Quarterly revenue of $905 million up 6 percent
year over year
Quarterly GAAP operating margin of 12 percent;
non-GAAP operating margin of 32 percent
Quarterly GAAP diluted EPS of $0.84; non-GAAP
diluted EPS of $1.66
Record annual cash flow from operations of
$1.03 billion
Board of directors authorizes $400 million
increase to share repurchase program
Citrix Systems, Inc. (NASDAQ:CTXS) today reported financial
results for the fourth quarter and fiscal year ended December 31,
2015.
Financial Results
For the fourth quarter of fiscal year 2015, Citrix achieved
revenue of $905 million, compared to $851 million in the fourth
quarter of fiscal year 2014, representing 6 percent revenue growth.
For fiscal year 2015, Citrix reported annual revenue of $3.28
billion, compared to $3.14 billion for fiscal year 2014, a 4
percent increase.
GAAP Results
Net income for the fourth quarter of fiscal year 2015 was $131
million, or $0.84 per diluted share, compared to $95 million, or
$0.58 per diluted share, for the fourth quarter of fiscal year
2014. Net income for the fourth quarter of fiscal year 2015
includes impairment charges of $58 million related to certain
intangible assets, which are included in amortization of product
related and other intangible assets. In addition, net income for
the fourth quarter of fiscal year 2015 includes restructuring
charges of $38 million for severance and facility closing costs
related to the 2015 restructuring programs and $6 million in
separation costs associated with the previously announced spin-off
of the GoTo business. Net income for the fourth quarter of fiscal
year 2015 also includes net tax benefits of $25 million, or $0.16
per diluted share, primarily related to the extension of the 2015
federal research and development tax credit and a change in the mix
of income between U.S. and foreign operations driven by the
impairment of certain intangible assets.
Annual net income for fiscal year 2015 was $319 million, or
$1.99 per diluted share, compared to $252 million, or $1.47 per
diluted share for fiscal year 2014. Annual net income for fiscal
year 2015 includes impairment charges of $123 million related to
certain intangible assets, which are included in amortization of
product related and other intangible assets. In addition, annual
net income for the fiscal year 2015 includes a restructuring charge
of $100 million for severance and facility closing costs related to
the 2015 restructuring programs. Net income for fiscal year 2015
also includes net tax benefits of $21 million, or $0.12 per diluted
share, primarily related to the closing of audits with the IRS for
certain tax years during the second quarter of fiscal year 2015.
Results for fiscal year 2014 included impairment charges of $60
million related to certain intangible assets, which are included in
amortization of product related and other intangible assets, a
charge of $21 million related to a patent lawsuit, as well as a
restructuring charge of $20 million for severance costs related to
a restructuring program implemented in the first quarter of 2014.
In addition, net income for fiscal year 2014 included net tax
benefits of $9 million, or $0.05 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 fourth quarter of fiscal year 2015
was $259 million, or $1.66 per diluted share, compared to $180
million, or $1.10 per diluted share for the fourth quarter of
fiscal year 2014. Non-GAAP net income for the fourth quarter of
fiscal year 2015 includes net tax benefits of $25 million, or $0.16
per diluted share. Non-GAAP net income for the fourth quarter of
fiscal year 2015 and 2014 excludes the effects of amortization of
acquired intangible assets, stock-based compensation expense,
amortization of debt discount, restructuring charges, and the tax
effects related to these items. Non-GAAP net income for the fourth
quarter of fiscal year 2015 also excludes separation costs
associated with the previously announced spin-off of the GoTo
business and the tax effect related to this item.
Annual non-GAAP net income for fiscal year 2015 was $695
million, or $4.34 per diluted share, compared to $565 million, or
$3.30 per diluted share for fiscal year 2014. Annual non-GAAP net
income for fiscal year 2015 includes net tax benefits of $21
million, or $0.12 per diluted share. Annual non-GAAP net income for
fiscal year 2014 included net tax benefits of $9 million, or $0.05
per diluted share. Annual non-GAAP net income for fiscal year 2015
and 2014 excludes the effects of amortization of acquired
intangible assets, stock-based compensation expenses, amortization
of debt discount, the effect of a patent lawsuit, restructuring
charges, and the tax effects related to these items. Annual
non-GAAP net income for the fiscal year 2015 also excludes
separation costs associated with the previously announced spin-off
of the GoTo business and the tax effect related to this item.
