Market Snapshot
  • U.S.
  • Europe
  • Asia
Ticker Volume Price Price Delta
DJIA 16,404.63 -20.22 -0.12%
S&P 500 1,863.11 0.80 0.04%
NASDAQ 4,087.84 1.61 0.04%
Ticker Volume Price Price Delta
STOXX 50 3,155.81 16.55 0.53%
FTSE 100 6,625.25 41.08 0.62%
DAX 9,409.71 91.89 0.99%
Ticker Volume Price Price Delta
NIKKEI 14,417.53 -0.15 -0.00%
TOPIX 1,166.59 0.04 0.00%
HANG SENG 22,760.24 64.23 0.28%

Citrix Reports 2012 Fourth Quarter and Fiscal Year Financial Results



  Citrix Reports 2012 Fourth Quarter and Fiscal Year Financial Results

           Quarterly revenue of $740 million up 19% year over year

           Fourth quarter GAAP diluted earnings per share of $0.60

         Fourth quarter non-GAAP diluted earnings per share of $0.90

    Deferred revenue of $1.2 billion as of year end; up 25% year-over-year

       Fourth quarter cash flow from operations of $227 million; up 34%
                                year-over-year

Business Wire

SANTA CLARA, Calif. -- January 30, 2013

Citrix Systems, Inc. (NASDAQ:CTXS) today reported financial results for the
fourth quarter and fiscal year ended December 31, 2012.

FINANCIAL RESULTS

For the fourth quarter of fiscal year 2012, Citrix achieved revenue of $740
million, compared to $619 million in the fourth quarter of fiscal year 2011,
representing 19 percent revenue growth. For fiscal year 2012, Citrix reported
annual revenues of $2.59 billion, compared to $2.21 billion for fiscal year
2011, a 17 percent increase.

GAAP Results

Net income for the fourth quarter of fiscal year 2012 was $114 million, or
$0.60 per diluted share, compared to $109 million, or $0.58 per diluted share,
for the fourth quarter of fiscal year 2011. Annual net income for fiscal year
2012 was $353 million, or $1.86 per diluted share, compared to $356 million,
or $1.87 per diluted share for fiscal year 2011.

Non-GAAP Results

Non-GAAP net income for the fourth quarter of fiscal year 2012 was $169
million, or $0.90 per diluted share, compared to $147 million, or $0.78 per
diluted share for the fourth quarter of fiscal year 2011. Non-GAAP net income
excludes the effects of amortization of acquired intangible assets,
stock-based compensation expenses and the tax effects related to these items.

Annual non-GAAP net income for fiscal year 2012 was $543 million, or $2.87 per
diluted share, compared to $473 million, or $2.48 per diluted share, for
fiscal year 2011. Non-GAAP net income excludes the effects of amortization of
acquired intangible assets, stock-based compensation expenses and the tax
effects related to these items. In addition, non-GAAP net income for fiscal
year 2011 excludes amounts recorded in connection with the restructuring
program that the company implemented in January 2009 and the related tax
effect.

"I'm pleased with our results, both financial and strategic," said Mark
Templeton, president and CEO at Citrix. "We focused on execution to leverage
new routes to market, acquire new customers, and drive subscription,
maintenance and technical services growth. We also saw success in our newer
markets.

"Our customers are increasingly interested in mobility. CIOs are looking to
mobility to help deal with IT consumerization, a multi-generational workforce,
collaboration, consolidation and disruption.

"Mobility and cloud services represent an accelerating transformation in the
workplace, and as we look into 2013, we are uniquely positioned to help our
customers change the way they work, the devices and apps they use, and the way
services are delivered."

Q4 Financial Summary

In reviewing the results for the fourth quarter of fiscal year 2012, compared
to the fourth quarter of fiscal year 2011:

  * Product and license revenue increased 17 percent;
  * Software as a service revenue increased 18 percent;
  * Revenue from license updates and maintenance increased 22 percent;
  * Professional services revenue, which is comprised of consulting, product
    training and certification, increased 20 percent;
  * Revenue increased in the Pacific region by 52 percent; increased in the
    EMEA region by 19 percent; and increased in the America’s region by 14
    percent;
  * Deferred revenue totaled $1.2 billion, compared to $960 million as of
    December 31, 2011, an increase of 25%;
  * GAAP operating margin was 20 percent and non-GAAP operating margin was 30
    percent, excluding the effects of amortization of acquired intangible
    assets and stock-based compensation expenses;
  * Cash flow from operations was $227 million for the fourth quarter of
    fiscal year 2012, compared with $170 million for the fourth quarter of
    fiscal year 2011; and
  * The company repurchased 1.2 million shares at an average price of $63.93.

