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Citrix Reports Third Quarter 2011 Financial Results

Citrix Systems, Inc. (NASDAQ:CTXS) today reported financial results for the third quarter of fiscal 2011 ended September 30, 2011.

RESULTS

In the third quarter of fiscal 2011, Citrix achieved revenue of $565 million, compared to $472 million in the third quarter of fiscal 2010, representing 20 percent revenue growth.

GAAP Results

Net income for the third quarter of fiscal 2011 was $92 million, or $0.49 per diluted share, compared to $88 million, or $0.46 per diluted share, for the third quarter of 2010.

Non-GAAP Results

Non-GAAP net income in the third quarter of fiscal 2011 was $121 million, or $0.64 per diluted share, compared to $118 million, or $0.62 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. In addition, non-GAAP net income for the third quarter of fiscal 2010 excludes amounts recorded in connection with the restructuring program that the company implemented in January 2009 and the related tax effect.

“This was a great quarter for Citrix,” said Mark Templeton, president and chief executive officer for Citrix. “I couldn’t be more delighted or proud of our Q3 performance across geographies, business lines and financially.

“We have strong positions across SaaS and collaboration, virtualization and desktop, networking and cloud platform markets… and the investments we’ve made over the past year in people, infrastructure, innovation and go-to-market is powering growth through geographical reach and business model diversity.”

Q3 Financial Summary

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

  • Product license revenue increased 28 percent;
  • Revenue from license updates increased 7 percent;
  • Online services revenue increased 20 percent;
  • Technical services revenue, which is comprised of consulting, education and technical support, increased 37 percent;
  • Revenue increased in the America’s region by 21 percent, increased in the EMEA region by 12 percent, and increased in the Pacific region by 39 percent;
  • Deferred revenue totaled $834 million, compared to $680 million as of September 30, 2010;
  • GAAP operating margin was 19 percent for the quarter and non-GAAP operating margin was 26 percent for the quarter, excluding the effects of amortization of intangible assets primarily related to business combination and stock-based compensation expenses;
  • Cash flow from operations was $188 million, compared with $190 million in the third quarter of 2010; and
  • The company repurchased 2.2 million shares at an average price of $56.68.

ShareFile Acquisition

In October 2011, Citrix announced the acquisition of ShareFile™, a market leading provider of secure, cloud-based data storage, sharing and collaboration. The ShareFile product line makes it easy for businesses of all sizes to securely store, sync and share business documents and files, both inside and outside the company. ShareFile's centralized cloud storage capability also allows users to share files across multiple devices and access them from any location.

App-DNA Acquisition

Yesterday, Citrix announced that it has agreed to acquire App-DNA™, a leader in application migration and management and long-time Citrix partner. The acquisition is subject to customary closing conditions and is expected to close in the fourth quarter. App-DNA technology adds a significant component to the Citrix Desktop Transformation strategy aimed at helping customers speed deployments of desktop virtualization enterprise-wide. The App-DNA AppTitude™ product enables organizations to quickly and intelligently assess their application portfolio and migration plans.

Financial Outlook for Fourth Quarter 2011

Citrix management expects to achieve the following results during its fourth fiscal quarter of 2011 ending December 31, 2011:

  • Revenue is expected to be in the range of $610.0 million to $620.0 million.
  • GAAP diluted earnings per share is targeted to be in the range of $0.59 to $0.60. Non-GAAP diluted earnings per share is expected to be in the range of $0.75 to $0.76, excluding $0.11 related to the effects of amortization of intangible assets primarily related to business combinations, $0.15 related to the effects of stock-based compensation expenses, and $(0.09) to $(0.11) for 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 targeted to be in the range of 22 percent to 23 percent.

The above statements are based on current targets and include the impact of recent acquisitions. 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:

  • Revenue is targeted to be in the range of $2.20 billion to $2.21 billion.
  • GAAP diluted earnings per share is targeted to be in the range of $1.88 to $1.90. Non-GAAP diluted earnings per share is targeted to be in the range of $2.45 to $2.46, excluding $0.38 related to the effects of amortization of intangible assets primarily related to business combinations, $0.48 related to the effects of stock-based compensation expenses, and $(0.28) to $(0.31) for the tax effects related to these items.

The above statements are based on current targets and include the impact of recent acquisitions. These statements are forward-looking, and actual results may differ materially.

Preliminary Outlook for Fiscal Year 2012

The company’s preliminary outlook for the full fiscal year 2012 is for net revenue to be in the range of $2.47 billion to $2.48 billion.

The above statement is based on current targets and includes the impact of recent acquisitions. This statement is forward-looking, and actual results may differ materially.

Company, Product and Alliance Highlights

During the third quarter of 2011, Citrix announced:

  • Citrix closed the acquisition of Cloud.com, a market leading provider of software infrastructure platforms for cloud providers, further establishing Citrix as a leader in infrastructure for the rapidly growing cloud provider market.
  • Citrix closed the acquisition of RingCube®, a leader in user personalization technology for virtual desktops, accelerating the adoption of virtual desktops by eliminating the tradeoff between user personalization and centralized IT management.
  • Citrix XenDesktop® 5.5, which adds major enhancements in user experience, rich consumer device support and personalization, including the “Personal vDisk” technology acquired in August from RingCube, making it easier for customers to deploy highly personalized virtual desktops at a substantially lower cost.
  • Availability of Citrix XenServer® 6, the most recent edition of its server virtualization product line, which brings new optimizations and improved scalability and performance for cloud infrastructure, desktop virtualization and networking.
  • A new edition of CloudStack™, its free and open source cloud infrastructure platform, which provides enhanced support for the VMware vSphere and Oracle VM hypervisors, enabling VMware and Oracle customers to manage their virtualized servers as a highly available, scalable cloud computing environment.
  • Availability of Citrix GoToMeeting® with HDFaces™, its award-winning web conferencing solution, now with high-definition group video conferencing for up to six attendees, enabling a telepresence-like meeting experience simply using a webcam and an Internet connection.
  • The expansion of its growing line of mobile workforce solutions for the Android market with the availability of Citrix GoToMeeting for Android, a free application that gives Android smartphone users the ability to join online meetings anywhere, anytime.
  • Citrix GoToAssist® remote support service is now available as an application on the Salesforce.com AppExchange and is integrated with Salesforce CRM to create a more comprehensive service experience for customers.
  • Citrix GoToManage® app for iPad is available for free in the App Store, giving IT professionals the freedom to securely troubleshoot and provide on-demand technical support to a computer user from anywhere.

Conference Call Information

Citrix will host a conference call today at 8 a.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: 13033739).

Published Thursday, October 27, 2011 6:39 PM by David Marshall
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Citrix Reports Third Quarter 2011 Financial Results : VMblog.com … | Cmofinance.com: Where Digital marketers get their news - (Author's Link) - October 27, 2011 8:29 PM
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