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Citrix Reports First Quarter Financial Results for 2011

Citrix Systems, Inc. (NASDAQ:CTXS) today reported financial results for the first quarter of fiscal 2011 ended March 31, 2011.   

FINANCIAL RESULTS

In the first quarter of fiscal 2011, Citrix achieved revenue of $491 million, compared to $414 million in the first quarter of fiscal 2010, representing 18 percent revenue growth.

GAAP Results

Net income for the first quarter of fiscal 2011 was $74 million, or $0.38 per diluted share, compared to $47 million, or $0.25 per diluted share, for the first quarter of 2010.

Non-GAAP Results

Non-GAAP net income in the first quarter of fiscal 2011 was $97 million, or $0.50 per diluted share, compared to $75 million, or $0.40 per diluted share, in the comparable period last year. Non-GAAP net income for both periods excludes the effects of amortization of intangible assets primarily related to business combinations, stock-based compensation expenses, charges recorded in connection with the restructuring program that the company implemented in January 2009 and the tax effects related to those items.

“I’m pleased with our results for the first quarter,” said Mark Templeton, president and chief executive officer for Citrix. “Customer demand was solid across our core SaaS, desktop and networking markets, especially in the Americas and Pacific, supported by large, strategic technical services engagements.

“Clearly, the industry is rapidly moving from “PC era” to “cloud era,” where users are demanding -- and CIOs are embracing -- the consumerization of IT. We’re driving the transition with products that change how people collaborate, how desktops are delivered, and how delivery networks are built.

“This transformation is elevating our presence as a strategic vendor, increasing our engagement with C-level executives, and driving more interest in our virtual computing platform.”

In addition to quarterly financial results, Citrix also announced that its board of directors has authorized it to repurchase up to an additional $500 million of its common stock. As of March 31, 2011, approximately $11.5 million remained for repurchases from previous authorizations.

Q1 Financial Summary

In reviewing the first quarter results of 2011, compared to the first quarter of 2010:

  • Product license revenue increased 22 percent;
  • Revenue from license updates grew 9 percent;
  • Online services revenue grew 17 percent;
  • Technical services revenue, which is comprised of consulting, education and technical support, grew 44 percent;
  • Revenue increased in the America’s region by 22 percent; the EMEA region by 12 percent and the Pacific region by 25 percent;
  • Deferred revenue totaled $789 million, compared to $636 million as of March 31, 2010;
  • GAAP operating margin was 16 percent for the quarter and non-GAAP operating margin was 23 percent for the quarter, excluding the effects of amortization of intangible assets primarily related to business combinations, stock-based compensation expense and costs associated with the 2009 restructuring program;
  • Cash flow from operations was $159 million, compared with $144 million in the first quarter of 2010; and
  • The company repurchased 1.6 million shares at an average price of $68.97.

Financial Outlook for Second Quarter 2011

Citrix management expects to achieve the following results during its second fiscal quarter of 2011 ending June 30, 2011:

  • Net revenue is expected to be in the range of $515 million to $525 million.
  • GAAP diluted earnings per share is expected to be in the range of $0.41 to $0.42. Non-GAAP diluted earnings per share is expected to be in the range of $0.54 to $0.55, excluding $0.08 related to the effects of amortization of intangible assets primarily related to business combinations, $0.12 related to the effects of stock-based compensation expenses, and $(0.06) to $(0.08) for the effect of the differential between the GAAP and non-GAAP tax rates and tax effects related to these items.
  • Non-GAAP tax rate, which excludes the effects of amortization of intangible assets primarily related to business combinations and stock-based compensation expense, is expected to be in the range of 22% to 23%.

The above statements are based on current expectations. These statements are forward-looking, and actual results may differ materially.

Financial Outlook for Fiscal Year 2011

Citrix management expects to achieve the following results during fiscal year 2011 ending December 31, 2011:

  • Net revenue is expected to be in the range of $2.14 billion to $2.17 billion.
  • GAAP diluted earnings per share is expected to be in the range of $1.91 to $1.94. Non-GAAP diluted earnings per share is expected to be in the range of $2.38 to $2.41, excluding $0.31 related to the effects of amortization of intangible assets primarily related to business combinations, $0.44 related to the effects of stock-based compensation expenses, and $(0.25) to $(0.31) for the effect of the differential between the GAAP and non-GAAP tax rates and tax effects related to these items.

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 2011, Citrix announced:

  • A partnership with Skype to deliver Web and audio conferencing capabilities enabled with Citrix® GoToMeeting® technology.
  • The close of the Netviewer AG acquisition, a leading, privately held European Software-as-a-Service (SaaS) vendor in collaboration and IT services, which will accelerate Citrix’s global expansion and extend its SaaS leadership in Europe.
  • Engineering support to Amazon for the optimization of Citrix products and Windows applications that run on Amazon Web Services (AWS) to further enhance interoperability and performance of Windows workloads on AWS, while ensuring continued innovation for the Xen virtualization platform.
  • New Citrix NetScaler® DataStream technology that addresses companies’ need to manage the explosive growth in cloud, mobile and corporate data.
  • Citrix XenServer® is certified on IBM System x and BladeCenter Servers, which enables customers to more easily leverage Citrix XenServer and IBM servers to automate datacenter management processes and increase efficiency of datacenter infrastructures.
  • Xen.org, the open source industry standard for virtualization hosted by Citrix, announced the availability of Xen Cloud Platform (XCP) 1.0, a full-featured solution for enterprises that want to build private clouds, as well as open source enthusiasts, universities and researchers to experiment with cloud computing.
  • Its first Citrix Startup Accelerator investment, Primadesk, which helps users search, manage and backup their personal cloud data with one simple interface no matter what device they use.

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 15 days by dialing (800) 642-1687 or (706) 645-9291 (passcode required: 58832886).

Published Thursday, April 28, 2011 7:58 AM by David Marshall
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