Citrix Reports Third Quarter Earnings.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. -- Year-Over-Year Revenue Growth of 30%; Earnings Per Share of $0.22, Up 23% Over Comparable Period Last Year; Adjusted Earnings Per Share of $0.24, Up 28% Over Comparable Period Last Year 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 third quarter ended September September: see month. 30, 2004. Revenues for the third quarter of 2004 were $187.6 million, compared to $144.3 million in the same period of the prior year, representing a 30 percent increase. Deferred revenue grew to $202.3 million, compared to $144.6 million in the same period of the prior year, representing an increase of 40 percent. GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). Results Net income for the third quarter of 2004 was $38.4 million, or $0.22 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, compared to $31.0 million, or $0.18 per diluted share, for the same period a year ago. Adjusted Results Net income, adjusted to exclude the effect of 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. , was $42.3 million for the third quarter of 2004, or $0.24 per diluted share, compared to $32.8 million, or $0.19 per diluted share, in the comparable period last year. "The third quarter was a record quarter for revenue," 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 (Citrix Systems, Inc., Ft. Lauderdale, FL, www.citrix.com) The leader in access infrastructure solutions, which includes network access, single sign-on, VPN capabilities, presentation services, remote control and remote support applications. . "Additionally, we saw strong performance from 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, double-digit dou·ble-dig·it adj. Being between 10 and 99 percent: double-digit inflation. revenue growth year-over-year and improved operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: sequentially. "We saw strength in three key areas: in our core enterprise business; in new products, especially the Access Suite; and in our subscription businesses. Enterprise customers are expanding their use of Citrix software and services as they see more strategic value in access infrastructure as a core business system." Q3 Financial Highlights - Total revenues grew 30 percent over the comparable period last year. - By segment, Americas A·mer·i·cas , the See America. revenue grew 15 percent; EMEA (Europe, Middle East, Africa) Refers to that region of the world. For example, one might see products packaged differently for the UK, EMEA and Asia Pacific markets. revenue grew 25 percent; and APAC APAC Australian Partnership for Advanced Computing APAC Agricultural Policy Analysis Center APAC Asia and Pacific APAC Asian Pacific American Coalition APAC Adapted Physical Activity Council (American Alliance for Health) revenue grew 31 percent, compared to last year. - License revenue increased 1 percent sequentially and declined 2 percent year-over-year. - Revenue from license updates grew 62 percent over last year. - The Citrix Online division contributed $14.1 million of revenue during the quarter, a sequential increase of 35 percent. - Services revenue, which is comprised of consulting, education and technical support, grew 35 percent year-over-year. - Operating margin was 24.7 percent for the quarter; adjusted operating margin was 27.5 percent, excluding the effect of amortization of intangible assets. - 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 $62 million for the quarter. - During the quarter, the company repurchased 3.0 million shares at an average net price per share of $17.75. Financial Outlook Citrix management offers the following guidance for the quarter and year ending December December: see month. 31, 2004: Net revenues are expected to be in the range of $195 million to $205 million for the quarter ending December 31, 2004; for the full year 2004, net revenues are expected to be in the range of $722 million to $732 million. GAAP earnings per share is expected to be in the range of $0.23 to $0.25 for the quarter ending December 31, 2004; for the full year 2004, GAAP earnings per share is expected to be in the range of $0.69 to $0.71. Adjusted earnings per share, which excludes the effect of amortization of intangible assets related to business combinations, is expected to be in the range of $0.25 to $0.27 for the quarter ending December 31, 2004; for the full year 2004, adjusted earnings per share, which excludes the effects of amortization of intangible assets related to business combinations, in-process research and development, and 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 is expected to be in the range of $0.89 to $0.91. The above statements are based on current expectations. These statements are forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. , and actual results may differ materially. Customer Highlights Citrix closed several large customer agreements during the quarter, including Ayuntamiento AYUNTAMIENTO, Spanish law. A congress of persons the municipal council of a city or town. 1 White's Coll. 416; 12 Pet. 442, notes. de Madrid Madrid (mədrĭd`, Span. mäthhrēth`), city (1990 pop. 3,120,732), capital of Spain and of Madrid prov., central Spain, and the focus of its own autonomous region, on the Manzanares River. , Computer Associates International Inc., German Armed Forces, Huawei Huawei Technologies Co. Ltd. (Chinese: 华为技术有限公司; Pinyin: Huáwei Jíshu Yǒuxiàn Gōngsī Technologies, Junta jun·ta n. 1. A group of military officers ruling a country after seizing power. 2. A council or small legislative body in a government, especially in Central or South America. 3. A junto. de Andalucia Noun 1. Andalucia - a region in southern Spain on the Atlantic and the Mediterranean; formerly a center of Moorish civilization Andalusia Espana, Kingdom of Spain, Spain - a parliamentary monarchy in southwestern Europe on the Iberian Peninsula; a former - Servicio Andaluz de la Salud Salud (Bodega Salud) (from Sp. salud "health") is a Spanish-Latin American restaurant at Tuomionkirkonkatu, Tampere, Finland. The restaurant was founded on October 23 1974 by Hannu Wiss after returning from sailing in Spain. , and the Syracuse Syracuse, city, Italy Syracuse (sĭr`əky  s, –kyz), Ital. Siracusa, city (1991 pop. City School District.