Annual Financial Summary

In reviewing the results for fiscal year 2012 compared to fiscal year 2011:

  * Product and license revenue increased 12 percent;
  * Software as a service revenue increased 19 percent;
  * Revenue from license updates and maintenance increased 20 percent;
  * Professional services revenue, which is comprised of consulting, product
    training and certification, increased 30 percent;
  * Revenue increased in the Pacific region by 33 percent, increased in the
    EMEA region by 20 percent, and increased in the Americas’ region by 12
    percent;
  * GAAP operating margin was 15 percent and non-GAAP operating margin was 25
    percent, excluding the effects of amortization of acquired intangible
    assets and stock-based compensation expense.
  * Cash flow from operations was $819 million for fiscal year 2012 compared
    with $679 million for fiscal year 2011; and
  * The company repurchased 3.8 million shares at an average price of $70.98.

Zenprise Acquisition

On January 2, 2013, Citrix completed its previously announced acquisition of
privately held Zenprise, a leading innovator in mobile device management, or
MDM, for cash consideration of approximately $327 million. Citrix intends to
integrate the Zenprise offering for MDM with its Citrix CloudGateway™ and
Me@Work™ solutions for managing mobile apps and data. As a result, enterprise
IT customers will have a comprehensive set of tools that make it easier to
manage and secure devices, apps and data, while users will be able to access
apps from virtually any device, giving them the freedom to work and play
anywhere.

The Zenprise acquisition will give Citrix the first solution in the industry
for managing mobile devices, apps and data from a single, integrated
enterprise mobility product line. This comprehensive approach can transform
organizations into mobile enterprises with the security and control IT
requires, the ease of use and flexibility users desire, and the productivity
business demands.

Financial Outlook for Fiscal Year 2013

Citrix management expects to achieve the following results for fiscal year
ending December 31, 2013:

  * Net revenue is targeted to be in the range of $2.95 billion to $2.98
    billion.
  * GAAP diluted earnings per share is targeted to be in the range of $1.91 to
    $1.95. Non-GAAP diluted earnings per share is targeted to be in the range
    of $3.12 to $3.15, excluding $0.73 related to the effects of amortization
    of acquired intangible assets, $0.97 related to the effects of stock-based
    compensation expenses, and $(0.46) to $(0.53) for the tax effects related
    to these items. GAAP and non-GAAP diluted earnings per share for the
    fiscal year 2013 also includes $0.08 to $0.09 of dilution (excluding
    amortization of acquired intangible assets) related to the acquisition of
    Zenprise.
  * GAAP and non-GAAP earnings per share guidance for fiscal year 2013
    includes approximately $9.4 million in net tax benefits, related to 2012,
    all of which will be recorded in the first quarter of fiscal year 2013,
    from the extension of the 2012 U.S. research and development tax credit
    which was signed into law in January 2013.
  * Non-GAAP tax rate, which excludes the effects of amortization of acquired
    intangible assets and stock-based compensation, is targeted to be in the
    range of 20 percent to 22 percent.

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

Financial Outlook for First Quarter 2013

Citrix management expects to achieve the following results for the first
quarter of fiscal year 2013 ending March 31, 2013:

  * Net revenue is targeted to be in the range of $670 million to $680
    million.
  * GAAP diluted earnings per share is targeted to be in the range of $0.31 to
    $0.33. Non-GAAP diluted earnings per share is targeted to be in the range
    of $0.62 to $0.63, excluding $0.19 related to the effects of amortization
    of acquired intangible assets, $0.23 related to the effects of stock-based
    compensation expenses, and $(0.10) to $(0.13) for the tax effects related
    to these items. GAAP and non-GAAP diluted earnings per share for the first
    quarter of fiscal year 2013 includes $0.05 to $0.06 of dilution (excluding
    amortization of acquired intangible assets) related to the acquisition of
    Zenprise.
  * GAAP and non-GAAP earnings per share guidance for the first quarter of
    fiscal year 2013 includes approximately $9.4 million in net tax benefits,
    related to 2012, from the extension of the 2012 U.S. research and
    development tax credit which was signed into law in January 2013.

