has 520,000 employees in more than 220 countries and territories worldwide and generated revenue of € 60. World Net, IZB IZB Interzonal Boundary SOFT, Sadia S/A S/A System Administrator S/A Service/Agency S/A Special Agent S/A Spectrum Analyzer S/A Situational Awareness S/A Selective Availability (GPS satellite mode) S/A Services/Agencies S/A Sub-Assembly , Sonepar Germany and Ysleta Independent School District Ysleta Independent School District is a school district based in El Paso, Texas (USA). Ysleta ISD is the second largest school district in the city of El Paso. The Ysleta Independent School District was founded in the 1930s as a rural education district with one high school, . Group Deutsche Post World Net is one of the largest and most productive logistics providers in the world. The company's regional subsidiary in Darmstadt, Germany, has licensed over 7,000 seats of Citrix(R) MetaFrame(R) Presentation Server to provide fast company-wide access to business-critical data. IZB SOFT, a leading German IT company with 900 employees in Munich and Nuremberg, assisted 81 Bavarian savings banks savings bank, financial institution that, until recently, performed only the following functions: receiving savings deposits of individuals, investing them, and providing a modest return to its depositors in the form of interest. and other institutions in the selection and implementation of a common development platform. IZB SOFT was contracted to re-centralize the IT systems for all 81 banks. By licensing 38,725 seats of Citrix MetaFrame Presentation Server, IZB SOFT has reduced overall operational costs. Sadia S/A is Brazil's market leader in the production and sale of frozen and refrigerated re·frig·er·ate tr.v. re·frig·er·at·ed, re·frig·er·at·ing, re·frig·er·ates 1. To cool or chill (a substance). 2. To preserve (food) by chilling. chicken, turkey and pork pork, flesh of swine prepared as food, one of the principal commodities of the meatpacking industry. Pork has long been a staple food in most of the world, although religious taboos have limited its use, especially among Jews and Muslims. products. The company has 40 sites around Brazil and looked to Citrix access infrastructure when it designed its access strategy. Using Citrix MetaFrame Presentation Server, nearly 4,000 Sadia employees will have secure anytime, anywhere access to SAP and over 200 other business-critical applications. Sonepar Germany, a leading provider of electrical products and services, has implemented 1,500 seats of Citrix MetaFrame Presentation Server, with an additional 1,200 scheduled for deployment. With Citrix access infrastructure, Sonepar Germany provides its employees with instant, centralized cen·tral·ize v. cen·tral·ized, cen·tral·iz·ing, cen·tral·iz·es v.tr. 1. To draw into or toward a center; consolidate. 2. and secure remote access to applications such as SAP, Microsoft(R) Office and SQL SQL in full Structured Query Language. Computer programming language used for retrieving records or parts of records in databases and performing various calculations before displaying the results. . Located in El Paso El Paso (ĕl pă`sō), city (1990 pop. 515,342), seat of El Paso co., extreme W Tex., on the Rio Grande opposite Juárez, Mex.; inc. 1873. , Texas, the Ysleta Independent School District (Ysleta ISD See IDD. ) is a Big 8 Texas School District recognized for its progressive approach to teaching and its focus on technology. The Ysleta Independent School District was the first urban school district in the state of Texas to be rated a "Recognized School District" and continues to receive national recognition for being a leader in educational innovation and achievement. To ensure that access to the application that tracks student performance is easily, securely and remotely available, Ysleta ISD has deployed 2,000 licenses of Citrix MetaFrame Presentation Server. CITRIX ONLINE DIVISION On February 27, 2004, Citrix completed the acquisition of Expertcity, Inc., the market leader in Web-based desktop access services. Citrix acquired Expertcity for approximately $231 million, comprised of approximately $113 million in cash and 5.6 million shares of the company's stock valued at approximately $118 million. Additional purchase price consideration of up to 0.6 million shares of the company's stock will be issued to Expertcity stockholders if certain financial milestones are achieved by the Expertcity business in 2004. Expertcity now operates as the Citrix Online Division. Financial results for the three months ended March 31, 2004, include the financial results of the Citrix Online Division after the closing date of the acquisition. As a result of the acquisition, Citrix's access infrastructure product portfolio now includes GoToMyPC(R) and GoToAssist(TM). GoToMyPC is a popular software service for secure, browser-based and managed access to desktop PCs from anywhere. GoToAssist provides secure and reliable Web-based technical support and customer collaboration. PRODUCT HIGHLIGHTS During the quarter, Citrix Online announced Citrix GoToMeeting(TM), a next-generation Web-based collaboration service that provides the easiest, most secure and most cost-effective means for conducting meetings and demonstrations online. Citrix GoToMeeting makes instant real-time meetings with desktop-based applications simple, secure