Citrix Systems Reports Record Results for First Quarter 2000 Revenues
up 50% on Demand for Citrix Application Server Software and Services
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FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--April 19, 2000--Citrix
Systems, Inc. (NASDAQ:CTXS) today reported results for the first
quarter ended March 31, 2000.
Financial Highlights
Net revenues for the first quarter ending March 31, 2000, were
$127.5 million, up 50% from $85.0 million in the comparable period of
the prior year. Net income, excluding the amortization of intangible
assets relating to business combinations, was $43.9 million for the
first quarter, or $0.21 per share, as compared to $28.2 million or
$0.15 per share for the first quarter of 1999. Net income for the
first quarter of 2000 was $38.5 million or $0.19 per share, as
compared with net income of $25.8 million or $0.14 per share for the
first quarter of 1999.
In February 2000, Citrix effected a two-for-one stock split. All
share and per share information has been adjusted to reflect the
effect of the split.
Business Highlights
Business highlights in the quarter included the launch of three
products, improved results in all geographic regions and continued
investment for future opportunity, as follows:
-- Three New Products Released -- Citrix launched MetaFrame(TM) for
Windows(R) 2000 Servers, MetaFrame for the Solaris(TM) Operating
System and NFuse(TM), a new Web application portal product, as
part of extending these product lines into new markets.
-- Strategic Acquisitions Announced -- Citrix acquired the Innovex
Group to enhance its consulting-service offerings for integration
partners and customers, and more recently, agreed to acquire
India's PowerTel BOCA Ltd. to support growth in a key emerging
market.
-- ASP Market Leadership -- Citrix strengthened its position as an
infrastructure leader in the application service provider (ASP)
market with additional ASPs signing up for the Citrix iBusiness
Program, and the announcement of a strategic partnership with IBM
to make server-based application hosting in ASP data centers
faster and easier.
-- Improving Brand Awareness -- Citrix launched its "Digital
Independence(TM)" branding campaign worldwide as part of raising
the visibility of the Citrix brand in the marketplace.
"We believe that the key to achieving our growth goals is to
couple strong financial performance with strategic investments for the
future as we did in the first quarter," said Mark Templeton, Citrix
president and CEO. "We intend to continue creating new opportunities
by `webifying' our offerings and building channel and customer support
for the new products and services we launched in the first quarter."
"We believe that continued growth in the application server
markets creates a large opportunity for our application serving
solutions," said Edward Iacobucci, Citrix chairman and CTO, "and we
are focused on enhancing our existing offerings and developing new
products to meet these market demands. This focus will position us to
both deepen our value proposition for existing enterprise customers
and open up new revenue streams with emerging opportunities such as
the ASP market."
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, Florida. Citrix is traded on the Nasdaq National Market
under the symbol CTXS and is part of the Standard & Poor's 500 Index.
For Citrix Investors
This release contains forward-looking statements which are made
pursuant to the safe harbor provisions of Section 21E of the
Securities Exchange Act of 1934. The forward-looking statements in
this release do not constitute guarantees of future performance.
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. Such
forward-looking statements are subject to a number of risks and
uncertainties that could cause actual results to differ materially
from those anticipated by the forward-looking statements, 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, risks that the
company's branding campaign will not enhance the company's business or
results in the manner anticipated, 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, 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
product line and the acceptance of the company's ICA protocol; the
size, timing and recognition of revenue from significant orders;
increased competition, including potential competition from Microsoft
and other companies; the success of the company's iBusiness program;
the rate of growth of the ASP market, and the company's ability to
continue to develop and market products to meet the requirements of
this market; 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 on Form 10-K for the year ended
December 31, 1999 and the Quarterly Report on Form 10-Q for the
quarter ended March 31, 2000 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.
Citrix(R), WinFrame(R), ICA(R), MetaFrame(TM), NFuse(TM)and
Digital Independence(TM)are registered trademarks or trademarks of
Citrix Systems, Inc. in the U.S. and other countries. Solaris(TM)is a
registered trademark of Sun Microsystems, Inc. in the United States
and in other countries. Windows(R)is a registered trademark of
Microsoft Corporation. All other trademarks and registered trademarks
are property of their respective owners.
*T
CITRIX SYSTEMS, INC.
Condensed Consolidated Statements of Income
(In thousands, except per share data - unaudited)
Three Months Three Months
Ended Ended
March 31, March 31,
2000 1999
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Net revenues $127,515 $ 85,039
Cost of goods sold 5,129 4,522
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Gross margin 122,386 80,517
Operating expenses:
Research and development 12,112 8,406
Sales, marketing and support 41,189 24,769
General and administrative 12,655 6,410
Amortization of intangibles 6,819 3,778
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Total operating expenses 72,775 43,363
Operating income 49,611 37,154
Other income, net 5,453 3,109
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Income before income taxes 55,064 40,263
Income taxes 16,519 14,495
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Net income $ 38,545 $ 25,768
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Net income per share - diluted $ 0.19 $ 0.14
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Weighted average shares outstanding 208,309 187,363
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Adjusted net income $ 43,937 $ 28,186
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Adjusted net income per share - diluted $ 0.21 $ 0.15
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Note: The above presentation of adjusted net income and adjusted
net income per share has been adjusted to exclude the effects of
amortization of intangible assets acquired from purchases, business
combinations, and licenses of $6,819 and $3,778 for the three months
ended March 31, 2000 and 1999, respectively. These intangible assets
primarily include goodwill and core technology.
Condensed Consolidated Balance Sheets
(In thousands - unaudited)
March 31, December 31,
2000 1999
-----------------------
Cash and short-term investments $ 503,523 $ 438,094
Accounts receivable, net 82,974 55,327
Inventories 10,489 7,731
Other current assets 125,567 69,092
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Total current assets 722,553 570,244
Property and equipment, net 36,438 31,530
Long-term investments 321,920 325,755
Intangible assets, net 84,107 63,396
Other assets 40,791 46,932
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Total assets $1,205,809 $1,037,857
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Current liabilities $ 159,993 $ 136,995
Other liabilities 361,923 367,792
Stockholders' equity 683,893 533,070
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Total liabilities and stockholders' equity $1,205,809 $1,037,857
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*T
CONTACT: Citrix, Fort Lauderdale
Investor Inquiries
Jeff Lilly, 954/267-2886
Laurie Becker, 954/267-3024
or
At the Financial Relations Board:
Karen Griffiths, 212/455-0916
or
Media Inquiries at Citrix:
Joseph Horine, 954/267-3042
KEYWORD: FLORIDA
INDUSTRY KEYWORD: SOFTWARE EARNINGS
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