Exhibit 99.1
Citrix Reports Second Quarter Earnings Results
FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--July 26, 2005--Citrix
Systems, Inc. (Nasdaq:CTXS):
-- Year-over-year Quarterly Revenue Growth of 18%;
-- Diluted Earnings Per Share of $0.16, Including Tax Impact of
American Jobs Creation Act;
-- Adjusted Diluted Earnings Per Share of $0.27, an Increase of
35% Over Comparable Period Last Year
Citrix Systems, Inc. (Nasdaq:CTXS), the global leader in access
infrastructure solutions, today reported financial results for its
second quarter of fiscal 2005 ended June 30, 2005.
FINANCIAL RESULTS
GAAP Results
In the second quarter of fiscal 2005, Citrix achieved revenue of
$211.2 million, compared to $178.3 million in the second quarter of
fiscal 2004, representing 18 percent revenue growth.
Net income for the second quarter of fiscal 2005 was $27.9
million, or $0.16 per diluted share - which included a net tax
provision of approximately $16 million recorded in anticipation of
repatriating certain foreign earnings pursuant to the American Jobs
Creation Act of 2004 (AJCA) - compared to net income of $31.5 million,
or $0.18 per diluted share, for the second quarter of fiscal 2004.
Non-GAAP Results
Net income, adjusted to exclude the effects of amortization of
intangible assets, amortization of deferred stock-based compensation,
and the above mentioned net tax provision, was $47.8 million for the
second quarter of fiscal 2005, or $0.27 per diluted share, compared to
$35.4 million, or $0.20 per diluted share, in the comparable period
last year.
"Our second quarter results were excellent," said Mark Templeton,
president and chief executive officer for Citrix.
"We're showing continued momentum in our business with strong top
line and adjusted earnings growth, and another quarter of very solid
cash flow. Our business continued its product license and license
update growth while we built revenue streams from new products - with
strong performances from Citrix GoToMeeting and Citrix Access Gateway.
The traction in our new products makes us confident in our strategic
moves into adjacent access infrastructure markets.
"Our second quarter release of Access Suite 4.0 is getting
partners and customers excited, giving them compelling reasons for
adopting, expanding, or standardizing on Citrix.
"We kicked off the third quarter by launching Access Essentials,
our new product designed to bring secure, remote access to small
businesses, and by winning our second 'Global ISV of the Year Award'
from Microsoft.
"We head into the second half of the year executing well on our
strategy, and we look forward to the closing of the NetScaler
transaction to further enhance our market leadership and the
competitiveness of the Citrix Access Platform."
Q2 Financial Summary
In reviewing the second quarter results of 2005:
-- The Americas region grew revenue 10 percent; the EMEA region
grew 14 percent, and the Pacific region grew 12 percent,
compared to the second quarter of 2004.
-- Product license revenue increased 5 percent, compared to the
second quarter of 2004.
-- Revenue from license updates grew 20 percent, compared to the
second quarter of 2004.
-- Services revenue, which is comprised of consulting, education
and technical support, excluding Citrix Online, grew 14
percent, compared to the second quarter of 2004.
-- Citrix Online contributed $23.8 million of revenue, up 128
percent year over year on a GAAP basis and 77 percent when
considering purchase accounting adjustments.
-- Deferred revenue totaled $243 million, compared to $194
million in the second quarter of 2004.
-- Cash flow from operations was approximately $65 million,
compared to $45 million in the second quarter of 2004. This
brings total trailing twelve months cash flow to over $280
million.
Financial Outlook
Citrix management offers the following guidance for the third
quarter of 2005. This guidance includes the anticipated contribution
of the NetScaler acquisition, which is expected to close in the middle
of the third quarter of 2005.
-- Net revenue is expected to be in the range of $215 million to
$222 million.
-- Total adjusted operating expenses are expected to increase 5
percent to 7 percent sequentially.
-- GAAP diluted earnings per share is expected to be in the range
of $0.17 to $0.18, and diluted earnings per share adjusted to
exclude the effects of amortization of intangible assets,
amortization of deferred stock-based compensation, and the
write down of in-process research and development is expected
to be in the range of $0.24 to $0.25.
The above statements are based on current expectations. These
statements are forward-looking, and actual results may differ
materially.
Financial Outlook for Fiscal Year 2005
Citrix management offers the following guidance, which includes
the impact of the NetScaler acquisition, for the fiscal year 2005.
