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Citrix Reports First Quarter Financial Results
Citrix Systems, Inc. (Nasdaq:CTXS), the global leader in application delivery infrastructure, today reported financial results for the first quarter of fiscal 2008 ended March 31, 2008.

Financial Results

In the first quarter of fiscal 2008, Citrix achieved revenue of $377 million, compared to $308 million in the first quarter of fiscal 2007, representing 22 percent revenue growth.

GAAP Results

Net income for the first quarter of fiscal 2008 was $34 million, or $0.18 per diluted share, compared to $38 million, or $0.20 per diluted share for the first quarter of 2007.

Non-GAAP Results

Non-GAAP net income in the first quarter of 2008 increased 16 percent to $66 million, or $0.35 per diluted share, compared to $57 million, or $0.31 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, the write-off of in-process research and development and the tax effects related to those items.

Im delighted with another great quarter of growth, said Mark Templeton, president and chief executive officer for Citrix.

Our focus and investments in building a more global footprint, product line breadth, and business model diversity is serving us well.

Q1 Financial Highlights

In reviewing the first quarter results of 2008, compared to the first quarter of 2007:

  • Product license revenue increased 20 percent;
  • Revenue from license updates grew 19 percent;
  • Online services contributed $62 million of revenue, representing an increase of 31 percent;
  • Technical services revenue, which is comprised of consulting, education and technical support, grew 31 percent;
  • Revenue grew in the EMEA region by 31 percent; the Pacific region by 28 percent; and, the Americas region by 13 percent;
  • Deferred revenue totaled $459 million, compared to $376 million on March 31, 2007;
  • GAAP operating margin was 8 percent for the quarter; non-GAAP operating margin was 20 percent for the quarter, excluding the effects of amortization of intangible assets primarily related to business combinations and stock-based compensation expense;
  • Cash flow from operations was $107 million; and
  • Repurchased shares were 4.2 million shares at an average price paid per share of $35.22.

Financial Outlook for Second Quarter 2008

Citrix management expects to achieve the following results during its second fiscal quarter 2008 ending June 30, 2008:

  • Net revenue is expected to be in the range of $380 million to $390 million, compared to $334 million in the second quarter of 2007;
  • GAAP diluted earnings per share is expected to be in the range of $0.16 to $0.20. Non-GAAP diluted earnings per share is expected to be in the range of $0.35 to $0.38, excluding $0.07 related to the effects of amortization of intangible assets primarily related to business combinations and $0.11 to $0.12 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 2008

Citrix management expects to achieve the following results for the fiscal year 2008:

  • The company expects net revenue to be in the range of $1.600 billion to $1.645 billion.
  • The company expects GAAP diluted earnings per share to be in the range of $0.78 to $0.89. Non-GAAP diluted earnings per share to be in the range of $1.54 to $1.64. Non-GAAP diluted earnings per share excludes $0.26 related to the effects of the amortization of intangible assets, and $0.49 to $0.50 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 first quarter of 2008, Citrix announced:

  • An expanded alliance with Microsoft to deliver desktop virtualization solutions and develop interoperability between Citrix XenServer and both Windows Server 2008 and Microsoft System Center;
  • Full support for Microsoft Windows Server 2008 and Windows Server 2008 Hyper-V with Citrix XenDesktop as well as Citrix XenServer;
  • A strategic development and distribution agreement with HP integrating an enhanced version of Citrix XenServer into 64-bit HP ProLiant servers called Citrix XenServer HP Select Edition;
  • A global, strategic partnership with NetApp to deliver a complete server virtualization solution capable of leveraging NetApp® storage solutions called Citrix XenServer Adapter for NetApp Data ONTAP®;
  • An OEM agreement for Lenovo to certify, support and sell Citrix XenServer products with their hardware;
  • Citrix XenServer 4.1, which extending the dynamic datacenter to both physical and virtual servers;
  • Citrix Delivery Center, a new overarching product family brand featuring four primary product lines: Citrix XenServer, Citrix XenDesktop, Citrix® NetScaler® and Citrix XenApp the new name for Citrix Presentation Server;
  • Frost & Sullivan named Citrix Online its 2008 North American Web Conferencing Company of the Year;
  • Gartner, Inc. positioned Citrix WANScaler in the visionaries quadrant in its Magic Quadrant for WAN Optimization Controllers, 2007 report; and
  • Its Board of Directors authorized a $300 Million increase to the companys share repurchase program.
Published Thursday, April 24, 2008 5:40 AM by David Marshall
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