Citrix Systems Reports Fourth Quarter Results; Fourth Quarter Revenues Total $148.8 Million; Adjusted Earnings Per Share of $0.23; Two Industry Veterans Appointed to Board.

Business Editors/High-Tech Writers

FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--Jan. 22, 2003

Citrix Systems, Inc. (Nasdaq:CTXS):

    --  Synopsis: Strong end-customer demand, record revenue in
        Europe, and a record quarter for electronic licensing combined
        to push revenue up 25% sequentially and adjusted earnings per
        share up approximately 130% sequentially. Channel inventory
        levels were in balance with demand.

Citrix Systems, Inc. (Nasdaq:CTXS), a global leader in virtual workplace software and services, today reported results for the fourth quarter and fiscal year ended December 31, 2002. Citrix also announced today the appointment of Tom Bogan, president and chief operating officer for Rational Software Corporation (Nasdaq:RATL), and Gary Morin, executive vice president and chief financial officer for Lexmark International (NYSE:LXK), to Citrix's board of directors. Both begin their duties as board members immediately. (Please see separate news release titled Citrix Taps Industry Veterans for Board Seats; Appoints Executives to Lead Marketing, Legal and Business Planning for additional detail.)

FINANCIAL RESULTS

Revenues for the three months ended December 31, 2002 were $148.8 million compared to $158.0 million in the same period of the prior year. Net income was $39.6 million for the fourth quarter of 2002, or $0.23 per share, as compared to $25.6 million, or $0.13 per share, in the comparable period of the prior year. Net income, adjusted to exclude the effect of amortization of intangible assets primarily related to business combinations, was $40.6 million for the fourth quarter, or $0.23 per share, as compared to $39.4 million, or $0.21 per share, in the comparable period of the prior year.

Annual net revenues for 2002 were $527.4 million, as compared to $591.6 million in the previous year. Annual net income for 2002 was $93.9 million, or $0.52 per share, as compared to net income for 2001 of $105.3 million, or $0.54 per share. Net income, adjusted to exclude the effects of write-offs for in-process research and development and amortization of intangible assets primarily related to business combinations, was $100.8 million, or $0.56 per share, for 2002, compared to $151.0 million, or $0.78 per share, for 2001.

"Strong end-customer demand for our software, especially in Europe, and a strong increase in reorders through our electronic licensing program, helped us post a solid fourth quarter," said Mark Templeton, president and chief executive officer for Citrix. "December was a stronger month than we anticipated, as higher levels of customer spending, especially in the government sector, and the release of pent-up demand resulted in a quarter that exceeded our overall expectations.

"Looking back, 2002 was a difficult year, one marked by pervasive uncertainty, a weak macroeconomic climate and tight IT spending budgets. We took some difficult actions to reduce expenses, including centralizing our product development organizations. We altered our partner programs to reinvigorate the channel, and continued to invest in our 'customer touch' programs, such as enterprise relationship managers, to improve the experience our customers have when dealing with us.

"While we expect difficult economic conditions to persist in 2003, we feel these moves have positioned us well to respond when economic and IT spending levels improve.

"Overall, our results for the quarter are particularly gratifying because we believe they illustrate the value our customers and partners see in our suite of software products. With the advent of Web technologies, Web services, more complex applications, a more mobile workforce and increasing pressure on IT departments, strategically and financially, our software is more relevant today than it ever has been."

    FINANCIAL HIGHLIGHTS

    --  The company had a record quarter for electronic licensing,
        amounting to approximately 47% of end-customer demand.

    --  Deferred revenue related to products and services grew by $10
        million during the quarter to $104 million, primarily due to
        increases in the Subscription Advantage Program.

    --  Adjusted operating margin was 32% for the quarter, excluding
        the effect of amortization of intangible assets primarily
        related to business combinations.

    --  Cash flow from operations was approximately $63 million for
        the quarter.

    --  Cash and investments totaled $719 million at the end of the
        quarter, an increase of about $47 million from the end of the
        third quarter of 2002.

    --  As part of the company's stock repurchase program, the company
        repurchased approximately 3.6 million shares of its common
        stock during the quarter.

    --  Citrix's EMEA region posted a record quarter with
        approximately $65 million in revenue.

    --  Revenue was up 25% over the third quarter of 2002, and
        adjusted earnings per share were up approximately 130% over
        the third quarter.

CUSTOMER HIGHLIGHTS

The company entered into a number of major deals in the fourth quarter. Marquee deals included: AOK Public Health Insurance in Germany; Banco Bilbao Vizcaya Argentaris in Spain; Caisse Nationale Assurance Vieillesse in France; the U.S. Department of Health and Human Services; Deutsche Telekom; and Telenor Business Solutions in Denmark.

