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Citrix Reports Second Quarter Earnings Results
Citrix Systems, Inc. (NASDAQ:CTXS), the global leader in Application Delivery Infrastructure, today reported financial results for the second quarter of fiscal 2008 ended June 30, 2008.

Financial Results

In the second quarter of fiscal 2008, Citrix achieved revenue of $392 million, compared to $334 million in the second quarter of fiscal 2007, representing 17 percent revenue growth.

GAAP Results

Net income for the second quarter of fiscal 2008 was $35 million, or $0.18 per diluted share, compared to $53 million, or $0.29 per diluted share, for the second quarter of 2007.

Non-GAAP Results

Non-GAAP net income in the second quarter of 2008 increased two percent to $71 million, or $0.38 per diluted share, compared to $70 million, or $0.38 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.

Im delighted with another solid quarter, said Mark Templeton, president and chief executive officer of Citrix. We saw double digit revenue growth in each of our geographic segments, and we achieved our non-GAAP EPS targets. Overall a great quarter in a tough macro-economic environment.

Q2 Financial Highlights

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

  • Product license revenue increased 12 percent;
  • Revenue from license updates grew 16 percent;
  • Online services increased 23 percent;
  • Technical services revenue, which is comprised of consulting, education and technical support, grew 34 percent;

 

  • Revenue grew in the EMEA region by 22 percent; the Americas region by 13 percent, and the Pacific region by 11 percent;
  • Deferred revenue totaled $476 million, compared to $395 million on June 30, 2007;
  • Operating margin was seven percent for the quarter; non-GAAP operating margin was 21 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 $75 million, bringing the total 12 month trailing cash flow from operations to $379 million; and,
  • Repurchased shares for the quarter were 2.1 million shares at an average price paid per share of $33.50.

Financial Outlook for Third Quarter 2008

Citrix management expects to achieve the following results during its third fiscal quarter of 2008 ending September 30, 2008:

  • Net revenue is expected to be in the range of $385 million to $400 million, compared to $350 million in the third quarter of 2007;
  • GAAP diluted earnings per share is expected to be in the range of $0.12 to $0.16. Non-GAAP diluted earnings per share is expected to be in the range of $0.36 to $0.39, excluding $0.09 related to the effects of amortization of intangible assets primarily related to business combinations and $0.14 to $0.15 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 $1.59 billion to $1.62 billion.
  • The company expects GAAP diluted earnings per share to be in the range of $0.57 to $0.64. Non-GAAP diluted earnings per share to be in the range of $1.54 to $1.60, excluding $0.34 related to the effects of the amortization of intangible assets and $0.62 to $0.63 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 second quarter of 2008, Citrix announced:

  • Citrix® XenDesktop 2.0 began shipping;
  • Citrix® NetScaler® MPX, which reduces datacenter costs by delivering twice as many Web applications;

 

  • A new Citrix Access Gateway release adding intelligent policy-based controls for Citrix XenDesktop;
  • Citrix® XenServer is now factory integrated on Dell PowerEdge servers;
  • A new Citrix XenServer pricing model allowing unlimited virtual machines per server at a single low price; and,
  • Microsoft honored the company with its 2008 Microsoft Partner of the Year Global ISV Infrastructure and 2008 Microsoft Partner for Citizenship awards.

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: 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 website at http://www.citrix.com/investors for approximately 30 days. In addition, an audio replay of the conference call will be available for approximately fifteen days by dialing 800-642-1687 or 706-645-9291 (passcode required: 55194356).

Published Thursday, July 24, 2008 6:07 AM by David Marshall
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Comments
janebush08 - (Author's Link) - September 19, 2008 3:47 AM

Thanks for sharing the highlights... great help...

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