Annual revenue of $3.14 billion up 8 percent
year over year
Deferred revenue of $1.56 billion, up 10
percent year-over-year, and 11 percent sequentially
Citrix Systems, Inc. (NASDAQ:CTXS) today reported financial
results for the fourth quarter and fiscal year ending December 31,
2014, and announced a restructuring program to drive strategic
focus and operational efficiency.
Financial Results
For the fourth quarter of fiscal year 2014, Citrix achieved
revenue of $851 million, compared to $802 million in the fourth
quarter of fiscal year 2013, representing 6 percent revenue growth.
For fiscal year 2014, Citrix reported annual revenue of $3.14
billion, compared to $2.92 billion for fiscal year 2013, an 8
percent increase.
GAAP Results
Net income for the fourth quarter of fiscal year 2014 was $95
million, or $0.58 per diluted share, compared to $139 million, or
$0.74 per diluted share, for the fourth quarter of fiscal year
2013. GAAP results for the fourth quarter of fiscal year 2014
include impairment charges of $30 million related to certain
intangible assets, which are included in amortization of product
related and other intangible assets, as well as a restructuring
charge of $3 million for severance costs related to a restructuring
program implemented in the first quarter of 2014. Net income for
the fourth quarter of fiscal year 2014 also includes net tax
benefits of $12 million, or $0.08 per diluted share, primarily
related to the extension of the 2014 federal research and
development tax credit.
Annual net income for fiscal year 2014 was $252 million, or
$1.47 per diluted share, compared to $340 million, or $1.80 per
diluted share for fiscal year 2013. GAAP results for fiscal year
2014 include 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 previously disclosed 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, GAAP net income for fiscal year 2014 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
and the extension of the 2014 federal research and development tax
credit.
Non-GAAP Results
Non-GAAP net income for the fourth quarter of fiscal year 2014
was $180 million, or $1.10 per diluted share, compared to $195
million, or $1.04 per diluted share for the fourth quarter of
fiscal year 2013. Non-GAAP net income for the fourth quarter of
fiscal year 2014 includes net tax benefits of $12 million, or $0.08
per diluted share. Non-GAAP net income for the fourth quarter of
fiscal year 2014 and 2013 exclude the effects of amortization of
acquired intangible assets and stock-based compensation expense and
the tax effects related to these items. Non-GAAP net income for the
fourth quarter of fiscal year 2014 also excludes charges related to
amortization of debt discount and the restructuring program
implemented in the first quarter of fiscal year 2014 and the tax
effects related to these items.
Annual non-GAAP net income for fiscal year 2014 was $565
million, or $3.30 per diluted share, compared to $568 million, or
$3.02 per diluted share for fiscal year 2013. Non-GAAP net income
for fiscal year 2014 includes net tax benefits of $21 million, or
$0.12 per diluted share. Non-GAAP net income for fiscal year 2014
and 2013 excludes the effects of amortization of acquired
intangible assets, stock-based compensation expenses and the tax
effects related to these items. Non-GAAP net income for fiscal year
2014 also excludes charges related to amortization of debt
discount, a previously disclosed patent lawsuit and the
restructuring program implemented in the first quarter of fiscal
year 2014 and the tax effects related to these items.
2015 Restructuring Program
Citrix also announced the implementation of a restructuring
program designed to increase strategic focus and operational
efficiency. The restructuring will affect approximately 700
full-time and 200 contractor positions, and is expected to result
in annualized pre-tax savings in the range of approximately $90
million to $100 million. Citrix expects to incur pre-tax charges in
the range of approximately $40 million to $45 million related to
employee severance arrangements and $9 million to $10 million
related to the consolidation of leased facilities during fiscal
year 2015.
“We hear every day from customers about the dual pressures they
face – to deliver business results, while creating an engaging
work-life experience for their people,” said Mark Templeton,
president and CEO, Citrix. “Our focus on enabling a
software-defined workplace is putting Citrix in front of this
strategic challenge through the unique integration of our delivery
networking solutions, workspace services and mobility apps. I’m
proud of our 2014 performance, but we’re not satisfied. We are
looking ahead to 2015 with a focus on innovation that delivers a
better experience, more flexibility and greater security to our
customers, and a more focused organizational footprint that enables
profitable growth.”
