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Citrix continues to grow - 26 per cent revenue growth in Q405

  • 19 January, 2006 10:17

<p>Quarterly Revenue Growth of 26% and Full Year Growth of 23%</p>
<p>Quarterly GAAP EPS Growth of 9% and Full Year Growth of 24%</p>
<p>Quarterly Non-GAAP EPS Growth of 24% and Full Year Growth of 26%</p>
<p>FORT LAUDERDALE, Fla. — 19 January 2006 — Citrix Systems, Inc., the global leader in access infrastructure solutions, today reported financial results for the fourth quarter and fiscal year ended Dec. 31, 2005.</p>
<p>FINANCIAL RESULTS</p>
<p>GAAP Results</p>
<p>In the fourth quarter of fiscal 2005, Citrix achieved record revenue of US$269 million, compared to US$214 million in the fourth quarter of fiscal 2004, representing 26 percent revenue growth. Annual revenues for 2005 were US$909 million, compared to US$741 million in the previous year, a 23 percent increase.</p>
<p>Net income for the fourth quarter of fiscal 2005 was US$59 million, or US$0.32 per diluted share, compared to US$52 million, or US$0.30 per diluted share, for the fourth quarter of fiscal 2004. Annual net income for 2005 was US$166 million, or US$0.93 per diluted share, compared to US$132 million, or US$0.75 per diluted share in fiscal 2004.</p>
<p>Non-GAAP Results</p>
<p>Non-GAAP net income was US$67 million for the fourth quarter of fiscal 2005, or US$0.36 per diluted share, compared to US$52 million, or US$0.29 per diluted share, in the comparable period last year. Non-GAAP net income excludes the effects of amortisation of intangible assets primarily related to business combinations, deferred stock-based compensation, the write-off of in-process research and development and the related tax effects of these items.</p>
<p>Annual non-GAAP net income for 2005 was US$209 million, or US$1.17 per diluted share, compared to US$162 million, or US$0.93 per diluted share, in 2004. Non-GAAP net income excludes the effects of amortisation of intangible assets primarily related to business combinations, deferred stock-based compensation, the write-off of in process research and development, the write-off of deferred debt issuance costs, the related tax effects of these items and the tax provision related to the repatriation of foreign earnings under the American Jobs Creation Act (AJCA).</p>
<p>“We finished a strong 2005 with a record fourth quarter,” said Mark Templeton, president and chief executive officer for Citrix. “Solid performance across our products and regions drove record revenue for the company, excellent license growth and strong operating margin.”</p>
<p>Q4 Financial Highlights</p>
<p>Revenue grew in the America’s region by 30 percent; the EMEA region by 16 percent, and the Pacific region by 9 percent, compared to the fourth quarter of 2004.
Product license revenue increased 23 percent, compared to the fourth quarter of 2005.
Online services contributed US$29 million of revenue, up 71 percent year over year on a GAAP basis and 60 percent when considering purchase accounting adjustments compared to the fourth quarter of 2004.
Revenue from license updates grew 18 percent, compared to the fourth quarter of 2004.
Technical services revenue, which is comprised of consulting, education and technical support, grew 33 percent, compared to the fourth quarter of 2004.
Deferred revenue totalled US$286 million, compared to US$225 million at Dec. 31, 2004.
Operating margin was 25 percent for the quarter; non-GAAP operating margin was 29 percent for the quarter excluding the effects of amortisation of intangible assets primarily related to business combinations, deferred stock-based compensation, and the related tax effects of these items.
Cash flow from operations was US$79 million, compared to US$80 million in the fourth quarter of 2004. This brings total twelve month cash flow from operations to US$293 million.</p>
<p>Annual Financial Highlights</p>
<p>Total annual revenue grew 23 percent compared to fiscal 2004.
· Annual diluted earnings per share for fiscal 2005 increased 24 percent compared to fiscal 2004. Annual non-GAAP diluted earnings per share for fiscal 2005 increased 26 percent compared to fiscal 2004. Annual non-GAAP diluted earnings per share excludes the effects of amortisation of intangible assets primarily related to business combinations, deferred stock-based compensation, the write-off of in process research and development, the write-off of deferred debt issuance costs, the related tax effects of these items, and the tax provision related to the repatriation of foreign earnings under the AJCA.</p>
