Citrix Reports Second Quarter Financial Results
Quarterly Revenue of $531 Million up 16% Year-over-Year
Second Quarter GAAP Diluted Earnings Per Share of $0.43 up 70%
Year-over-Year
Second Quarter Non-GAAP Diluted Earnings Per Share of $0.57 up 38%
Year-over-Year
SANTA CLARA, Calif.--(BUSINESS WIRE)--
Citrix Systems, Inc. (NASDAQ:CTXS) today reported financial results for
the second quarter of fiscal 2011 ended June 30, 2011.
FINANCIAL RESULTS
In the second quarter of fiscal 2011, Citrix achieved revenue of $531
million, compared to $458 million in the second quarter of fiscal 2010,
representing 16 percent revenue growth.
GAAP Results
Net income for the second quarter of fiscal 2011 was $82 million, or
$0.43 per diluted share, compared to $48 million, or $0.25 per diluted
share, for the second quarter of 2010.
Non-GAAP Results
Non-GAAP net income in the second quarter of fiscal 2011 was $108
million, or $0.57 per diluted share, compared to $78 million, or $0.41
per diluted share, in the comparable period last year. Non-GAAP net
income for both periods excludes the effects of amortization of
intangible assets primarily related to business combinations,
stock-based compensation expenses and the tax effects related to those
items. In addition non-GAAP net income for the second quarter of fiscal
2010 excludes amounts recorded in connection with the restructuring
program that the company implemented in January 2009 and the related tax
effect.
"I'm pleased with the financial and strategic results for the quarter,"
said Mark Templeton, president and chief executive officer for Citrix.
"Demand for our virtualization, networking and cloud solutions continues
to be strong across the board, and the excitement I hear from customers
has never been higher."
"The transition from the PC Era to the Cloud Era is driving a rapid
transformation in computing that strongly favors agile players like
Citrix. Our passion is to make it easy for customers facing this
transition — helping them build new clouds, connect to cloud services,
and empower their users to work and play from anywhere."
Q2 Financial Summary
In reviewing the second quarter results of 2011, compared to the second
quarter of 2010:
-
Product license revenue increased 15 percent;
-
Revenue from license updates grew 9 percent;
-
Online services revenue grew 19 percent;
-
Technical services revenue, which is comprised of consulting,
education and technical support, grew 33 percent;
-
Revenue increased in the America's region by 16 percent, increased in
the EMEA region by 9 percent, and increased in the Pacific region by
31 percent;
-
Deferred revenue totaled $830 million, compared to $686 million as of
June 30, 2010;
-
GAAP operating margin was 18 percent for the quarter, and non-GAAP
operating margin was 25 percent for the quarter, excluding the effects
of amortization of intangible assets primarily related to business
combinations and stock-based compensation expenses;
-
Cash flow from operations was $162 million, compared with $103 million
in the second quarter of 2010; and
-
The company repurchased 1.2 million shares at an average price of
$82.74.
Cloud.com Acquisition
In July 2011, Citrix announced the acquisition of Cloud.com, a market
leading provider of software infrastructure platforms for cloud
providers. Cloud.com CloudStack™ product line helps providers of all
types deploy and manage simple, cost-effective cloud services that are
scalable, secure, and open by design. The financial outlook below
includes the impact of this acquisition.
Financial Outlook for Third Quarter 2011
Citrix management targets the following results during its third fiscal
quarter of 2011 ending September 30, 2011:
-
Revenue is targeted to be in the range of $540.0 million to $547.0
million.
-
GAAP diluted earnings per share is targeted to be in the range of
$0.39 to $0.41. This includes $0.02 of dilution related to the
acquisition of Cloud.com and an additional $0.01 of dilution related
to transaction and closing fees incurred. Excluded from the $0.02 of
dilution is amortization of intangible assets and stock-based
compensation expense. Non-GAAP diluted earnings per share is targeted
to be in the range of $0.56 to $0.58, excluding $0.10 related to the
effects of amortization of intangible assets primarily related to
business combinations, $0.14 related to the effects of stock-based
compensation expenses, and $(0.05) to $(0.09) for the tax effects
related to these items. Non-GAAP diluted earnings per share also
includes $0.02 of dilution related to the acquisition of Cloud.com and
an additional $0.01 of dilution related to transaction and closing
fees incurred.