Q4 Financial Summary
In reviewing the results for the fourth quarter of fiscal year
2014 compared to the fourth quarter of fiscal year 2013:
- Product and license revenue decreased 1
percent;
- Software as a service revenue increased
10 percent;
- Revenue from license updates and
maintenance increased 9 percent;
- Professional services revenue, which is
comprised of consulting, product training and certification,
increased 15 percent;
- Net revenue increased in the EMEA
region by 7 percent, increased in the Pacific region by 5 percent,
and increased in the Americas region by 4 percent;
- Deferred revenue totaled $1.56 billion
as of December 31, 2014, compared to $1.41 billion as of December
31, 2013, an increase of 10 percent; and
- Cash flow from operations was $190
million for the fourth quarter of fiscal year 2014, compared with
$230 million for the fourth quarter of fiscal year 2013.
During the fourth quarter of fiscal year
2014:
- GAAP gross margin was 80 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 14 percent.
Non-GAAP operating margin was 26 percent, excluding the effects of
amortization of acquired intangible assets, stock-based
compensation expense, and costs associated with the 2014
restructuring program; and
- The company received 3.3 million
shares, of which 2.6 million related to the company’s accelerated
share repurchase agreement and 0.7 million shares from repurchases
at an average price of $65.26.
Annual Financial Summary
In reviewing the results for fiscal year 2014 compared to fiscal
year 2013:
- Product and license revenue increased 1
percent;
- Software as a service revenue increased
12 percent;
- Revenue from license updates and
maintenance increased 9 percent;
- Professional services revenue, which is
comprised of consulting, product training and certification,
increased 26 percent;
- Net revenue increased in the EMEA
region by 9 percent, increased in the Pacific region by 6 percent
and increased in the Americas region by 5 percent; and
- Cash flow from operations was $846
million for fiscal year 2014 compared with $928 million for fiscal
year 2013.
During the year ending December 31, 2014:
- GAAP gross margin was 80 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 10 percent.
Non-GAAP operating margin was 22 percent, excluding the effects of
amortization of acquired intangible assets, stock-based
compensation expense, the charge related to a previously disclosed
patent lawsuit, and costs associated with the 2014 restructuring
program; and
- The company received 26.1 million
shares, of which 21.8 million related to the company’s accelerated
share repurchase agreement and 4.3 million shares from repurchases
at an average price of $64.00.
Financial Outlook for Fiscal Year 2015
Citrix management expects to achieve the following results for
the fiscal year ending December 31, 2015:
- Net revenue is targeted to be in the
range of $3.29 billion to $3.33 billion.
- Today’s announcement regarding the
restructuring of the company’s global workforce is expected to
result in annualized pre-tax savings in the range of approximately
$90 million to $100 million. Citrix expects to incur pre-tax
charges in the range of approximately $40 million to $45 million
related to employee severance arrangements and approximately $9
million to $10 million related to the consolidation of leased
facilities during fiscal year 2015.
- GAAP diluted earnings per share is
targeted to be in the range of $2.10 to $2.15. Non-GAAP diluted
earnings per share is targeted to be in the range of $3.60 to
$3.65, excluding $1.00 related to the effects of stock-based
compensation expenses, $0.61 related to the effects of amortization
of acquired intangible assets, $0.33 related to restructuring
charges, $0.19 related to the effects of amortization of debt
discount and $(0.58) to $(0.68) for the tax effects related to
these items.
- GAAP tax rate is targeted to be in the
range of 17 percent to 18 percent. Non-GAAP tax rate, which
excludes the effects of amortization of acquired intangible assets,
stock-based compensation expenses, amortization of debt discount
and restructuring charges, is targeted to be in the range of 22
percent to 23 percent.
Financial Outlook for First Quarter 2015
Citrix management expects to achieve the following results for
the first quarter of fiscal year 2015 ending March 31, 2015:
- Net revenue is targeted to be in the
range of $780 million to $790 million.