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 December 31, 2015, approximately $33 million remained for
repurchases from previous authorizations.
“I’m pleased with our progress in the fourth quarter,” said Bob
Calderoni, executive chairman for Citrix. “We saw strong topline
growth, improvement in the bottom-line, and we made solid progress
in simplifying and focusing our resources on our strategic
products. While there is still much work to do, we are moving in
the right direction.
“I am excited that we have secured such an experienced product
and business leader as Kirill to build on this positive momentum. I
look forward to supporting Kirill and the Citrix leadership team to
continue to advance this focused strategy.”
Recently appointed president and CEO for Citrix, Kirill
Tatarinov, said: “I am very excited to be part of Citrix. We have
an amazing opportunity ahead of us. And a solid and focused plan in
place to capitalize on key market trends and drive sustained
profitable growth. I look forward to leading the next chapter in
Citrix’s growth story and create even greater value for our
customers, partners, and employees.”
Q4 Financial Summary
In reviewing the results for the fourth quarter of fiscal year
2015 compared to the fourth quarter of fiscal year 2014:
- Product and license revenue increased 5
percent;
- Software as a service revenue increased
15 percent;
- Revenue from license updates and
maintenance increased 7 percent;
- Professional services revenue, which is
comprised of consulting, product training and certification,
decreased 24 percent;
- Net revenue increased in the Americas
region by 11 percent, increased in the EMEA region by less than 1
percent, and decreased in the Pacific region by 13 percent;
- Deferred revenue totaled $1.65 billion
as of December 31, 2015, compared to $1.56 billion as of December
31, 2014, an increase of 6 percent; and
- Cash flow from operations was $282
million for the fourth quarter of fiscal year 2015, compared with
$190 million for the fourth quarter of fiscal year 2014.
During the fourth quarter of fiscal year 2015:
- GAAP gross margin was 78 percent.
Non-GAAP gross margin was 86 percent, excluding the effects of
amortization of acquired product related intangible assets and
stock-based compensation expense;
- GAAP operating margin was 12 percent.
Non-GAAP operating margin was 32 percent, excluding the effects of
amortization of acquired intangible assets, stock-based
compensation expense, costs associated with the restructuring
programs and separation costs related to the previously announced
spin-off of the GoTo business; and
- The company received 4.3 million shares
from repurchases at an average price of $73.84.
Annual Financial Summary
In reviewing the results for fiscal year 2015 compared to fiscal
year 2014:
- Product and license revenue decreased 3
percent;
- Software as a service revenue increased
12 percent;
- Revenue from license updates and
maintenance increased 7 percent;
- Professional services revenue, which is
comprised of consulting, product training and certification,
decreased 16 percent;
- Net revenue increased in the Americas
region by 5 percent, increased in the EMEA region by 1 percent, and
decreased in the Pacific region by 7 percent; and
- Cash flow from operations was $1.03
billion for fiscal year 2015 compared with $846 million for fiscal
year 2014.
During the year ended December 31, 2015:
- GAAP gross margin was 81 percent.
Non-GAAP gross margin was 85 percent, excluding the effects of
amortization of acquired product related intangible assets and
stock-based compensation expense;
- GAAP operating margin was 11 percent.
Non-GAAP operating margin was 26 percent, excluding the effects of
amortization of acquired intangible assets, stock-based
compensation expense, costs associated with the restructuring
programs, and separation costs related to the previously announced
spin-off of the GoTo business; and
- The company received 11.4 million
shares from repurchases at an average price of $70.38.
Financial Outlook for Fiscal Year 2016
Citrix management expects to achieve the following results at
the consolidated level for the fiscal year ending December 31,
2016:
- Net revenue is targeted to be in the
range of $3.31 billion to $3.32 billion.
- GAAP diluted earnings per share is
targeted to be in the range of $2.50 to $2.60. Non-GAAP diluted
earnings per share is targeted to be in the range of $4.65 to
$4.75, excluding $1.27 related to the effects of stock-based
compensation expenses, $0.53 related to the effects of amortization
of acquired intangible assets, $0.19 related to restructuring
charges, $0.21 related to the effects of amortization of debt
discount, $0.71 related to separation costs associated with the
previously announced spin-off of the GoTo business and $0.66 to
$0.86 for the tax effects related to these items.