-
GAAP tax rate is targeted to be in the range of 18% to 19%. Non-GAAP
tax rate, which excludes the effects of amortization of intangible
assets primarily related to business combinations and stock-based
compensation expense, is targeted to be in the range of 22% to 23%.
The above statements are based on current targets. These statements are
forward-looking, and actual results may differ materially.
Financial Outlook for Fiscal Year 2011
Citrix management targets to achieve the following results during fiscal
year 2011 ending December 31, 2011:
-
Revenue is targeted to be in the range of $2.16 billion to $2.19
billion.
-
GAAP diluted earnings per share is targeted to be in the range of
$1.80 to $1.84. This includes $0.04 of dilution related to the
acquisition of Cloud.com and an additional $0.01 of dilution related
to transaction and closing fees incurred. Excluded from the $0.04 of
dilution is amortization of intangible assets and stock-based
compensation expense. Non-GAAP diluted earnings per share is targeted
to be in the range of $2.38 to $2.41, excluding $0.35 related to the
effects of amortization of intangible assets primarily related to
business combinations, $0.48 related to the effects of stock-based
compensation expenses, and $(0.22) to $(0.29) for the tax effects
related to these items. Non-GAAP diluted earnings per share also
includes $0.04 of dilution related to the acquisition of Cloud.com and
an additional $0.01 of dilution related to transaction and closing
fees incurred.
The above statements are based on current targets. These statements are
forward-looking, and actual results may differ materially.
Company, Product and Alliance Highlights
During the second quarter of 2011, Citrix announced:
-
A new cloud infrastructure product, "Project
Olympus," which helps customers build infrastructure-as-a-service
clouds that are scalable, efficient and open by design because they
use the same OpenStack
project architecture, approach and technology that powers the
largest and most successful clouds in the world.
-
Two powerful new cloud networking products, NetScaler®
Cloud Gateway and NetScaler
Cloud Bridge, giving IT organizations an easy way to extend
enterprise datacenters and private clouds to a vast array of external
cloud services without compromising security, manageability or
performance.
-
Citrix
XenClient® 2, the second generation of its innovative bare-metal
client hypervisor developed in collaboration with Intel, which allows
centrally managed virtual
desktops to run directly on corporate laptops, even when they are
disconnected from the network.
-
A significant upgrade to its market-leading Citrix
HDX™ technology, enhancing performance, fidelity and bandwidth
efficiency for rich media services like video, audio and 3D graphics,
especially when delivered over wide area networks or from external
cloud environments.
-
Multiple updates to Citrix
Receiver™, the universal software client that allows companies to
deliver corporate apps, desktops and data to any device, whether
corporate or employee owned. Enhancements include verified support for
more than 1,000 different PC and Mac models, 149 different
smartphones, 37 tablets, 10 different classes of thin clients, and all
major device operating platforms, including new environments like iOS,
Android, webOS and Google ChromeOS.
-
Citrix
XenDesktop® 5 won the virtualization category in the Microsoft Best
of Tech•Ed 2011 awards program, based on its innovation, strategic
importance to the market, competitive advantage, and exceptional value
to customers.
-
The acquisition of Kaviza,
makers of the all-in-one "VDI-in-a-Box" solution for small and medium
business, adding a VDI-only solution to the Citrix portfolio that
complements the Citrix
XenDesktop product line for enterprise-class desktop
virtualization.
-
Citrix Branch
Repeater® 6, a wide-area network (WAN) optimization solution that
offers unique SmartAcceleration technology to transform WAN
optimization from a network-centric infrastructure to a
service-centric solution. As a result, branch office users can enjoy a
brilliantly fast experience for the increasing range of services
delivered from both public and private clouds, including virtual
desktops and apps, web and Windows apps, multi-media, voice, video and
more.