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

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 by dialing (855)
859-2056 or (404) 537-3406 (passcode required: 86113390).

About Citrix

Citrix (NASDAQ:CTXS) is the cloud computing company that enables mobile
workstyles - empowering people to work and collaborate from anywhere,
accessing apps and data on any of the latest devices, as easily as they would
in their own office — simply and securely. Citrix cloud computing solutions
help IT and service providers build both private and public clouds -
leveraging virtualization and networking technologies to deliver
high-performance, elastic and cost-effective services for mobile workstyles.
With market leading solutions for mobility, desktop virtualization, cloud
networking, cloud platforms, collaboration, and data sharing, Citrix helps
organizations of all sizes achieve the kind of speed and agility necessary to
succeed in an increasingly mobile and dynamic world. Citrix products are in
use at more than 260,000 organizations and by over 100 million users globally.
Annual revenue in 2012 was $2.59 billion. Learn more at www.citrix.com.

For Citrix Investors

This release contains forward-looking statements which are made pursuant to
the safe harbor provisions of Section 27A of the Securities Act of 1933 and 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 by
Citrix's president and chief executive officer, statements contained in the
Financial Outlook for First Quarter 2013 and Financial Outlook for Fiscal Year
2013 sections, and under the Non-GAAP Financial Measures Reconciliation
section, statements concerning Citrix’s integration of its Zenprise
acquisition, product development plans and anticipated capabilities of its
mobility product line, and statements regarding management's plans, objectives
and strategies, 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, the impact of the
global economy and uncertainty in the IT spending environment; the success and
growth of the company's product lines, including risks associated with
successfully introducing new products into Citrix's distribution channels and
ability of markets for these products to become mainstream and sustain growth;
the company's product concentration and its ability to develop and
commercialize new products and services, including its enterprise mobility and
cloud platform products, while maintaining development and sales of its
established virtualization, networking and collaboration products and
services; disruptions due to changes and transitions in key personnel and
succession risks; seasonal fluctuations in the company's business; failure to
execute Citrix's sales and marketing plans; failure to successfully partner
with key distributors, resellers, system integrators, OEM's and strategic
partners and the company's reliance on and the success of those partners for
the marketing and distribution of the company's products; the company's
ability to maintain and expand its business in small sized and large
enterprise accounts; the size, timing and recognition of revenue from
significant orders; the success of investments in its product groups, foreign
operations and vertical and geographic markets; the introduction of new
products by competitors or the entry of new competitors into the markets for
Citrix's products and services; the ability of Citrix to make suitable
acquisitions on favorable terms in the future; risks associated with Citrix's
acquisitions (including its recently completed acquisitions of Bytemobile and
Zenprise), including failure to further develop and successfully market the
technology and products of acquired companies, failure to achieve or maintain
anticipated revenues and operating performance contributions from
acquisitions, which could dilute earnings, the retention of key employees from
acquired companies, difficulties and delays integrating personnel, operations,
technologies and products, disruption to our ongoing business and diversion of
management's attention from our ongoing business; the recruitment and
retention of qualified employees; risks in effectively controlling operating
expenses, including failure to manage untargeted expenses; the effect of new
accounting pronouncements on revenue and expense recognition; the risks
associated with securing data and maintaining security of customer data stored
by our services; failure to comply with federal, state and international
regulations; litigation and disputes, including challenges to our intellectual
property rights or allegations of infringement of the intellectual property
rights of others; the inability to further innovate our technology or enter
into new businesses due to the intellectual property rights of others; changes
in the company's pricing and licensing models, promotional programs and
product mix, all of which may impact Citrix's revenue recognition; charges in
the event of the impairment of acquired assets, investments or licenses;
competition, international market readiness, execution and other risks
associated with the markets for Citrix's products and services; unanticipated
changes in tax rates or exposure to additional tax liabilities; risks of
political and social turmoil; and other risks detailed in the company's
filings with the Securities and Exchange 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® is a trademarks or registered trademarks of Citrix Systems, Inc.
and/or one or more of its subsidiaries, and may be registered in the U.S.
Patent and Trademark Office and in 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      Year Ended
                                                    