Financial Outlook for First Quarter 2016
Citrix management expects to achieve the following results at
the consolidated level for the first quarter of fiscal year 2016
ending March 31, 2016:
- Net revenue is targeted to be in the
range of $785 million to $790 million.
- GAAP diluted earnings per share is
targeted to be in the range of $0.28 to $0.31. Non-GAAP diluted
earnings per share is targeted to be in the range of $0.91 to
$0.93, excluding $0.31 related to the effects of stock-based
compensation expenses, $0.14 related to the effects of amortization
of acquired intangible assets, $0.15 related to restructuring
charges, $0.05 related to the effects of amortization of debt
discount, $0.17 related to separation costs associated with the
previously announced spin-off of the GoTo business and $0.17 to
$0.22 for the tax effects related to these items.
The above statements are based on current targets. These
statements are forward-looking, and actual results may differ
materially.
Fourth Quarter Earnings Conference Call
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 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 can be viewed for approximately 30 days on the Investor
Relations section of the Citrix corporate website at
http://www.citrix.com/investors.
About Citrix
Citrix (NASDAQ:CTXS) is leading the transition to
software-defining the workplace, uniting virtualization,
mobility management, networking and SaaS solutions to enable new
ways for businesses and people to work better. Citrix
solutions power business mobility through
secure, mobile workspaces that provide people with
instant access to apps, desktops, data and communications on
any device, over any network and cloud. With annual revenue in
2015 of $3.28 billion, Citrix solutions are in use at more than
400,000 organizations and by over 100 million users globally. Learn
more at www.citrix.com.
For Citrix Investors
This release contains forward-looking statements that 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 executive chairman and by its
CEO and president, statements contained in the Financial Outlook
sections and 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, risks associated with transitions in
key personnel, including our newly appointed CEO, and succession
risk; the completion and timing of the proposed spinoff, the future
performance of core Citrix and the GoTo businesses on a standalone
basis if the spinoff is completed, the expected strategic,
operational and competitive benefits of the proposed spinoff, and
the effect of the separation on Citrix, its shareholders,
customers, partners and employees; the impact of the global
economy, volatility in global stock markets, foreign exchange rate
volatility and uncertainty in the IT spending environment; the
success and growth of the company's product lines, including
competition, demand and pricing dynamics and other transitions in
the markets for Citrix's virtualization products and collaboration
services; the company's ability to develop and commercialize new
products and services, including its enterprise mobility products,
while growing its established virtualization and networking
products and services; disruptions to execution due to Citrix's
restructuring programs and actions to be taken as a result of its
operational review; the introduction of new products by competitors
or the entry of new competitors into the markets for Citrix's
products and services; changes in our revenue mix towards products
and services with lower gross margins; 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, service providers 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 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 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
achieve anticipated cost savings from the restructuring programs
and other cost savings initiatives; ability to effectively meet our
domestic cash requirements and manage our capital structure and the
impact of related changes on our operating results and financial
condition; risks and costs associated with engaging with activist
stockholders; 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 a write-off or impairment of
acquired assets, underperforming businesses, investments or
licenses; international market readiness, execution and other risks
associated with the markets for Citrix's products and services;
unanticipated changes in tax rates, non-renewal of tax credits 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 trademarks or registered trademarks 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
property of their respective owners.