-
Citrix NetScaler®
SDX, a new virtualized networking platform designed from the
ground up to serve as a "service delivery fabric" for virtual
datacenters and clouds, enabling customers to run numerous virtualized
NetScaler instances on a single purpose-built physical appliance with
full multi-service, multi-tenant support. This provides a far richer
"service delivery" required by the adoption of cloud
computing and growing user demand for new services delivered to a
wide range of consumer devices.
Conference Call Information
Citrix will host a conference call today at 4:45 p.m. ET to discuss its
financial results, quarterly highlights and financial 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 section of the Citrix
corporate website at http://www.citrix.com/investors
for approximately 30 days. In addition, an audio replay of the
conference call will be available for approximately 15 days by dialing
(800) 642-1687 or (706) 645-9291 (passcode required: 78783890).
About Citrix
Citrix Systems (Nasdaq: CTXS) is a leading provider of virtual computing
solutions that help companies deliver IT as an on-demand service.
Founded in 1989, Citrix combines virtualization, networking, and cloud
computing technologies into a full portfolio of products that enable
virtual workstyles for users and virtual datacenters for IT. More than
230,000 organizations worldwide rely on Citrix to help them build
simpler and more cost-effective IT environments. Citrix partners with
more than 10,000 companies in more than 100 countries. Annual revenue in
2010 was $1.87 billion. For more information on Citrix, visit www.citrix.com.
For Citrix Investors
This release contains forward-looking statements which are made pursuant
to the safe harbor provisions of Section 27A of the Securities Act of
1933 and 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 Citrix's president and chief executive
officer, statements contained in the Financial Outlook for Third Quarter
2011 and Financial Outlook for Fiscal Year 2011 sections, under the
Non-GAAP Financial Measures Reconciliation section, and statements
regarding 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, including, without limitation, the impact of the global
economy and uncertainty in the IT spending environment, including
Citrix's European markets; the success and growth of the company's
product lines, including risks associated with successfully introducing
new products into Citrix's distribution channels, including XenDesktop;
the company's product concentration and its ability to develop and
commercialize new products and services, including XenDesktop and its
other virtualization offerings, while maintaining sales of its
established products, especially XenApp; disruptions due to changes in
key personnel and succession risks; seasonal fluctuations in the
company's business; failure to execute Citrix's sales and marketing
plans; failure to successfully partner with key distributors, resellers,
system integrators, OEM's and strategic partners and the company's
reliance on and the success of those partners for the marketing and
distribution of the company's products; the company's ability to
maintain and expand its business in small sized and large enterprise
accounts; the size, timing and recognition of revenue from significant
orders; the success of investments in its product groups, foreign
operations and vertical and geographic markets; Citrix's ability to
develop server, application and desktop virtualization products, and
jointly market those products with Microsoft; the introduction of new
products by competitors or the entry of new competitors into the markets
for Citrix's products as the enterprise software landscape evolves; the
ability of Citrix to make suitable acquisitions on favorable terms in
the future and to successfully integrate those acquisitions; failure to
further develop and successfully market the technology and products of
acquired companies, including the possible failure to achieve or
maintain anticipated revenues and operating performance contributions
from acquisitions, including from Cloud.com; the management of
anticipated future growth; the recruitment and retention of qualified
employees, including those of acquired companies; risks in effectively
controlling operating expenses, including failure to manage untargeted
expenses; the effect of new accounting pronouncements on revenue and
expense recognition; litigation and disputes, including challenges to
our intellectual property rights or allegations of infringement of the
intellectual property rights of others; the inability to further
innovate our technology or enter into new businesses due to the
intellectual property rights of others; changes in the company's pricing
and licensing models, promotional programs and product mix, all of which
may impact Citrix's revenue recognition, including with respect to
XenDesktop and SaaS business models, or those of its competitors;
charges in the event of the impairment of assets acquired through
business combinations, investments or licenses; competition,
international market readiness, execution and other risks associated
with the markets for Citrix's products and services; unanticipated
changes in tax rates or exposure to additional tax liabilities; risks of
political and social turmoil; 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.