                             December 31,            December 31,
                               2012        2011        2012          2011
Revenues:                                                         
Product and licenses         $ 268,674   $ 229,047   $ 830,645     $ 744,513
Software as a service          135,421     114,404     511,323       430,213
License updates and            302,981     248,410     1,125,094     940,181
maintenance (a)
Professional services (a)      32,920      27,505      119,061       91,485
Total net revenues             739,996     619,366     2,586,123     2,206,392
                                                                    
Cost of net revenues:
Cost of product and            33,086      19,559      96,962        74,393
licenses revenues
Cost of services and           60,822      47,720      227,150       164,465
maintenance revenues (b)
Amortization of product        23,460      14,821      80,025        54,741
related intangible assets
Total cost of net revenues     117,368     82,100      404,137       293,599
Gross margin                   622,628     537,266     2,181,986     1,912,793
                                                                    
Operating expenses:
Research and development       122,208     102,076     450,571       380,674
(b)
Sales, marketing and           287,097     244,159     1,060,829     885,066
services (b)
General and administrative     58,852      50,703      245,259       213,673
(b)
Amortization of other          9,050       4,514       34,549        16,390
intangible assets
Restructuring                  -           -           -             24
Total operating expenses       477,207     401,452     1,791,208     1,495,827
                                                                    
Income from operations         145,421     135,814     390,778       416,966
                                                                    
Other income, net              3,815       2,732       19,451        13,531
Income before income taxes     149,236     138,546     410,229       430,497
                                                                    
Income tax expense             35,207      29,847      57,682        74,867
Net income                     114,029     108,699     352,547       355,630
Net loss attributable to       -           -           -             692
non-controlling interest
Net income attributable to   $ 114,029   $ 108,699   $ 352,547     $ 356,322
Citrix Systems, Inc.
                                                                    
Earnings per common share    $ 0.60      $ 0.58      $ 1.86        $ 1.87
– diluted
Weighted average shares        188,662     188,588     189,129       190,641
outstanding – diluted

Certain fiscal year 2012 reclassifications have been reflected retroactively
to provide comparability.

(a) During the first quarter of fiscal year 2012, Citrix reviewed the
presentation of its Condensed Consolidated Statements of Income and adopted a
revised presentation, which the company believes is more comparable to those
presented by other companies in the industry. As a result, technical support,
hardware maintenance and software updates revenues, which were previously
presented in Technical Services and License Updates are classified together as
License Updates and Maintenance. A corresponding change was made to rename
Cost of Services Revenues to Cost of Services and Maintenance Revenues;
however, there was no change in classification. Product training,
certification and consulting services, which were previously presented in
Technical Services, are classified together as Professional Services. Product
Licenses has been renamed to Product and Licenses to more appropriately
describe its composition of both software and hardware; however, there was no
change in classification. The classification of Software as a Service remains
unchanged. This change in manner of presentation does not affect the Company's
total net revenues, total cost of net revenues or gross margin.

Conforming changes related to (a) have been made for the prior period
presented, as follows:

                            Three Months Ended
                                                                    
                            December 31, 2011
As Previously Reported      Amount Reclassified As Reported Herein
Revenues:                                       Revenues:
License                                         License updates
updates         $ 192,914   $     55,496        and maintenance      $ 248,410
                                                (2)
Technical         83,001          (55,496   )   Professional           27,505
services (1)                                    services (3)
Total           $ 275,915   $     -             Total                $ 275,915

                              Year Ended

                              December 31,                        

                              2011
                              Amount
As Previously Reported                        As Reported Herein
                              Reclassified
Revenues:                                     Revenues:
License                                       License updates
updates         $ 741,834     $ 198,347       and maintenance      $ 940,181
                                              (2)
Technical         289,832       (198,347 )    Professional           91,485
services (1)                                  services (3)
Total           $ 1,031,666   $ -             Total                $ 1,031,666

(1) Technical services revenue was comprised of hardware maintenance,
consulting services, product training and certification and technical support.

(2) License updates and maintenance is comprised of license updates, hardware
and software maintenance and technical support.

(3) Professional services is comprised of consulting services and product
training and certification.