CITRIX SYSTEMS, INC. Condensed Consolidated Statements of
Income (In thousands, except per share data - unaudited)
Three Months Ended
December 31,
Year Ended
December 31,
2015 2014
2015 2014 Revenues:
Product and licenses $ 281,300 $ 267,367 $ 875,807 $ 899,736
Software as a service 193,587 168,398 731,292 651,562 License
updates and maintenance 392,964 366,952 1,521,007 1,416,017
Professional services 36,912 48,766
147,488 175,541 Total net revenues
904,763 851,483 3,275,594 3,142,856 Cost of net revenues:
Cost of product and licenses revenues 34,432 35,966 118,265 124,110
Cost of services and maintenance revenues 94,698 94,920 364,916
349,683 Amortization of product related intangible assets
73,623 43,766 131,183
146,426 Total cost of net revenues 202,753 174,652 614,364
620,219 Gross margin 702,010 676,831 2,661,230 2,522,637
Operating expenses: Research and development 140,003 141,947
563,975 553,817 Sales, marketing and services 299,112 323,978
1,195,362 1,280,265 General and administrative 100,968 77,316
342,665 319,922 Amortization of other intangible assets 11,361
13,043 108,732 45,898 Restructuring 38,160
3,139 100,411 20,424 Total
operating expenses 589,604 559,423
2,311,145 2,220,326 Income from
operations 112,406 117,408 350,085 302,311 Interest income
2,996 2,716 11,675 9,421 Interest expense 10,957 10,731 44,153
28,332 Other income (expense), net 7,750
(1,692 ) (5,730 ) (7,694 ) Income before income taxes
112,195 107,701 311,877 275,706 Income tax (benefit) expense
(19,079 ) 12,473 (7,484 ) 23,983
Net income $ 131,274 $ 95,228 $ 319,361
$ 251,723 Earnings per common share – diluted $ 0.84
$ 0.58 $ 1.99 $ 1.47 Weighted average
shares outstanding – diluted 156,268 163,215
160,362 171,270
CITRIX
SYSTEMS, INC. Condensed Consolidated Balance Sheets
(In thousands - unaudited)
December 31, 2015(*)
December 31, 2014
ASSETS: Cash and cash equivalents $ 368,518 $ 260,149
Short-term investments 502,852 529,260 Accounts receivable, net
669,276 674,401 Inventories, net 10,521 12,617 Prepaid expenses and
other current assets 132,784 166,005 Current portion of deferred
tax assets, net - 45,892 Total current
assets 1,683,951 1,688,324 Long-term investments 891,964
1,073,110 Property and equipment, net 373,817 367,779 Goodwill
1,962,722 1,796,851 Other intangible assets, net 283,418 390,717
Long-term portion of deferred tax assets, net 215,196 128,198 Other
assets 70,370 67,028 Total assets $
5,481,438 $ 5,512,007
LIABILITIES AND
STOCKHOLDERS’ EQUITY: Accounts payable 95,396 79,884 Accrued
expenses and other current liabilities 317,468 298,079 Income taxes
payable 18,351 12,053 Current portion of deferred revenues
1,249,754 1,200,093 Total current liabilities
1,680,969 1,590,109 Long-term portion of deferred revenues
414,314 357,771 Convertible notes 1,324,992 1,292,953 Other
liabilities 87,717 97,529 Stockholders’ equity: Common stock
299 295 Additional paid-in capital 4,566,919 4,292,706 Retained
earnings 3,474,625 3,155,264 Accumulated other comprehensive loss
(28,527 ) (36,790 ) Less – common stock in treasury, at cost
(6,039,870 ) (5,237,830 ) Total stockholders’ equity
1,973,446 2,173,645 Total liabilities and
stockholders’ equity $ 5,481,438 $ 5,512,007
(*) During the fourth quarter of fiscal 2015 we elected to early
adopt an accounting standard update on income taxes on a
prospective basis. The new guidance requires deferred tax
liabilities and assets along with any related valuation allowance
to be classified as noncurrent on the condensed consolidated
balance sheet. The December 31, 2014 condensed consolidated balance
sheet was not retrospectively adjusted.