Use of Non-GAAP Financial Measures
In Citrix's earnings release, conference call, slide presentation or
webcast, Citrix may use or discuss non-GAAP financial measures as
defined by SEC Regulation G. The GAAP financial measure most directly
comparable to each non-GAAP financial measure used or discussed 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 consolidated financial statement or
can be found on the Investor Relations page of the Citrix corporate Web
site at http://www.citrix.com/investors.
Citrix®, CloudStack™, NetScaler®, XenClient®, HDX™, Receiver™,
XenDesktop®, Repeater® are trademarks or registered trademarks of Citrix
Systems, Inc. and/or one or more of its subsidiaries, and may be
registered in the U.S. Patent and Trademark Office and in other
countries. Xen® is a trademark of Citrix Systems, Inc. managed on behalf
of Xen.org, and may be registered in the U.S. Patent and Trademark
Office and in other countries. All other trademarks and registered
trademarks are property of their respective owners.
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CITRIX SYSTEMS, INC.
Condensed Consolidated Statements of Income
(In thousands, except per share data - unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
Product licenses
|
|
$171,326
|
|
$148,733
|
|
$321,586
|
|
$271,439
|
|
License updates
|
|
183,875
|
|
168,601
|
|
361,751
|
|
331,556
|
|
Online services
|
|
106,479
|
|
89,211
|
|
206,251
|
|
174,161
|
|
Technical services
|
|
69,110
|
|
51,888
|
|
132,090
|
|
95,549
|
|
Total net revenues
|
|
530,790
|
|
458,433
|
|
1,021,678
|
|
872,705
|
|
|
|
|
|
|
|
|
|
|
|
Cost of net revenues:
|
|
|
|
|
|
|
|
|
|
Cost of product license revenues
|
|
18,448
|
|
15,149
|
|
32,489
|
|
27,800
|
|
Cost of services revenues
|
|
37,906
|
|
25,989
|
|
68,572
|
|
49,679
|
|
Amortization of product related intangible assets
|
|
12,542
|
|
12,417
|
|
25,241
|
|
24,775
|
|
Total cost of net revenues
|
|
68,896
|
|
53,555
|
|
126,302
|
|
102,254
|
|
Gross margin
|
|
461,894
|
|
404,878
|
|
895,376
|
|
770,451
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
83,312
|
|
79,543
|
|
166,030
|
|
157,245
|
|
Sales, marketing and services
|
|
199,359
|
|
186,601
|
|
393,602
|
|
357,121
|
|
General and administrative
|
|
79,696
|
|
60,805
|
|
151,801
|
|
121,424
|
|
Amortization of other intangible assets
|
|
3,937
|
|
3,776
|
|
7,446
|
|
7,933
|
|
Restructuring
|
|
-
|
|
335
|
|
24
|
|
835
|
|
Total operating expenses
|
|
366,304
|
|
331,060
|
|
718,903
|
|
644,558
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations
|
|
95,590
|
|
73,818
|
|
176,473
|
|
125,893
|
|
|
|
|
|
|
|
|
|
|
|
Other income, net
|
|
5,088
|
|
875
|
|
12,660
|
|
4,808
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|
Income before income taxes
|
|
100,678
|
|
74,693
|
|
189,133
|
|
130,701
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes
|
|
19,270
|
|
27,136
|
|
34,378
|
|
35,795
|
|
Net income
|
|
81,408
|
|
47,557
|
|
154,755
|
|
94,906
|
|
Net loss attributable to non-controlling interest
|
|
536
|
|
-
|
|
692
|
|
-
|
|
Net income attributable to Citrix Systems, Inc.
|
|
$81,944
|
|
$47,557
|
|
$155,447
|
|
$94,906
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|
|
|
|
|
|
|
|
|
|
|
Net income per common share — diluted
|
|
$0.43
|
|
$0.25
|
|
$0.81
|
|
$0.50
|
|
Weighted average shares outstanding — diluted
|
|
191,412
|
|
189,278
|
|
191,636
|
|
189,126
|
|
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|
|
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|
|
|
|
|
|
|
CITRIX SYSTEMS, INC.
