Citrix Systems, Inc. (NASDAQ:CTXS) today announced preliminary results
for the third quarter of fiscal year 2013 ended September 30, 2013.
Revenue for the quarter is expected to be in the range of $710 million
to $712 million, below the company’s guidance of $730 million to $740
million. Net income for the third quarter of fiscal year 2013 per
diluted share is expected to be in the range of $0.39 to $0.40 compared
to guidance of $0.41 to $0.42 per diluted share. Non-GAAP net income for
the third quarter of fiscal year 2013 per diluted share is expected to
be in the range of $0.68 to $0.69, compared to guidance of $0.72 to
$0.73 per diluted share. Non-GAAP net income per diluted share excludes
the effects of amortization of acquired intangible assets, stock-based
compensation expenses and the tax effects related to these items.
“While we are disappointed that we fell short of our expectations this
quarter, we remain confident in our strategy and markets,” said Mark
Templeton, President and CEO, Citrix. “Our focus remains steadfast on
helping our customers leverage cloud services and business mobility to
improve the security and agility of their IT infrastructure. We will
provide more color at our regularly scheduled conference call on October
23.”
These preliminary, unaudited results are based on management’s initial
review of operations for the quarter ended September 30, 2013, and
remains subject to change based on management’s ongoing review of the
third quarter results.
Conference Call Information
Citrix will report final results for the third quarter of fiscal year
2013 in its regularly scheduled earnings release and conference call on
Wednesday, October 23, 2013 after market close. A news release will be
issued at approximately 4:05 p.m. ET and the conference call will begin
at 4:45 p.m. ET to discuss financial results, quarterly highlights and
business outlook. The call will include a slide presentation and
participants are encouraged to view the presentation via webcast at http://www.citrix.com/investors.
The conference call may also be accessed by dialing:
(888) 799-0519 or (706) 634-0155
Using passcode: CITRIX
A replay of the webcast will be available on the Investor Relations
section of the Citrix corporate website at http://www.citrix.com/investors
for approximately 30 days.
About Citrix
Citrix (NASDAQ:CTXS) is a cloud computing company that enables mobile
workstyles – empowering people to work and collaborate from anywhere,
accessing apps and data on any of the latest devices, as easily as they
would in their own office – simply and securely. Citrix cloud computing
solutions help IT and service providers build both private and public
clouds – leveraging virtualization and networking technologies to
deliver high-performance, elastic and cost-effective services for mobile
workstyles. With market leading solutions for mobility, desktop
virtualization, cloud networking, cloud platforms, collaboration, and
data sharing, Citrix helps organizations of all sizes achieve the kind
of speed and agility necessary to succeed in an increasingly mobile and
dynamic world. Citrix products are in use at more than 330,000
organizations and by over 100 million users globally. Annual revenue in
2012 was $2.59 billion.
For Citrix Investors
This release contains forward-looking statements which are made pursuant
to the safe harbor provisions of Section 27A of the Securities Act of
1933 and of Section 21E of the Securities Exchange Act of 1934. The
forward-looking statements in this release do not constitute guarantees
of future performance. Investors are cautioned that statements in this
press release, which are not strictly historical statements, including,
without limitation, statements by Citrix's president and chief executive
officer, statements regarding expected revenue and net income per
diluted share for the third quarter 2013, and statements under the
Non-GAAP Financial Measures Reconciliation section, and statements
regarding management's plans, objectives and strategies, constitute
forward-looking statements. Such forward-looking statements are subject
to a number of risks and uncertainties that could cause actual results
to differ materially from those anticipated by the forward-looking
statements, including, without limitation, the identification of
adjustments to the preliminary results presented in this release upon
completion of the financial close process for the quarter; the impact of
the global economy and uncertainty in the IT spending environment; the
success and growth of the company's product lines, including risks
associated with successfully introducing new products into Citrix's
distribution channels and ability of markets for these products to
become mainstream and sustain growth; the company's product
concentration and its ability to develop and commercialize new products
and services, including its enterprise mobility and cloud platform
products, while maintaining development and sales of its established
virtualization, networking and collaboration products and services;
disruptions due to changes and transitions in key personnel and
succession risks; seasonal fluctuations in the company's business;
failure to execute Citrix's sales and marketing plans; failure to
successfully partner with key distributors, resellers, system
integrators, OEM's and strategic partners and the company's reliance on
and the success of those partners for the marketing and distribution of
the company's products; the company's ability to maintain and expand its
business in small sized and large enterprise accounts; the size, timing
and recognition of revenue from significant orders; the success of
investments in its product groups, foreign operations and vertical and
geographic markets; the introduction of new products by competitors or
the entry of new competitors into the markets for Citrix's products and
services; the ability of Citrix to make suitable acquisitions on
favorable terms in the future; risks associated with Citrix's
acquisitions, including failure to further develop and successfully
market the technology and products of acquired companies, failure to
achieve or maintain anticipated revenues and operating performance
contributions from acquisitions, which could dilute earnings, the
retention of key employees from acquired companies, difficulties and
delays integrating personnel, operations, technologies and products,
disruption to our ongoing business and diversion of management's
attention from our ongoing business; the recruitment and retention of
qualified employees; risks in effectively controlling operating
expenses, including failure to manage untargeted expenses; the effect of
new accounting pronouncements on revenue and expense recognition; the
risks associated with securing data and maintaining security of our
networks and customer data stored by our services; failure to comply
with federal, state and international regulations; litigation and
disputes, including challenges to our intellectual property rights or
allegations of infringement of the intellectual property rights of
others; the inability to further innovate our technology or enter into
new businesses due to the intellectual property rights of others;
changes in the company's pricing and licensing models, promotional
programs and product mix, all of which may impact Citrix's revenue
recognition; charges in the event of the impairment of acquired assets,
investments or licenses; competition, international market readiness,
execution and other risks associated with the markets for Citrix's
products and services; unanticipated changes in tax rates or exposure to
additional tax liabilities; risks of political and social turmoil; and
other risks detailed in the company's filings with the Securities and
Exchange Commission. Citrix assumes no obligation to update any
forward-looking information contained in this press release or with
respect to the announcements described herein.