The company expects net revenue to be in the range of $865 million
to $880 million. The company expects GAAP diluted earnings per share
to be in the range of $0.78 to $0.81, and adjusted diluted earnings
per share to be in the range of $1.02 to $1.05. Adjusted diluted
earnings per share excludes the effects of amortization of intangible
assets, amortization of deferred stock-based compensation and the
write down of in-process research and development, and the tax
estimated tax provision related to the repatriation of foreign
earnings under the AJCA.
The above statements are based on current expectations. These
statements are forward-looking, and actual results may differ
materially.
Company, Product and Alliance Highlights
During the second quarter 2005, Citrix:
-- Launched the Citrix Access Suite(TM) 4.0 offering more than
50 new features and a new universal SSL VPN appliance for
unprecedented business performance, flexibility, and
compliance. During the quarter the company also shipped new
versions of the flagship Citrix Presentation Server(TM) 4.0,
Citrix Password Manager(TM) 4.0 and the Citrix Access
Gateway(TM) 4.0, a universal SSL VPN solution for both data
and voice applications from the recently acquired Gateways
division.
-- Announced the acquisition of NetScaler, which will further
expand the Citrix access platform and provide a range of
application networking solutions that speed up applications by
five times or more, and opens a new market for Citrix in
providing products that optimize Web applications.
-- Unveiled a new co-branded service with British Telecom to
provide BT's Business Broadband customers with fast, easy and
secure remote access to their home or office desktop PCs. The
service, BT Remote Access Pack, is powered by Citrix(R)
GoToMyPC(R) and targets the millions of UK residents who spend
part of their time teleworking from home.
-- Received four top awards for product excellence for its Citrix
GoToMyPC remote desktop access service. The awards, including
PC World 2005 World Class Award, PC Magazine Editors' Choice,
the SIIA Codie Award for Best Mobile Product or Service, and
MobilePC magazine's Mobile Choice Award, bring total awards
for excellence to 11 over a 12-month period.
Customer Highlights
Citrix closed several large customer sales during the quarter,
including Amadeus, BigBand Networks, Central DuPage Hospital, Hamilton
Health Sciences, and Postini.
Amadeus is a leading global distribution system (GDS) and
technology provider serving the marketing, sales and distribution
needs of the travel and tourism industries in over 210 worldwide
markets. Amadeus turned to Citrix Online for help defining its support
organization's access strategy, designed to improve customer service
without adding costs or additional support resources. Citrix(R)
GoToAssist(TM) allows Amadeus to meet its customer service objectives
by enabling more than 100 National Marketing Companies (NMCs) to
provide on-demand support to travel agencies and airline offices
around the globe.
BigBand Networks, a leading provider of platforms for broadband
multimedia services, has licensed 100 Citrix(R) GoToMeeting(TM) seats,
adding real-time collaboration capabilities to manage its growing,
global base of customers and its globally distributed organization.
With deployments on four continents providing live services to more
than 20 million digital television and broadband Internet subscribers,
BigBand Networks relies on GoToMeeting to facilitate a strong presence
in their multi-national markets while continuing to build a seamless
and integrated organization.
For more than 40 years Central DuPage Hospital has been the leader
in providing outstanding healthcare services to people who live and
work in Chicago's western suburbs. Recognizing the advantages of
deploying an Access Platform, the hospital chose the Citrix Access
Suite for IT centralization, employee cost control and PC maintenance.
Hamilton Health Sciences, one of Canada's largest multi-site
teaching hospitals, selected the Citrix Access Platform for
centralized application access and Citrix SmoothRoaming(TM)
capabilities for its staff. With 3,500 seats of Citrix Presentation
Server 3.0, the hospital has lowered its desktop costs and simplified
application management for business-critical software such as
Microsoft, Meditech and Peoplesoft. Once the roll-out is complete,
80 percent of all employees will use Citrix day-to-day for secure
application access anytime, anywhere.
Postini, the leading provider of e-mail security and management
solutions, selected the Citrix Access Gateway to improve its VPN
solution for secure remote access. Each week the company processes
more than three billion e-mail messages for more than 5,000 companies
around the globe - all while relying on a staff that works around the
clock. The Access Gateway's self-installing client reduced support
costs and provides an extra layer of security against threats by
hiding the IP addresses of the remote network. The benefits of the
Citrix Access Gateway have translated into better customer support and
increased customer satisfaction.
