Exhibit 99.1
Citrix Reports Fourth Quarter and Fiscal Year 2006 Results
Year-over-year Quarterly Revenue Growth of 19% Annual Revenue
Growth of 25%
FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--Jan. 23, 2007--Citrix
Systems, Inc. (Nasdaq:CTXS), the global leader in application delivery
infrastructure, today reported preliminary financial results for the
fourth quarter and fiscal year ended December 31, 2006.
Preliminary Financial Results
In the fourth quarter of fiscal 2006, Citrix achieved revenue of
$321 million, compared to $269 million in the fourth quarter of fiscal
2005, representing 19 percent revenue growth. Annual revenues for 2006
were $1.134 billion, compared to $909 million in the previous year, a
25 percent increase.
GAAP Results
Net income for the fourth quarter of fiscal 2006 was $59 million,
or $0.32 per diluted share, flat compared to the fourth quarter of
fiscal 2005. Annual net income for 2006 was $196 million, or $1.05 per
diluted share, compared to $166 million, or $0.93 per diluted share in
fiscal 2005.
Non-GAAP Results
Non-GAAP net income, in the fourth quarter of 2006 increased by
nine percent to $73 million, or $0.39 per diluted share, compared to
$67 million, or $0.36 per diluted share, in the comparable period last
year. Non-GAAP net income 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.
Annual non-GAAP net income for 2006 was $262 million, or $1.40 per
diluted share, compared to $209 million, or $1.17 per diluted share,
in 2005. Non-GAAP net income excludes the effects of amortization of
intangible assets primarily related to business combinations,
stock-based compensation expenses, the write-off of in-process
research and development (IPR&D) and the tax effects related to those
items. In addition, in 2005 non-GAAP net income also excludes the tax
provision related to the repatriation of foreign earnings under the
American Jobs Creation Act (AJCA).
"A strong finish to another very strong year of growth," said Mark
Templeton, Citrix president and chief executive officer. "We've built
excellent momentum in each of our businesses, and I believe we're
entering 2007 with the best product pipeline, channel partnerships,
and brand strength we've ever had. We're well-positioned for continued
growth as we lead the formation of the application delivery market."
Stock Option Review
During the quarter, the Audit Committee of the company's Board of
Directors began a voluntary review of the company's historical stock
option granting practices and the related accounting. This voluntary
review was initiated in light of news about the option practices of
numerous companies across several industries and not in response to
any governmental investigation, whistleblower complaint or inquiries
from media organizations. The Audit Committee has engaged independent
outside legal counsel to conduct the review.
Because this review is ongoing, the company has not yet determined
if it will need to record any non-cash adjustments to compensation
expense related to prior stock option grants, making today's results
preliminary. Specifically, the company does not know whether any such
non-cash compensation charges would affect the preliminary financial
results for the fourth quarter ended December 31, 2006 or the full
year 2006 being announced today, or would be deemed material and
require the company to restate previously issued financial statements
or would require an adjustment to the retained earnings balance on the
company's balance sheet. If any such charges are required, Citrix will
also need to determine the impact of this matter on its system of
internal controls.
Q4 Financial Highlights
In reviewing the fourth quarter preliminary results of 2006,
compared to the fourth quarter of 2005:
-- Revenue grew in the America's region by 20 percent; the EMEA
region by eight percent, and the Pacific region by 33 percent;
-- Product license revenue increased 10 percent;
-- Online services contributed $43 million of revenue, up 50
percent;
-- Revenue from license updates grew 23 percent; and,
-- Technical services revenue, which is comprised of consulting,
education and technical support, grew 23 percent;
-- Deferred revenue totaled $356 million, compared to $286
million at December 31, 2005;
-- Operating margin was 20 percent for the quarter; non-GAAP
operating margin was 27 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 over $97 million, compared to
$79 million in the fourth quarter of 2005;
-- In its stock repurchase activity, the company received 3.6
million shares of its common stock at an average net price per
share of $29.63 for a total value of approximately $107
million. The company has over $290 million remaining under the
current repurchase authorization.
Annual Financial Highlights
-- Total annual revenue grew 25 percent compared to fiscal 2005.
