Citrix Reports First Quarter Financial Results

  Citrix Reports First Quarter Financial Results

 Quarterly Revenue of $673 Million up 14% Year over Year Deferred Revenue of
   $1.2 Billion as of Quarter End; up 25% Year-over-Year First Quarter GAAP
 Diluted Earnings Per Share of $0.32 First Quarter Non-GAAP Diluted Earnings
                              Per Share of $0.62

Business Wire

SANTA CLARA, Calif. -- April 24, 2013

Citrix Systems, Inc. (NASDAQ:CTXS) today reported financial results for the
first quarter of fiscal 2013 ended March 31, 2013.

FINANCIAL RESULTS

For the first quarter of fiscal year 2013, Citrix achieved revenue of $673
million, compared to $589 million in the first quarter of fiscal year 2012,
representing 14 percent revenue growth.

GAAP Results

Net income for the first quarter of fiscal year 2013 was $60 million, or $0.32
per diluted share, compared to $68 million, or $0.36 per diluted share, for
the first quarter of fiscal year 2012. Net income for the first quarter of
fiscal year 2013 includes net tax benefits of approximately $9 million, or
$0.05 per diluted share.

Non-GAAP Results

Non-GAAP net income for the first quarter of fiscal year 2013 was $117
million, or $0.62 per diluted share, compared to $111 million, or $0.59 per
diluted share, for the first quarter of fiscal year 2012. Non-GAAP net income
includes net tax benefits of approximately $9 million recognized in the first
quarter of fiscal year 2013, or $0.05 per diluted share. 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 spite of the macro factors negatively impacting IT spending, we executed
well in Q1,”said Mark Templeton, president and chief executive officer for
Citrix. “Consistently, CIOs everywhere tell me they are challenged by the
transformation, consumerization and fragmentation taking place in computing.
These forces are creating even more interest in mobility and cloud services.

“We remain focused on our long-term strategy to help our customers as they
invest in these areas.”

Q1 Financial Summary

In reviewing the results for the first quarter of fiscal year 2013, compared
to the first quarter of fiscal year 2012:

  *Product and license revenue increased 8 percent;
  *Software as a service revenue increased 14 percent;
  *Revenue from license updates and maintenance increased 19 percent;
  *Professional services revenue, which is comprised of consulting, product
    training and certification, increased 2 percent;
  *Revenue increased in the Americas region by 17 percent, increased in the
    Pacific region by 15 percent and increased in the EMEA region by 9
    percent;
  *Deferred revenue totaled $1.2 billion, compared to $983 million as of
    March 31, 2012, an increase of 25%;
  *GAAP operating margin was 8 percent and non-GAAP operating margin was 20
    percent, excluding the effects of amortization of acquired intangible
    assets and stock-based compensation expenses;
  *Cash flow from operations was $249 million for the first quarter of fiscal
    year 2013, compared with $243 million for the first quarter of fiscal year
    2012; and
  *The company repurchased 1.2 million shares at an average price of $71.51.

Financial Outlook for Second Quarter 2013

Citrix management expects to achieve the following results for the second
quarter of fiscal year 2013 ending June 30, 2013:

  *Net revenue is targeted to be in the range of $705 million to $715
    million;
  *Other income is targeted to be approximately $1 million;
  *GAAP diluted earnings per share is targeted to be in the range of $0.31 to
    $0.32. Non-GAAP diluted earnings per share is targeted to be in the range
    of $0.62 to $0.63, excluding $0.18 related to the effects of amortization
    of acquired intangible assets, $0.26 related to the effects of stock-based
    compensation expenses, and $(0.12) to $(0.14) for the tax effects related
    to these items;
  *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 22 percent to 23 percent.

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

Financial Outlook for Fiscal Year 2013

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

  *Net revenue is targeted to be in the range of $2.95 billion to $2.98
    billion;
  *Other income is targeted to be approximately $4 million;
  *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 $3.08 to $3.11, excluding $0.74 related to the effects of amortization
    of acquired intangible assets, $1.01 related to the effects of stock-based
    compensation expenses, and $(0.55) to $(0.62) for the tax effects related
    to these items.

