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Citrix Reports First Quarter Earnings Results

  • 20 April, 2006 10:26

<p>Year-over-year Quarterly Revenue Growth of 29%
GAAP Diluted Earnings Per Share of US$0.24 Versus US$0.22 Over Comparable Period Last Year
Non-GAAP Diluted Earnings Per Share of US$0.33 Versus US$0.24 Over Comparable Period Last Year</p>
<p>FORT LAUDERDALE, Fla. — 20 April 2006 — Citrix Systems, Inc., the global leader in access infrastructure solutions, today reported financial results for the first quarter of fiscal 2006 ended March 31, 2006.</p>
<p>FINANCIAL RESULTS
In the first quarter of fiscal 2006, Citrix achieved revenue of US$260 million, compared to US$202 million in the first quarter of fiscal 2005, representing 29 percent revenue growth.</p>
<p>GAAP Results
Net income for the first quarter of fiscal 2006 was US$45 million, or US$0.24 per diluted share, compared to US$39 million, or US$0.22 per diluted share, for the first quarter of fiscal 2005.</p>
<p>Non-GAAP Results
Non-GAAP net income, in the first quarter of 2006 increased 45 percent to US$61 million, or US$0.33 per diluted share, compared to US$42 million, or US$0.24 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 and the effects of stock-based compensation. Stock-based compensation impacted operating income by approximately US$12 million.</p>
<p>“Our first quarter results were excellent,” said Mark Templeton, president and chief executive officer for Citrix. “We had strong top line and earnings growth, and another quarter of very solid cash flow. Our business continued its product license and license update growth, especially in Presentation Server licenses as our customers continued to upgrade to version 4.</p>
<p>“The results indicate that customers are finding our broad portfolio of products and services to be the most compelling set of access infrastructure solutions on the market.”</p>
<p>Q1 Financial Highlights
In reviewing the first quarter results of 2006, compared to the first quarter of 2005:
• Revenue grew in the America’s region by 27 percent; the EMEA region by 26 percent, and the Pacific region by 18 percent;
• Product license revenue increased 27 percent;
• Online services contributed US$32 million of revenue, up 55 percent;
• Revenue from license updates grew 22 percent; and,
• Technical services revenue, which is comprised of consulting, education and technical support, grew 42 percent.
Other financial highlights included:
• Deferred revenue totaled US$292 million, compared to US$230 million at March 31, 2005;
• Operating margin was 20 percent for the quarter; non-GAAP operating margin was 28 percent for the quarter excluding the effects of amortization of intangible assets primarily related to business combinations and the effects of stock-based compensation expenses; and,
• Cash flow from operations was US$95 million, compared to US$73 million in the first quarter of 2005. This brings total twelve month trailing cash flow from operations to US$316 million.</p>
<p>Financial Outlook for Second Fiscal Quarter 2006
Citrix management offers the following guidance for the second fiscal quarter 2006 ending June 30, 2006:
• Net revenue is expected to be in the range of US$259 million to US$265 million, compared to US$211 million in the second quarter of 2005.
• GAAP diluted earnings per share is expected to be in the range of US$0.24 to US$0.26, compared to US$0.16 in the second quarter of 2005. Non-GAAP diluted earnings per share is expected to be in the range of US$0.32 to US$0.33, excluding US$0.03 related to the effects of amortization 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. This compares to US$0.27 in the same quarter of the previous year, adjusted to exclude the effects of amortization of intangible assets, amortization of deferred stock-based compensation, and a net tax provision recorded in anticipation of repatriating certain foreign earnings pursuant to the American Jobs Creation Act of 2004.
The above statements are based on current expectations. These statements are forward-looking, and actual results may differ materially.</p>
<p>Financial Outlook for Fiscal Year 2006
For fiscal year 2006, the company expects net revenue to be in the range of US$1.07 billion to US$1.09 billion, compared to US$909 million in fiscal year 2005. The company expects GAAP diluted earnings per share to be in the range of US$0.98 to US$1.05, compared to US$0.93 in fiscal year 2005. Non-GAAP diluted earnings per share to be in the range of US$1.33 to US$1.37, excluding US$0.14 related to the effects of amortization of intangible assets primarily related to business combinations and US$0.18 to US$0.21 related to the impact stock-based compensation expenses. This compares to US$1.17 for fiscal year 2005, when adjusted to exclude the effects of amortization of intangible assets primarily related to business combinations, deferred stock-based compensation, the write-off of in process research and development, the related tax effects of these items and the tax provision related to the repatriation of foreign earnings under the American Jobs Creation Act.</p>
<p>The above statements are based on current expectations. These statements are forward-looking, and actual results may differ materially.</p>
<p>Company, Product and Alliance Highlights
During the first quarter of 2006, Citrix announced:
• Citrix® GoToMyPC® 5, offering breakthrough drag-and-drop file-transfer, a crisp true-color environment, convenient multi-monitor support, performance monitoring and tuning.
• Citrix Access Essentials™ 1.5, a new version of its secure remote access product for small to mid-sized businesses.
• Citrix® NetScaler® Application Firewall Standard Edition, a new version of its market-leading Web application firewall designed specifically for mid-sized enterprises and business units within large companies.
• Citrix Access Gateway™ Enterprise Edition, extending its SSL VPN leadership for large customers with a new Access Gateway edition that adds increased scalability and performance for the most complex and demanding enterprise environments.
• Technology Marketing Corporation (TMC®)’s INTERNET TELEPHONY® magazine (www.itmag.com) named Citrix Application Gateway™ with Smart Agent, as a recipient of a 2005 Product of the Year Award.
• Its board of directors authorized the company to repurchase up to an additional US$200 million of Citrix common stock.</p>
<p>About Citrix
Citrix Systems, Inc. (Nasdaq:CTXS) is the global leader and most trusted name in on-demand access. More than 180,000 organisations around the world rely on Citrix 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 2005 were US$909 million. Learn more at www.citrix.com.</p>
<p>For further information, please contact Linda Poretti or Skye Eggleton on +61 2 8281 3810 or pr@howorth.com.au</p>

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