The city government of Madrid, Spain Spain, Span. España (āspä`nyä), officially Kingdom of Spain, constitutional monarchy (2005 est. pop. 40,341,000), 194,884 sq mi (504,750 sq km), including the Balearic and Canary islands, SW Europe. , Ayuntamiento de Madrid, licensed 1,500 seats of the Citrix(R) MetaFrame See Citrix Presentation Server. (R) Access Suite, including the MetaFrame Presentation Server component product. Informatica This article is about US-based Informatica Corporation. For the unrelated information security consulting and privacy compliance firm, see Informatica Security. Informatica Corporation del Ayuntamiento de Madrid, via Citrix access infrastructure, will provide its municipal workers with secure, easy and instant access to enterprise applications such as SAP, no matter where they are located, from anywhere, at anytime, using any device, over any connection. Computer Associates International Inc., (CA) one of the world's largest management software companies, selected Citrix GoToAssist(TM) to enable it to deliver secure, on-demand On-Demand refers to a service or feature which addresses the user's need for instant gratification and immediacy of use. In most cases the value proposition for an on-demand service is wrapped up in the fact that the user or consumer of the service avoids a significant up-front , remote technical-support service to millions of customers around the world. With industry-leading Citrix GoToAssist, CA has increased productivity, reduced backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. and the time required to resolve issues, and significantly enhanced customer satisfaction. The German Armed Forces selected Citrix MetaFrame Presentation Server for highly secure access to mission-critical applications. To manage the transfer of confidential information Noun 1. confidential information - an indication of potential opportunity; "he got a tip on the stock market"; "a good lead for a job" steer, tip, wind, hint, lead , the German Armed Forces needed a solution that would enhance the customized security solutions it already had in place in which no active content is delivered through the Local Area Network (LAN (Local Area Network) A communications network that serves users within a confined geographical area. The "clients" are the user's workstations typically running Windows, although Mac and Linux clients are also used. ) or wireless connection. By licensing 4,000 seats of the MetaFrame Presentation Server, a number of German Armed Forces personnel can now have secure, reliable, on-demand access to the required applications. Huawei Technologies, headquartered in Shenzhen Shenzhen (shĕn`jŭn`), city (1994 est. pop. 695,600), S Guangdong prov., China, on the South China Sea, N of Hong Kong. Designated a special economic zone in 1979, the city's spectacular economic growth led China to create over a dozen more , China and specializing in R&D, production and marketing of telecom equipment, customized network solutions in fixed, mobile, optical and data communications data communications, application of telecommunications technology to the problem of transmitting data, especially to, from, or between computers. In popular usage, it is said that data communications make it possible for one computer to "talk" with another. networks, has licensed 1,000 seats of Citrix MetaFrame Presentation Server. The company is quickly emerging as a key player in China's telecom industry, in addition to becoming an active participant in the global telecom market. Using Citrix access infrastructure, hundreds of Huawei Technologies employees will have safe anytime, anywhere access to Oracle and SAP and 30 other frequently used enterprise applications. Junta de Andalucia - Servicio Andaluz de la Salud, a regional healthcare organization serving Andalucia, Spain, licensed 2,600 Citrix MetaFrame Presentation Server and 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. seats. With Citrix access infrastructure, Junta de Andalucia will continue to enhance its consistent track record of excellent patient care by providing its healthcare employees with fast, company-wide access to a variety of critical office and medical applications. Located in Syracuse, N.Y., the Syracuse City School District currently oversees 38 individual schools, ranging from elementary to high school grade levels. The Syracuse City School District holds a common set of core values, which include excellence in learning and teaching, cultural diversity and public accountability. The district is also actively committed to utilizing technology advancements to improve the learning environment for its vast student body. To ensure that its facility and administrative staff have convenient, secure access to applications like their student information systems, Syracuse City School District licensed 2,500 seats of Citrix MetaFrame Presentation Server. Product and Alliance Highlights During the third quarter, Citrix and SAP announced that Citrix MetaFrame Presentation Server will be offered for SAP upgrades in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , which will result in faster upgrades, increased productivity, and reduced costs. During the quarter, Citrix and Siebel For the tech company, see . Siebel, originally Flugzeugbau Halle, was a German aircraft manufacturer in Halle an der Saale. Siebel aircraft included:
SSO - single sign-on ) solution for Siebel 7.5.3 and Siebel 7.7. Citrix held its iForum(TM) Global 2004 conference from October October: see month. 4 to 7 in Orlando, Florida The city of Orlando is a major city in central Florida and is the county seat of Orange County, Florida. According to the 2000 census, the city population was 185,951. A 2006 U.S. . The conference, which hosted more than 2,300 IT professionals, and featured a 40- percent increase in the number of sponsors and a 60-percent increase in new attendees. At iForum, Citrix announced it: - Expanded its partnering with 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) to further integrate Citrix MetaFrame Presentation Server with WebSphere's Portal v5, and to bundle and market Citrix MetaFrame Presentation Server with several key IBM technologies including WebSphere A family of Java development and Web application server products from IBM that run in an open, Eclipse-technology based environment on OS/390, OS/400, NT/2000, Linux and various Unix platforms. , Tivoli and Blade Center. This agreement will help propel pro·pel tr.v. pro·pelled, pro·pel·ling, pro·pels To cause to move forward or onward. See Synonyms at push. [Middle English propellen, from Latin both companies' "On Demand" strategic visions. - Licensed technology from Aurema and RTO (Recovery Time Objective) The amount of time a computer system or application can stop functioning before it is considered intolerable to the enterprise. It can be computed to be from seconds to days, depending on how critical the application is to the organization. Software to enhance the access experience of end users by optimizing processor use and virtual memory in future MetaFrame Presentation Server deployments. - Implemented MetaFrame Password Manager at more than 250 organizations, giving users 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. access to password-protected applications. Customers that have implemented MetaFrame Password Manager include ABM Industries ABM Industries Incorporated NYSE: ABM is an American corporation involved in outsourced, building maintenance. Divisions include ABM Janitorial, Ampco System Parking, ABM Engineering, American Commercial Security (ACSS), Security Services of America (SSA), Amtech Lighting, and , March of Dimes
During the quarter, Citrix Online announced: - Citrix GoToAssist 6.0 with new features that enable technical support organizations to rapidly resolve support incidents, achieve greater increases in end-user productivity, and make dramatic improvements in customer loyalty. - Citrix GoToAssist doubled its customers in 2004, building on its 100 percent year-over-year growth. The industry-leading solution now enables remote support for more than 2,300 on-demand enterprises. - A strategic alliance between Citrix GoToMyPC(R) and Verizon Online to provide special pricing for Verizon Online's customers. - A strategic alliance with Sharp Systems of America to provide Sharp notebook customers with a free three-month trial of Citrix GoToMeeting(TM). The alliance extends the successful 2003 promotion during which the two companies offered Citrix GoToMyPC with Sharp's Actius notebooks. Conference Call Information Citrix will host a conference call today at 4:45 p.m. ET 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 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 November 17, 2004. In addition, an audio replay of the conference call will be available through October 26, 2004, by dialing (800) 642-1687 or (706) 645-9291 (passcode required: 1162564). 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 approximately 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 Financial Outlook, and in the reconciliation of non-GAAP financial measures to comparable U.S. GAAP measures concerning management's forecast of revenues and earnings per share, statements regarding existing and new products, and management's plans, objectives and strategies, 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, includ ing, 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 vertical and geographic markets; the company's ability to successfully integrate the operations and employees of acquired companies, and the possible failure to achieve anticipated revenues and profits from acquisitions; the company's ability to maintain and expand its core business in large enterprise accounts; the company's ability to attract and retain small sized customers; the size, timing and recognition of revenue from significant orders; the effect of new accounting pronouncements on revenue and expense recognition; 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 marketing and licensing programs, including the 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; competition and other 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 that 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) and Citrix iForum(TM) are registered trademarks or trademarks of Citrix Systems, Inc. in the U.S. and other countries. GoToMyPC(R), GoToAssist(TM), and GoToMeeting 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 Nine Months
Ended Ended
September 30, September 30,
2004 2003 2004 2003
-----------------------------------
Revenues:
Software licenses $88,455 $90,069 $263,597 $279,144
Software license updates 70,406 43,406 196,284 118,205
Services revenue 28,717 10,866 67,309 33,532
-----------------------------------
Total net revenues 187,578 144,341 527,190 430,881