In addition, the company entered into five central government deals in Europe including: Government of the Netherlands, Statens OG Kommunernes, Kommentus in Sweden, and agencies out of the Land Baden-Wurttemberg, and the Ministry of Finance State of North Rhine-Westphalia.

ALLIANCE HIGHLIGHTS

During the fourth quarter, Citrix strengthened relationships with IBM and National Semiconductor, and struck new partnerships with BEA, HP, Oracle and VMware.

    --  At Citrix iForum(TM) 2002 held in November, Citrix announced a
        partnership with IBM and VMware to produce a joint server and
        client consolidation solution to help remote offices simplify
        their IT environments and reduce desktop administration tasks
        by centralizing application delivery. The solution encompasses
        Citrix(R) MetaFrame XP(TM) application serving and management
        software and VMware ESX Server virtual machine software, which
        runs on the IBM eServer(TM) xSeries(TM) 440 four- to 16-way
        Intel-processor based system.

    --  Also at iForum, HP announced a global systems integration and
        cooperative support agreement with Citrix. Through the
        agreement, HP plans to provide services for Citrix's
        enterprise server-based computing solutions and enhance its
        ability to resell Citrix solutions on a global basis. HP also
        announced that it had joined the Citrix Global 2000 program,
        which provides enterprise customers with flexible licensing
        and pricing terms, improved account management and simple
        transactions.

    --  Also in November at Comdex, Citrix and National Semiconductor
        announced that they had collaborated on a new conceptual
        product, the Geode(TM) Extended Office (GXO), which combines
        key Web, office and video-conferencing applications in a
        compact 5 x 7 footprint. The device incorporates both
        Bluetooth(TM) and 802.11b wireless capabilities, and offers
        five times the screen resolution of a high-end PDA.

    Other key partnership highlights in the fourth quarter include:

    --  Citrix announced a licensing agreement with BEA Systems. The
        two companies will jointly market, demonstrate and distribute
        a portlet within BEA's Portal Solution Center to connect
        Citrix NFuse(R) Classic portal software with BEA WebLogic
        Portal 7.0(TM).

    --  Citrix also announced that it had established a licensing
        agreement with Oracle Corporation. Under the agreement,
        enterprise organizations can leverage Citrix NFuse Classic to
        deliver existing client/server applications located on a
        Citrix MetaFrame(R) application server via enterprise
        information portals (EIPs) created with the Oracle9i
        Application Server Portal.

BUSINESS OUTLOOK

The company believes that continuing uncertainty in IT spending levels persists, making it particularly difficult to forecast product demand and other related matters. Accordingly, Citrix management offers the following guidance for the quarter ending March 31, 2003:

    --  Revenue is expected to be in the range of $120 million to $130
        million.

    --  Adjusted earnings per share is expected to be in the range of
        $0.11 to $0.13, excluding the effect of amortization of
        intangible assets primarily related to business combinations.

The above statements are based on current expectations. These statements are forward-looking, and actual results may differ materially. These statements do not include the potential impact of amortization of expenses and other exclusions.

CONFERENCE CALL INFORMATION

Citrix will host a conference call today at 4:45 p.m. EST  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. In addition, a replay of the conference call will be available through January 29, 2003, by dialing 800/642-1687 or 706/645-9291 (passcode required: 7533218). A replay of the Webcast can be viewed by visiting the Investor Relations section of the Citrix corporate Website at http://www.citrix.com/investors.

ABOUT CITRIX

Citrix Systems, Inc. is a global leader in virtual workplace software and services that provide access to applications, information, processes and people on any device, over any network, anywhere, anytime. Citrix makes today's digital office completely virtual -- instead of having to go to your office, the office follows you. Working with the world's top industry, integration and consulting partners, Citrix delivers enterprise-ready solutions to business challenges including application deployment, remote office connectivity, workforce mobility and business continuity. More than 120,000 companies worldwide use Citrix Solutions for the Virtual Workplace to give users more mobility, give IT organizations more flexibility and reduce the cost of computing.

Citrix offers two families of products that enable virtual access to information: Application Server software, including MetaFrame XP, MetaFrame for Windows(R) and MetaFrame for UNIX(R); and Access Portal software, including NFuse Elite, NFuse Classic and Enterprise Services for NFuse. The Company markets its products through a well-established indirect channel comprising approximately 6,000 resellers, integrators and consultants. Citrix is traded on the Nasdaq Stock Market(SM) under the symbol CTXS, and is part of the Standard and Poor's 500 Index. Citrix is headquartered in Fort Lauderdale, Florida. For more information, please visit the Citrix Web site at http://www.citrix.com.

FOR CITRIX INVESTORS

This release contains forward-looking statements which are made pursuant to the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934. The forward-looking statements in this release do not constitute guarantees of future performance. Investors are cautioned that statements in this press release, which are not strictly historical statements, including, without limitation, statements by management, the statements contained in Business Outlook concerning management's forecast of revenue, earnings per share, statements regarding new products, and statements concerning internal operations, marketing, 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 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; 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; increased competition, including potential competition from Microsoft and other companies; the results of the company's new licensing and channel programs and agreements, including Citrix Easy Licensing; changes in the company's pricing policies or those of its competitors, including Microsoft; the company's reliance upon its strategic relationships with Microsoft and other strategic partners; management of operations and operating expenses; charges in the event of the impairment of assets; the management of anticipated future growth, as well as risks of downturns in economic conditions generally, and the uncertainty in and the effects of a weak 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), MetaFrame XP(TM), NFuse(R) and Citrix iForum(TM) are registered trademarks or trademarks of Citrix Systems, Inc. in the U.S. and other countries. UNIX(R) is a registered trademark of The Open Group in the U.S. and other countries. Microsoft(R), Windows(R), and Windows NT(R) are registered trademarks of Microsoft Corporation in the U.S. and/or other countries. All other trademarks and registered trademarks are property of their respective owners.

                         CITRIX SYSTEMS, INC.
              Condensed Consolidated Statements of Income
           (In thousands, except per share data - unaudited)

                           Three Months Ended -  Twelve Months Ended -
                               December 31,           December 31,
                                2002       2001       2002       2001
                           ---------- ---------- ---------- ----------
Revenues                    $148,784   $148,040   $513,366   $551,799
Other revenues                    --     10,009     14,082     39,830
                           ---------- ---------- ---------- ----------
  Total net revenues         148,784    158,049    527,448    591,629

Cost of revenues               5,145      7,742     19,030     29,848
                           ---------- ---------- ---------- ----------
Gross margin                 143,639    150,307    508,418    561,781

Operating expenses:
  Research and development    15,869     16,476     68,923     67,699
  Sales, marketing and
   support                    56,490     58,790    235,393    224,108
  General and
   administrative             23,298     25,459     88,946     85,212
  Amortization of
   intangible assets           2,708     15,403     11,296     48,831
  In process research and
   development                    --         --         --      2,580
                           ---------- ---------- ---------- ----------
       Total operating
        expenses              98,365    116,128    404,558    428,430

Income from operations        45,274     34,179    103,860    133,351
Other income, net              3,938      2,982      9,297     19,200
                           ---------- ---------- ---------- ----------
Income before income taxes    49,212     37,161    113,157    152,551

Income taxes                   9,645     11,520     19,237     47,291
                           ---------- ---------- ---------- ----------
Net income                   $39,567    $25,641    $93,920   $105,260
                           ========== ========== ========== ==========

Earnings per common share
 - diluted                     $0.23      $0.13      $0.52      $0.54
                           ========== ========== ========== ==========
Weighted average shares
 outstanding - diluted       173,052    191,697    179,359    194,498
                           ========== ========== ========== ==========
Adjusted net income          $40,605    $39,423   $100,807   $151,046
                           ========== ========== ========== ==========
Adjusted net income per
 share - diluted               $0.23      $0.21      $0.56      $0.78
                           ========== ========== ========== ==========

    Note: The above presentation of adjusted net income and adjusted
net income per share has been adjusted to exclude the effects of:

1. The write-off of acquired in-process research and development of
    $2,580 for the year ended December 31, 2001.

2. Amortization of intangible assets acquired from purchase business
    combinations and licenses as shown above. These intangible assets
    primarily include goodwill, acquired workforce and core
    technology.


                 Condensed Consolidated Balance Sheets
                      (In thousands - unaudited)


                                             December 31, December 31,
                                                 2002         2001
                                             ------------ ------------
ASSETS:
Cash and short-term investments                 $219,913     $216,771
Accounts receivable, net                          69,471       65,032
Other current assets                              85,915       64,252
                                             ------------ ------------
     Total current assets                        375,299      346,055

Long-term investments                            499,491      529,894
Property and equipment, net                       76,534       90,110

Goodwill and other intangible assets, net        183,213      188,977
Other long-term assets                            26,994       53,194
                                             ------------ ------------
     Total assets                             $1,161,531   $1,208,230
                                             ============ ============

LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued expenses            $92,926     $111,928
Current portion of deferred revenues              95,963       80,573
                                             ------------ ------------
     Total current liabilities                   188,889      192,501

Convertible subordinated debentures              333,549      346,214
Long-term portion of deferred revenue              8,028        5,631

Put warrants and common stock subject to
 repurchase                                       16,475       16,554

Stockholders' equity                             614,590      647,330
                                             ------------ ------------
Total liabilities and stockholders' equity    $1,161,531   $1,208,230
                                             ============ ============