Condensed Consolidated Balance Sheets
(In thousands - unaudited)
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|
|
June 30, 2011
|
|
December 31, 2010
|
|
ASSETS:
|
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|
|
|
|
Cash and cash equivalents
|
|
$430,816
|
|
$396,162
|
|
Short-term investments
|
|
467,605
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|
497,643
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|
Accounts receivable, net
|
|
338,734
|
|
378,395
|
|
Other current assets, net
|
|
215,401
|
|
198,279
|
|
Total current assets
|
|
1,452,556
|
|
1,470,479
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|
|
|
|
|
|
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Long-term investments
|
|
800,649
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|
791,854
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|
Property and equipment, net
|
|
272,685
|
|
250,482
|
|
Goodwill and other intangible assets, net
|
|
1,231,362
|
|
1,099,244
|
|
Other long-term assets
|
|
112,437
|
|
91,541
|
|
Total assets
|
|
$3,869,689
|
|
$3,703,600
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LIABILITIES AND STOCKHOLDERS' EQUITY:
|
|
|
|
|
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Accounts payable and accrued expenses
|
|
$326,678
|
|
$355,680
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|
Current portion of deferred revenues
|
|
711,627
|
|
664,332
|
|
Total current liabilities
|
|
1,038,305
|
|
1,020,012
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|
|
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|
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|
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Long-term portion of deferred revenues
|
|
118,178
|
|
114,638
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Other liabilities
|
|
49,717
|
|
8,362
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|
|
|
|
|
|
Stockholders' equity
|
|
2,663,489
|
|
2,560,588
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|
Total liabilities and stockholders' equity
|
|
$3,869,689
|
|
$3,703,600
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|
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CITRIX SYSTEMS, INC.
Condensed Consolidated Statement of Cash Flows
(In thousands - unaudited)
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|
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Three Months
Ended
June 30, 2011
|
|
Six Months
Ended
June 30, 2011
|
|
OPERATING ACTIVITIES
|
|
$81,408
|
|
$154,755
|
|
Net Income
|
|
|
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
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Amortization and depreciation
|
|
36,856
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72,705
|
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Stock-based compensation expense
|
|
20,753
|
|
38,637
|
|
Provision for accounts receivable allowances
|
|
924
|
|
1,553
|
|
Other non-cash items
|
|
2,039
|
|
650
|
|
Total adjustments to reconcile net income to net cash Activities
provided by operating activities
|
|
60,572
|
|
113,545
|
|
Changes in operating assets and liabilities, net of the effects of
acquisitions:
|
|
|
|
|
|
Accounts receivable
|
|
(41,217)
|
|
44,405
|
|
Prepaid expenses and other current assets
|
|
(12,932)
|
|
(19,991)
|
|
Other assets
|
|
1,383
|
|
497
|
|
Deferred tax assets, net
|
|
1,160
|
|
(13,036)
|
|
Accounts payable and accrued expenses
|
|
29,166
|
|
(34,049)
|
|
Deferred revenues
|
|
41,048
|
|
43,288
|
|
Other liabilities
|
|
1,302
|
|
32,111
|
|
Total changes in operating assets and liabilities, net of the
effects of acquisitions
|
|
19,910
|
|
53,225
|
|
Net cash provided by operating activities
|
|
161,890
|
|
321,525
|
|
|
|
|
|
|
|
INVESTING ACTIVITIES
|
|
|
|
|
|
(Purchases of) proceeds from available-for-sale investments, net
|
|
(143,139)
|
|
23,384
|
|
Purchases of property and equipment
|
|
(32,611)
|
|
(59,456)
|
|
Purchases of other assets
|
|
(5,963)
|
|
(8,222)
|
|
Cash paid for acquisitions, net of cash acquired
|
|
-
|
|
(118,440)
|
|
Cash paid for licensing and core technology
|
|
(5,965)
|
|
(7,487)
|
|
Net cash used in investing activities
|
|
(187,678)
|
|
(170,221)
|
|
|
|
|
|
|
|
FINANCING ACTIVITIES
|
|
|
|
|
|
Proceeds from issuance of common stock under stock-based
compensation plans
|
|
42,789
|
|
85,126
|
|
Payment on debt from acquisition
|
|
-
|
|
(10,926)
|
|
Excess tax benefit from exercise of stock options
|
|
21,767
|
|
37,269
|
|
Stock repurchases, net
|
|
(103,216)
|
|
(211,967)
|
|
Cash paid for non-controlling interest
|
|
(20,207)
|
|
(20,207)
|
|