Cost of revenues 5,396 5,350 14,557 15,117
-----------------------------------
Gross margin 182,182 138,991 512,633 415,764
Operating expenses:
Research and development 21,832 15,656 63,043 47,025
Sales, marketing and support 82,612 61,331 237,544 183,592
General and administrative 26,142 20,420 78,730 64,464
Amortization of intangible assets 5,273 2,868 14,504 8,541
In-process research and development - - 18,700 -
-----------------------------------
Total operating expenses 135,859 100,275 412,521 303,622
Income from operations 46,323 38,716 100,112 112,142
Write-off of deferred debt issuance
costs - - (7,219) -
Other income, net 3,307 1,021 8,382 4,099
-----------------------------------
Income before income taxes 49,630 39,737 101,275 116,241
Income taxes 11,182 8,742 22,027 25,573
-----------------------------------
Net income $38,448 $30,995 $79,248 $90,668
===================================
Earnings per common share - diluted $0.22 $0.18 $0.46 $0.53
===================================
Weighted average shares outstanding
- diluted 172,870 171,111 173,911 171,135
===================================
Adjusted net income $42,320 $32,806 $110,524 $96,082
===================================
Adjusted earnings per share -
diluted $0.24 $0.19 $0.64 $0.56
===================================
Note: The above presentation of adjusted net income and adjusted
diluted 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 $5.3 million and $2.9 million for
the three months ended September 30, 2004 and 2003, respectively, and
$14.5 million and $8.5 million for the nine months ended September 30,
2004 and 2003, respectively. For the nine months ended September 30,
2004, adjusted net income and adjusted diluted earnings per share 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)
September 30, 2004 December 31, 2003
--------------------------------------
ASSETS:
Cash and short-term investments $265,995 $612,314
Accounts receivable, net 90,115 87,464
Other current assets 77,745 109,707
--------------------------------------
Total current assets 433,855 809,485
Long-term investments 274,927 285,957
Property and equipment, net 70,419 65,837
Goodwill and other intangible
assets, net 387,432 173,664
Other long-term assets 7,197 9,996
--------------------------------------
Total assets $1,173,830 $1,344,939
======================================
LIABILITIES AND STOCKHOLDERS' EQUITY:
Accounts payable and accrued
expenses $102,661 $114,456
Current portion of deferred
revenues 190,894 152,938
Convertible subordinated
debentures - 351,423
--------------------------------------
Total current liabilities 293,555 618,817
Long-term portion of deferred
revenues 11,418 12,137
Other liabilities 9,338 7,187
Stockholders' equity 859,519 706,798
--------------------------------------
Total liabilities and
stockholders' equity $1,173,830 $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 ("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 September 30, 2004
-------------------------------------
Earnings
Per
Operating Operating Operating Net Share -
Expenses Income Margin Income Diluted
-------- ------ ------ ------ -------
U.S. GAAP measure $135,859 $46,323 24.7% $38,448 $0.22
Adjustments to exclude
the effects of
amortization (5,273) 5,273 2.8 3,872 0.02
------- ----- --- ----- ----
Adjusted figures $130,586 $51,596 27.5% $42,320 $0.24
======== ======= ===== ======= =====
Three Months Ended September 30, 2003
-------------------------------------
Earnings
Per
Operating Operating Operating Net Share -
Expenses Income Margin Income Diluted
-------- ------ ------ ------ -------
U.S. GAAP measure $100,275 $38,716 26.8% $30,995 $0.18
Adjustments to exclude
the effect of
amortization (2,868) 2,868 2.0 1,811 0.01
------- ----- --- ----- ----
Adjusted figures $97,407 $41,584 28.8% $32,806 $0.19
======= ======= ===== ======= =====
Nine Months Ended September 30, 2004
------------------------------------
Earnings
Net Per Share
Income - Diluted
------ ---------
U.S. GAAP measure $79,248 $0.46
Adjustments to exclude the effects of
the following, net of tax:
Amortization 10,800 0.06
Write-off of deferred debt issuance costs 5,703 0.03
In-process research and development 14,773 0.08
------ ----
Adjusted figures $110,524 $0.64(1)
======== ========
Nine Months Ended September 30, 2003
------------------------------------
Earnings
Net Per Share
Income - Diluted
------ ---------
U.S. GAAP measure $90,668 $0.53
Adjustments to exclude the effect
of amortization, net of tax 5,414 0.03
----- ----
Adjusted figures $96,082 $0.56
======= =====
(1) Amounts may not add due to rounding.
Forward-looking Guidance
------------------------
for the Three Months Ended December 31, 2004
--------------------------------------------
Earnings Per Share Range
- Diluted
------------------------
U.S. GAAP measure $0.23 to $0.25
Adjustments to exclude the
effect of amortization,
net of tax $0.02
-----
Adjusted figures $0.25 to $0.27
==============
Forward-looking Guidance
------------------------
for the Twelve Months Ended December 31, 2004
---------------------------------------------
Earnings Per Share Range
- Diluted
------------------------
U.S. GAAP measure $0.69 to $0.71
Adjustments to exclude the
effects, net of tax, of
amortization, in process
research and development
and debt issuance costs $0.20
-----
Adjusted figures $0.89 to $0.91
==============
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