- In the first quarter of fiscal year
2015, Citrix expects to incur a pre-tax charge in the range of
approximately $30 million to $35 million related to employee
severance arrangements and approximately $3 million to $5 million
related to the consolidation of leased facilities in connection
with the 2015 restructuring program.
- GAAP diluted earnings per share is
targeted to be in the range of $0.20 to $0.22. Non-GAAP diluted
earnings per share is targeted to be in the range of $0.70 to
$0.72, excluding $0.26 related to the effects of stock-based
compensation expenses, $0.16 related to the effects of amortization
of acquired intangible assets, $0.22 related to restructuring
charges, $0.05 related to the effects of amortization of debt
discount and $(0.17) to $(0.21) for the tax effects related to
these items.
- GAAP tax rate is targeted to be in the
range of 17 percent to 18 percent. Non-GAAP tax rate, which
excludes the effects of amortization of acquired intangible assets,
stock-based compensation expenses, amortization of debt discount
and restructuring charges, is targeted to be in the range of 22
percent to 23 percent.
The above statements are based on current targets. These
statements are forward-looking, and actual results may differ
materially.
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 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
2014 of $3.14 billion, Citrix solutions are in use at more than
330,000 organizations and by over 100 million users globally. Learn
more at www.citrix.com.
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 chief executive officer,
statements concerning our restructuring program and expected cost
savings, statements contained in the Financial Outlook for Fiscal
Year 2015 and First Quarter 2015 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, the
impact of the global economy 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,
networking and collaboration products and services; disruptions due
to its restructuring program, changes and transitions in key
personnel and succession risks; 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 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 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
program and other cost reduction initiatives; ability to
effectively manage our capital structure and the impact of related
changes on our operating results and financial condition; 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 EndedDecember
31,
Year EndedDecember 31,
2014 2013 2014
2013 Revenues: Product and licenses $267,367
$269,889 $899,736 $891,630 Software as a service 168,398 153,269
651,562 582,872 License updates and maintenance 366,952 337,036
1,416,017 1,305,053 Professional services 48,766
42,226 175,541 138,879 Total net
revenues 851,483 802,420 3,142,856 2,918,434 Cost of net
revenues: Cost of product and licenses revenues 35,966 30,467
124,110 114,932 Cost of services and maintenance revenues 94,920
81,749 349,683 289,990 Amortization of product related intangible
assets 43,766 24,492 146,426
97,873 Total cost of net revenues 174,652 136,708
620,219 502,795 Gross margin 676,831 665,712 2,522,637 2,415,639
Operating expenses: Research and development 141,947 126,498
553,817 516,338 Sales, marketing and services 323,978 301,486
1,280,265 1,216,680 General and administrative 77,316 66,528
319,922 260,236 Amortization of other intangible assets 13,043
10,346 45,898 41,668 Restructuring 3,139 -
20,424 - Total operating expenses
559,423 504,858 2,220,326
2,034,922 Income from operations 117,408 160,854
302,311 380,717 Interest income 2,716 2,132 9,421 8,194
Interest expense 10,731 26 28,332 128 Other expense, net (1,692 )
(942 ) (7,694 ) (893 ) Income before income
taxes 107,701 162,018 275,706 387,890 Income tax expense
12,473 23,374 23,983
48,367 Net income $95,228 $138,644
$251,723 $339,523 Earnings per
common share – diluted $0.58 $0.74
$1.47 $1.80 Weighted average shares
outstanding – diluted 163,215 186,500
171,300 188,245
CITRIX SYSTEMS, INC.