Conference Call Information
Citrix will host a conference call today at 4:45 p.m. ET 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: (706)
634-0155 or (888) 799-0519 using passcode: CITRIX. A replay of the
webcast can be viewed by visiting the Investor Relations section of
the Citrix corporate Web site at http://www.citrix.com/investors for
approximately thirty days. In addition, an audio replay of the
conference call will be available through July 29, 2005, by dialing
(800) 642-1687 or (706) 645-9291 (passcode required: 7442650).
About Citrix
Citrix Systems, Inc. (Nasdaq:CTXS) is the global leader in access
infrastructure and the most trusted name in secure access. More than
160,000 organizations around the world use the Citrix Access Platform
to provide secure, well-managed access to business information
wherever it lives - on demand. Citrix customers include 100% of the
Fortune 100 companies, 99% of the Fortune 500 and 97% of the Fortune
Global 500, as well as hundreds of thousands of smaller businesses and
individuals. Based in Fort Lauderdale, Florida, Citrix has offices in
22 countries and approximately 6,200 channel and alliance partners in
more than 100 countries. For more information visit
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 Financial
Outlook, and in the reconciliation of non-GAAP financial measures to
comparable U.S. GAAP measures concerning management's forecast of
revenues and earnings per share, statements regarding the NetScaler
acquisition, statements regarding existing and new products and
services, and 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 success
of the company's product lines; the company's product concentration
and its ability to develop and commercialize new products and
services; the possibility that acquisitions announced by the company
will not close; that the closing of any announced acquisitions may be
delayed; the success of investments in foreign operations and vertical
and geographic markets; the company's ability to successfully
integrate the operations and employees of acquired companies, and the
possible failure to achieve anticipated revenues and profits from
acquisitions; the company's ability to maintain and expand its core
business in large enterprise accounts; the company's ability to
attract and retain small sized customers; the size, timing and
recognition of revenue from significant orders; the effect of new
accounting pronouncements on revenue and expense recognition; 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 and the success of the company's marketing and
licensing programs, including the Advisor Rewards program; increased
competition; changes in the company's pricing policies or those of its
competitors; management of operations and operating expenses; charges
in the event of the impairment of assets acquired through business
combinations and licenses; the management of anticipated future growth
and the recruitment and retention of qualified employees; competition
and other risks associated with the market for our Web-based access,
training and customer assistance products; as well as risks of
downturns in economic conditions generally; political and social
turmoil; and the uncertainty in the IT spending environment; 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 our earnings release, conference call, slide presentation or
webcast, we 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 and
can be found on the Investor Relations page of the Citrix corporate
Web site at http://www.citrix.com/investors.
Citrix(R), Citrix Presentation Server(TM), Citrix Password
Manager(TM), Citrix Access Gateway(TM), Citrix Access Suite(TM),
Citrix SmoothRoaming(TM) and Citrix Access Essentials(TM) are
registered trademarks or trademarks of Citrix Systems, Inc. in the
U.S. and other countries. Citrix(R) GoToMyPC(R), Citrix(R)
GoToAssist(TM) and Citrix(R) GoToMeeting(TM) are trademarks or
registered trademarks of Citrix Online, LLC, in the United States 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 Six Months Ended
June 30, June 30,
2005 2004 2005 2004
--------- -------- --------- ---------
Revenues:
Product licenses $91,980 $87,716 $182,042 $175,142
License updates 80,455 66,981 157,630 125,878
Services 38,794 23,605 73,447 38,592
--------- -------- --------- ---------
Total net revenues 211,229 178,302 413,119 339,612
Cost of revenues:
Cost of product license
revenues 2,277 756 3,645 2,169
Cost of services revenues 5,395 4,169 9,910 6,992
Amortization of core and
product technology 3,693 3,598 7,011 6,632
--------- -------- --------- ---------
Total cost of
revenues 11,365 8,523 20,566 15,793
Gross margin 199,864 169,779 392,553 323,819
Operating expenses:
Research and development 26,402 22,173 51,467 41,211
Sales, marketing and
support 92,035 80,804 186,429 154,932
General and
administrative 30,056 27,837 57,364 52,588
Amortization of other
intangible assets 2,214 1,873 4,391 2,599
Amortization of deferred
stock-based compensation 94 - 197 -
In-process research and
development - - - 18,700
--------- -------- --------- ---------
Total operating
expenses 150,801 132,687 299,848 270,030
--------- -------- --------- ---------
Income from operations 49,063 37,092 92,705 53,789
Write-off of deferred debt
issuance costs - - - (7,219)
Other income, net 4,983 2,749 10,071 5,075
--------- -------- --------- ---------
Income before income taxes 54,046 39,841 102,776 51,645
Income taxes 26,160 8,366 36,330 10,845
--------- -------- --------- ---------
Net income $27,886 $31,475 $66,446 $40,800
========= ======== ========= =========
Earnings per share - diluted $0.16 $0.18 $0.38 $0.23
========= ======== ========= =========
Weighted average shares
outstanding - diluted 175,146 176,273 175,541 174,428
========= ======== ========= =========
Adjusted net income $47,753 $35,433 $89,819 $68,204
========= ======== ========= =========
Adjusted earnings per share -
diluted $0.27 $0.20 $0.51 $0.39
========= ======== ========= =========
Note: See accompanying reconciliation of non-GAAP financial measures
to comparable U.S. GAAP measures (unaudited).