Net cash used in financing activities
|
|
(58,867)
|
|
(120,705)
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
131
|
|
4,055
|
|
Change in cash and cash equivalents
|
|
(84,524)
|
|
34,654
|
|
Cash and cash equivalents at beginning of period
|
|
515,340
|
|
396,162
|
|
Cash and cash equivalents at end of period
|
|
$430,816
|
|
$430,816
|
|
|
|
|
|
|
Reconciliation of Non-GAAP Financial Measures to Comparable U.S. GAAP
Measures
(Unaudited)
Pursuant to the requirements of Regulation G, the Company has provided a
reconciliation of each non-GAAP financial measure used in this earnings
release and related conference call, slide presentation or webcast to
the most directly comparable GAAP financial measure. These measures
differ from GAAP in that they exclude amortization primarily related to
business combinations, stock-based compensation expenses, charges
associated with the Company's 2009 restructuring program and the related
tax effect of those items. The Company's basis for these adjustments is
described below.
Management uses these non-GAAP measures for internal reporting and
forecasting purposes, when publicly providing its financial outlook, to
evaluate the Company's performance and to evaluate and compensate the
Company's executives. The Company has provided these non-GAAP financial
measures in addition to GAAP financial results because it believes that
these non-GAAP financial measures provide useful information to certain
investors and financial analysts for comparison across accounting
periods not influenced by certain non-cash items that are not used by
management when evaluating the Company's historical and prospective
financial performance. In addition, the Company has historically
provided this or similar information and understands that some investors
and financial analysts find this information helpful in analyzing the
Company's operating margins, operating expenses and net income and
comparing the Company's financial performance to that of its peer
companies and competitors.
Management typically excludes the amounts described above when
evaluating the Company's operating performance and believes that the
resulting non-GAAP measures are useful to investors and financial
analysts in assessing the Company's operating performance due to the
following factors:
-
The Company does not acquire businesses on a predictable cycle. The
Company, therefore, believes that the presentation of non-GAAP
measures that adjust for the impact of amortization and certain
stock-based compensation expenses and the related tax effects that are
primarily related to business combinations, provide investors and
financial analysts with a consistent basis for comparison across
accounting periods and, therefore, are useful to investors and
financial analysts in helping them to better understand the Company's
operating results and underlying operational trends.
-
Amortization costs and the related tax effects are fixed at the time
of an acquisition, are then amortized over a period of several years
after the acquisition and generally cannot be changed or influenced by
management after the acquisition.
-
Although stock-based compensation is an important aspect of the
compensation of the Company's employees and executives, stock-based
compensation expense is generally fixed at the time of grant, then
amortized over a period of several years after the grant of the
stock-based instrument, and generally cannot be changed or influenced
by management after the grant.
-
The charges incurred in conjunction with the Company's 2009
restructuring program, which relate to reductions in headcount and
exit costs associated with consolidating certain facilities, are not
ongoing costs and, thus, are outside of the normal operations of the
Company's business. The Company, therefore, believes that the
exclusion of these charges will better help investors and financial
analysts understand the Company's operating results and underlying
operational trends as compared to prior periods.
These non-GAAP financial measures are not prepared in accordance with
accounting principles generally accepted in the United States ("GAAP")
and may differ from the non-GAAP information used by other companies.
There are significant limitations associated with the use of non-GAAP
financial measures. The additional non-GAAP financial information
presented here should be considered in conjunction with, and not as a
substitute for or superior to, the financial information presented in
accordance with GAAP (such as net income and earnings per share) and
should not be considered measures of the Company's liquidity.