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 for approximately 15
days by dialing (855) 859-2056 or (404) 537-3406 (passcode required:
27690921).

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.

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 Second Quarter 2013 and Financial Outlook for Fiscal
Year 2013 sections, and under the Non-GAAP Financial Measures Reconciliation
section, 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 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 our networks and
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
                                                    March 31,
                                                    2013         2012
Revenues:                                                       
Product and licenses                                $ 193,083     $ 178,364
Software as a service                                 137,566       120,733
License updates and maintenance                       315,738       264,525
Professional services                                26,512     25,873
Total net revenues                                    672,899       589,495
                                                                  
Cost of net revenues:
Cost of product and license revenues                  25,794        18,804
Cost of services and maintenance revenues             64,411        51,004
Amortization of product related intangible assets    24,709     16,535
Total cost of net revenues                            114,914       86,343
Gross margin                                          557,985       503,152
                                                                  
Operating expenses:
Research and development                              130,492       103,622
Sales, marketing and services                         297,682       248,457
General and administrative                            62,785        59,856
Amortization of other intangible assets              10,418     10,467
Total operating expenses                             501,377    422,402
                                                                  
Income from operations                                56,608        80,750
                                                                  
Other income, net                                    1,196      3,800
Income before income taxes                            57,804        84,550
                                                                  
Income tax (benefit) expense                         (1,884  )   16,283
Net income                                          $ 59,688    $ 68,267
                                                                  
Earnings per common share – diluted                 $ 0.32      $ 0.36
Weighted average shares outstanding – diluted        189,011    188,884
                                                                    

                                                          
CITRIX SYSTEMS, INC.

Condensed Consolidated Balance Sheets

(In thousands - unaudited)
                                                             
                                           March 31, 2013  December 31, 2012
ASSETS:
Cash and cash equivalents                   $251,465         $643,609
Short-term investments                      406,479          285,022
Accounts receivable, net                    450,939          630,956
Inventories, net                            11,229           10,723
Prepaid expenses and other current assets   141,295          106,579
Current portion of deferred tax assets,     40,068          36,846
net
Total current assets                        1,301,475        1,713,735
                                                             
Long-term investments                       747,004          595,313
Property and equipment, net                 302,378          303,294
Goodwill                                    1,761,824        1,518,219
Other intangible assets, net                590,689          556,205
Long-term portion of deferred tax assets,   77,935           43,097
net
Other assets                                67,034          66,539
Total assets                                $4,848,339      $4,796,402
                                                             
LIABILITIES AND STOCKHOLDERS’ EQUITY:
Accounts payable                            $61,613          $71,116
Accrued expenses and other current          245,907          257,135
liabilities
Income taxes payable                        10,907           49,346
Current portion of deferred revenues        986,023         965,276
Total current liabilities                   1,304,450        1,342,873
                                                             
Long-term portion of deferred revenues      245,358          232,719
Other liabilities                           104,384          99,033
                                                             
Stockholders' equity:
Common stock                                289              287
Additional paid-in capital                  3,798,931        3,691,111
Retained earnings                           2,623,706        2,564,018
Accumulated other comprehensive loss        (18,240)         (7,705)
Less – common stock in treasury, at cost    (3,210,539)     (3,125,934)
Total stockholders' equity                  3,194,147       3,121,777
Total liabilities and stockholders’         $4,848,339      $4,796,402
equity
                                                             

                                                             
CITRIX SYSTEMS, INC.