CITRIX SYSTEMS, INC. Condensed Consolidated Statement of
Cash Flows (In thousands – unaudited)
Year Ended
December 31, 2015
OPERATING ACTIVITIES Net Income $ 319,361 Adjustments to
reconcile net income to net cash provided by operating activities:
Amortization of intangible assets 239,915 Depreciation and
amortization of property and equipment 152,964 Amortization of debt
discount and transaction costs 36,013 Stock-based compensation
expense 147,368 Deferred income tax benefit (89,079 ) Excess tax
benefit from stock-based compensation (5,873 ) Effects of exchange
rate changes on monetary assets and liabilities denominated in
foreign currencies 13,416 Other non-cash items
liabilities demo
8,740 Total adjustments to reconcile net income to
net cash 503,464 provided by operating activities Changes in
operating assets and liabilities, net of the effects of
acquisitions: Accounts receivable (7,226 ) Inventories 703 Prepaid
expenses and other current assets (8,057 ) Other assets (2,550 )
Income taxes, net 51,695 Accounts payable 10,959 Accrued expenses
and other current liabilities 49,586 Deferred revenues 107,150
Other liabilities 9,463 Total changes in operating
assets and liabilities, net of the effects of acquisitions
211,723 Net cash provided by operating activities 1,034,548
INVESTING ACTIVITIES Purchases of available-for-sale
investments (2,182,831 ) Proceeds from sales of available-for-sale
investments 1,745,290 Proceeds from maturities of
available-for-sale investments 637,052 Proceeds from cost method
investments, net 6,476 Purchases of property and equipment (160,825
) Cash paid for acquisitions, net of cash acquired (256,907 ) Cash
paid for licensing agreements and product related intangible assets
technology (11,403 ) Other (1,267 ) Net cash used in
investing activities (224,415 )
FINANCING ACTIVITIES
Proceeds from issuance of common stock under stock-based
compensation plans 112,285 Proceeds from revolving credit facility
95,000 Repayments on credit facility (95,000 ) Repayment of
acquired debt (7,569 ) Excess tax benefit from stock-based
compensation 5,873 Stock repurchases, net (755,704 ) Cash paid for
tax withholding on vested stock awards (46,336 ) Net cash
used in financing activities (691,451 ) Effect of exchange
rate changes on cash and cash equivalents (10,313 ) Change
in cash and cash equivalents 108,369 Cash and cash
equivalents at beginning of period 260,149 Cash and
cash equivalents at end of period $ 368,518
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 and related conference call, slide
presentation or webcast to the most directly comparable GAAP
financial measure. These measures differ from GAAP in that they
exclude amortization primarily related to acquired intangible
assets and debt discount, stock-based compensation expenses,
charges associated with the Company’s restructuring programs,
significant litigation charges or benefits, separation costs 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 of intangible assets and 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 of intangible assets 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.
• Under GAAP, certain convertible debt
instruments that may be settled in cash on conversion are required
to be accounted for as separate liability (debt) and equity
(conversion option) components in a manner that reflects the
issuer’s non-convertible debt borrowing rate. The difference
between the imputed interest expense and the coupon interest
expense, net of the interest amount capitalized, is excluded from
management’s assessment of the company’s operating performance
because management believes that the exclusion of these charges
will better help investors and financial analysts understand the
Company's operating results and underlying operational trends.
• The charges incurred in conjunction with
the Company's restructuring programs, which relate to reductions in
headcount and the consolidation of leased facilities, are not
anticipated to be ongoing costs; and, thus, are outside of the
normal operations of the Company's business. The Company,
therefore, believes that the exclusion of these charges will better
help investors and financial analysts understand the Company's
operating results and underlying operational trends as compared to
prior periods.
• Charges or benefits related to significant
litigation are not anticipated to be ongoing costs; and, thus, are
outside of the normal operations of the Company's business. These
charges or benefits are recorded in the period when it is probable
a liability had been incurred and the amount of loss can be
reasonably estimated even though the subject matter of the
underlying dispute may relate to multiple or different periods. As
such, the Company believes that these expenses do not accurately
reflect the underlying performance of continuing operations for the
period in which they are incurred.
• Separation costs represent transaction and
transition costs associated with preparing businesses for
independent operations consisting primarily of financial advisory
fees, legal fees, accounting fees, tax services and information
systems infrastructure duplication. These charges are not
anticipated to be ongoing costs; and, thus, are outside of the
normal operations of the Company's business. As such, the Company
believes that these expenses do not accurately reflect the
underlying performance of continuing operations for the period in
which they are incurred.
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 related to newly acquired
intangible assets and debt discount, additional charges related to
its restructuring programs, significant litigation charges or
benefits, separation costs 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
(In thousands, except per share, gross margin
and operating margin data - unaudited)
The following tables show the non-GAAP financial measures used
in this press release reconciled to the most directly comparable
GAAP financial measures.
