Citrix Reports Second Quarter Financial Results
Quarterly revenue of $615 million up 16% year-over-year
GAAP diluted earnings per share of $0.49
Non-GAAP diluted earnings per share of $0.71
Deferred revenue of $1.03 billion up 24% year-over-year
Board of directors authorizes $400 million increase to
share repurchase program
India – July 26, 2012: Citrix (NASDAQ:CTXS) today reported financial
results for the second quarter of fiscal 2012 ended June 30, 2012.
FINANCIAL RESULTS
In the second quarter of fiscal
2012, Citrix achieved revenue of $615 million, compared to $531 million in the
second quarter of fiscal 2011, representing 16 percent revenue growth.
GAAP Results
Net income for the second quarter
of fiscal 2012 was $92 million, or $0.49 per diluted share, compared to $82
million, or $0.43 per diluted share, in the comparable period last year. Net
income for the second quarter of fiscal 2012 includes net tax benefits of
approximately $22 million, or $0.11 per diluted share, primarily related to the
closing of audits with the IRS for certain tax years.
Non-GAAP Results
Non-GAAP net income for the
second quarter of fiscal 2012 was $135 million, or $0.71 per diluted share,
compared to $108 million, or $0.57 per diluted share, in the comparable period
last year. Non-GAAP net income for the second quarter of fiscal 2012 includes
net tax benefits of approximately $22 million, or $0.11 per diluted share,
primarily related to the closing of audits with the IRS for certain tax years.
NonGAAP net income excludes the effects of amortization of acquired intangible
assets, stock-based compensation expenses, and the tax effects related to these
items.
“In Q2, we saw solid growth in an
uncertain economic climate,” said Mark Templeton, president and chief executive
officer for Citrix. “So, I’m pleased with our execution, and our strong market
positions.
“As the rapid transformation from
PC Era to Cloud Era continues, we’re delivering solutions that make it easy for
customers to build new clouds, connect to cloud services, and empower their
users to work from anywhere.”
In addition to quarterly
financial results, Citrix also announced that its Board of Directors has
authorized it to repurchase up to an additional $400 million of its common
stock. As of June 30, 2012, approximately $87 million remained for repurchases
from previous authorizations.
Q2 Financial Summary
In reviewing the results from the
second quarter of 2012, compared to the second quarter of 2011:
• Product and licenses revenue
increased 10 percent;
• Software as a service revenue
increased 18 percent;
• Revenue from license updates
and maintenance increased 18 percent;
• Professional services revenue,
which is comprised of consulting, product training and certification, increased
37 percent;
• Revenue increased in the
Pacific region by 24 percent, increased in the EMEA region by 21 percent, and
increased in the Americas region by 11 percent;
• Deferred revenue totaled $1.03
billion, compared to $830 million as of June 30, 2011;
• Cash flow from operations was
$168 million, compared with $162 million in the second quarter of 2011; and
• GAAP operating margin was 13
percent for the quarter and non-GAAP operating margin was 23 percent for the
quarter, excluding the effects of amortization of acquired intangible assets and
stockbased compensation expenses.
Bytemobile
Acquisition
On July 9, 2012, Citrix completed
its previously announced acquisition of privately held Bytemobile, a leading
provider of data and video optimization solutions for mobile network operators,
for cash consideration of approximately $435 million. This acquisition gives
Citrix a strategic foothold in the core infrastructure of more than 130 mobile
operators in 60 countries around the world, extending the company’s market reach
and enhancing the broader Citrix strategy of powering mobile workstyles and
cloud services. With the advent of the Cloud Era, mobile operators are
experiencing explosive growth in network traffic, driven by the combination of
new consumer devices, rich multimedia content, and high speed 3G, 4G and LTE
networks. By joining forces, Citrix and Bytemobile will be able to offer these
operators combined solutions that deliver a high quality user experience to
mobile subscribers, while helping operators manage the exponential growth of
mobile network traffic with the best performance, visibility and efficiency. The
acquisition builds on a strategic partnership announced earlier this year that
combined the Bytemobile Smart Capacity™ technology with the Citrix NetScaler®
line of cloud networking solutions.