-- Annual diluted earnings per share for fiscal 2006 increased 12
percent compared to fiscal 2005. Annual non-GAAP diluted
earnings per share for fiscal 2006 increased 19 percent
compared to fiscal 2005. Annual non-GAAP diluted earnings per
share excludes the effects of amortization of intangible
assets primarily related to business combinations, the
write-off of IPR&D, stock-based compensation expenses and the
tax effects related to those items. In addition, non-GAAP
diluted earnings per share for 2005 excludes the tax provision
related to the repatriation of foreign earnings under the
AJCA.
-- Operating margin was 19 percent for fiscal 2006; non-GAAP
operating margin was 27 percent, excluding the items, except
for tax effects, noted above.
-- Cash flow from operations was $323 million for fiscal 2006
compared with $293 million last year.
-- During fiscal 2006, the company received 9.5 million shares at
an average net price per share of $30.77 for a total value of
approximately $292 million.
Financial Outlook for First Quarter 2007
Citrix management expects to achieve the following results during
its first fiscal quarter 2007 ending March 31, 2007:
-- Net revenue is expected to be in the range of $298 million to
$308 million, compared to $260 million in the first quarter of
2006.
-- GAAP diluted earnings per share is expected to be in the range
of $0.24 to $0.25. Non-GAAP diluted earnings per share is
expected to be in the range of $0.34 to $0.35, excluding $0.04
related to the effects of amortization of intangible assets
primarily related to business combinations and the write-off
of IPR&D and $0.05 to $0.06 related to the effects of
stock-based compensation expenses.
The above statements are based on current expectations. These
statements are forward-looking, and actual results may differ
materially.
Financial Outlook for Fiscal Year 2007
Citrix management expects to achieve the following results for the
fiscal year 2007:
The company expects net revenue to be in the range of $1.290
billion to $1.310 billion. The company expects GAAP diluted earnings
per share to be in the range of $1.14 to $1.19. Non-GAAP diluted
earnings per share to be in the range of $1.51 to $1.54, excluding
$0.15 related to the effects of the amortization of intangible assets
and the write-off of in-process research and development primarily
related to business combinations and $0.20 to $0.22 related to the
effects of stock-based compensation expenses.
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 fourth quarter of 2006, Citrix announced:
-- The acquisition of privately held Ardence, Inc. of Waltham,
MA, extending Citrix's end-to-end application delivery
infrastructure leadership by enabling the real-time, on demand
provisioning of desktops, server images and service oriented
architecture objects for improved IT agility; increased
security and new options for how businesses deliver
applications and desktops over the network to users.
-- Citrix(R) NetScaler(R) continued to grow its market share in
the $900M Application Delivery Controller (ADC) market
according to a December 2006 report from Gartner, Inc. titled,
"Market Share: Application Acceleration Equipment, Worldwide,
3Q06." According to Gartner estimates, Citrix was one of only
two market leaders to show an increase in both worldwide
market share and manufacturer revenue in the advanced
application delivery controller market segment.
-- Citrix WANScaler(TM) was positioned in the visionaries
quadrant by Gartner, Inc. in the recently released "Magic
Quadrant for WAN Optimization Controllers, 2006" report.
-- Citrix Access Gateway(TM) was placed solidly in the leader
category by Forrester Research receiving the highest score for
strengths in reliability, performance, monitoring and
reporting, as well as revenue growth and channel partner depth
in the Forrester Wave(TM) SSL VPN Appliances report for the
fourth quarter 2006.
-- Citrix Access Gateway was also positioned for the first time
ever in the leaders quadrant by Gartner, Inc. in the recently
released "Magic Quadrant for SSL VPNs, Q306" report.
-- Citrix(R) GoToWebinar(TM) was honored by Frost & Sullivan with
its 2006 award for "Best New Web Conferencing Service" along
with awards from LAPTOP Magazine Editors' Choice, TMC Labs
Innovation.
-- The introduction of Citrix EdgeSight(TM) 4.2 application
performance monitoring solution, which builds on technologies
gained from the May 2006 acquisition of Reflectent Software,
to provide enterprises with the ability to monitor performance
in real-time across all applications from the end user's
perspective, regardless of connection method, application type
or application delivery technology.
-- The release of a new version of Citrix Password Manager(TM)
designed specifically for Citrix Presentation Server(TM)
customers, adding federated single sign-on, enhanced
application compatibility, directory administration
streamlining and remote user password reset.
-- A partnership with Cisco to embed click-to-call into
applications delivered on Citrix Presentation Server, allowing
users to initiate voice communications directly from their
business application.