Citrix® is a trademark or registered trademark of Citrix Systems, Inc.
and/or one or more of its subsidiaries, and may be registered in the
U.S. Patent and Trademark Office and in other countries. All other
trademarks and registered trademarks are the property of their
respective owners.
Reconciliation of Non-GAAP Financial Measures to Comparable U.S. GAAP
Measures
(Unaudited)
Pursuant to the requirements of Regulation G, the Company has provided a
reconciliation of each non-GAAP financial measure used in this earnings
release to the most directly comparable GAAP financial measure. These
measures differ from GAAP in that they exclude amortization primarily
related to acquired intangible assets, stock-based compensation expenses
and the related tax effect of those items. The Company's basis for these
adjustments is described below.
Management uses these non-GAAP measures for internal reporting and
forecasting purposes, when publicly providing its business outlook, to
evaluate the Company's performance and to evaluate and compensate the
Company's executives. The Company has provided these non-GAAP financial
measures in addition to GAAP financial results because it believes that
these non-GAAP financial measures provide useful information to certain
investors and financial analysts for comparison across accounting
periods not influenced by certain non-cash items that are not used by
management when evaluating the Company's historical and prospective
financial performance. In addition, the Company has historically
provided this or similar information and understands that some investors
and financial analysts find this information helpful in analyzing the
Company's operating margins, operating expenses and net income and
comparing the Company's financial performance to that of its peer
companies and competitors.
Management typically excludes the amounts described above when
evaluating the Company's operating performance and believes that the
resulting non-GAAP measures are useful to investors and financial
analysts in assessing the Company's operating performance due to the
following factors:
-
The Company does not acquire businesses on a predictable cycle. The
Company, therefore, believes that the presentation of non-GAAP
measures that adjust for the impact of amortization and certain
stock-based compensation expenses and the related tax effects that are
primarily related to acquisitions, provide investors and financial
analysts with a consistent basis for comparison across accounting
periods and, therefore, are useful to investors and financial analysts
in helping them to better understand the Company's operating results
and underlying operational trends.
-
Amortization costs and the related tax effects are fixed at the time
of an acquisition, are then amortized over a period of several years
after the acquisition and generally cannot be changed or influenced by
management after the acquisition.
-
Although stock-based compensation is an important aspect of the
compensation of the Company's employees and executives, stock-based
compensation expense is generally fixed at the time of grant, then
amortized over a period of several years after the grant of the
stock-based instrument, and generally cannot be changed or influenced
by management after the grant.
These non-GAAP financial measures are not prepared in accordance with
accounting principles generally accepted in the United States ("GAAP")
and may differ from the non-GAAP information used by other companies.
There are significant limitations associated with the use of non-GAAP
financial measures. The additional non-GAAP financial information
presented here should be considered in conjunction with, and not as a
substitute for or superior to, the financial information presented in
accordance with GAAP (such as net income and earnings per share) and
should not be considered measures of the Company's liquidity.
Furthermore, the Company in the future may exclude amortization
primarily related to newly acquired intangible assets, additional
charges related to its restructuring program and the related tax effects
from financial measures that it releases, and the Company expects to
continue to incur stock-based compensation expenses.
CITRIX SYSTEMS, INC.
Non-GAAP Financial Measures Reconciliation
(unaudited)
The following table show the non-GAAP financial measures used in this
press release reconciled to the most directly comparable GAAP financial
measures.
CITRIX SYSTEMS, INC.
|
Reconciliation of Expected Non-GAAP Diluted Earnings Per Share
|
|
|
|
|
|
|
|
|
|
|
|
For the
|
|
|
Three Months Ended
|
|
|
September 30,
|
|
|
2013
|
GAAP earnings per share - diluted
|
|
$0.39 to $0.40
|
Add: adjustments to exclude the effects
|
|
|
of amortization of intangible assets
|
|
0.18
|
|
|
|
Add: adjustments to exclude the effects of
|
|
|
expenses related to stock-based compensation
|
|
|
|
|
|
Less: tax effects related to above items
|
|
0.24
|
|
|
(0.12) to (0.14)
|
Non-GAAP earnings per share - diluted
|
|
$0.68 to $0.69
|
Copyright Business Wire 2013