Thursday, July 26, 2012


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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