Business News
Citrix Reports Third Quarter Earnings Results
Thursday 23. October 2008 - Year-over-year Quarterly Revenue Growth of 14%; GAAP Diluted Earnings Per Share of $0.26; Non-GAAP Diluted Earnings Per Share of $0.43
Citrix Systems, Inc. (NASDAQ:CTXS), the global leader in application delivery infrastructure, today reported financial results for the third quarter of fiscal 2008 ended September 30, 2008.
FINANCIAL RESULTS
In the third quarter of fiscal 2008, Citrix achieved revenue of $399 million, compared to $350 million in the third quarter of fiscal 2007, representing 14 percent revenue growth.
GAAP Results
Net income for the third quarter of fiscal 2008 was $49 million, or $0.26 per diluted share, compared to $61 million, or $0.33 per diluted share for the third quarter of 2007.
Non-GAAP Results
Non-GAAP net income, in the third quarter of 2008 increased to $80 million, or $0.43 per diluted share, compared to $77 million, or $0.41 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, stock-based compensation expenses and the tax effects related to those items.
“Im pleased with our third quarter results,” said Mark Templeton, president and chief executive officer for Citrix. “In the quarter, we took decisive actions to hold operating expenses flat, introduce new cost efficiency programs, and direct our customer conversations toward the tangible cost-savings we provide. These factors helped us deliver double digit revenue growth in a tough macro-economic environment.”
Q3 Financial Highlights
In reviewing the third quarter results of 2008, compared to the third quarter of 2007:
Product license revenue increased 12 percent;
Revenue from license updates grew 14 percent;
Online services revenue increased 17 percent;
Technical services revenue, which is comprised of consulting, education and technical support, grew 18 percent;
Revenue grew in the EMEA region by 21 percent, the Pacific region by 11 percent, and the Americas region by 9 percent;
Deferred revenue totaled $481 million, compared to $396 million on September 30, 2007;
Operating margin was 12 percent for the quarter; non-GAAP operating margin was 24 percent for the quarter, excluding the effects of amortization of intangible assets primarily related to business combinations and stock-based compensation expense;
Cash flow from operations was $115 million, compared to $85 million in the third quarter of 2007. This brings total twelve month trailing cash flow from operations to $409 million; and,
Repurchased shares for the quarter totaled 2.4 million shares at an average price paid per share of $29.17.
Financial Outlook for Fourth Fiscal Quarter 2008
Citrix management offers the following guidance for the fourth fiscal quarter 2008 ending December 31, 2008:
Net revenue is expected to be in the range of $425 million to $440 million.
GAAP diluted earnings per share is expected to be in the range of $0.29 to $0.32. Non-GAAP diluted earnings per share, is expected to be in the range of $0.46 to $0.48, excluding $0.09 related to the effects of amortization of intangible assets primarily related to business combinations, $0.18 to $0.19 related to the effects of stock-based compensation expenses and $(0.09) to $(0.13) for the effect of the differential between the GAAP and non-GAAP tax rates related to these items.
The above statements are based on current expectations. These statements are forward-looking, and actual results may differ materially.
Financial Outlook for Fiscal Year 2008
Citrix management offers the following guidance for the fiscal year ending December 31, 2008:
Net revenue is expected to be in the range of $1.59 billion to $1.61 billion.
GAAP diluted earnings per share is expected to be in the range of $0.91 to $0.94. Non-GAAP diluted earnings per share, is expected to be in the range of $1.61 to $1.63, excluding $0.37 related to the effects of amortization of intangible assets primarily related to business combinations, $0.67 to $0.68 related to the effects of stock-based compensation expenses and $(0.33) to $(0.37) for the effect of the differential between the GAAP and non-GAAP tax rates related to these items.
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 third quarter of 2008, Citrix:
Unveiled Citrix Cloud Center (C3) designed to give cloud providers a complete set of service delivery infrastructure building blocks for hosting, managing and delivering cloud-based computing services;
Introduced XenApp 5, the next-generation application virtualization solution designed to provide the best way to deliver Windows applications to physical and virtual desktops with superior user experience. This release leverages all of the enhancements in Windows Server 2008 and fully supports Windows Server 2003;
Launched XenServer 5, the next generation in its server virtualization product line featuring an enhanced open architecture that makes it easier for customers to leverage their existing investments in storage and datacenter management systems and adding more than 100 new features, including major advances in high availability and disaster recovery;
Partnered with Marathon Technologies Corp. to bring world class high availability and fault tolerance to XenServer, making it the only virtualization platform that lets IT professionals select the right level of availability for applications running in virtual machines;
Released new versions of GoToMeeting and GoToWebinar integrating VoIP, phone, and Web conferencing for Mac and PC and featuring other collaboration services to help small and medium businesses compete as never before; and
Released GoToAssist Express, an affordable new remote support service purpose-built for IT professionals and small businesses.