CITRIX SYSTEMS, INC.
Condensed Consolidated Balance Sheets
(In thousands - unaudited)
June 30, December 31,
2005 2004
----------- ------------
ASSETS:
Cash and cash equivalents $207,673 $73,485
Short-term investments 183,278 159,656
Accounts receivable, net 98,861 108,399
Other current assets 75,643 85,040
----------- ------------
Total current assets 565,455 426,580
Restricted cash equivalents and investments 145,639 149,051
Long-term investments 148,265 183,974
Property and equipment, net 69,389 69,281
Goodwill and other intangible assets, net 439,153 448,624
Other long-term assets 15,834 8,574
----------- ------------
Total assets $1,383,735 $1,286,084
=========== ============
LIABILITIES AND
STOCKHOLDERS' EQUITY
Accounts payable and accrued expenses $150,120 $131,287
Current portion of deferred revenues 227,690 210,872
----------- ------------
Total current liabilities 377,810 342,159
Long-term portion of deferred revenues 14,981 14,271
Other liabilities 1,677 4,749
Stockholders' equity 989,267 924,905
----------- ------------
Total liabilities and stockholders'
equity $1,383,735 $1,286,084
=========== ============
CITRIX SYSTEMS, INC.
Condensed Consolidated Statement of Cash Flows
(In thousands - unaudited)
Six Months Ended
June 30, 2005
-----------------
OPERATING ACTIVITIES
Net Income $66,446
Adjustments to reconcile net income to net cash
provided by operating activities:
Amortization and depreciation 21,630
Amortization of deferred stock-based compensation 197
Provision for accounts receivable allowances 2,507
Tax benefit related to the exercise of
non-statutory stock options and disqualifying
dispositions of incentive stock options 13,868
Other non-cash items 158
-----------------
Total adjustments to reconcile net income
to net cash provided by operating
activities 38,360
Changes in operating assets and liabilities:
Accounts receivable 7,031
Prepaid expenses and other current assets (89)
Other assets (162)
Deferred tax assets, net (3,471)
Accounts payable and accrued expenses 15,786
Deferred revenues 17,528
Other liabilities (2,927)
-----------------
Total changes in operating assets and liabilities 33,696
-----------------
Net cash provided by operating activities 138,502
INVESTING ACTIVITIES
Net proceeds from sales, maturities and purchases of
available-for-sale investments 12,991
Purchases of property and equipment (12,040)
-----------------
Net cash provided by investing activities 951
FINANCING ACTIVITIES
Proceeds from issuance of common stock 36,316
Cash paid under stock repurchase programs (41,581)
-----------------
Net cash used in financing activities (5,265)
-----------------
Change in cash and cash equivalents 134,188
Cash and cash equivalents at beginning of period 73,485
-----------------
Cash and cash equivalents at end of period $207,673
=================
Reconciliation of Non-GAAP Financial Measures to Comparable U.S.
GAAP Measures
(Unaudited)
We utilize certain non-GAAP financial measures to evaluate our
performance. We consider these measures important indicators of our
success. In addition, Citrix provides these non-GAAP measures of the
company's performance to investors to enable them to, among other
things, better compare Citrix's most recent results of operations
against financial models prepared by the company's investors and
securities analysts, and to provide additional information concerning
the impact of business acquisitions on Citrix's results of operations.
