Quarterly revenue of
GAAP diluted earnings per share of
Non-GAAP diluted earnings per share of
Deferred revenue of
Board of directors authorizes
FINANCIAL RESULTS
In the second quarter of fiscal 2012,
GAAP Results
Net income for the second quarter of fiscal 2012 was
Non-GAAP Results
Non-GAAP net income for the second quarter of fiscal 2012 was
"In Q2, we saw solid growth in an uncertain economic climate," said
"As the rapid transformation from PC Era to Cloud Era continues, we're delivering solutions that make it easy for customers to build new clouds, connect to cloud services, and empower their users to work from anywhere."
In addition to quarterly financial results,
Q2 Financial Summary
In reviewing the results from the second quarter of 2012, compared to the second quarter of 2011:
Bytemobile Acquisition
On
With the advent of the Cloud Era, mobile operators are experiencing
explosive growth in network traffic, driven by the combination of new
consumer devices, rich multimedia content, and high speed 3G, 4G and LTE
networks. By joining forces,
Financial Outlook for Third Quarter 2012
The above statements are based on current targets. These statements are forward-looking, and actual results may differ materially.
Financial Outlook for Fiscal Year 2012
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 2012,
Conference Call Information
The conference call may also be accessed by dialing: (888) 799-0519 or
(706) 634-0155, using passcode:
About
For
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®, NetScaler®, TriScale™, ShareFile™, Podio™, CloudGateway™, and
XenClient® are trademarks or registered trademarks of
|
Condensed Consolidated Statements of Income (In thousands, except per share data - unaudited) |
||||||||
|
Three Months Ended
|
Six Months Ended
June 30, |
|||||||
| 2012 | 2011 | 2012 | 2011 | |||||
| Revenues: | ||||||||
| Product and licenses |
|
|
|
|
||||
| Software as a service | 125,510 | 106,479 | 246,243 | 206,251 | ||||
| License updates and maintenance (a) | 272,537 | 231,682 | 537,062 | 453,061 | ||||
| Professional services (a) | 29,246 | 21,303 | 55,119 | 40,780 | ||||
| Total net revenues | 615,210 | 530,790 | 1,204,705 | 1,021,678 | ||||
| Cost of net revenues: | ||||||||
| Cost of product and licenses revenues | 20,854 | 18,448 | 39,658 | 32,489 | ||||
| Cost of services and maintenance revenues (b) | 56,404 | 40,843 | 107,408 | 74,080 | ||||
| Amortization of product related intangible assets | 17,100 | 12,542 | 33,635 | 25,241 | ||||
| Total cost of net revenues | 94,358 | 71,833 | 180,701 | 131,810 | ||||
| Gross margin | 520,852 | 458,957 | 1,024,004 | 889,868 | ||||
| Operating expenses: | ||||||||
| Research and development (b) | 110,028 | 91,374 | 213,650 | 181,922 | ||||
| Sales, marketing and services (b) | 262,139 | 211,396 | 510,596 | 416,940 | ||||
| General and administrative (b) | 61,299 | 56,660 | 121,155 | 107,063 | ||||
| Amortization of other intangible assets | 5,194 | 3,937 | 15,661 | 7,446 | ||||
| Restructuring | - | - | - | 24 | ||||
| Total operating expenses | 438,660 | 363,367 | 861,062 | 713,395 | ||||
| Income from operations | 82,192 | 95,590 | 162,942 | 176,473 | ||||
| Other income, net | 3,353 | 5,088 | 7,153 | 12,660 | ||||
| Income before income taxes | 85,545 | 100,678 | 170,095 | 189,133 | ||||
| Income tax (benefit) expense | (6,461) | 19,270 | 9,822 | 34,378 | ||||
| Net income | 92,006 | 81,408 | 160,273 | 154,755 | ||||
| Net loss attributable to non-controlling interest | - | 536 | - | 692 | ||||
|
Net income attributable to |
|
|
|
|
||||
| Earnings per common share — diluted |
|
|
|
|
||||
| Weighted average shares outstanding — diluted | 189,279 | 191,412 | 189,082 | 191,636 | ||||
Certain fiscal 2012 reclassifications have been reflected retroactively to provide comparability.
