Citrix Systems Announces Restatement of Balance Sheets and Cash Flow Statements Consistent With Previously Disclosed Presentation of Certain Restricted Cash and Investments.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. -- No Effect on Historical or Future Revenues, Net Income, Earnings Per Share or 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 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 announced that it will restate re·state tr.v. re·stat·ed, re·stat·ing, re·states To state again or in a new form. See Synonyms at repeat. re·state the presentation of cash and investments on its balance sheet. As previously disclosed in the unaudited balance sheet that accompanied the Company's fourth quarter and year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. earnings press release issued by the Company on January January: see month. 27, 2005, 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. will present collateral collateral (kəlăt`ərəl), something of value given or pledged as security for payment of a loan. Collateral consists usually of financial instruments, such as stocks, bonds, and negotiable paper, rather than physical goods, although pledged under the Company's synthetic lease Synthetic Lease An operating lease that is structured in a way so that it is not recorded as a liability on the balance sheet. Instead, it is considered to be an expense on the income statement. , credit default contracts and interest rate swaps Interest Rate Swap A deal between banks or companies where borrowers switch floating-rate loans for fixed rate loans in another country. These can be either the same or different currencies. as restricted cash equivalents and investments. The nature and extent of all pledged collateral arrangements and restrictions have been fully and consistently disclosed from the inception of each arrangement in narrative form in the Company's reports filed with the SEC. The Company previously believed that its audited balance sheets and cash flow statements, which reflected pledged collateral in cash equivalents, short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. investments and long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. investments, were appropriate under generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting . As a result of a normal periodic review of the Company's financial reports by the staff of the SEC, the Company has reevaluated its presentation of cash and investments and will present pledged collateral on its balance sheet as restricted. The Company's balance sheet adjustments will not in any way affect the Company's historical or future revenues, net income, earnings per share, cash flow from operations, total assets or total cash and investments. Moreover, these adjustments do not change the Company's liquidity position or its ability to access its funds. The Company is restating its consolidated balance sheets consolidated balance sheet A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single firm. and cash flow statements for fiscal years 2002 and 2003 and for the first three quarters of 2004 to revise its presentation of cash and investments. The Company filed its restated financial statements with the SEC today. Citrix additionally reclassified, or adjusted its financial statement presentation for, the following items in its restated financial statements: --expenses associated with the amortization of acquired intangibles Property that is a "right" such as a patent, Copyright, or trademark, or one that is lacking physical existence, such as good will. from amortization expense to a component of cost of revenues in the Company's consolidated income statement consolidated income statement An income statement that combines the income statements of two or more organizations. As with other consolidated statements, a consolidated income statement eliminates any funds owed to or due from firms within the same group. ; --proceeds from sales and maturities of the Company's investments, as well as cash flows from the Company's available-for-sale and held-to-maturity investments, now presented separately in the Company's cash flow statement; and --investments in auction rate securities from cash equivalents to short term investments pursuant to a recently published accounting interpretation. The Company does not currently anticipate any additional revisions to the Company's previously reported fiscal 2004 results of operations and financial position in its Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. , which the Company anticipates filing with the SEC on or before March 16, 2005. A reconciliation of amounts previously reported in the Company's 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 to adjusted balances is included in this press release. About Citrix Citrix Systems, Inc. (Nasdaq: CTXS) is the global leader in access infrastructure solutions and the most trusted name in secure access for companies of all sizes. More than 160,000 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 97% 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. . 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 concerning the Company's 2004 Annual Report on Form 10-K, 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 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, 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 for·ward-look·ingadj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. information contained in this press release or with respect to the announcements described herein. Citrix(R) is a registered trademark of Citrix Systems, Inc. in the U.S. and other countries. All other trademarks and registered trademarks are property of their respective owners.
Reconciliation of Amounts Previously Reported
in the Company's Consolidated Statements of Income
As Amortization As
Reported Reclassification Adjusted
------------------------------------------
2004 (unaudited) (in thousands)
----------------------------
Net revenues $741,157 $ - $741,157
Cost of revenues 20,296 6,127 26,423
Gross margin 720,861 (6,127) 714,734
Total operating expenses 561,870 (6,127) 555,743
Net income 131,546 - 131,546
Earnings per share - diluted $0.75 $ - $0.75
2003
----------------------------
Net revenues $588,625 $ - $588,625
Cost of revenues 20,036 11,036 31,072
Gross margin 568,589 (11,036) 557,553
Total operating expenses 414,200 (11,036) 403,164
Net income 126,943 - 126,943
Earnings per share - diluted $0.74 $ - $0.74
2002
----------------------------
Net revenues $527,448 $ - $527,448
Cost of revenues 19,030 10,811 29,841
Gross margin 508,418 (10,811) 497,607
Total operating expenses 404,558 (10,811) 393,747
Net income 93,920 - 93,920
Earnings per share - diluted $0.52 $ - $0.52
2001
----------------------------
Net revenues $591,629 $ - $591,629
Cost of revenues 29,848 11,603 41,451
Gross margin 561,781 (11,603) 550,178
Total operating expenses 428,430 (11,603) 416,827
Net income 105,260 - 105,260
Earnings per share - diluted $0.54 $ - $0.54
Reconciliation of Amounts Previously Reported
in the Company's Consolidated Balance Sheets
Restatement of
Restricted Reclassification
Cash of Auction Rate As
As Reported Equivalents Investments Adjusted
------------------------------------------------------
2004 (unaudited) (in thousands)
----------------
Cash and cash
equivalents $203,920 $ - $(130,435) $73,485
Short-term
investments 29,221 - 130,435 159,656
Long-term
investments 183,974 - - 183,974
Restricted cash
equivalents and
investments 149,051 - - 149,051
------------------------------------------------------
Total Cash and
Investments $566,166 $ - $ - $566,166
======================================================
2003
----------------
Cash and cash
equivalents $359,343 $(10,134) $(166,240) $182,969
Short-term
investments 252,971 (33,780) 166,240 385,431
Long-term
investments 285,957 (102,546) - 183,411
Restricted cash
equivalents and
investments - 146,460 - 146,460
------------------------------------------------------
Total Cash and
Investments $898,271 $ - $ - $898,271
======================================================
2002
----------------
Cash and cash
equivalents $142,700 $ - $(60,350) $82,350
Short-term
investments 77,213 (41,783) 60,350 95,780
Long-term
investments 499,491 (130,323) - 369,168
Restricted cash
equivalents and
investments - 172,106 - 172,106
------------------------------------------------------
Total Cash and
Investments $719,404 $ - $ - $719,404
======================================================
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