<p>Operating margin was 23 percent for fiscal 2005; non-GAAP operating margin was 27 percent, excluding the items noted above.
Cash flow from operations was US$293 million for fiscal 2005.
During fiscal 2005, the company repurchased 7.4 million shares at an average net price per share of US$23.51 equating to approximately US$174 million in total expenditures.</p>
<p>Financial Outlook for First Quarter 2006</p>
<p>Citrix management offers the following guidance for the first fiscal quarter 2006 ending March 31, 2006:</p>
<p>· Net revenue is expected to be in the range of US$240 million to US$249 million for the first quarter of fiscal 2006.</p>
<p>· GAAP diluted earnings per share is expected to be in the range of US$0.18 to US$0.20, and non-GAAP diluted earnings per share is expected to be in the range of US$0.27 to US$0.28, excluding US$0.04 related to the effects of amortisation of intangible assets primarily related to business combinations, and US$0.04 to US$0.05 related to the effects of stock-based compensation expenses.</p>
<p>The above statements are based on current expectations including estimates. These statements are forward looking, and actual results may differ materially.</p>
<p>Financial Outlook for Fiscal Year 2006</p>
<p>Citrix management offers the following guidance for the fiscal year 2006.</p>
<p>The company expects net revenue to be in the range of US$1.030 billion to US$1.060 billion. The company expects GAAP diluted earnings per share to be in the range of US$0.88 to US$0.97, and non-GAAP diluted earnings per share to be in the range of US$1.23 to US$1.28. Non-GAAP diluted earnings per share excludes US$0.15 related to the effects of amortisation of intangible assets primarily related to business combinations and US$0.16 to US$0.20 related to the impact stock-based compensation expenses.</p>
<p>The above statements are based on current expectations. These statements are forward-looking, and actual results may differ materially.</p>
<p>Product and Alliance Highlights</p>
<p>During the fourth quarter, Citrix:</p>
<p>· Launched its first 64-bit solution for application virtualisation: Citrix Presentation Server™ 4.0 for Microsoft® Windows Server™ 2003 x64 Edition.</p>
<p>· Introduced Citrix® NetScaler® Application Switch Standard Edition (SE), a new edition of its popular application delivery product line targeted specifically for the needs of small-to-medium enterprises.</p>
<p>· Acquired Sunnyvale, CA.-based Teros, Inc., a privately-held provider of application security solutions. The deal allows Citrix to further extend the technological leadership of the company’s NetScaler application delivery product line.</p>
<p>· Introduced Citrix Hospitality Voice Services, its new packaged IP telephony services specially designed for the hospitality industry.</p>
<p>· Announced it has been positioned by Gartner in the “visionary” quadrant in the “Magic Quadrant for SSL/VPN, North America, 3Q05” report; and has moved into the #1 market share position for SSL/VPN according to Infonetics Research.</p>
<p>· Announced it has been positioned in the Leaders Quadrant of the most recent Gartner Application Delivery Products Magic Quadrant Report.</p>
<p>· Introduced Citrix® GoToAssist™ 7, the next generation of the industry-leading remote technical-support and professional-services solution.</p>
<p>About Citrix</p>
<p>Citrix Systems, Inc. (Nasdaq:CTXS) is the global leader and most trusted name in on-demand access. More than 160,000 organisations around the world use the Citrix Access Platform to provide the best possible access experience to any application for any user. 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 individuals. Citrix has approximately 6,200 channel and alliance partners in more than 100 countries. Citrix annual revenues in 2004 were US$741 million. Learn more at http://www.citrix.com.</p>
<p>For further information or should you wish to speak with Gary O’Brien, Vice President - Australia &amp; New Zealand about the local growth, please contact Linda Poretti or Skye Eggleton on +61 2 8281 3810 or pr@howorth.com.au.</p>

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