(b) During the first quarter of fiscal year 2012, Citrix revised its
methodology for allocating certain IT support costs to more closely align
these costs to the employees directly utilizing the related assets and
services. As a result, certain IT support costs have been reclassified from
general and administrative expenses to cost of services and maintenance
revenues, research and development expenses and sales, marketing and services
expenses based on the headcount in each of these functional areas. This change
in manner of presentation does not affect the company's income from operations
or cash flows. Conforming changes related to (b) have been made for the prior
periods presented, as follows:

                                Three Months
                                Ended
                                                                    
                                December 31,
                                2011
As Previously Reported          Amount            As Reported Herein
                                Reclassified
                                                  Cost of services
Cost of services                                  and
revenues            $ 44,780    $  2,940                             $ 47,720
                                                  maintenance
                                                  revenues
Research and          88,764       13,312         Research and         102,076
development                                       development
Sales, marketing                                  Sales, marketing
and                   233,231      10,928         and                  244,159

services                                          services
General and           77,883       (27,180  )     General and          50,703
administrative                                    administrative
Total               $ 444,658   $  -              Total              $ 444,658

                               Year Ended
                                                
                               December 30,
                               2011
                               Amount
As Previously Reported                           As Reported Herein
                               Reclassified
                                                 Cost of
Cost of                                          services and
services          $153,063     $  11,402         maintenance       $ 164,465
revenues
                                                 revenues
Research and      343,727         36,947         Research and        380,674
development                                      development
Sales,                                           Sales,
marketing and     839,818         45,248         marketing and       885,066
services                                         services
General and       307,270         (93,597  )     General and         213,673
administrative                                   administrative
Total             $1,643,878   $  -              Total             $ 1,643,878

CITRIX SYSTEMS, INC.
Condensed Consolidated Balance Sheets
(In thousands - unaudited)
 
                                         December 31, 2012   December 31, 2011
ASSETS:
Cash and cash equivalents                $  643,609          $  333,296
Short-term investments                      285,022             406,461
Accounts receivable, net                    630,956             484,431
Inventories, net                            10,723              8,507
Prepaid expenses and other current          106,579             95,419
assets
Current portion of deferred tax             30,506              44,916       
assets, net
Total current assets                        1,707,395           1,373,030
                                                              
Long-term investments                       595,313             737,844
Property and equipment, net                 303,294             277,429
Goodwill                                    1,518,219           1,239,120
Other intangible assets, net                556,205             343,372
Long-term portion of deferred tax           16,616              67,479
assets, net
Other assets                                66,539              61,267       
Total assets                             $  4,763,581        $  4,099,541    
                                                              
LIABILITIES AND STOCKHOLDERS’ EQUITY:
Accounts payable                         $  71,116           $  58,034
Accrued expenses and other current          256,259             214,836
liabilities
Income taxes payable                        49,346              8,300
Current portion of deferred tax             876                 79,318
liabilities, net
Current portion of deferred revenues        965,276             818,642      
Total current liabilities                   1,342,873           1,179,130
                                                              
Long-term portion of deferred revenues      232,719             141,241
Long-term portion of deferred tax           30,839              20,247
liabilities, net
Other liabilities                           35,373              28,433
                                                              
Stockholders' equity:
Common stock                                287                 283
Additional paid-in capital                  3,691,111           3,385,053
Retained earnings                           2,564,018           2,211,471
Accumulated other comprehensive loss        (7,705      )       (11,561     )
Less – common stock in treasury, at         (3,125,934  )       (2,854,756  )
cost
Total stockholders' equity                  3,121,777           2,730,490    
Total liabilities and stockholders’      $  4,763,581        $  4,099,541    
equity

CITRIX SYSTEMS, INC.
Condensed Consolidated Statement of Cash Flows
(In thousands - unaudited)
 
                                                   Three Months
                                                                  Year Ended
                                                   Ended
                                                                  December 31,
                                                   December 31,
                                                                  2012
                                                   2012
OPERATING ACTIVITIES
Net Income                                         $ 114,029      $ 352,547
Adjustments to reconcile net income to net cash
provided by operating activities:
Amortization and depreciation                        60,818         214,873
Stock-based compensation expense                     41,018         149,940
Deferred income tax benefit                          (70,791  )     (70,791  )
Provision for accounts receivable allowances         2,995          12,527
Other non-cash items                                 (7,154   )     (21,106  )
Total adjustments to reconcile net income to net     26,886         285,443
cash
provided by operating activities
Changes in operating assets and liabilities, net
of the effects of acquisitions:
Accounts receivable                                  (178,113 )     (107,628 )
Inventory                                            139            (2,024   )
Prepaid expenses and other current assets            17,919         (9,195   )
Other assets                                         (3,889   )     (1,497   )
Accounts payable                                     6,625          (426     )
Accrued expenses and other current liabilities       23,084         45,135
Deferred revenues                                    143,982        216,798
Income taxes, net                                    75,420         39,004
Other liabilities                                    639            370       
Total changes in operating assets and                85,806         180,537   
liabilities, net of the effects of acquisitions
Net cash provided by operating activities            226,721        818,527
                                                                   