-- The authorization, by Citrix's board of directors, of an
additional $300 million repurchase of Citrix common stock.
Conference Call Information
Citrix will host a conference call today at 4:45 p.m. ET to
discuss its preliminary 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: 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 Web site at http://www.citrix.com/investors for
approximately 30 days. In addition, an audio replay of the conference
call will be available through Jan. 26, 2007, by dialing 800-642-1687
or 706-645-9291 (passcode required: 5461867).
About Citrix
Citrix Systems, Inc. (Nasdaq:CTXS) is the global leader and the
most trusted name in application delivery infrastructure. More than
180,000 organizations worldwide rely on Citrix to deliver any
application to users anywhere with the best performance, highest
security and lowest cost. Citrix customers include 100% of the Fortune
100 companies and 98% of the Fortune Global 500, as well as hundreds
of thousands of small businesses and prosumers. Citrix has
approximately 6,200 channel and alliance partners in more than 100
countries. Annual revenue in 2006 was $1.1 billion.
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
management (including statements concerning the company's future
revenue goals), the statements contained in the Financial Outlook for
First Quarter 2007, Financial Outlook for Fiscal Year 2007, 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, 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 risks summarized in the immediately succeeding
paragraph and the following: the success and growth of the company's
product lines; the company's product concentration and its ability to
develop and commercialize new products and services; the success of
investments in its product groups, foreign operations and vertical and
geographic markets; Citrix's and Microsoft's ability to develop and
market a multi-function Citrix branch office appliance; the company's
ability to successfully integrate the operations and employees of
acquired companies, and the possible failure to achieve or maintain
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, including the effects of SFAS No.
123(R) on certain of the company's GAAP financial measures due to the
variability of the factors used to estimate the value of stock-based
compensation; 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; 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 and appliance 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 ("SEC"). Citrix assumes no
obligation to update any forward-looking information contained in this
press release or with respect to the announcements described herein.
There can be no assurance that the outcome of the review by the
company's Audit Committee of the company's historical stock option
granting practices and the related accounting will not result in
adjustments to the preliminary financial results for the fourth
quarter and fiscal year ended December 31, 2006, or restatements of
the company's historical financial statements. In addition, the review
and its possible conclusions may adversely impact the company,
including, without limitation, affecting the company's ability to file
its Annual Report on Form 10-K for the year ended December 31, 2006.
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 statements
and can be found on the Investor Relations page of the Citrix
corporate Web site at http://www.citrix.com/investors.
Citrix(R), NetScaler(R), Citrix Presentation Server(TM), Citrix
Password Manager(TM), Citrix Access Gateway(TM), Citrix WANScaler(TM),
Citrix EdgeSight(TM) and GoToWebinar(TM) are 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. All other trademarks and registered trademarks are property
of their respective owners.
CITRIX SYSTEMS, INC.
Condensed Consolidated Statements of Income (Preliminary)
(In thousands, except per share data - unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
2006 2005 2006 2005
----------------------------------------
Revenues:
Product licenses $143,124 $130,131 $488,487 $409,435
License updates 109,281 88,961 405,756 331,102
Online services 42,974 28,725 148,795 99,097
Technical services 25,623 20,839 91,281 69,088
----------------------------------------
Total net revenues 321,002 268,656 1,134,319 908,722
Cost of revenues:
Cost of product license
revenues 9,963 5,931 32,911 14,404
Cost of services revenues 12,972 10,273 46,103 26,794
Amortization of product
related intangible assets 4,959 5,278 19,202 16,766
----------------------------------------
Total cost of
revenues 27,894 21,482 98,216 57,964
Gross margin 293,108 247,174 1,036,103 850,758
Operating expenses:
Research and development 41,359 29,680 152,673 108,687
Sales, marketing and
support 132,914 110,359 476,880 393,420
General and
administrative 51,796 36,058 174,167 125,538
Amortization of other
intangible assets 4,392 4,084 16,934 11,622
In-process research and
development - - 1,000 7,000
----------------------------------------
Total operating
expenses 230,461 180,181 821,654 646,267
----------------------------------------
Income from operations 62,647 66,993 214,449 204,491
Other income, net 11,068 5,376 39,941 21,017
----------------------------------------
Income before income taxes 73,715 72,369 254,390 225,508
Income taxes 15,128 13,428 58,056 59,168
----------------------------------------
Net income $58,587 $58,941 $196,334 $166,340
========================================
Earnings per common share -
diluted $0.32 $0.32 $1.05 $0.93
========================================
Weighted average shares
outstanding - diluted 184,543 182,769 187,740 178,036
========================================
CITRIX SYSTEMS, INC.