and easy. Two versions will be available for customer trial in the second quarter: Citrix GoToMeeting for individual professionals and small business, and Citrix GoToMeeting Corporate for the enterprise. In March, Citrix announced the general availability of Citrix MetaFrame Secure Access Manager 2.2, a key component of the Citrix MetaFrame Access Suite. The latest version supports increased mobility and flexibility by enabling access to Microsoft Outlook For the e-mail and news client bundled with certain versions of Microsoft Windows, see . Microsoft Outlook or Outlook (full name Microsoft Office Outlook synchronization (1) See synchronous and synchronous transmission. (2) Ensuring that two sets of data are always the same. See data synchronization. (3) Keeping time-of-day clocks in two devices set to the same time. See NTP. and offering workers additional choices in user interfaces based on their requirements. MetaFrame Secure Access Manager is the most cost-effective access infrastructure solution, providing fast deployment and secure, single-point access to aggregated information over the Web based Coming from a Web server. See Web application. on roles and access policies - without compromising ease of access. In other product news, during the first quarter Citrix announced enhanced security and identity management capabilities within Citrix MetaFrame Password Manager A password manager is software that helps a user organize passwords and PIN codes. The software typically has a local database or files that holds the encrypted password data. , the most efficient single sign-on An identification system that lets users log into multiple Web sites on the Internet with one username and password. Single sign-on systems are also used within an enterprise, enabling users to access all authorized resources in the local network using the same username and password. solution for accessing all password-protected applications, whether running in a Citrix or non-Citrix environment. These enhanced capabilities include out-of-the-box support for a broad range of authentication (1) Verifying the integrity of a transmitted message. See message integrity, e-mail authentication and MAC. (2) Verifying the identity of a user logging into a network. devices - smart cards Example of widely used contactless smart cards are Hong Kong's Octopus card, Paris' Calypso/Navigo card and Lisbon' LisboaViva card, which predate the ISO/IEC 14443 standard. The following tables list smart cards used for public transportation and other electronic purse applications. , tokens, biometrics The biological identification of a person. Examples are face, iris and retinal patterns, hand geometry and voice. Increasingly built into laptop computers, fingerprint readers have become popular as a secure method for identification. , and proximity devices - from 14 vendors including RSA Security RSA, The Security Division of EMC Corporation, is headquartered in Bedford, Massachusetts, and maintains offices in Ireland, the United Kingdom, Singapore, India, and Japan. RSA organizes the annual RSA conference. , PassGo, Secure Computing For the general concept, see . Secure Computing Corporation, or SCC, is a public company (NASDAQ: SCUR) that develops and sells computer security products, such as:
Citrix accessPARTNER Network At January's Citrix Solutions Summit(TM), the company's annual global partner conference, Citrix unveiled the Citrix accessPARTNER network, the new name for the company's global network of partners. The new partner network unifies a strong ecosystem of solution advisors, educators and alliance partners to meet specific customer needs in developing and executing an access strategy. In addition to the new partner network, Citrix introduced Advisor Rewards, a program that provides a new way for Citrix channel partners to enhance their profitability from sales of the Citrix MetaFrame Access Suite. Combining the industry's best incentive vehicles, Advisor Rewards provides monetary rewards for Citrix Solution Advisors (formerly resellers within the Citrix Solutions Network(TM)) that register deals, submit sales forecasts Sales forecast A key input to a firm's financial planning process. External sales forecasts are based on historical experience, statistical analysis, and consideration of various macroeconomic factors. earlier in the volume licensing sales process A sales process is a systematic approach for performing product or service sales. The reasons for having a sales process include seller and buyer risk management, achieving standardized customer interaction in sales and scalable revenue generation. and provide value-based solution selling around the Citrix MetaFrame Access Suite. The rewards can reach as high as 10 percent incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. margin of the suggested licensing price of the products sold and are available to Citrix Solution Advisors. The new program gives Solution Advisors a fixed commission rate for driving demand - no matter where the customer fulfills the licenses - rewarding value-added selling efforts. ALLIANCE HIGHLIGHTS During the first quarter, Citrix strengthened existing relationships and forged new ones with key partners including IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) , Verizon Wireless Cellco Partnership, doing