BW 06:22 Emerging ASP Market Standardizing on Citrix(R) Platform; Citrix Application Service Provider Program Adds more than 30
BW 06:21 Citrix Extends MetaFrame To UNIX Operating System To Provide Greater Access to Any Application on Any Platform
BW 06:19 Citrix Announces Solaris Operating Environment Version of MetaFrame
PR 06:00 CITRIX SYSTEMS ANNOUNCES TWO-FOR-ONE STOCK SPLIT
PR 06:00 CITRIX(R) SYSTEMS REPORTS RECORD RESULTS FOR FOURTH QUARTER AND FISCAL YEAR 1999; ANNUAL REVENUES GREW 62% FOR TWELVE MONTHS ENDING DECEMBER 31, 1999 Company Also Announces a Two-For-One Stock Split, the Extension of Its MetaFrame(TM) Product Line to UNIX(R) Platforms and Further Expansion In The Emerging ASP Marketplace
PR NEWSWIRE - January 19, 2000 07:00
FORT LAUDERDALE, Fla., Jan 19, 2000 /PRNewswire via COMTEX/ -- Citrix Systems, Inc. (Nasdaq: CTXS) today reported results for the fourth quarter and year-ended December 31, 1999. In addition to the most recent results, Citrix also announced plans to extend its flagship product, MetaFrame, to a larger market by making it available on UNIX(R) platforms, while also reporting that another 31 leading application service providers (ASPs) have joined the Citrix ASP business model for "pay-as-you-go" application licensing. The company also announced that the Citrix Board of Directors approved a two-for-one split of the company's common stock to be effected in the form of a 100% stock dividend.
Financial Highlights Net revenues for the fourth quarter of 1999 were $118.1 million, up 56% from $75.5 million in the comparable period of the prior year. Net income, excluding write-offs for in-process research and development and the amortization of intangible assets relating to business combinations, was $37.7 million for the fourth quarter, or $0.38 per share, as compared to $24.7 million or $0.27 per share for the fourth quarter of 1998. Net income for the fourth quarter of 1999 was $34.0 million, or $0.34 per share, as compared with net income of $22.3 million, or $0.24 per share, for the fourth quarter of 1998.
For the year ending December 31, 1999 net revenues were $403.3 million, up 62% from $248.6 million for 1998. Net income, excluding the effect of write-offs for in-process research and development and the amortization of intangible assets, was $130.2 million, or $1.35 per share, compared to net income of $79.4 million, or $0.87 per share, for the comparable period in 1998. Net income for the year ending December 31, 1999 was $116.9 million, or $1.21 per share, compared to $61.1 million, and $0.67 per share, for 1998.
"We believe these results represent an exceptional year for Citrix and one of the most exciting in the company's ten year history," said Mark Templeton, Citrix president and CEO. "Moving forward, our goal remains the same -- bringing strategic value to the enterprise. In continuing to enable our customers and partners to effectively address needs, we will focus on adding new functionality to our current product line and developing winning new technologies -- from multi-media to Web solutions -- that optimize productivity and enhance business performance."
Extension of MetaFrame to UNIX Platforms In direct response to growing demand from enterprise customers, Citrix formally announced its intention to develop versions of its flagship MetaFrame product for multiple editions of the UNIX operating system, the first being MetaFrame for Sun Microsystems' Solaris(TM) Operating Environment, which the company expects to have available in the second quarter of 2000. Making MetaFrame available on UNIX platforms will provide users with single-device access to UNIX as well as Windows-based applications, for the first time enabling them to access any application from anywhere over any device.
"Enabling our customers to access UNIX, Java and Windows applications, all from a single device, is a key part of our strategy to meet cross-enterprise information needs for simple and seamless computing capabilities to any platform and application, over any network, with any device," said Mr. Templeton. The extension into UNIX platforms as an application serving platform is a major step that has been highly endorsed by the leading UNIX operating system players." (See separate announcement for details.)
ASP Expansion With 31 Joining Citrix ASP Program Citrix also announced that 31 more ASPs have joined the Citrix ASP program. This brings the total members in the Citrix iLicense program to 45, and signals continued adoption of the service-oriented business model that allows ASPs to use Citrix software in centralizing the installation, deployment and administration of applications for delivery over any connection including the Internet, to virtually any platform or client device. (See separate announcement for details.)
"The growing acceptance of our ASP program and the customer demand to port our products across other platforms such as UNIX are both indications that we are well positioned to actively address the challenges and opportunities associated with effectively using information in the new millennium," said Edward Iacobucci, Citrix senior vice president of strategy and technology and chief technical officer. "From the beginning, we have been focused on providing our customers with broadened access to information through the application serving model. We believe this approach is more in demand than ever with the growth of the Internet, the increasing mobility of the workforce and the explosion in the ways businesses must use information to remain competitive. Citrix is at the center of enabling access to any application over any network connection with any device as this computing paradigm becomes more and more fundamental to business success."
About Citrix Founded in 1989, Citrix Systems, Inc. is a global leader in application- server software and services that offer "Digital Independence(TM)" -- the ability to run any application on any device over any connection, wireless to Web. Its products, including MetaFrame(TM) software and Independent Computing Architecture (ICA(R)), a core application-server technology, have been widely adopted by the corporate mainstream to achieve key business goals. The firm, which markets its solutions through value-added resellers, system integrators and OEM licenses, is headquartered in Fort Lauderdale, Fla. Citrix is traded on the Nasdaq National Market under the symbol CTXS and was recently named to the Standard & Poor's 500 Index.