INVESTING ACTIVITIES
Proceeds from available-for-sale investments,        200,886        258,919
net
Proceeds from sales of cost method investments       2,839          24,252
Purchases of property and equipment                  (35,668  )     (122,958 )
Purchases of other assets                            (1,473   )     (6,622   )
Cash paid for acquisitions, net of cash acquired     1,126          (487,221 )
Cash paid for licensing and core technology          (13,483  )     (27,760  )
Other                                                -              3,450     
Net cash provided by (used in) investing             154,227        (357,940 )
activities
                                                                   
                                                                   
FINANCING ACTIVITIES
Proceeds from issuance of common stock under
stock-based compensation plans
compensation plans                                   12,610         108,406
Repayment of acquired debt                           -              (24,346  )
Excess tax benefit from exercise of stock            3,398          35,374
options
Stock repurchases, net                               (78,703  )     (271,178 )
Other                                                912            1,962     
Net cash used in financing activities                (61,783  )     (149,782 )
Effect of exchange rate changes on cash and cash     317            (492     )
equivalents
Change in cash and cash equivalents                  319,482        310,313   
Cash and cash equivalents at beginning of period     324,127        333,296   
Cash and cash equivalents at end of period         $ 643,609      $ 643,609   

Reconciliation of Non-GAAP Financial Measures to Comparable U.S. GAAP Measures

                                 (Unaudited)

Pursuant to the requirements of Regulation G, the Company has provided a
reconciliation of each non-GAAP financial measure used in this earnings
release and related conference call, slide presentation or webcast to the most
directly comparable GAAP financial measure. These measures differ from GAAP in
that they exclude amortization primarily related to acquired intangible
assets, stock-based compensation expenses and the related tax effect of those
items. The Company's basis for these adjustments is described below.

Management uses these non-GAAP measures for internal reporting and forecasting
purposes, when publicly providing its business outlook, to evaluate the
Company's performance and to evaluate and compensate the Company's executives.
The Company has provided these non-GAAP financial measures in addition to GAAP
financial results because it believes that these non-GAAP financial measures
provide useful information to certain investors and financial analysts for
comparison across accounting periods not influenced by certain non-cash items
that are not used by management when evaluating the Company's historical and
prospective financial performance. In addition, the Company has historically
provided this or similar information and understands that some investors and
financial analysts find this information helpful in analyzing the Company's
operating margins, operating expenses and net income and comparing the
Company's financial performance to that of its peer companies and competitors.

Management typically excludes the amounts described above when evaluating the
Company's operating performance and believes that the resulting non-GAAP
measures are useful to investors and financial analysts in assessing the
Company's operating performance due to the following factors:

• The Company does not acquire businesses on a predictable cycle. The Company,
therefore, believes that the presentation of non-GAAP measures that adjust for
the impact of amortization and certain stock-based compensation expenses and
the related tax effects that are primarily related to acquisitions, provide
investors and financial analysts with a consistent basis for comparison across
accounting periods and, therefore, are useful to investors and financial
analysts in helping them to better understand the Company's operating results
and underlying operational trends.

• Amortization costs and the related tax effects are fixed at the time of an
acquisition, are then amortized over a period of several years after the
acquisition and generally cannot be changed or influenced by management after
the acquisition.

• Although stock-based compensation is an important aspect of the compensation
of the Company's employees and executives, stock-based compensation expense is
generally fixed at the time of grant, then amortized over a period of several
years after the grant of the stock-based instrument, and generally cannot be
changed or influenced by management after the grant.