Financial Outlook for Third
Quarter 2012
Citrix management expects to
achieve the following results during its third fiscal quarter of 2012 ending
September 30, 2012, inclusive of the impact of the Bytemobile acquisition:
• Net revenue is targeted to be
in the range of $645.0 million to $655.0 million.
• GAAP diluted earnings per share
is targeted to be in the range of $0.36 to $0.38. Non-GAAP diluted earnings per
share is targeted to be in the range of $0.64 to $0.66, excluding $0.17 related
to the effects of amortization of acquired intangible assets, $0.21 related to
the effects of stock-based compensation expenses, and $(0.08) to $(0.12) for the
tax effects related to these items. GAAP and non-GAAP diluted earnings per share
for the third quarter of 2012 includes $0.07 to $0.08 of dilution (excluding
amortization of acquired intangible assets) related to the acquisition of
Bytemobile.
The above statements are based on current targets. These
statements are forward-looking, and actual results may differ materially.
Financial Outlook for Fiscal
Year 2012
Citrix management expects to
achieve the following results during fiscal year 2012 ending December 31, 2012,
inclusive of the impact of the Bytemobile acquisition:
• Net revenue is targeted to be
in the range of $2.56 billion to $2.58 billion.
• GAAP diluted earnings per share
is targeted to be in the range of $1.76 to $1.79. Non-GAAP diluted earnings per
share is targeted to be in the range of $2.78 to $2.81, excluding $0.60 related
to the effects of amortization of acquired intangible assets, $0.80 related to
the effects of stock-based compensation expenses, and $(0.35) to $(0.41) for the
tax effects related to these items. GAAP and non-GAAP diluted earnings per share
for the fiscal year 2012 also includes $0.07 to $0.08 of dilution (excluding
amortization of acquired intangible assets) related to the acquisition of
Bytemobile.
The above statements are based on current targets. These
statements are forward-looking, and actual results may differ materially.
Company, Product and Alliance
Highlights
During the second quarter of
2012, Citrix announced:
• The availability of Citrix
NetScaler® 10. NetScaler 10 brings the elasticity, simplicity and expandability
of the cloud to both enterprise and carrier networks, featuring the new Citrix
TriScale™ technology that makes it easier for businesses of any size to scale
their networks “up, in and out” with ease.
• Citrix ShareFile™ StorageZones,
giving customers the ability to choose optimal locations for storing corporate
data – on premise within their private cloud, in secure Citrix ShareFile-managed
cloud storage options in multiple user-specified locations worldwide, or a
hybrid of the two. StorageZones enable businesses to meet compliance and
performance requirements while taking advantage of the
economic benefits of cloud-based
data-sharing services.
• Citrix Podio™, the company’s
new team-based collaboration platform following the acquisition of Podio, a
freemium cloud service that supports people and teams getting work done the way
they want
to in a social setting through a
unique apps concept that adds structure and activity streams to any type of work
and collaboration.
• Citrix advanced its strategy to
accelerate the broad adoption of open, interoperable cloud computing with the
introduction of Citrix CloudPlatform, the first commercially supported cloud
orchestration system based on Apache CloudStack that allows customers to evolve
virtualized datacenter resources to automated, elastic, self-service IT delivery
models using the same technologies on which the world’s most successful clouds
are built.
• Citrix CloudGateway™ 2, an
update to its enterprise mobility solution that adds extensive mobile
application management capabilities as well as integration with Citrix ShareFile
for a single unified control point for apps and data across the enterprise,
allowing employees to be as productive on the go as they are in the office with
access to their personalized set of applications and data when and where they
need them.
• Citrix XenClient® Enterprise
edition, which leverages the newly-acquired Virtual Computer enterprise-scale
management technology for client-side virtualization to help organizations
manage large fleets of corporate laptops across distributed and increasingly
mobile enterprises.
About Citrix
Citrix (Nasdaq:CTXS) transforms how businesses and IT
work and people collaborate in the cloud era. With market-leading cloud,
collaboration, networking and virtualization technologies, Citrix powers mobile
workstyles and cloud services, making complex enterprise IT simpler and more
accessible for 260,000 organizations. Citrix products touch 75 percent of
Internet users each day and it partners with more than 10,000 companies in 100
countries. Annual revenue in 2011 was $2.21 billion. Learn more at
www.citrix.com.
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