For Citrix Investors Forward-looking statements in this release are made pursuant to the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934. Investors are cautioned that statements in this press release which are not strictly historical statements, including, without limitation, statements regarding current or future financial performance, management's plans and objectives for future operations, product plans and performance, management's assessment of market factors, as well as statements regarding the strategy and plans of the company and its strategic partners, constitute forward-looking statements which involve risks and uncertainties, including, without limitation, risks associated with the company's reliance upon its strategic relationships with Microsoft and other strategic partners, dependence upon broad-based acceptance of the company's ICA protocol, management of growth, the possibility of undetected software errors, and dependence on proprietary technology, as well as risks of downturns in economic conditions generally, and in the software industry specifically, and risks associated with competition and competitive pricing pressures, year 2000 compliance efforts of the company and third parties on which the company is dependent, and other risks detailed in the company's filings with the Securities and Exchange Commission.
In addition, revenues and earnings in the software industry are subject to fluctuation and the growth rates recently experienced by the company do not necessarily represent future operating results. The company's future operating results may fluctuate as a result of a number of factors, including the success of the company's MetaFrame and WinFrame product line and the acceptance of the company's ICA protocol; the size, timing and recognition of revenue from significant orders and royalty payments from Microsoft and others; increased competition, including potential competition from Microsoft and other, the proportion of revenues derived from distributors, OEMs and other channels; changes in the company's pricing policies or those of its competitors, including Microsoft; costs of developing, acquiring, or integrating new technologies or enhancements to existing products; and other factors. Investors should not use any one period's results as a benchmark for future growth. For a more detailed description of the risk factors associated with the company, please refer to the company's Annual Report or Form 10-K for the year ended December 31, 1998 and the Quarterly Report or Form 10-Q for the quarter ended September 30, 1999 on file with the Securities and Exchange Commission, and its Form 10-K for year ended December 31, 1999 to be filed shortly with the Commission. Citrix assumes no obligation to update any forward-looking information contained in this press release or with respect to the announcements described herein.
The Citrix(R) logo, WinFrame(R) and ICA(R) are registered trademarks of Citrix Systems, Inc. MetaFrame(TM) is a trademark of Citrix Systems, Inc. for which there is a pending application for registration in the U.S. Patent and Trademark Office. Solaris is a trademark of Sun Microsystems, Inc. in the United States and UNIX is a registered trademark of The Open Group in the U.S. and other countries. All other trademarks and registered trademarks are property of their respective owners. CITRIX SYSTEMS, INC. Condensed Consolidated Statements of Income (In thousands, except per share data - unaudited)
Three Months Ended - Twelve Months Ended -
December 31 December 31
1999 1998 1999 1998
Net revenues $118,051 $75,510 $403,285 $248,636
Cost of goods sold 3,654 3,243 14,579 16,682
Gross margin 114,397 72,267 388,706 231,954
Operating expenses:
Research and development 10,718 7,431 37,363 22,858
Sales, marketing and
support 35,950 21,517 121,302 74,855
General and
administrative 11,830 6,997 37,757 20,131
Amortization of
intangibles 5,704 3,802 18,480 10,190
In-process research
and development -- -- 2,300 18,416
Total operating expenses 64,202 39,747 217,202 146,450
Income from operations 50,195 32,520 171,504 85,504
Other income, net 3,000 2,333 11,221 9,968
Income before income
taxes 53,195 34,853 182,725 95,472
Income taxes 19,150 12,547 65,781 34,370
Net income $34,045 $22,306 $116,944 $61,102
Earnings per share $0.34 $0.24 $1.21 $0.67
Weighted average shares
outstanding 100,371 92,920 96,283 91,297
Adjusted net income $37,696 $24,739 $130,243 $79,410
Adjusted net income
per share $0.38 $0.27 $1.35 $0.87
Note: The above presentation of adjusted net income and adjusted net
income per share has been adjusted to exclude the pre-tax effects
of:
1) Acquired in-process research and development of $2,300 for the twelve
months ended December 31,1999 and $18,416 for the twelve months ended
December 31, 1998, respectively.
2) Amortization of intangible assets acquired from purchases, business
combinations, and licenses of $5,704 and $3,802 for the three months
ended December 31, 1999 and 1998, respectively and $18,480 and $10,190
for the twelve months ended December 31, 1999 and 1998, respectively.
These intangible assets primarily include goodwill and core technology.
Condensed Consolidated Balance Sheets
(In thousands - unaudited)
December 31, December 31,
1999 1998
Cash and short-term investments $438,093 $184,480
Accounts receivable, net 55,328 32,798
Inventories 7,731 4,071
Other current assets 69,092 22,667
Total current assets 570,244 244,016
Property and equipment, net 31,530 14,183
Long-term investments 325,755 97,108
Intangible assets, net 63,397 46,799
Other assets 46,931 29,274
Total assets $1,037,857 $431,380
Current liabilities $136,995 $85,116
Other liabilities 367,792 48,810
Stockholders' equity 533,070 297,454
Total liabilities and stockholders'
equity $1,037,857 $431,380
SOURCE Citrix Systems, Inc. (C) 2000 PR Newswire. All rights reserved. prnewswire.com -0- CONTACT: Investor Inquiries, Jeff Lilly, 954-267-2886, or Laurie Becker, 954-267-3024, Media Inquiries Joseph Horine, 954-267-3042, all of Citrix; or Julie Creed of the Financial Relations Board, 312-640-6724 (CTXS)
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