business as Verizon Wireless, owns and operates the second largest wireless telecommunications network in the United States, based on total wireless customers. , and Intel. -- At the CeBIT conference in Hannover, Germany, Citrix announced that it would work with Intel through the Mobilized Software Initiative (MSI MSI: see integrated circuit. (1) (MicroSoft Installer) See Windows Installer. (2) (Medium Scale Integration) Between 100 and 3,000 transistors on a chip. See SSI, LSI, VLSI and ULSI. ) to enable enterprises and ISVs to deploy applications for mobile devices. Citrix and Intel are working with organizations in the finance, education, healthcare and government sectors to architect mobile solutions that leverage the benefits of the Citrix MetaFrame Access Suite. -- Citrix announced that it joined IBM's new Orchestration orchestration Art of choosing which instruments to use for a given piece of music. The sections of the orchestra historically were separate ensembles: the stringed instruments for indoors, the woodwind instruments for outdoors, the horns for hunting, and trumpets and drums and Provisioning Automation Library (OPAL opal (ō`pəl), a mineral consisting of poorly crystalline to amorphous silica, SiO2·nH2O; the water content is quite variable but usually ranges from 3% to 10%. ) initiative, which is designed to capture IT best practices and turn them into "workflows" for automating manually driven IT tasks. As an OPAL participant, Citrix worked with IBM Tivoli to develop a workflow The automatic routing of documents to the users responsible for working on them. Workflow is concerned with providing the information required to support each step of the business cycle. for automatically provisioning Citrix MetaFrame Presentation Server environments using IBM Tivoli orchestration and provisioning products. -- Citrix, Verizon Wireless and Zumasys announced the completed rollout of Citrix access infrastructure over Verizon Wireless' BroadbandAccess high-speed wireless service. The three companies worked together to deliver this solution to Continental Laboratory Products, which is using it to give its direct sales force on-demand wireless access to corporate information and Web content from the field. -- The Citrix Online Division announced an alliance with Sharp to make remote access to desktop PCs easier and more cost-effective. Under the agreement, Citrix GoToMyPC, the market-leading remote desktop access service, will now come with every Sharp Actius MM20 notebook computer A laptop computer that weighs in a range from five to seven pounds. The term originated when laptops were routinely more than 10 pounds, and those that became lighter were placed in a special "notebook" category. In practice, notebook computer and laptop computer are synonymous. . BUSINESS OUTLOOK Citrix management offers the following guidance for the quarter ending June 30, 2004: -- Revenue is expected to be in the range of $170 million to $180 million for the quarter ending June 30, 2004. -- GAAP earnings per share is expected to be in the range of $0.14 to $0.16 for the quarter ending June 30, 2004. -- Adjusted earnings per share, which excludes the amortization of intangible assets primarily related to business combinations, is expected to be in the range of $0.16 to $0.18 for the quarter ending June 30, 2004. The above statements are based on current expectations. These statements are forward-looking, and actual results may differ materially. CONFERENCE CALL INFORMATION Citrix will host a conference call today at 4:45 p.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT to discuss its financial results, quarterly highlights and business outlook. The call will include a slide presentation, and participants are encouraged to listen to and view the presentation via webcast at http://www.citrix.com/investors. The conference call may also be accessed by dialing: 888/799-0519 or 706/634-0155 using the passcode CITRIX. A replay of the webcast can be viewed by visiting the Investor Relations Investor relations The process by which the corporation communicates with its investors. section of the Citrix corporate website at http://www.citrix.com/investors through May 4, 2004. In addition, an audio replay of the conference call will be available through April 28, 2004 by dialing 800/642-1687 or 706/645-9291 (passcode required: 6515699). CITRIX STRATEGY DAY 2004 Citrix will host Citrix Strategy Day 2004 on April 27, 2004, at the Crowne Plaza This article or section needs sources or references that appear in reliable, third-party publications. Alone, primary sources and sources affiliated with the subject of this article are not sufficient for an accurate encyclopedia article. Times Square Manhattan in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , with remarks beginning at 9:00 a.m. EDT. The Citrix leadership team will provide an in-depth review of the company's strategy including plans to expand market share, deliver greater value to customers, develop innovative products and technology, improve go-to-market execution, build brand awareness, and strengthen partnerships. To register for Strategy Day 2004, visit https://www.exl.carlson.com/StrategyDay2004/. A live webcast and replay will be available at www.citrix.com/strategyday2004. About Citrix Citrix Systems, Inc. (Nasdaq:CTXS) is