(a) During the first quarter of 2012,
Conforming changes related to (a) have been made for the prior period presented, as follows:
|
Three Months Ended
|
||||||||
| As Previously Reported | Amount Reclassified | As Reported Herein | ||||||
| Revenues: | Revenues: | |||||||
| License updates |
|
|
License updates and maintenance (2) |
|
||||
| Technical services (1) | 69,110 | (47,807) | Professional services (3) | 21,303 | ||||
| Total |
|
$ - | Total |
|
||||
|
Six Months Ended |
||||||||
| As Previously Reported | Amount Reclassified | As Reported Herein | ||||||
| Revenues: | Revenues: | |||||||
| License updates |
|
|
License updates and maintenance (2) |
|
||||
| Technical services (1) | 132,090 | (91,310) | Professional services (3) | 40,780 | ||||
| Total |
|
$ - | Total |
|
||||
(1) Technical services revenue was comprised of hardware maintenance, consulting services, product training and certification and technical support.
(2) License updates and maintenance is comprised of license updates, hardware and software maintenance and technical support.
(3) Professional services is comprised of consulting services and product training and certification.
(b) During the first quarter of 2012,
|
Three Months Ended
|
||||||||||
| As Previously Reported | Amount Reclassified | As Reported Herein | ||||||||
| Cost of services revenues |
|
|
Cost of services and maintenance revenues |
|
||||||
| Research and development | 83,312 | 8,062 | Research and development | 91,374 | ||||||
| Sales, marketing and services | 199,359 | 12,037 | Sales, marketing and services | 211,396 | ||||||
| General and administrative | 79,696 | (23,036) | General and administrative | 56,660 | ||||||
| Total |
|
$ - | Total |
|
||||||
|
Six Months Ended
|
||||||||||
| As Previously Reported | Amount Reclassified |
As Reported Herein |
||||||||
| Cost of services revenues |
|
|
Cost of services and maintenance revenues |
|
||||||
| Research and development | 166,030 | 15,892 | Research and development | 181,922 | ||||||
| Sales, marketing and services | 393,602 | 23,338 | Sales, marketing and services | 416,940 | ||||||
| General and administrative | 151,801 | (44,738) | General and administrative | 107,063 | ||||||
| Total |
|
$ - | Total |
|
||||||
|
Condensed Consolidated Balance Sheets (In thousands - unaudited) |
||||
|
|
|
|
||
| ASSETS: | ||||
| Cash and cash equivalents |
|
|
||
| Short-term investments | 335,944 | 406,461 | ||
| Accounts receivable, net | 404,212 | 484,431 | ||
| Other current assets, net | 173,680 | 148,842 | ||
| Total current assets | 1,875,676 | 1,373,030 | ||
| Long-term investments | 410,369 | 737,844 | ||
| Property and equipment, net | 283,535 | 277,429 | ||
| Goodwill and other intangible assets, net | 1,651,731 | 1,582,492 | ||
| Other long-term assets | 107,705 | 128,746 | ||
| Total assets |
|
|
||
| LIABILITIES AND STOCKHOLDERS' EQUITY: | ||||
| Accounts payable and accrued expenses |
|
|
||
| Current portion of deferred revenues | 846,172 | 818,642 | ||
| Total current liabilities | 1,134,153 | 1,179,130 | ||
| Long-term portion of deferred revenues | 182,191 | 141,241 | ||
| Other liabilities | 82,690 | 48,680 | ||
| Stockholders' equity | 2,929,982 | 2,730,490 | ||
| Total liabilities and stockholders' equity |
|
|
||
|
Condensed Consolidated Statement of Cash Flows (In thousands - unaudited) |
||||
|
Three Months Ended |
Six Months Ended |
|||
| OPERATING ACTIVITIES | ||||
| Net Income |
|
|
||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||
| Amortization and depreciation | 45,798 | 95,345 | ||
| Stock-based compensation expense | 38,262 | 68,819 | ||
| Provision for accounts receivable allowances | 3,332 | 6,823 | ||
| Other non-cash items | (2,042) | (6,149) | ||
| Total adjustments to reconcile net income to net cash | 85,350 | 164,838 | ||
| provided by operating activities | ||||
| Changes in operating assets and liabilities, net of the effects of acquisitions: | ||||