Three Months
Ended December 31, 2015
GAAP gross margin 77.6% Add: stock-based compensation 0.1 Add:
amortization of product related intangible assets 8.1 Non-GAAP
gross margin 85.8%
Three Months
Ended December 31, 2015
GAAP operating margin 12.4% Add: stock-based compensation 4.9 Add:
amortization of product related intangible assets 8.1 Add:
amortization of other intangible assets 1.3 Add: separation costs
0.7 Add: restructuring charges 4.2 Non-GAAP operating margin 31.6%
Three Months Ended December 31,
2015 2014 GAAP net income $131,274 $95,228
Add: stock-based compensation 43,694 40,847 Add: amortization of
product related intangible assets 73,623 43,766 Add: amortization
of other intangible assets 11,361 13,043 Add: amortization of debt
discount 8,100 7,861 Add: separation costs 6,352 - Add:
restructuring charges 38,160 3,139 Less: tax effects related to
above items (53,915) (24,026) Non-GAAP net income $258,649 $179,858
Three Months Ended December 31,
2015 2014 GAAP earnings per share – diluted
$0.84 $0.58 Add: stock-based compensation 0.28 0.25 Add:
amortization of product related intangible assets 0.47 0.27 Add:
amortization of other intangible assets 0.07 0.08 Add: amortization
of debt discount 0.05 0.05 Add: separation costs 0.04 - Add:
restructuring charges 0.24 0.02 Less: tax effects related to above
items (0.33) (0.15) Non-GAAP earnings per share – diluted $1.66
$1.10
CITRIX SYSTEMS, INC.
Twelve Months
Ended December 31, 2015
GAAP gross margin 81.2% Add: stock-based compensation 0.1 Add:
amortization of product related intangible assets 4.0 Non-GAAP
gross margin 85.3%
Twelve Months
Ended December 31, 2015
GAAP operating margin 10.7% Add: stock-based compensation 4.4 Add:
amortization of product related intangible assets 4.0 Add:
amortization of other intangible assets 3.3 Add: separation costs
0.2 Add: restructuring charges 3.1 Non-GAAP operating margin 25.7%
Twelve Months Ended December 31, 2015
2014 GAAP net income $319,361 $251,723 Add:
stock-based compensation 147,368 169,287 Add: amortization of
product related intangible assets 131,183 146,426 Add: amortization
of other intangible assets 108,732 45,898 Add: amortization of debt
discount 32,039 20,832 Add: separation costs 6,352 - Add:
restructuring charges 100,411 20,424 Add: charge (benefit) related
to a patent lawsuit (982) 20,727 Less: tax effects related to above
items (149,163) (110,000) Non-GAAP net income $695,301 $565,317
Twelve Months Ended December
31,
2015 2014 GAAP earnings per share – diluted
$1.99 $1.47 Add: stock-based compensation 0.92 0.99 Add:
amortization of product related intangible assets 0.82 0.85 Add:
amortization of other intangible assets 0.68 0.27 Add: amortization
of debt discount 0.20 0.12 Add: separation costs 0.04 - Add:
restructuring charges 0.62 0.12 Add: charge (benefit) related to a
patent lawsuit (0.01) 0.12 Less: tax effects related to above items
(0.92) (0.64) Non-GAAP earnings per share – diluted $4.34 $3.30
Forward Looking Guidance
For the Three Months
Ended
March 31,
2016
For the Twelve
Months Ended
December 31,
2016
GAAP earnings per share – diluted $0.28 to $0.31 $2.50 to
$2.60 Add: adjustments to exclude the effects of amortization of
intangible assets 0.14 0.53 Add: adjustments to exclude the effects
of expenses related to stock-based compensation 0.31 1.27 Add:
adjustments to exclude the effects of amortization of debt discount
0.05 0.21 Add: adjustments to exclude separation costs 0.17 0.71
Add: adjustments to exclude the effects of restructuring charges
0.15 0.19 Less: tax effects related to above items (0.17 to 0.22)
(0.66 to 0.86) Non-GAAP earnings per share – diluted $0.91 to $0.93
$4.65 to $4.75
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160127006247/en/
Citrix Systems, Inc.For media inquiries:Eric Armstrong,
954-267-2977eric.armstrong@citrix.comorFor investor
inquiries:Eduardo Fleites,
954-229-5758eduardo.fleites@citrix.com
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