Citrix Systems Announces Record Results for Fourth Quarter And Fiscal Year 1998
January 19, 1999 04:15 PM
FORT LAUDERDALE, Fla., Jan. 19 /PRNewswire/ -- Citrix Systems, Inc. CTXS today reported results for the fourth quarter and year ended December 31, 1998.
Net revenues for the fourth quarter ending December 31, 1998 were $75.5 million, representing a 76% increase over the same quarter of the prior year and a 12% sequential increase over comparable results of the third quarter. Earnings per share for the fourth quarter of $0.52 per share represent a 53% increase over the same quarter of the prior year, and an 18% increase over results of the third quarter, on a comparable basis excluding previously announced one-time charges.
For the fiscal year ending December 31, 1998 net revenues totaled $248.6 million, representing a 101% increase over the fiscal year end 1997 net revenues. Excluding the effect of write-offs for in-process research and development relating to business combinations and licensing agreements which occurred during the first nine months of 1998, earnings per share for fiscal year 1998 of $1.70 per share represent a 68% increase over comparable fiscal year 1997. Earnings per share for the fiscal year ending December 31, 1998 including such one-time charges was $0.79 per share.
The company noted that recent guidance published by the Securities and Exchange Commission ("SEC") regarding write-offs for in-process research and development have prompted the company's independent public accountants, Ernst & Young LLP, to request that the company re-evaluate its write-offs for in-process research and development in connection with certain transactions which occurred during the first three fiscal quarters of 1998, and before the SEC's recent guidance. The company believes that each of its quarterly reports filed during 1998, which include write-offs for in-process research and development, of which the two most significant write-offs were supported by independent valuations provided by Ernst & Young, LLP and the other two were prepared using the same methodology, were made in accordance with generally accepted accounting principles and established industry practices in effect at the time. In view of the recent guidance, however, the company is re-evaluating the amount of prior charges for in-process research and development. The results of these re-evaluations will likely require a retroactive adjustment to 1998 earnings and the capitalization of additional amounts to be amortized against future earnings. The company is currently unable to quantify the amount of such adjustment.
During the first three quarters of 1998, the company acquired and licensed certain assets and technologies and in such transactions recognized approximately $64.8 million in write-offs for in-process research and development. In the event that the results of the re-evaluations, described above, require capitalization of all of the 1998 in-process research and development, the company estimates a decrease in the net pre-tax charge to be approximately $54.0 million in 1998 and the future increased pre-tax charge to be approximately $16.2 million annually. Such adjustment will have no effect upon the financial condition of the company.
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