Citrix Systems Reports Record Results for First Quarter 2000 Revenues up 50% on Demand for Citrix Application Server Software and Services.

Business Editors

FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--April 19, 2000

Citrix Systems, Inc. (Nasdaq:CTXS) today reported results for the first quarter ended March 31, 2000.

Financial Highlights

Net revenues for the first quarter ending March 31, 2000, were $127.5 million, up 50% from $85.0 million in the comparable period of the prior year. Net income, excluding the amortization of intangible assets relating to business combinations, was $43.9 million for the first quarter, or $0.21 per share, as compared to $28.2 million or $0.15 per share for the first quarter of 1999. Net income for the first quarter of 2000 was $38.5 million or $0.19 per share, as compared with net income of $25.8 million or $0.14 per share for the first quarter of 1999.

In February 2000, Citrix effected a two-for-one stock split. All share and per share information has been adjusted to reflect the effect of the split.

Business Highlights

Business highlights in the quarter included the launch of three products, improved results in all geographic regions and continued investment for future opportunity, as follows:

-- Three New Products Released -- Citrix launched MetaFrame(TM) for Windows(R)
2000 Servers, MetaFrame for the Solaris(TM) Operating System and NFuse(TM), a
new Web application portal product, as part of extending these product lines
into new markets.

-- Strategic Acquisitions Announced -- Citrix acquired the Innovex Group to
enhance its consulting-service offerings for integration partners and
customers, and more recently, agreed to acquire India's PowerTel BOCA Ltd. to
support growth in a key emerging market.

-- ASP Market Leadership -- Citrix strengthened its position as an
infrastructure leader in the application service provider (ASP) market with
additional ASPs signing up for the Citrix iBusiness Program, and the
announcement of a strategic partnership with IBM to make server-based
application hosting in ASP data centers faster and easier.

-- Improving Brand Awareness -- Citrix launched its "Digital Independence(TM)"
branding campaign worldwide as part of raising the visibility of the Citrix
brand in the marketplace.

"We believe that the key to achieving our growth goals is to couple strong financial performance with strategic investments for the future as we did in the first quarter," said Mark Templeton, Citrix president and CEO. "We intend to continue creating new opportunities by `webifying' our offerings and building channel and customer support for the new products and services we launched in the first quarter."

"We believe that continued growth in the application server markets creates a large opportunity for our application serving solutions," said Edward Iacobucci, Citrix chairman and CTO, "and we are focused on enhancing our existing offerings and developing new products to meet these market demands. This focus will position us to both deepen our value proposition for existing enterprise customers and open up new revenue streams with emerging opportunities such as the ASP market."

Founded in 1989, Citrix Systems, Inc. is a global leader in application server software and services that offer "Digital Independence(TM)" - the ability to run any application on any device over any connection, wireless to Web. Its products, including MetaFrame(TM) software and Independent Computing Architecture (ICA(R)), a core application-server technology, have been widely adopted by the corporate mainstream to achieve key business goals. The firm, which markets its solutions through value-added resellers, system integrators and OEM licenses, is headquartered in Fort Lauderdale, Florida. Citrix is traded on the Nasdaq National Market under the symbol CTXS and is part of the Standard & Poor's 500 Index.

For Citrix Investors

This release contains forward-looking statements which are made pursuant to the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934. The forward-looking statements in this release do not constitute guarantees of future performance. Investors are cautioned that statements in this press release which are not strictly historical statements, including, without limitation, statements regarding current or future financial performance, management's plans and objectives for future operations, product plans and performance, management's assessment of market factors, as well as statements regarding the strategy and plans of the company and its strategic partners, constitute forward-looking statements. Such forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated by the forward-looking statements, including, without limitation, risks associated with the company's reliance upon its strategic relationships with Microsoft and other strategic partners, dependence upon broad-based acceptance of the company's ICA protocol, management of growth, the possibility of undetected software errors, and dependence on proprietary technology, risks that the company's branding campaign will not enhance the company's business or results in the manner anticipated, as well as risks of downturns in economic conditions generally, and in the software industry specifically, and risks associated with competition and competitive pricing pressures, and other risks detailed in the company's filings with the Securities and Exchange Commission.

In addition, revenues and earnings in the software industry are subject to fluctuation and the growth rates recently experienced by the company do not necessarily represent future operating results. The company's future operating results may fluctuate as a result of a number of factors, including the success of the company's MetaFrame product line and the acceptance of the company's ICA protocol; the size, timing and recognition of revenue from significant orders; increased competition, including potential competition from Microsoft and other companies; the success of the company's iBusiness program; the rate of growth of the ASP market, and the company's ability to continue to develop and market products to meet the requirements of this market; the proportion of revenues derived from distributors, OEMs and other channels; changes in the company's pricing policies or those of its competitors, including Microsoft; costs of developing, acquiring, or integrating new technologies or enhancements to existing products; and other factors. Investors should not use any one period's results as a benchmark for future growth. For a more detailed description of the risk factors associated with the company, please refer to the company's Annual Report on Form 10-K for the year ended December 31, 1999 and the Quarterly Report on Form 10-Q for the quarter ended March 31, 2000 to be filed shortly with the 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), WinFrame(R), ICA(R), MetaFrame(TM), NFuse(TM)and Digital Independence(TM)are registered trademarks or trademarks of Citrix Systems, Inc. in the U.S. and other countries. Solaris(TM)is a registered trademark of Sun Microsystems, Inc. in the United States and in other countries. Windows(R)is a registered trademark of Microsoft Corporation. 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 Three Months
                                           Ended      Ended
                                          March 31,  March 31,
                                            2000       1999
                                          -------------------
Net revenues                              $127,515   $ 85,039
Cost of goods sold                           5,129      4,522
                                          --------   --------
Gross margin                               122,386     80,517

Operating expenses:
     Research and development               12,112      8,406
     Sales, marketing and support           41,189     24,769
     General and administrative             12,655      6,410
     Amortization of intangibles             6,819      3,778
                                          --------   --------
Total operating expenses                    72,775     43,363

Operating income                            49,611     37,154
Other income, net                            5,453      3,109
                                          --------   --------
Income before income taxes                  55,064     40,263

Income taxes                                16,519     14,495
                                          --------   --------
Net income                                $ 38,545   $ 25,768
                                          ========   ========

Net income per share - diluted            $   0.19   $   0.14
                                          ========   ========
Weighted average shares outstanding        208,309    187,363
                                          ========   ========

Adjusted net income                       $ 43,937   $ 28,186
                                          ========   ========
Adjusted net income per share - diluted   $   0.21   $   0.15
                                          ========   ========

      Note: The above presentation of adjusted net income and adjusted
net income per share has been adjusted to exclude the effects of
amortization of intangible assets acquired from purchases, business
combinations, and licenses of $6,819 and $3,778 for the three months
ended March 31, 2000 and 1999, respectively. These intangible assets
primarily include goodwill and core technology.

                 Condensed Consolidated Balance Sheets
                      (In thousands - unaudited)

                                               March 31,  December 31,
                                                 2000         1999
                                             -----------------------
Cash and short-term investments              $  503,523   $  438,094
Accounts receivable, net                         82,974       55,327
Inventories                                      10,489        7,731
Other current assets                            125,567       69,092
                                             ----------   ----------
     Total current assets                       722,553      570,244

Property and equipment, net                      36,438       31,530

Long-term investments                           321,920      325,755
Intangible assets, net                           84,107       63,396
Other assets                                     40,791       46,932
                                             ----------   ----------
     Total assets                            $1,205,809   $1,037,857
                                             ==========   ==========

Current liabilities                          $  159,993   $  136,995
Other liabilities                               361,923      367,792
Stockholders' equity                            683,893      533,070
                                             ----------   ----------
Total liabilities and stockholders' equity   $1,205,809   $1,037,857
                                             ==========   ==========