Condensed Consolidated Balance
Sheets
(In thousands - unaudited)
December 31, 2014
December 31, 2013
ASSETS: Cash and cash equivalents $260,149 $280,740
Short-term investments 529,260 453,976 Accounts receivable, net
674,401 654,821 Inventories, net 12,617 14,107 Prepaid expenses and
other current assets 166,005 110,981 Current portion of deferred
tax assets, net 45,892 48,470 Total current
assets 1,688,324 1,563,095 Long-term investments 1,073,110
855,700 Property and equipment, net 367,779 338,996 Goodwill
1,796,851 1,768,949 Other intangible assets, net 390,717 509,595
Long-term portion of deferred tax assets, net 128,198 115,418 Other
assets 67,028 60,496 Total assets $5,512,007
$5,212,249
LIABILITIES AND
STOCKHOLDERS’ EQUITY: Accounts payable 79,884 78,452 Accrued
expenses and other current liabilities 298,079 257,606 Income taxes
payable 12,053 29,322 Current portion of deferred revenues
1,200,093 1,098,681 Total current liabilities
1,590,109 1,464,061 Long-term portion of deferred revenues
357,771 313,059 Convertible notes 1,292,953 - Other liabilities
97,529 115,322 Stockholders’ equity: Common stock 295 291
Additional paid-in capital 4,292,706 3,974,297 Retained earnings
3,155,264 2,903,541 Accumulated other comprehensive (loss) income
(36,790 ) 4,951 Less – common stock in treasury, at cost (5,237,830
) (3,563,273 ) Total stockholders’ equity 2,173,645
3,319,807 Total liabilities and stockholders’ equity
$5,512,007 $5,212,249
CITRIX SYSTEMS, INC.
Condensed Consolidated Statement of
Cash Flows
(In thousands – unaudited)
Three Months EndedDecember 31,
2014
Year EndedDecember 31,
2014
OPERATING ACTIVITIES Net Income $95,228 $251,723 Adjustments
to reconcile net income to net cash provided by operating
activities: Amortization and depreciation 93,454 330,270
Amortization of debt discount and transaction costs 8,789 23,293
Stock-based compensation expense 40,847 169,287 Provision for
accounts receivable allowances 3,220 7,910 Deferred income tax
benefit (11,868 ) (36,982 )
Other non-cash items
2,875 3,610 Total adjustments to reconcile net income
to net cash 137,317 497,388 provided by operating activities
Changes in operating assets and liabilities, net of the effects of
acquisitions: Accounts receivable (213,504 ) (30,962 ) Inventory
3,175 (1,167 ) Prepaid expenses and other current assets
(2,370
)
(8,133 ) Other assets (153 ) 1,498 Deferred revenues 154,306
146,123 Accounts payable (7,486 ) 40 Income taxes, net 8,061 )
(79,119 ) Accrued expenses 8,349 62,195 Other liabilities 7,508
6,395 Total changes in operating assets and
liabilities, net of the effects of acquisitions (42,114 ) 96,870
Net cash provided by operating activities 190,431 845,981
INVESTING ACTIVITIES Purchases of available-for-sale
investments, net (23,896 ) (289,730 ) Purchases of property and
equipment (49,975 ) (165,417 ) Cash paid for acquisitions, net of
cash acquired (57,717 ) (101,059 ) Proceeds related to cost method
investments 142 4,049 Purchases of cost method investments (801 )
(3,624 ) Cash paid for licensing and core technology (964 ) (13,676
) Net cash used in investing activities (133,211 ) (569,457 )
FINANCING ACTIVITIES Proceeds from issuance of common stock
under stock-based compensation plans 7,944 46,618 Proceeds from
issuance of convertible notes, net of debt issuance costs -
1,415,717 Purchase of convertible note hedges - (184,288 ) Proceeds
from issuance of warrants - 101,775 Repayment of acquired debt (300
) (4,066 ) Excess tax benefit from stock-based compensation 1,010
6,132 Stock repurchases, net
(39,899
)
(1,640,885 ) Cash paid for tax withholding on vested stock awards
(5,894 ) (33,671 ) Net cash used in financing activities (37,139 )
(292,668 ) Effect of exchange rate changes on cash and cash
equivalents (2,719 ) (4,447 ) Change in cash and cash equivalents
17,362 (20,591 ) Cash and cash equivalents at beginning of
period 242,787 280,740 Cash and cash equivalents at
end of period $260,149 $260,149
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 program,
significant litigation charges 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.
- 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 program, 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.
