Business News
Citrix Reports Second Quarter Financial Results
Thursday 23. July 2009 - Quarterly Revenue of $393 Million; GAAP Diluted Earnings Per Share of $0.23; Non-GAAP Diluted Earnings Per Share of $0.39
Citrix Systems, Inc. (Nasdaq:CTXS) today reported financial results for the second quarter of fiscal 2009 ended June 30, 2009.
FINANCIAL RESULTS
In the second quarter of fiscal 2009, Citrix achieved revenue of $393 million, compared to $392 million in the second quarter of fiscal 2008.
GAAP Results
Net income for the second quarter of fiscal 2009 was $43 million, or $0.23 per diluted share, compared to $35 million, or $0.18 per diluted share, for the second quarter of 2008. The current quarter GAAP results include a restructuring charge of approximately $2 million.
Non-GAAP Results
Non-GAAP net income in the second quarter of fiscal 2009 was $72 million, or $0.39 per diluted share, compared to $71 million, or $0.38 per diluted share, in the comparable period last year. Non-GAAP net income excludes the effects of amortization of intangible assets primarily related to business combinations and stock-based compensation expense and the tax effects related to those items. In addition, Non-GAAP net income for the second quarter of 2009 excludes charges recorded in connection with the restructuring program that the company implemented in January 2009, and the tax effects related to those items.
“I’m pleased with our second quarter results,” said Mark Templeton, president and chief executive officer for Citrix. “We are still in a tough economic climate, especially in the EMEA market, but our customers are embracing IT as an on-demand service, confirming our strategy around desktop virtualization, the next generation datacenter and SaaS.”
Q2 Financial Summary
In reviewing the second quarter results for 2009, compared to the second quarter of 2008:
Product license revenue decreased 15 percent;
Revenue from license updates grew 9 percent;
Online services revenue grew 18 percent;
Technical services revenue, which is comprised of consulting, education and technical support, grew 3 percent;
Revenue increased in the Americas region by 3 percent, decreased in the EMEA region by 12 percent, and decreased in the Pacific region by 4 percent;
Deferred revenue totaled $538 million, compared to $476 million on June 30, 2008;
GAAP operating margin was 10 percent for the quarter, and non-GAAP operating margin was 22 percent for the quarter, excluding the effects of amortization of intangible assets primarily related to business combinations, stock-based compensation expense and costs associated with the restructuring program;
Cash flow from operations was $86 million; and
The company repurchased 1.3 million shares at an average price of $30.32.
Financial Outlook
Due to the volatility of market conditions in the foreseeable future, it is more likely that Citrixs actual results could differ materially from expectations. Similar to the financial outlook we have provided for the last two fiscal quarters, the company is continuing to provide less quantitative guidance than it has historically.
Financial Outlook for Third Quarter 2009
Citrix management currently expects to achieve the following results during its third fiscal quarter of 2009 ending September 30, 2009:
Net revenue is expected to be flat compared to the third quarter of 2008; and
Non-GAAP operating margin is expected to increase 100 basis points compared to the second quarter 2009, excluding the effects of amortization of intangible assets primarily related to business combinations, stock-based compensation expense, and restructuring charges, if any.
Interest income is expected to be $3 million to $4 million.
The above statements are based on current expectations. These statements are forward-looking, and actual results may differ materially.
Financial Outlook for Fiscal Year 2009
Our financial outlook for the full fiscal year 2009 for both net revenue and non-GAAP operating margin remains unchanged.
The company expects net revenue to be flat as compared to 2008; and
Non-GAAP operating margin is expected to increase by as much as 100 basis points compared to non-GAAP operating margin from the prior year, excluding the effects of amortization of intangible assets primarily related to business combinations, stock-based compensation expense, and restructuring charges, as well as prior year exclusions of in process research and development related to business combinations.
The above statements are based on current expectations. These statements are forward-looking, and actual results may differ materially.
Company, Product and Alliance Highlights
During the second quarter of 2009, Citrix:
Announced the availability of the Citrix Receiver application on the Apple App Store. The app gives iPhone and iPod touch users access to their Windows applications and documents from anywhere;
Unveiled Citrix NetScaler VPX, a new software-based virtual appliance version of its industry-leading NetScaler MPX hardware appliance product line;
Announced upgrades to Citrix Essentials for XenServer and Hyper-V that adds advanced virtualization management capabilities to two of the industrys fastest growing virtualization platforms;
Announced nCore technology that allows its high-end Citrix NetScaler appliances to deliver rich Web 2.0 applications and cloud services for more users with no new hardware investments required;
Announced the addition of three new appliance models to its powerful Citrix NetScaler product line – NetScaler MPX 9500, MPX 7500 and MPX 5500;
Announced that LG-Nortel will distribute the Citrix NetScaler product line to enterprise customers in the Korean market; and
Unveiled Citrix Dazzle – a self-service “storefront” for enterprise applications. Dazzle gives corporate employees 24×7 self-service access to a broad array of applications, desktops and content, allowing them to choose exactly what they need, when they need it.