the global leader in access infrastructure solutions and the most trusted name in secure access for enterprises and individuals. Nearly 50 million people in more than 120,000 organizations around the world use Citrix every day. Our software gives people secure and well-managed access to business information wherever it lives -- on demand. Citrix customers include 100% of the Fortune 100 companies, 99% of the Fortune 500, and 92% of the Fortune Global 500. Based in Fort Lauderdale, Florida Fort Lauderdale, known as the "Venice of America" due to its expansive and intricate canal system, is a city in Broward County, Florida, United States. The city's population is described as metropolitan, where diverse culture is commonplace. According to 2006 U.S. , Citrix has offices in 22 countries, and more than 7,000 channel and alliance partners in more than 100 countries. For more information visit http://www.citrix.com. For Citrix Investors This release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. which are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. 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 existing and new products, channel programs, 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 commercialize new products and services; the success of investments in foreign operations and markets; the company's ability to successfully integrate the operations and employees of acquired companies; failure to achieve anticipated revenues and profits from 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 and the success of the company's Advisor Rewards program; 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 Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. ; charges in the event of the impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. of assets acquired through business combinations and licenses; the management of anticipated future growth and the recruitment and retention of qualified employees; risks associated with the market for our Web-based access, training and customer assistance products; as well as risks of downturns in economic conditions generally; political and social turmoil; and the uncertainty in and the effects of a weakened weak·en tr. & intr.v. weak·ened, weak·en·ing, weak·ens To make or become weak or weaker. weak  en·er n. 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.Citrix(R), MetaFrame(R), Citrix Solutions Summit(TM) and Citrix Solutions Network(TM) are registered trademarks or trademarks of Citrix Systems, Inc. in the U.S. and other countries. GoToMyPC(R), GoToAssist(TM) and GoToMeeting(TM) are registered trademarks or trademarks of Citrix Online LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control in the U.S. and other countries. Microsoft(R) is a registered trademark of Microsoft Corporation (company) Microsoft Corporation - The biggest supplier of operating systems and other software for IBM PC compatibles. Software products include MS-DOS, Microsoft Windows, Windows NT, Microsoft Access, LAN Manager, MS Client, SQL Server, Open Data Base Connectivity (ODBC), MS Mail, in the U.S. and/or other countries. All product and company names herein may be trademarks of their respective owners. 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 con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge and can be found on the Investor Relations page of the Citrix corporate Web site at http://www.citrix.com/investors.
CITRIX SYSTEMS, INC.
Condensed Consolidated Statements of Income
(In thousands, except per share data - unaudited)
Three Months Ended
March 31,
2004 2003
---------- ----------
Revenues:
Software licenses $87,426 $96,874
Software license updates 58,897 35,240
Services 14,987 11,377
---------- ----------
Total net revenues 161,310 143,491
Cost of revenues 4,236 4,731
---------- ----------
Gross margin 157,074 138,760
Operating expenses:
Research and development 19,038 15,125
Sales, marketing and support 74,128 61,711
General and administrative 24,751 21,022
In-process research and development 18,700 --
Amortization of intangible assets 3,760 2,974
---------- ----------
Total operating expenses 140,377 100,832
Income from operations 16,697 37,928
Write-off of deferred debt issuance costs (7,219) --
Other income, net 2,326 1,460
---------- ----------
Income before income taxes 11,804 39,388
Income taxes 2,479 9,059
---------- ----------
Net income $9,325 $30,329
========== ==========
Earnings per common share - diluted $0.05 $0.18
========== ==========
Weighted average shares outstanding -
Diluted 172,584 170,402
========== ==========
Adjusted net income $32,771 $32,195
========== ==========
Adjusted earnings per share - diluted $0.19 $0.19
========== ==========
Note: The above presentation of adjusted net income and adjusted earnings per share has been adjusted to exclude the effects of amortization of core technology and other intangible assets primarily related to business combinations of $3.8 million and $3.0 million for the three months ended March 31, 2004 and 2003, respectively. For the three months ended March 31, 2004 adjusted net income and adjusted diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of have also been adjusted to exclude the effects of the write-off of deferred debt issuance costs of $7.2 million and in-process research and development of $18.7 million.