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 program, significant litigation charges 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 EndedDecember 31,
2014
GAAP gross margin 79.5% Add: stock-based compensation 0.1 Add:
amortization of product related intangible assets 5.1 Non-GAAP
gross margin 84.7%
Three Months EndedDecember 31,
2014
GAAP operating margin 13.8% Add: stock-based compensation 4.8 Add:
amortization of product related intangible assets 5.1 Add:
amortization of other intangible assets 1.5 Add: restructuring
charges 0.4 Non-GAAP operating margin 25.6%
Three Months Ended December 31,
2014 2013 GAAP net income $95,228
$138,644 Add: stock-based compensation 40,847 46,635 Add:
amortization of product related intangible assets 43,766 24,492
Add: amortization of other intangible assets 13,043 10,346 Add:
amortization of debt discount 7,861 - Add: restructuring charges
3,139 - Less: tax effects related to above items (24,026 )
(25,422 ) Non-GAAP net income $179,858 $194,695
Three Months Ended December 31,
2014 2013 GAAP earnings per share – diluted
$0.58 $0.74 Add: stock-based compensation 0.25 0.25 Add:
amortization of product related intangible assets 0.27 0.13 Add:
amortization of other intangible assets 0.08 0.06 Add: amortization
of debt discount 0.05 - Add: restructuring charges 0.02 - Less: tax
effects related to above items (0.15 ) (0.14 ) Non-GAAP
earnings per share – diluted $1.10 $1.04
CITRIX SYSTEMS, INC.
Twelve Months EndedDecember 31,
2014
GAAP gross margin 80.2% Add: stock-based compensation 0.1 Add:
amortization of product related intangible assets 4.7 Non-GAAP
gross margin 85.0%
Twelve Months EndedDecember 31,
2014
GAAP operating margin 9.6% Add: stock-based compensation 5.4 Add:
amortization of product related intangible assets 4.7 Add:
amortization of other intangible assets 1.5 Add: restructuring
charges 0.6 Add: charge related to a previously disclosed patent
lawsuit 0.6 Non-GAAP operating margin 22.4%
Twelve
Months Ended December 31, 2014 2013 GAAP
net income $251,723 $339,523 Add: stock-based compensation
169,287 183,941 Add: amortization of product related intangible
assets 146,426 97,873 Add: amortization of other intangible assets
45,898 41,668 Add: amortization of debt discount 20,832 - Add:
restructuring charges 20,424 - Add: charge related to a previously
disclosed patent lawsuit 20,727 - Less: tax effects related to
above items (110,000 ) (95,009 ) Non-GAAP net income
$565,317 $567,996
Twelve Months Ended December
31,
2014 2013 GAAP earnings per share – diluted $1.47
$1.80 Add: stock-based compensation 0.99 0.98 Add: amortization of
product related intangible assets 0.85 0.52 Add: amortization of
other intangible assets 0.27 0.22 Add: amortization of debt
discount 0.12 - Add: restructuring charges 0.12 - Add: charge
related to a previously disclosed patent lawsuit 0.12 - Less: tax
effects related to above items (0.64) (0.50) Non-GAAP earnings per
share – diluted $3.30 $3.02
Forward Looking Guidance
For the Three Months EndedMarch
31,
For the Twelve Months
EndedDecember 31,
2015 2015 GAAP earnings per share – diluted
$0.20 to $0.22 $2.10 to $2.15 Add: adjustments to exclude the
effects of amortization of intangible assets 0.16 0.61 Add:
adjustments to exclude the effects of expenses related to
stock-based compensation 0.26 1.00 Add: adjustments to exclude the
effects of amortization of debt discount 0.05 0.19 Add: adjustments
to exclude the effects of restructuring charges 0.22 0.33 Less: tax
effects related to above items (0.17) to (0.21) (0.58) to
(0.68) Non-GAAP earnings per share – diluted $0.70 to $0.72
$3.60 to $3.65
For the Three Months EndedMarch
31,
For the Twelve Months
EndedDecember 31,
2015 2015 GAAP tax rate 17.0% - 18.0% 17.0% -
18.0% Add: tax effects of stock-based compensation, amortization of
intangible assets, amortization of debt discount and restructuring
charges 5.0 5.0 Non-GAAP tax rate 22.0% - 23.0% 22.0%
- 23.0%
Citrix Systems, Inc.Media inquiries:Julie Geer,
408-790-8543julie.geer@citrix.comorInvestor inquiries:Eduardo
Fleites, 954-229-5758eduardo.fleites@citrix.com
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