Condensed Consolidated Statement of Cash Flows

(In thousands - unaudited)
                                                               
                                                               Three Months
                                                               Ended March 31,
                                                               2013
OPERATING ACTIVITIES
Net Income                                                     $  59,688
Adjustments to reconcile net income to net cash provided by
operating activities:
Amortization and depreciation                                     64,536
Stock-based compensation expense                                  43,556
Provision for accounts receivable allowances                      2,026
Deferred income tax benefit                                       (18,189   )
Other non-cash items                                             (1,640    )
Total adjustments to reconcile net income to net cash             90,289
provided by operating activities
Changes in operating assets and liabilities, net of the
effects of acquisitions:
Accounts receivable                                               183,892
Prepaid expenses and other current assets                         (35,158   )
Inventory                                                         (1,140    )
Other assets                                                      811
Accounts payable                                                  (11,312   )
Accrued expenses and other current liabilities                    (21,338   )
Deferred revenues                                                 21,448
Income taxes, net                                                 (43,333   )
Other liabilities                                                5,632     
Total changes in operating assets and liabilities, net of        99,502    
the effects of acquisitions
Net cash provided by operating activities                         249,479
                                                               
INVESTING ACTIVITIES
Purchases of available-for-sale investments, net                  (273,909  )
Purchases of property and equipment                               (28,297   )
Purchases of other assets                                         (1,102    )
Cash paid for acquisitions, net of cash acquired                  (324,049  )
Cash paid for licensing and core technology                      (2,236    )
Net cash used in investing activities                             (629,593  )
                                                               
FINANCING ACTIVITIES
Proceeds from issuance of common stock under stock-based          25,251
compensation plans
Excess tax benefit from exercise of stock options                 26,795
Stock repurchases, net                                           (63,618   )
Net cash used in financing activities                            (11,572   )
Effect of exchange rate changes on cash and cash equivalents      (458      )
Change in cash and cash equivalents                              (392,144  )
Cash and cash equivalents at beginning of period                 643,609   
Cash and cash equivalents at end of period                     $  251,465   
                                                               

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
                                 March 31,
                                 2013
GAAP operating margin            8.4%
Add: stock-based                 6.5%
compensation
Add: amortization of
product related intangible       3.7%
assets
Add: amortization of other       1.5%
intangible assets
Non-GAAP operating margin        20.1%
                                 

                                 Three Months Ended March 31,
                                 2013                       2012
GAAP net income                  $     59,688               $   68,267
Add: stock-based                       43,556                    30,557
compensation
Add: amortization of
product related intangible             24,709                    16,535
assets
Add: amortization of other             10,418                    10,467
intangible assets
Less: tax effects related             (21,320     )           (15,167   )
to above items
Non-GAAP net income              $     117,051             $   110,659   
                                                             
                                                             
                                Three Months Ended March 31,
                                 2013                       2012
GAAP earnings per share –        $     0.32                  $   0.36
diluted
Add: stock-based                       0.23                      0.16
compensation
Add: amortization of
product related intangible             0.13                      0.09
assets
Add: amortization of other             0.06                      0.06
intangible assets
Less: tax effects related             (0.12       )           (0.08     )
to above items
Non-GAAP earnings per            $     0.62                $   0.59      
share – diluted
                                                                           

                                                           
CITRIX SYSTEMS, INC.

Forward Looking Guidance
                                                              
                                           For the Three      For the Twelve
                                           Months Ended       Months Ended
                                           June 30,           December 31,
                                           2013              2013
GAAP earnings per share - diluted          $0.31 to $0.32     $1.91 to $1.95
Add: adjustments to exclude the effects    0.18               0.74
of amortization of intangible assets
Add: adjustments to exclude the effects                      
of expenses related to stock-based
compensation                               0.26              1.01

Less: tax effects related to above items   (0.12) to (0.14)   (0.55) to (0.62)
Non-GAAP earnings per share - diluted      $0.62 to $0.63    $3.08 to $3.11
                                                              

                                                          For the Three Months
                                                   Ended
                                                          June 30,
                                                          2013
            GAAP tax rate                                 13.0% - 14.0%
            Add: tax effects of stock-based
            compensation and amortization of intangible   9.0
            assets
            Non-GAAP tax rate                             22.0% - 23.0%

Contact:

Citrix Systems, Inc.
Media Inquiries:
Eric Armstrong, 954-267-2977
eric.armstrong@citrix.com
or
Investor Inquiries:
Eduardo Fleites, 954-229-5758
eduardo.fleites@citrix.com
 
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