Condensed Consolidated Balance Sheets
(In thousands - unaudited)
March 31, December 31,
2004 2003
------------ ------------
ASSETS:
Cash and short-term investments $251,193 $612,314
Accounts receivable, net 67,646 87,464
Other current assets 91,412 109,707
------------ ------------
Total current assets 410,251 809,485
Long-term investments 284,955 285,957
Property and equipment, net 67,026 65,837
Goodwill and other intangible assets, net 381,987 173,664
Other long-term assets 7,330 9,996
------------ ------------
Total assets $1,151,549 $1,344,939
============ ============
LIABILITIES AND
STOCKHOLDERS' EQUITY
Accounts payable and accrued expenses $105,403 $113,127
Current portion of deferred revenues 172,707 152,938
Convertible subordinated debentures -- 351,423
------------ ------------
Total current liabilities 278,110 617,488
Long-term portion of deferred revenues 10,973 12,137
Other liabilities 16,639 8,516
Stockholders' equity 845,827 706,798
------------ ------------
Total liabilities and stockholders' equity $1,151,549 $1,344,939
============ ============
Reconciliation of Non-GAAP Financial Measures to Comparable U.S. GAAP Measures (Unaudited) We utilize certain non-GAAP financial measures to evaluate our performance. We consider these measures important indicators of our success. In addition, Citrix provides these non-GAAP measures of the company's performance to investors to enable them to, among other things, better compare Citrix's most recent results of operations against financial models prepared by the company's investors and securities analysts, and to provide additional information concerning the impact of business acquisitions on Citrix's results of operations. These measures should not be considered an alternative to measurements required by accounting principles generally accepted in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. ("U.S. GAAP") such as net income and earnings per share and should not be considered measures of our liquidity. In addition, our non-GAAP financial measures may not be comparable to similar measures reported by other companies. The following tables reconcile non-GAAP financial measures used in this release to the most comparable U.S. GAAP measure for the respective periods (in thousands, except for per share information and percentages):
Three Months Ended March 31, 2004
---------------------------------
Earnings
Per
Operating Operating Operating Net Share - Tax
Expenses Income Margin Income Diluted Rate
---------- --------- --------- --------- -------- ------
U.S. GAAP
measure $140,377 $16,697 10.4% $9,325 $0.05 21%
Adjustments
to exclude the
following:
Amortization (3,760) 3,760 2.3 2,970 0.02 --
Write-off
deferred
debt
issuance
costs -- -- -- 5,703 0.03 --
In-process
research and
development (18,700) 18,700 11.6 14,773 0.09 --
---------- --------- --------- --------- -------- ------
Adjusted
figures $117,917 $39,157 24.3% $32,771 $0.19 21%
========== ========= ========= ========= ======== ======
Three Months Ended March 31, 2003
---------------------------------
Earnings
Per
Operating Operating Operating Net Share - Tax
Expenses Income Margin Income Diluted Rate
---------- --------- --------- --------- -------- ------
U.S. GAAP
measure $100,832 $37,928 26.4% $30,329 $0.18 23.0%
Adjustments
to exclude
the effects of
amortization (2,974) 2,974 2.1 1,866 0.01 1.0
---------- --------- --------- --------- -------- ------
Adjusted
figures $97,858 $40,902 28.5% $32,195 $0.19 24.0%
========== ========= ========= ========= ======== ======
Forward-looking Guidance
for the Three Months Ended June 30, 2004
----------------------------------------
Earnings Per Share Range -
Diluted
--------------------------------
U.S. GAAP measure $0.14 to $0.16
Adjustments to exclude
the effects of
amortization $0.02
--------------------------------
Adjusted figures $0.16 to $0.18
================================
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion