Citrix Systems Reports Results for Fourth Quarter and Year Ended December 31, 2001.

Business Editors/Technology Writers

FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--Jan. 23, 2002

Citrix Systems, Inc. (Nasdaq:CTXS):

-- Fourth quarter revenues total $158.0 million

-- Fourth quarter adjusted earnings per share of $0.21

Citrix Systems, Inc. (Nasdaq:CTXS) today reported results for the fourth quarter and fiscal year ended December 31, 2001.

FINANCIAL RESULTS

Net revenues for the fourth quarter ended December 31, 2001, were $158.0 million, up 28.1% from $123.4 million in the comparable period of the prior year. Net income was $25.6 million for the fourth quarter of 2001, or $0.13 per share, as compared to $19.4 million, or $0.10 per share, in the comparable period of the prior year. Net income, adjusted to exclude the effects of amortization of intangible assets relating to business combinations, was $39.4 million for the fourth quarter, or $0.21 per share, as compared to $31.7 million, or $0.16 per share, in the comparable period of the prior year, which also excludes the write-down of technology.

Net revenues for fiscal 2001 were $591.6 million, up 25.8% from $470.4 million for fiscal 2000. Net income for fiscal 2001 was $105.3 million, or $0.54 per share, as compared with net income of $94.5 million, or $0.47 per share, for fiscal 2000. Net income, adjusted to exclude the effects of write-offs for in-process research and development and amortization of intangible assets relating to business combinations, was $151.0 million, or $0.78 per share, for fiscal 2001, as compared to $123.9 million, or $0.62 per share, in the same period last year, which also excludes the write-down of technology.

"This quarter completes a tremendous year in which we demonstrated our resilience during challenging times in the marketplace and our ability to effectively meet customer needs related to information access," said Mark B. Templeton, Citrix president and chief executive officer. "While we remain cautious about the economic uncertainties that are beyond our control, we feel we have great momentum in our core business with strong adoption of our new MetaFrame XP software already accounting for two-thirds of MetaFrame product licensing. We also believe our positive performance in the quarter and the year positions us well for 2002, where we are focused on adding value on top of Microsoft's .NET server platform, launching our portal product codenamed 'South Beach,' and continuing to provide virtual workplace software and information access solutions for our customers that allow them to better manage computing costs and more easily extend the reach of their IT services."

FINANCIAL HIGHLIGHTS

-- The company reported comparable quarterly year-over-year

revenue growth of 28%.

-- International revenue was 49% for the quarter, compared to 42%

in the same quarter of the previous year.

-- Electronic delivery of licenses this quarter amounted to 28%

of product sales.

-- Operating margin, excluding the effect of amortization of

intangible assets relating to business combinations, was 31%

for the quarter.

-- Cash flow from operations was approximately $62.4 million for

the quarter.

-- The company repurchased approximately 2.6 million shares of

its common stock during the quarter.

-- Cash and investments totaled $746.7 million at the end of the

quarter.

CUSTOMER WINS

"Citrix continued its momentum in the international arena, where a majority of the larger deals during the quarter were done outside of the United States," commented John Burris, Citrix's senior vice president of worldwide sales and services. "The Citrix value proposition resonates extremely well, not just with our U.S. customers, but with organizations across the globe that are continually facing the challenges of managing information technology."

Significant customer agreements signed during the quarter included AT&T Wireless, the Bank of Nova Scotia, Care Tech Solutions, the Commonwealth Bank of Australia, Compagnie Generale de Eaux-Vivendi, Ericsson Global IT, France Telecom, New York State Electric & Gas Corp., Petroleo Brasileiro S/A (Petrobras), Telecomputing-Norway and Telefonica Moviles Espana.

"During the past quarter, our customers have been focused on business continuance and the ability to access their applications and information regardless of location," continued Burris. "As IT organizations move to a more centralized model of providing application and information access, Citrix is providing the framework to help them realize the virtual workplace."

PRODUCT ANNOUNCEMENTS

-- Feature Release 1 for the Citrix(R) MetaFrame XP(TM) family

for Microsoft(R) Windows(R), which further extends the

capabilities of virtual workplace solutions, was introduced

during the quarter. Feature Release 1 offers additional

features such as Secure Socket Layer (SSL) encryption, content

publishing, support for Computer Associates' Unicenter, auto

client reconnect, and the Citrix Web Console, all designed to

ease the administrative burden for Citrix administrators while

maintaining simple yet flexible information access any time,

anywhere, from any device.

-- Feature Release 1 for MetaFrame(R) for UNIX(R) Operating

Systems, which offers significant enhancements to performance,

usability and management capabilities, was introduced during

the quarter. New features include support for the latest

version of Citrix NFuse(TM) application portal software, SSL

encryption, and the latest compression and persistent caching

techniques, as well as the ability to connect to applications

using large resolutions and up to 16 million colors.

-- Citrix Secure Gateway (CSG), which offers simple and secure

delivery of applications and content over the Internet, is now

available to Subscription Advantage customers. CSG secures all

MetaFrame traffic traveling across the Internet via

industry-standard SSL encryption between MetaFrame clients and

servers. CSG makes firewall traversal easier, provides

heightened security, simplifies application deployment and

enables tight integration with MetaFrame and NFuse.

-- "Jardine", a new technology that adds enhanced portal access,

flexibility, manageability, and security for remote

connections to Windows XP Professional desktops, was

introduced as Citrix announced comprehensive support for

Microsoft's release of its Windows XP desktop operating

system.

STRATEGIC RELATIONSHIPS & ALLIANCES

-- Microsoft (Nasdaq:MSFT) joined the Citrix Business

Alliance(TM) at the highest level as a premier-plus member,

furthering the efforts of both companies to provide enhanced

application server computing solutions to customers.

-- Citrix announced an agreement with Computer Associates

(NYSE:CA) enabling organizations to leverage Citrix NFuse

software to more easily integrate Web-based and client/server

applications with Computer Associates' CleverPath Enterprise

Information Portal. Working in conjunction with Citrix

MetaFrame application server software, Citrix NFuse provides

organizations with greater manageability and lower costs

through centralized deployment and management of applications.

-- Citrix and Documentum (Nasdaq:DCTM) announced a multi-tiered

alliance that will bring content management functionality to

portal users across the enterprise. By using Documentum

eContent Services for Portals to expose content management

capabilities through the portal interface, portal users will

be able to manage business-critical content and participate in

business workflows.

-- Citrix and Business Objects (Nasdaq:BOBJ) announced an

expanded alliance offering Citrix portal software customers

plug-in access to Business Objects' business intelligence

solutions. This product will let users access, analyze, and

share business-critical information, all from a secure and

personalized portal -- ultimately enhancing their

relationships with customers, suppliers and partners.

-- Citrix and ScreamingMedia (Nasdaq:SCRM) announced a strategic

alliance providing Citrix portal software customers with a

wide range of customized content solutions for all enterprise

platforms -- from stock quotes and weather reports to local,

national, and international content.

-- Korea-based Cyberbank Corp. selected Citrix MetaFrame

application server software for use in its latest cutting-edge

mobile phone/palmtop device. The Citrix solution will allow

smooth and full-featured PC wireless application services to

be accessed and displayed on the device -- even at

transmission speeds as low as 10-20 kilobits per second.

COMPANY AWARDS AND OTHER HIGHLIGHTS

-- Citrix announced that 35 million users have adopted its

Independent Computing Architecture (ICA(R)). With over 148,000

companies using Citrix technology, nearly 9 million concurrent

user licenses are deployed worldwide, providing a proven

competitive advantage for organizations deploying Windows,

UNIX and Java(TM) applications across enterprise networks

regardless of user location, client hardware, or available

bandwidth.

-- Citrix and Compaq (NYSE:CPQ) announced record performance

benchmark test results for Citrix MetaFrame XP application

serving software running on industry-standard Compaq

Proliant(TM) servers and Microsoft Windows 2000 software.

Measurement of key user performance variables have

demonstrated that the solution is designed to scale to more

than 1,000 servers in a single server farm and to support more

than 100,000 concurrent users.

-- Citrix introduced the Application Computing Environment (ACE)

Cost Analyzer, a Web-based analysis tool that quantifies the

economic value of Citrix-based solutions. Available free at

http://acecostanalyzer.com/, the ACE Cost Analyzer assists

customers and prospects in evaluating the potential cost

savings associated with implementing a Citrix-based IT

solution.

ABOUT CITRIX

Citrix Systems, Inc. is a global leader in application serving and portal software and services that provide personalized access to any application or information source - whether Windows, UNIX or Web-based - through any device, over any connection. Companies worldwide use Citrix technologies to integrate applications, content and business processes into a pervasive digital environment - a virtual workplace - offering seamless connectivity and a consistent user experience across the Internet, intranets, extranets, WANs, LANs and wireless networks. Citrix solutions drive cost efficiency, productivity and enhanced e-business opportunities by enabling companies to leverage existing IT resources and extend personalized information access to employees, partners, customers and suppliers.