These measures should not be considered an alternative to measurements
required by accounting principles generally accepted in the United
States ("GAAP") such as net income and earnings per share and should
not be considered measures of our liquidity. In addition, our non-GAAP
financial measures may not be comparable to similar measures reported
by other companies.
The following tables reconcile non-GAAP financial measures used in
this release to the most comparable GAAP measure for the respective
periods (in thousands, except for per share information and
percentages):
CITRIX SYSTEMS, INC.
RECONCILIATION OF CONDENSED CONSOLIDATED STATEMENTS OF INCOME
TO THE NON-GAAP CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data - unaudited)
Three Months Ended Three Months Ended
June 30, 2005 June 30, 2004
----------------------------- ------------------------
GAAP Adjust- Non-GAAP GAAP Adjust- Non-GAAP
ments ments
-------- ----------- -------- -------- -------- ------
Revenues:
Product
licenses $91,980 - $91,980 $87,716 - $87,716
License
updates 80,455 - 80,455 66,981 - 66,981
Services 38,794 - 38,794 23,605 - 23,605
-------- ------- -------- ------- ----- --------
Total net
revenues 211,229 - 211,229 178,302 - 178,302
Cost of revenues:
Cost of
product
license
revenues 2,277 - 2,277 756 - 756
Cost of
services
revenues 5,395 - 5,395 4,169 - 4,169
Amortization
of core and
product
technology 3,693 (3,693) A - 3,598 (3,598) A -
-------- ----------- -------- -------- -------- --------
Total
cost of
revenues 11,365 (3,693) 7,672 8,523 (3,598) 4,925
Gross margin 199,864 3,693 203,557 169,779 3,598 173,377
Operating expenses:
Research
and
development 26,402 - 26,402 22,173 - 22,173
Sales,
marketing
and support 92,035 - 92,035 80,804 - 80,804
General
and
admin-
istrative 30,056 - 30,056 27,837 - 27,837
Amortization
of other
intangible
assets 2,214 (2,214) A - 1,873 (1,873) A -
Amortization
of deferred
stock-based
compensation 94 (94) B - - - -
In-process
research
and
development - - - - - -
-------- ----------- -------- -------- -------- ------
Total
operating
expenses 150,801 (2,308) 148,493 132,687 (1,873) 130,814
-------- ----------- -------- -------- -------- ------
Income from
operations 49,063 6,001 55,064 37,092 5,471 42,563
Other income,
net 4,983 - 4,983 2,749 - 2,749
-------- ----------- -------- -------- -------- ------
Income before
income taxes 54,046 6,001 60,047 39,841 5,471 45,312
Income taxes 26,160 (13,866) C 12,294 8,366 1,513 A 9,879
-------- ----------- -------- -------- -------- ------
Net Income $27,886 $19,867 $47,753 $31,475 $3,958 $35,433
======== =========== ======== ======== ======== ======
Earnings per
common share -
diluted $0.16 $0.11 $0.27 $0.18 $0.02 $0.20
======== =========== ======== ======== ======== ======
Weighted
average
shares
outstanding -
diluted 175,146 175,146 176,273 176,273
======== =========== ======== ======== ======== ======
A - To exclude the non-cash effects of the amortization of core and
product technology and other intangible assets primarily related
to business combinations.
B - To exclude the effects of amortization of deferred stock-based
compensation.
C - To exclude the tax effects of amortization of core and product
technology and other intangible assets, the amortization of
deferred stock-based compensation and the estimated tax provision
related to the repatriation of foreign earnings under the AJCA.
CITRIX SYSTEMS, INC.
