Citrix Systems Reports Second Quarter 2008 Earnings Results

Year-over-year Quarterly Revenue Growth of 17%; GAAP Diluted Earnings Per Share of $0.18; Non-GAAP Diluted Earnings Per Share of $0.38

FORT LAUDERDALE, Fla., 7/23/2008 -- Citrix Systems, Inc. (NASDAQ:CTXS), the global leader in Application Delivery Infrastructure, today reported financial results for the second quarter of fiscal 2008 ended June 30, 2008.

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FINANCIAL RESULTS
In the second quarter of fiscal 2008, Citrix achieved revenue of $392 million, compared to $334 million in the second quarter of fiscal 2007, representing 17 percent revenue growth.

GAAP Results
Net income for the second quarter of fiscal 2008 was $35 million, or $0.18 per diluted share, compared to $53 million, or $0.29 per diluted share, for the second quarter of 2007.

Non-GAAP Results
Non-GAAP net income in the second quarter of 2008 increased two percent to $71 million, or $0.38 per diluted share, compared to $70 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, stock-based compensation expenses and the tax effects related to those items.

“I’m delighted with another solid quarter,” said Mark Templeton, president and chief executive officer of Citrix. “We saw double digit revenue growth in each of our geographic segments, and we achieved our non-GAAP EPS targets. Overall a great quarter in a tough macro-economic environment.”

Q2 Financial Highlights
In reviewing the second quarter results of 2008, compared to the second quarter of 2007:

* Product license revenue increased 12 percent;
* Revenue from license updates grew 16 percent;
* Online services increased 23 percent;
* Technical services revenue, which is comprised of consulting, education and technical support, grew 34 percent;
* Revenue grew in the EMEA region by 22 percent; the America’s region by 13 percent, and the Pacific region by 11 percent;
* Deferred revenue totaled $476 million, compared to $395 million on June 30, 2007;
* Operating margin was seven percent for the quarter; non-GAAP operating margin was 21 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 $75 million, bringing the total 12 month trailing cash flow from operations to $379 million; and,
* Repurchased shares for the quarter were 2.1 million shares at an average price paid per share of $33.50.

Financial Outlook for Third Quarter 2008
Citrix management expects to achieve the following results during its third fiscal quarter of 2008 ending September 30, 2008:

* Net revenue is expected to be in the range of $385 million to $400 million, compared to $350 million in the third quarter of 2007;
* GAAP diluted earnings per share is expected to be in the range of $0.12 to $0.16. Non-GAAP diluted earnings per share is expected to be in the range of $0.36 to $0.39, excluding $0.09 related to the effects of amortization of intangible assets primarily related to business combinations and $0.14 to $0.15 related to the effects of stock-based compensation expenses.

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 expects to achieve the following results for the fiscal year 2008: The company expects net revenue to be in the range of $1.59 billion to $1.62 billion.
* The company expects GAAP diluted earnings per share to be in the range of $0.57 to $0.64. Non-GAAP diluted earnings per share to be in the range of $1.54 to $1.60, excluding $0.34 related to the effects of the amortization of intangible assets and $0.62 to $0.63 related to the effects of stock-based compensation expenses.

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 2008, Citrix announced:

* Citrix® XenDesktop™ 2.0 began shipping;
* Citrix® NetScaler® MPX, which reduces datacenter costs by delivering twice as many Web applications;
* A new Citrix Access Gateway™ release adding intelligent policy-based controls for Citrix XenDesktop;
* Citrix® XenServer™ is now factory integrated on Dell PowerEdge servers;
* A new Citrix XenServer pricing model allowing unlimited virtual machines per server at a single low price; and,
* Microsoft honored the company with its 2008 Microsoft Partner of the Year Global ISV – Infrastructure and 2008 Microsoft Partner for Citizenship awards;

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 citrix.com/investors.

About Citrix
Citrix Systems, Inc. (NASDAQ:CTXS) is the global leader and the most trusted name in Application Delivery Infrastructure. More than 215,000 organizations worldwide rely on Citrix to deliver any application to users anywhere with the best performance, highest security and lowest cost. Citrix customers include 100 percent of the Fortune 100 companies and 99 percent of the Fortune Global 500, as well as hundreds of thousands of small businesses and prosumers. Citrix has approximately 8,000 partners in more than 100 countries. Annual revenue in 2007 was $1.4 billion.

Source: Citrix Systems, Inc.