Citrix products offer rapid, cost-effective deployment and include MetaFrame application serving software, NFuse application portal software, XPS(TM) portal software, application management products, and Citrix Independent Computing Architecture (ICA), a core application serving technology. The company markets its application serving products through a reseller channel and sells its portal software products directly to customers to provide the level of customization they need. 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 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 following: the success of the company's MetaFrame and portal software product line and the acceptance of the company's ICA protocol; the company's ability to develop and commercialize new products and services; the company's success in expanding into new vertical or geographic markets; the company's ability to transition to an electronic licensing model; the company's ability to expand its core business in large enterprise accounts; the size, timing and recognition of revenue from significant orders; increased competition, including potential competition from Microsoft and other companies; the results of the company's iBusiness and other new licensing programs; 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; the costs of developing, acquiring, or integrating new technologies or enhancements to existing products; the risks associated with third party licensing arrangements; the company's ability to successfully integrate and manage merged or acquired companies; the company's reliance upon its strategic relationships with Microsoft and other strategic partners; management of growth; the possibility of undetected software errors; dependence on proprietary technology; changes in prevailing accounting policies; as well as risks of downturns in economic conditions generally, and in the software industry specifically, 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), ICA(R), MetaFrame(R), MetaFrame XP(TM), XPS(TM), NFuse(TM) and Citrix Business Alliance(TM) are registered trademarks or trademarks of Citrix Systems, Inc. in the U.S. and 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,
                             2001        2000      2001        2000
                            -------------------   --------------------

Revenues                    $148,040   $113,345   $551,799   $430,548
Other revenues                10,009     10,009     39,830     39,898
                            --------   --------   --------   --------
     Total net revenues      158,049    123,354    591,629    470,446

Cost of revenues               7,742      6,667     29,848     28,483
Cost of other revenues            --         --         --        571
                            --------   --------   --------   --------
     Total cost of
      revenues                 7,742      6,667     29,848     29,054
                            --------   --------   --------   --------
Gross margin                 150,307    116,687    561,781    441,392

Operating expenses:
 Research and development     16,476     13,677     67,699     50,622
 Sales, marketing and
  support                     58,790     49,771    224,108    180,384
 General and administrative   25,459     15,512     85,212     58,685
 Amortization of intangible
  assets                      15,403      7,844     48,831     30,395
 Write-down of technology         --      9,081         --      9,081
 In process R&D                   --         --      2,580         --
                            --------   --------   --------   --------
Total operating expenses     116,128     95,885    428,430    329,167

Income from operations        34,179     20,802    133,351    112,225
Other income, net              2,982      6,880     19,200     22,792
                            --------   --------   --------   --------
Income before income taxes    37,161     27,682    152,551    135,017

Income taxes                  11,520      8,305     47,291     40,505
                            --------   --------   --------   --------
Net income                  $ 25,641   $ 19,377   $105,260   $ 94,512
                            ========   ========   ========   ========

Earnings per share -
 diluted                    $   0.13   $   0.10   $   0.54   $   0.47
                            ========   ========   ========   ========
Weighted average shares
 outstanding - diluted       191,697    194,252    194,498    199,731
                            ========   ========   ========   ========

Adjusted net income         $ 39,423   $ 31,671   $151,046   $123,890
                            ========   ========   ========   ========
Adjusted earnings per
 share - diluted            $   0.21   $   0.16   $   0.78   $   0.62
                            ========   ========   ========   ========

Note: The above presentation of adjusted net income and adjusted earnings 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 twelve months ended December 31, 2001.

2) Amortization of intangible assets acquired from purchase business combinations and licenses of $15,403 and $7,844 for the three months ended December 31, 2001 and 2000, respectively, and $48,831 and $30,395 for the twelve months ended December 31, 2001 and 2000, respectively. These intangible assets primarily include goodwill and core technology.

3) The write-down of technology of $9,081 for the three and twelve months ended December 31, 2000.

                 Condensed Consolidated Balance Sheets
                      (In thousands - unaudited)

                                             December 31,  December 31,
                                                 2001         2000
                                             ------------  -----------

Cash and short-term investments                $  216,772   $  466,637
Accounts receivable, net                           65,032       37,299
Other current assets                               64,251       82,795
                                               ----------   ----------
     Total current assets                         346,055      586,731

Long-term investments                             529,894      382,524
Property and equipment, net                        90,110       55,559
Intangible assets, net                            188,977       52,339
Other assets                                       53,194       35,420
                                               ----------   ----------
     Total assets                              $1,208,230   $1,112,573
                                               ==========   ==========

Accounts Payable and accrued expenses          $  111,914   $   78,739
Current portion of deferred revenues               80,573       80,648
                                               ----------   ----------
     Total current liabilities                    192,487      159,387

Convertible subordinated debentures               346,214      330,497
Other long-term liabilities                         5,645       14,082
Put warrants                                       16,554       15,732
Stockholders' equity                              647,330      592,875
                                               ----------   ----------
Total liabilities and stockholders' equity     $1,208,230   $1,112,573
                                               ==========   ==========