RECONCILIATION OF CONDENSED CONSOLIDATED STATEMENTS OF INCOME
TO THE NON-GAAP CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data - unaudited)
Six Months Ended Six Months Ended
June 30, 2005 June 30, 2004
----------------------------- ------------------------
GAAP Adjust- Non-GAAP GAAP Adjust- Non-GAAP
ments ments
-------- ----------- -------- -------- -------- ------
Revenues:
Product
licenses $182,042 - $182,042 $175,142 - $175,142
License
updates 157,630 - 157,630 125,878 - 125,878
Services 73,447 - 73,447 38,592 - 38,592
--------- -------- --------- -------- ------ ---------
Total net
revenues 413,119 - 413,119 339,612 - 339,612
Cost of
revenues:
Cost of
product
license
revenues 3,645 - 3,645 2,169 - 2,169
Cost of
services
revenues 9,910 - 9,910 6,992 - 6,992
Amorti-
zation of
core and
product
technology 7,011 (7,011) A - 6,632 (6,632) A -
--------- -------- --------- -------- ------ ---------
Total
cost of
revenues 20,566 (7,011) 13,555 15,793 (6,632) 9,161
Gross margin 392,553 7,011 399,564 323,819 6,632 330,451
Operating
expenses:
Research
and
develop-
ment 51,467 - 51,467 41,211 - 41,211
Sales,
marketing
and support 186,429 - 186,429 154,932 - 154,932
General
and
admin-
istrative 57,364 - 57,364 52,588 - 52,588
Amortization
of other
intangible
assets 4,391 (4,391) A - 2,599 (2,599) A -
Amorti-
zation of
deferred
stock-based
compensation 197 (197) B - - - -
In-process
research
and
development - - - 18,700 (18,700) C -
--------- -------- --------- -------- ------ ---------
Total
operating
expenses 299,848 (4,588) 295,260 270,030 (21,299) 248,731
--------- -------- --------- -------- ------ ---------
Income from
operations 92,705 11,599 104,304 53,789 27,931 81,720
Write-off of
deferred debt
issuance costs - - - (7,219) 7,219 D -
Other income,
net 10,071 - 10,071 5,075 - 5,075
--------- -------- --------- -------- ------ ---------
Income before
income taxes 102,776 11,599 114,375 51,645 35,150 86,795
Income taxes 36,330 (11,774) E 24,556 10,845 7,746 F 18,591
--------- -------- --------- -------- ------ ---------
Net Income $66,446 $23,373 $89,819 $40,800 $27,404 $68,204
========= ======== ========== ======== ======= =======
Earnings per
common share -
diluted $0.38 $0.13 $0.51 $0.23 $0.16 $0.39
========= ======== ========== ======== ======= =======
Weighted
average shares
outstanding -
diluted 175,541 175,541 174,428 174,428
========= ======== ========== ======== ======= =======
A - To exclude the non-cash effects of the amortization of core and
product technology and other intangible assets primarily related
to business combinations.
B - To exclude the effects of amortization of deferred stock-based
compensation.
C - To exclude the effects of the write-off of in-process research and
development.
D - To exclude the effects of the write-off of deferred debt
issuance costs due to the redemption of the company's convertible
subordinated debentures.
E - To exclude the tax effects of amortization of core and product
technology, the amortization of deferred stock-based compensation
and the estimated tax provision related to the repatriation of
foreign earnings under the AJCA.
F - To exclude the effects of amortization of core and product
technology and other intangible assets and the write-offs of
in-process research and development and deferred debt issuance
costs.
Forward-looking Guidance
for the Three Months Ended September 30, 2005
- ----------------------------------------------------------------------
Earnings Per Share
Range - Diluted
---------------------------
U.S. GAAP measure $0.17 to $0.18
Adjustments to exclude the effects of
amortization of intangible assets and
amortization of deferred stock-based
compensation and the write-off of in-
process research and development $0.07
---------------------------
Adjusted figures $0.24 to $0.25
===========================
Effective Tax Rate
U.S. GAAP measure 20% - 22%
Adjustments to exclude the effects of
amortization of intangible assets,
amortization of deferred stock-based
compensation and the write-off of in-
process research and development 1%
--------------------------
Adjusted figures 21% - 23%
==========================
Forward-looking Guidance
for Fiscal Year Ended December 31, 2005
- ---------------------------------------------------------------------
Earnings Per Share
Range - Diluted
---------------------------
U.S. GAAP measure $0.78 to $0.81
Adjustments to exclude the effects of
amortization of intangible assets,
amortization of deferred stock-based
compensation, the write down of in-
process research and development, and
the tax provision related to the
repatriation of foreign earnings
related to the AJCA $0.24
---------------------------
Adjusted figures $1.02 to $1.05
===========================
CONTACT: Citrix Systems, Inc., Fort Lauderdale
Media Inquiries:
Eric Armstrong, 954-267-2977
eric.armstrong@citrix.com
or
A&R Partners
Eric Jones, 212-905-6154
ejones@arpartners.com
or
Investor Inquiries:
Jeff Lilly, 954-267-2886
jeff.lilly@citrix.com