Citrix Systems Announces Record First Quarter 1999 Results & Board Authorizes Repurchase of up to $200 Million of Common Stock
Revenues up 72% on demand for Citrix's Server-Based Computing System Software utilizing the Independent Computing Architecture (ICA(R))
April 19, 1999 04:20 PM
FORT LAUDERDALE, Fla., April 19 /PRNewswire/ -- Citrix Systems, Inc. CTXS today reported results for the first quarter ended March 31, 1999.
Net revenues for the first quarter ending March 31, 1999, were $85.0 million, representing a 72% increase compared to the same quarter of the prior year. Net income, not including the amortization of intangible assets which were acquired through business combinations in prior years was $28.2 million or $0.30 per share. Net income for the first quarter of 1999, including after-tax amortization charges of approximately $2.4 million, was $25.8 million or $0.28 per share.
In March 1999, Citrix effected a two-for-one stock split. All share and per share information has been adjusted to reflect the effect of the split. In addition, all earnings per share amounts represent diluted earnings per share as defined within Statement of Financial Accounting Standards No. 128.
Commenting on the results, Mark B. Templeton, Citrix's president and chief executive officer, stated, "Our server-based computing system software is becoming an integral element of the enterprise computing infrastructure by providing our customers with greater flexibility in deploying and managing their line-of-business applications. With the recent introduction of our complementary Citrix Resource Management Services and Citrix Installation Management Services products, we have delivered extended functionality to our MetaFrame(TM) and WinFrame(R) products and have enabled our customers to provide a robust platform on which to construct and manage large-scale application server farms."
In a review of enterprise computing market trends, Edward Iacobucci, Citrix's chairman and chief technical officer, stated, "As our customers continue to address the challenges of communicating with the extended enterprise, including their customers, prospects, and suppliers, their need to access applications from a wide array of desktops and devices has become of paramount importance. With the creation of our new Internet business unit, we will focus on addressing the emerging application service provider (ASP) market for the deployment and management of web-based applications. Today, several ASP's are utilizing our ICA-based products to deliver and manage a variety of rich windows and web-based applications for their customers. Our products have enabled the ASP to centrally deploy and manage these applications for customers with limited IT resources, but who would benefit from an affordable methodology to gain application access."
In other matters, the Board of Directors approved a stock repurchase program authorizing the repurchase of up to $200 million of the company's common stock. Purchases will be made periodically in the open market and paid out of general corporate funds.
In conclusion, Templeton noted, "Looking ahead, our efforts will continue to be focused on providing our customers with an enterprise-class application management and delivery system which reduces their cost of application ownership while supporting their computing needs. In addition, our financial condition remains solid with $619.2 million in cash and marketable securities and stockholders' equity of $342.8 million at the end of the first quarter of 1999."
Founded in 1989, Citrix Systems, Inc. is a leader in system software for server-based computing. The WinFrame(R)and MetaFrame(TM) product lines and ICA thin-client/server technology are marketed through a worldwide business alliance of value-added resellers, system integrators, OEM licensees and industry associates. Citrix is based in Fort Lauderdale, Fla., and is traded on the Nasdaq National Market under the symbol CTXS.
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 WinFrame and MetaFrame product lines 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; the proportion of revenues derived from distributors, OEMs and other channels; changes in the company's pricing policies or those of its competitors; 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 March 31, 1999 to be filed 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 SYSTEMS, INC.
Condensed Consolidated Statements of Income
(In thousands, except per share data - unaudited)
Three Months Ended Three Months Ended
March 31, 1999 March 31, 1998
Net revenues $85,039 $49,302
Cost of goods sold 4,522 4,849
Gross margin 80,517 44,453
Operating expenses:
Research and development 8,406 3,278
Sales, marketing and support 24,769 14,888
General and administrative 6,410 3,705
Amortization of intangibles 3,778 774
In-process research
and development -- 5,284
Total operating expenses 43,363 27,929
Operating income 37,154 16,524
Other income, net 3,109 2,659
Income before income taxes 40,263 19,183
Income taxes 14,495 6,906
Net income $25,768 $12,277
Net income per share -- diluted $0.28 $0.14
Weighted average shares
outstanding 93,682 89,616
Adjusted net income $28,186 $16,154
Adjusted net income
per share - diluted $0.30 $0.18
Note: The above presentation of adjusted net income and adjusted net
income per share has been adjusted to exclude the pre-tax effects of
acquired in-process research and development of approximately $5.3 million
for the three months ended March 31, 1998 and amortization of intangible
assets acquired from purchase business combinations and licenses of
approximately $3.8 million and $0.8 million for the three months ended
March 31, 1999 and 1998, respectively. These intangible assets include
goodwill, workforce in place, customer base, software, patents, licenses,
and trademarks.
CITRIX SYSTEMS, INC.
Condensed Consolidated Balance Sheets
(In thousands - unaudited)
March 31, 1999 December 31, 1998
Cash and short-term
investments $456,479 $184,480
Accounts receivable, net 43,774 32,798
Inventories 4,761 4,071
Other current assets 31,645 22,667
Total current assets 536,659 244,016
Property and equipment, net 15,252 14,183
Long-term investments 162,771 97,108
Intangible assets, net 43,021 46,799
Other assets 47,542 29,274
Total assets $805,245 $431,380
Current liabilities 121,644 85,116
Other liabilities 340,764 48,810
Stockholders' equity 342,837 297,454
Total liabilities and
stockholders' equity $805,245 $431,380
SOURCE Citrix Systems, Inc. |