Furthermore, the Company in the future may exclude amortization
primarily related to new business combinations, additional charges
related to its restructuring program and the related tax effects from
financial measures that it releases, and the Company will continue to
incur stock-based compensation expenses.
|
|
|
|
|
CITRIX SYSTEMS, INC.
Non-GAAP Financial Measures Reconciliation
(In thousands, except per share and operating margin data -
unaudited)
|
|
|
|
|
|
The following tables show the non-GAAP financial measures used in
this press release reconciled to the most directly comparable GAAP
financial measures.
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
|
|
2011
|
|
2010
|
|
GAAP operating margin
|
|
18.0%
|
|
16.1%
|
|
Add: stock-based compensation
|
|
3.9%
|
|
6.2%
|
|
Add: amortization of product related
|
|
|
|
|
|
intangible assets
|
|
2.4%
|
|
2.7%
|
|
Add: amortization of other intangible assets
|
|
0.7%
|
|
0.8%
|
|
Add: restructuring charges
|
|
0.0%
|
|
0.1%
|
|
Non-GAAP operating margin
|
|
25.0%
|
|
25.9%
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
|
|
2011
|
|
2010
|
|
GAAP net income
|
|
$81,944
|
|
$47,557
|
|
Add: stock-based compensation
|
|
20,753
|
|
28,146
|
|
Add: amortization product related intangible
|
|
|
|
|
|
assets
|
|
12,542
|
|
12,417
|
|
Add: amortization of other intangible assets
|
|
3,937
|
|
3,776
|
|
Add: restructuring charges
|
|
-
|
|
335
|
|
Less: tax effects related to above items
|
|
(10,821)
|
|
(14,417)
|
|
Non-GAAP net income
|
|
$108,355
|
|
$77,814
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
|
|
2011
|
|
2010
|
|
GAAP earnings per share — diluted
|
|
$0.43
|
|
$0.25
|
|
Add: stock-based compensation
|
|
0.11
|
|
0.15
|
|
Add: amortization of product related
|
|
|
|
|
|
intangible assets
|
|
0.07
|
|
0.07
|
|
Add: amortization of other intangible assets
|
|
0.02
|
|
0.02
|
|
Add: restructuring charges
|
|
-
|
|
-
|
|
Less: tax effects related to above items
|
|
(0.06)
|
|
(0.08)
|
|
Non-GAAP earnings per share — diluted
|
|
$0.57
|
|
$0.41
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CITRIX SYSTEMS, INC.
Forward Looking Guidance
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
September 30,
|
|
For the Twelve Months Ended
December 31,
|
|
|
|
2011
|
|
2011
|
|
GAAP earnings per share - diluted
|
|
$0.39 to $0.41
|
|
$1. 80 to $1.84
|
|
Add: Adjustments to exclude the effects of amortization
|
|
|
|
|
|
of intangible assets
|
|
0.10
|
|
0.35
|
|
Add: Adjustments to exclude the effects of expenses
|
|
|
|
|
|
related to stock-based compensation
|
|
0.14
|
|
0.48
|
|
Less: Tax effects related to above items
|
|
(0.05) to (0.09)
|
|
(0.22) to (0.29)
|
|
Non-GAAP earnings per share - diluted
|
|
$0.56 to $0.58
|
|
$2.38 to $2.41
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
2011
|
|
GAAP tax rate
|
|
18.0% to 19.0%
|
|
Add: tax effects of stock-based compensation
and amortization
of intangible assets
|
|
4.0%
|
|
Non-GAAP tax rate
|
|
22.0% to 23.0%
|
Citrix Systems, Inc.
For media inquiries, contact:
Eric
Armstrong, 954-267-2977
eric.armstrong@citrix.com
or
For
investor inquiries, contact:
Eduardo Fleites, 954-229-5758
eduardo.fleites@citrix.com
Source: Citrix Systems, Inc.
News Provided by Acquire Media
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