Citrix Systems, Inc. (NASDAQ:CTXS) today reported financial results for the fourth quarter and fiscal year ended December 31, 2011.

FINANCIAL RESULTS

In the fourth quarter of fiscal year 2011, Citrix achieved revenue of $619 million, compared to $530 million in the fourth quarter of fiscal year 2010, representing 17 percent revenue growth. For the fiscal year 2011, Citrix reported annual revenues of $2.21 billion, compared to $1.87 billion in fiscal year 2010, an 18 percent increase.

GAAP Results

Net income for the fourth quarter of fiscal 2011 was $109 million, or $0.58 per diluted share, compared to $94 million, or $0.49 per diluted share, for the fourth quarter of 2010. Annual net income for 2011 was $356 million, or $1.87 per diluted share, compared to $277 million, or $1.46 per diluted share, in fiscal year 2010.

Non-GAAP Results

Non-GAAP net income in the fourth quarter of fiscal 2011 was $147 million, or $0.78 per diluted share, compared to $125 million, or $0.65 per diluted share, in the fourth quarter of fiscal year 2010. 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 fourth 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.

Annual non-GAAP net income for 2011 was $473 million, or $2.48 per diluted share, compared to $396 million, or $2.08 per diluted share, in 2010. 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 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 to cap another record year,” said Mark Templeton, president and chief executive officer for Citrix.

“Greater diversity in our products and channel, combined with a compelling vision, is driving more C-level engagement as well as more up-sell and cross-sell opportunities. As a result, we are seeing more strategic deals, more use of our products as an end-to-end system, and deeper engagement with our customers through services.

“I’m pleased with how the team’s great execution across strategy, innovation and operations has delivered growth in both revenue and profit.”

Q4 Financial Summary

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

• Product license revenue increased 17 percent;
• Revenue from license updates increased 9 percent;
• Software as a service revenue increased 21 percent;
• Technical services revenue, which is comprised of consulting, education and technical support, increased 34 percent;
• Revenue increased in the America’s region by 16 percent, increased in the EMEA region by 12 percent and increased in the Pacific region by 37 percent;
• Deferred revenue totaled $960 million, compared to $779 million as of December 31, 2010;
• GAAP operating margin was 22 percent for the quarter and non-GAAP operating margin was 30 percent for the quarter, excluding the effects of amortization of intangible assets primarily related to business combinations and stock-based compensation expenses;
• Cash flow from operations was $170 million, compared with $179 million in the fourth quarter of 2010; and
• The company repurchased 1.4 million shares at an average price of $70.84.

Annual Financial Summary

In reviewing 2011 results compared to 2010 results:

• Product license revenue increased 20 percent;
• License updates revenue increased 9 percent;
• Software as a service revenue increased 19 percent;
• Technical services revenue, which is comprised of consulting, education and technical support, increased 36 percent;
• Revenue increased in the Americas’ region by 19 percent, increased in the EMEA region by 11 percent, and increased in the Pacific region by 33 percent;

• GAAP operating margin was 19 percent for fiscal 2011, and non-GAAP operating margin was 26 percent, excluding the effects of amortization of intangible assets primarily related to business combinations, stock-based compensation expenses and costs associated with the 2009 restructuring program;
• Cash flow from operations was $679 million for fiscal 2011 compared with $616 million last year; and
• During fiscal 2011, the company repurchased 6.5 million shares at an average price of $67.84.

Financial Outlook for Fiscal Year 2012

Citrix management expects to achieve the following results during its fiscal year 2012 ending December 31, 2012:

• Revenue is targeted to be in the range of $2.49 billion to $2.51 billion;
• GAAP diluted earnings per share is targeted to be in the range of $1.88 to $1.97. Non-GAAP diluted earnings per share is targeted to be in the range of $2.70 to $2.74, excluding $0.41 related to the effects of amortization of intangible assets primarily related to business combinations, $0.71 related to the effects of stock-based compensation expenses, and $(0.26) to $(0.39) for the tax effects related to these items.

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

Financial Outlook for First Quarter 2012

Citrix management expects to achieve the following results during its first fiscal quarter of 2012 ending March 31, 2012:

• Revenue is targeted to be in the range of $555.0 million to $565.0 million.
• GAAP diluted earnings per share is targeted to be in the range of $0.30 to $0.31. Non-GAAP diluted earnings per share is targeted to be in the range of $0.49 to $0.51, excluding $0.10 related to the effects of amortization of intangible assets primarily related to business combinations, $0.16 related to the effects of stock-based compensation expenses, and $(0.05) to $(0.08) for the 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. These statements are forward-looking, and actual results may differ materially.

Company, Product and Alliance Highlights

During the fourth quarter of 2011, Citrix announced:

• A strategic alliance with Cisco to develop and deliver solutions that help customers simplify and accelerate large-scale desktop virtualization deployments, including high-definition virtual desktops and applications and improved end user experiences, over a highly secure Citrix® HDX™-enabled Cisco network.
• The acquisition of App-DNA™, a leader in application migration and management and long-time Citrix partner, to help customers speed deployments of desktop virtualization enterprise-wide.
• A broad new set of products, solutions and programs, including Citrix VDI-in-a-Box 5, designed to help small and medium businesses (SMBs) move from the PC Era to the Cloud Era by capitalizing on the benefits of desktop virtualization.
• New additions to Citrix NetScaler® MPX™ and SDX product lines that deliver high performance and virtualization to tackle large-scale network consolidation initiatives with the flexibility to scale without additional hardware – requirements for building private and public clouds.
• Citrix NetScaler CloudConnectors™, which create an end-to-end service delivery fabric to enable enterprises and Internet application and content providers to knit on- and off-premise datacenter capabilities into a seamless system with increased optimizations.
• The next stage of the Citrix strategy for Citrix CloudGateway™, the industry’s first unified service broker that aggregates, controls and delivers Windows, Web, SaaS and mobile applications to any user on any device, accelerating enterprise adoption of cloud and mobility.
• The Citrix CloudPortal™, a new product line designed to help providers transform general purpose cloud infrastructure into profitable cloud businesses, as well as the next release of its flagship Citrix CloudStack™ platform, acquired in 2011 through the acquisition of Cloud.com.
• Citrix completed the acquisition of ShareFile™, a market-leading provider of secure, cloud-based data storage, sharing and collaboration, with products that make it easy for businesses of all sizes to securely store, sync and share business documents and files across multiple devices and access them from any location.
• The opening of its recently acquired ShareFile data cloud to create a “Follow-Me-Data Fabric” for sharing business data across a wide range of applications, devices and services. This makes it easy for third-party developers and vendors to incorporate common data services like search, share, sync, secure and remote wipe into their solutions through a set of open APIs.

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: 41804390).