These non-GAAP financial measures are not prepared in accordance with
accounting principles generally accepted in the United States ("GAAP") and may
differ from the non-GAAP information used by other companies. There are
significant limitations associated with the use of non-GAAP financial
measures. The additional non-GAAP financial information presented here should
be considered in conjunction with, and not as a substitute for or superior to,
the financial information presented in accordance with GAAP (such as net
income and earnings per share) and should not be considered measures of the
Company's liquidity. Furthermore, the Company in the future may exclude
amortization primarily related to newly acquired intangible assets ,
additional charges related to its restructuring program and the related tax
effects from financial measures that it releases, and the Company expects to
continue to incur stock-based compensation expenses.

                             CITRIX SYSTEMS, INC.

                  Non-GAAP Financial Measures Reconciliation

    (In thousands, except per share and operating margin data - unaudited)

The following tables show the non-GAAP financial measures used in this press
release reconciled to the most directly comparable GAAP financial measures.

                                               Three Months Ended
                                              
                                               December 31,
                                               2012
GAAP operating margin                          19.7%
Add: stock-based compensation                  5.5%
Add: amortization of product related           3.2%
intangible assets
Add: amortization of other intangible assets   1.2%
Non-GAAP operating margin                      29.6%
 
                                               Three Months Ended December 31,
                                               2012               2011
GAAP net income                                $114,029           $108,699
Add: stock-based compensation                  41,018             29,318
Add: amortization of product related           23,460             14,821
intangible assets
Add: amortization of other intangible assets   9,050              4,514
Less: tax effects related to above items       (18,211)           (10,138)
Non-GAAP net income                            $169,346           $147,214
                                                                   
                                               Three Months Ended December 31,
                                               2012               2011
GAAP earnings per share – diluted              $0.60              $0.58
Add: stock-based compensation                  0.22               0.16
Add: amortization of product related           0.13               0.08
intangible assets
Add: amortization of other intangible assets   0.05               0.02
Less: tax effects related to above items       (0.10)             (0.06)
Non-GAAP earnings per share – diluted          $0.90              $0.78

                                              Twelve Months Ended December 31,
                                              2012
GAAP operating margin                         15.1%
Add: stock-based compensation                 5.8%
Add: amortization of product related          3.1%
intangible assets
Add: amortization of other intangible         1.3%
assets
Non-GAAP operating margin                     25.3%
 
                                              Twelve Months Ended December 31,
                                              2012                2011
GAAP net income                               $352,547            $356,322
Add: stock-based compensation                 149,940             92,909
Add: amortization of product related          80,025              54,741
intangible assets
Add: amortization of other intangible         34,549              16,390
assets
Add: restructuring charges                    -                   24
Less: tax effects related to above items      (73,817)            (47,599)
Non-GAAP net income                           $543,244            $472,787
                                                                   
                                              Twelve Months Ended December 31,
                                              2012                2011
GAAP earnings per share – diluted             $1.86               $1.87
Add: stock-based compensation                 0.79                0.49
Add: amortization of product related          0.43                0.29
intangible assets
Add: amortization of other intangible         0.18                0.08
assets
Add: restructuring charges                    -                   -
Less: tax effects related to above items      (0.39)              (0.25)
Non-GAAP earnings per share – diluted         $2.87               $2.48

                                  For the Three Months   For the Twelve Months
                                  Ended                  Ended

                                  March 31,              December 31,
                                  2013                   2013
GAAP earnings per share -         $0.31 to $0.33         $1.91 to $1.95
diluted
Add: adjustments to exclude the
effects of
amortization of intangible        0.19                   0.73
assets
Add: adjustments to exclude the
effects of
expenses related to stock-based                           
compensation                      0.23                   0.97
Less: tax effects related to      (0.10) to (0.13)       (0.46) to (0.53)
above items
Non-GAAP earnings per share -     $0.62 to $0.63         $3.12 to $3.15
diluted

                                               For the Twelve Months Ended
                                              
                                               December 31,
                                               2013
GAAP tax rate                                  14.0% - 16.0%
Add: tax effects of stock-based compensation
and amortization of intangible assets          6.0
Non-GAAP tax rate                              20.0% - 22.0%

Contact:

Citrix Systems, Inc.
For media inquiries:
Eric Armstrong, 954-267-2977
eric.armstrong@citrix.com
or
For investor inquiries:
Eduardo Fleites, 954-229-5758
eduardo.fleites@citrix.com
Sponsored Links
Advertisement
Advertisements
Sponsored Links
Advertisement