Condensed Consolidated Balance Sheets (Preliminary)
(In thousands - unaudited)
December 31, 2006 December 31, 2005
-------------------------------------
ASSETS:
Cash and cash equivalents $349,054 $484,035
Short-term investments 152,652 18,900
Accounts receivable, net 204,974 142,015
Other current assets 106,112 81,507
-------------------------------------
Total current assets 812,792 726,457
Restricted cash equivalents and
investments 63,815 63,728
Long-term investments 241,675 51,286
Property and equipment, net 92,580 73,727
Goodwill and other intangible
assets, net 762,152 729,327
Other long-term assets 41,436 37,131
-------------------------------------
Total assets $2,014,450 $1,681,656
=====================================
LIABILITIES AND
STOCKHOLDERS' EQUITY
Accounts payable and accrued
expenses $191,874 $159,853
Current portion of deferred
revenues 332,770 266,223
-------------------------------------
Total current liabilities 524,644 426,076
Long-term debt - 31,000
Long-term portion of deferred
revenues 23,518 19,803
Other liabilities 1,123 1,297
Stockholders' equity 1,465,165 1,203,480
-------------------------------------
Total liabilities and
stockholders' equity $2,014,450 $1,681,656
=====================================
CITRIX SYSTEMS, INC.
Condensed Consolidated Statement of Cash Flows (Preliminary)
(In thousands - unaudited)
Twelve Months
Ended
December 31,
2006
-------------
OPERATING ACTIVITIES
Net income $196,334
Adjustments to reconcile net income to net cash provided
by operating activities:
Amortization and depreciation 63,583
Stock-based compensation expense 54,136
In-process research and development 1,000
Provision for accounts receivable allowances 6,586
Deferred income tax benefit (5,651)
Other non-cash items 4,007
-------------
Total adjustments to reconcile net income
to net cash provided by operating
activities 123,661
Changes in operating assets and liabilities, net of
the effects of acquisitions:
Accounts receivable (68,271)
Prepaid expenses and other current assets (15,961)
Other assets (2,868)
Deferred tax assets, net (23,537)
Accounts payable and accrued expenses 44,015
Deferred revenues 69,599
Other liabilities (334)
-------------
Total changes in operating assets and liabilities, net of
the effects of acquisitions 2,643
-------------
Net cash provided by operating activities 322,638
INVESTING ACTIVITIES
Purchases of available-for-sale investments, net of
proceeds (323,744)
Cash paid for acquisitions, net of cash acquired (61,462)
Purchases of property and equipment (52,051)
-------------
Net cash used in investing activities (437,257)
FINANCING ACTIVITIES
Proceeds from issuance of common stock 230,656
Payments on debt (34,850)
Excess tax benefit from stock-based compensation 57,993
Cash paid under stock repurchase programs, net of
premiums received (274,161)
-------------
Net cash used in financing activities (20,362)
-------------
Change in cash and cash equivalents (134,981)
Cash and cash equivalents at beginning of period 484,035
-------------
Cash and cash equivalents at end of period $349,054
=============
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, the write-off of in-process research and development and for
2005, a non-recurring tax provision related to the repatriation of
foreign earnings under the AJCA. 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 gross margins,
operating expenses and net income and comparing the company's
financial performance to that of its peer companies and competitors.
Management excludes the expenses 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, in-process research and development and certain
stock-based compensation expenses 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 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 and its related tax impact
are generally fixed at the time of grant, are 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 company considers the 2005 tax provision related to the
repatriation of certain foreign earnings under the AJCA as
non-recurring as it is not reasonably likely to recur within
two years and there was no similar provision in the prior two
years. The company, therefore, believes that the presentation
of non-GAAP measures that adjust for the impact of this tax
provision provides 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.
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 and in-process research and development primarily related
to new business combinations from financial measures that it releases,
and the company expects to continue to incur stock-based compensation
expenses.
CITRIX SYSTEMS, INC.
Non-GAAP Financial Measures Reconciliation (Preliminary)
(In thousands, except per share and operating margin data - unaudited)
The following tables show the non-GAAP financial measures used in this
press release and related conference call, slide presentation or
webcast reconciled to the most directly comparable GAAP financial
measures.