| Accounts receivable | (17,215) | 70,899 | ||
| Prepaid expenses and other current assets | (10,797) | (30,813) | ||
| Other assets | (3,350) | (814) | ||
| Deferred tax assets, net | (373) | 14,920 | ||
| Accounts payable and accrued expenses | (65,651) | (71,036) | ||
| Deferred revenues | 45,479 | 68,480 | ||
| Other liabilities | 42,295 | 34,067 | ||
| Total changes in operating assets and liabilities, net of the effects of acquisitions | (9,612) | 85,703 | ||
| Net cash provided by operating activities | 167,744 | 410,814 | ||
| INVESTING ACTIVITIES | ||||
| Proceeds from available-for-sale investments, net | 469,556 | 397,842 | ||
| Proceeds from sales of cost method investments | 916 | 6,475 | ||
| Purchases of property and equipment | (28,100) | (51,247) | ||
| Purchases of other assets | (835) | (2,547) | ||
| Cash paid for acquisitions, net of cash acquired | (58,345) | (82,378) | ||
| Cash paid for licensing and core technology | (11,939) | (12,000) | ||
| Net cash provided by investing activities | 371,253 | 256,145 | ||
| FINANCING ACTIVITIES | ||||
| Proceeds from issuance of common stock under stock-based compensation plans | ||||
| compensation plans | 31,229 | 61,489 | ||
| Repayment of acquired debt | (5,281) | (7,737) | ||
| Excess tax benefit from exercise of stock options | 9,382 | 23,979 | ||
| Stock repurchases, net | (960) | (115,058) | ||
| Other | 1,050 | 1,050 | ||
| Net cash provided by (used in) financing activities | 35,420 | (36,277) | ||
| Effect of exchange rate changes on cash and cash equivalents | (3,458) | (2,138) | ||
| Change in cash and cash equivalents | 570,959 | 628,544 | ||
| Cash and cash equivalents at beginning of period | 390,881 | 333,296 | ||
| Cash and cash equivalents at end of period |
|
|
||
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 acquired intangible assets, stock-based compensation expenses 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 business 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 acquisitions, 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.
These non-GAAP financial measures are not prepared in accordance with
accounting principles generally accepted in
|
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 |
||||
| 2012 | ||||
| GAAP operating margin | 13.4% | |||
| Add: stock-based compensation | 6.2% | |||
| Add: amortization of product related intangible assets | 2.8% | |||
| Add: amortization of other intangible assets | 0.8% | |||
| Non-GAAP operating margin | 23.2% | |||
|
|
||||
| Three Months Ended June 30, | ||||
| 2012 | 2011 | |||
| GAAP net income |
|
|
||
| Add: stock-based compensation | 38,262 | 20,753 | ||
| Add: amortization product related intangible assets | 17,100 | 12,542 | ||
| Add: amortization of other intangible assets | 5,194 | 3,937 | ||
| Less: tax effects related to above items | (17,505) | (10,821) | ||
| Non-GAAP net income |
|
|
||
|
|
Three Months Ended June 30, |
|||
| 2012 | 2011 | |||
| GAAP earnings per share — diluted |
|
|
||
| Add: stock-based compensation | 0.20 | 0.11 | ||
| Add: amortization of product related intangible assets | 0.09 | 0.07 | ||
| Add: amortization of other intangible assets | 0.03 | 0.02 | ||
| Less: tax effects related to above items | (0.10) | (0.06) | ||
| Non-GAAP earnings per share — diluted |
|
|
||
|
Forward Looking Guidance |
|||
|
For the Three Months Ended
|
For the Twelve Months Ended
|
||
|
|
December 31, |
||
| 2012 | 2012 | ||
| GAAP earnings per share - diluted |
|
|
|
| Add: adjustments to exclude the effects of amortization of intangible assets |
0.17 |
0.60 |
|
|
Add: adjustments to exclude the effects of expenses related to
stock-based compensation
Less: tax effects related to above items |
0.21 (0.08) to (0.12) |
0.80 (0.35) to (0.41) |
|
| Non-GAAP earnings per share - diluted |
|
|
|
or eric.armstrong@citrix.com
or
For
investor inquiries, contact:
eduardo.fleites@citrix.com
Source:
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