Three Months Ended
December 31,
2006 2005
--------------------
GAAP gross margins $293,108 $247,174
Add: stock-based compensation 474 -
Add: amortization of product related
intangible assets 4,959 5,278
--------------------
Non-GAAP gross margins $298,541 $252,452
====================
GAAP operating expenses $230,461 $180,181
Less: stock-based compensation 13,186 2,875
Less: amortization of other intangible assets 4,392 4,084
--------------------
Non-GAAP operating expenses $212,883 $173,222
====================
GAAP operating margin 19.5% 24.9%
Add: stock-based compensation 4.3% 1.1%
Add: amortization of product related
intangible assets 1.5% 2.0%
Add: amortization of other intangible assets 1.4% 1.5%
Non-GAAP operating margin 26.7% 29.5%
GAAP net income $58,587 $58,941
Add: stock-based compensation 13,660 2,875
Add: amortization of product related
intangible assets 4,959 5,278
Add: amortization of other intangible assets 4,392 4,084
Less: tax effects related to above items (8,937) (4,474)
--------------------
Non-GAAP net income $72,661 $66,704
====================
GAAP earnings per share - diluted $0.32 $0.32
Add: stock-based compensation 0.07 0.02
Add: amortization of product related
intangible assets 0.03 0.03
Add: amortization of other intangible assets 0.02 0.02
Less: tax effects related to above items (0.05) (0.03)
--------------------
Non-GAAP earnings per share - diluted $0.39 $0.36
====================
Non-GAAP Financial Measures Reconciliation
(In thousands, except per share and operating margin data - unaudited)
Twelve Months Ended
December 31,
2006 2005
--------------------
GAAP operating margin 18.9% 22.5%
Add: stock-based compensation 4.8% 0.5%
Add: amortization of product related
intangible assets 1.7% 1.8%
Add: amortization of other intangible assets 1.5% 1.3%
Add: in-process research and development 0.1% 0.8%
--------------------
Non-GAAP operating margin 27.0% 26.9%
====================
GAAP net income $196,334 $166,340
Add: stock-based compensation 54,136 4,261
Add: amortization of product related
intangible assets 19,202 16,766
Add: amortization of other intangible assets 16,934 11,622
Add: in-process research and development 1,000 7,000
Less: tax effects related to above items and
the AJCA (25,178) 2,774
--------------------
Non-GAAP net income $262,428 $208,763
====================
GAAP earnings per share - diluted $1.05 $0.93
Add: stock-based compensation 0.29 0.02
Add: amortization of product related
intangible assets 0.10 0.09
Add: amortization of other intangible assets 0.09 0.07
Add: in-process research and development 0.01 0.04
Less: tax effects related to above items (0.14) 0.02
--------------------
Non-GAAP earnings per share - diluted $1.40 $1.17
====================
CITRIX SYSTEMS, INC.
Forward Looking Guidance
For the Three For the Twelve
Months Ended Months Ended
March 31, December 31,
2007 2007
-----------------------------------
GAAP earnings per share - diluted $0.24 to $0.25 $1.14 to $1.19
Add: Adjustments to exclude 0.04 0.15
the effects of amortization
of intangible assets and in-
process research and
development
Add: Adjustments to exclude
the effects of expenses
related to stock-based
compensation 0.05 to 0.06 0.20 to 0.22
-----------------------------------
Non-GAAP earnings per share - $0.34 to $0.35 $1.51 to $1.54
diluted
===================================
For the Three Months Ended
March 31,
2007
---------------------------
GAAP gross margins 90% to 91%
Add: Adjustments to exclude the
effects of amortization of product
related intangible assets 2%
Add: Adjustments to exclude the
effects of expenses related to stock-
based compensation -(a)
---------------------------
Non-GAAP gross margins 92% to 93%
===========================
(a) Impact to gross margin is less than one half of a percent.
CONTACT: Citrix Systems, Inc., Fort Lauderdale
For media inquiries, contact:
Eric Armstrong, 954-267-2977
eric.armstrong@citrix.com
or
A&R Edelman
Eric Jones, 212-819-4862
ejones@ar-edelman.com
or
For investor inquiries, contact:
Citrix Systems, Inc.
Jeff Lilly, 954-267-2886
jeff.lilly@citrix.com