SANTA CLARA, Calif. - Citrix Systems, Inc. (NASDAQ:CTXS) today reported financial results for the second quarter of fiscal 2011 ended June 30, 2011.

FINANCIAL RESULTS
In the second quarter of fiscal 2011, Citrix achieved revenue of $531 million, compared to $458 million in the second quarter of fiscal 2010, representing 16 percent revenue growth.

GAAP Results
Net income for the second quarter of fiscal 2011 was $82 million, or $0.43 per diluted share, compared to $48 million, or $0.25 per diluted share, for the second quarter of 2010.

Non-GAAP Results
Non-GAAP net income in the second quarter of fiscal 2011 was $108 million, or $0.57 per diluted share, compared to $78 million, or $0.41 per diluted share, in the comparable period last year.  Non-GAAP net income for both periods 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. In addition non-GAAP net income for the second quarter of fiscal 2010 excludes amounts recorded in connection with the restructuring program that the company implemented in January 2009 and the related tax effect.

“I’m pleased with the financial and strategic results for the quarter,” said Mark Templeton, president and chief executive officer for Citrix.  “Demand for our virtualization, networking and cloud solutions continues to be strong across the board, and the excitement I hear from customers has never been higher.”

“The transition from the PC Era to the Cloud Era is driving a rapid transformation in computing that strongly favors agile players like Citrix.  Our passion is to make it easy for customers facing this transition – helping them build new clouds, connect to cloud services, and empower their users to work and play from anywhere.”

Q2 Financial Summary
In reviewing the second quarter results of 2011, compared to the second quarter of 2010:

• Product license revenue increased 15 percent;
• Revenue from license updates grew 9 percent;
• Online services revenue grew 19 percent;
• Technical services revenue, which is comprised of consulting, education and technical support, grew 33 percent;
• Revenue increased in the America’s region by 16 percent, increased in the EMEA region by 9 percent, and increased in the Pacific region by 31 percent;
• Deferred revenue totaled $830 million, compared to $686 million as of June 30, 2010;
• GAAP operating margin was 18 percent for the quarter, and non-GAAP operating margin was 25 percent for the quarter, excluding the effects of amortization of intangible assets primarily related to business combinations and stock-based compensation expenses;
• Cash flow from operations was $162 million, compared with $103 million in the second quarter of 2010; and
• The company repurchased 1.2 million shares at an average price of $82.74.

Cloud.com Acquisition
In July 2011, Citrix announced the acquisition of Cloud.com, a market leading provider of software infrastructure platforms for cloud providers. Cloud.com CloudStack™ product line helps providers of all types deploy and manage simple, cost-effective cloud services that are scalable, secure, and open by design.  The financial outlook below includes the impact of this acquisition.

Financial Outlook for Third Quarter 2011
Citrix management targets the following results during its third fiscal quarter of 2011 ending September 30, 2011:

• Revenue is targeted to be in the range of $540.0 million to $547.0 million.
• GAAP diluted earnings per share is targeted to be in the range of $0.39 to $0.41.  This includes $0.02 of dilution related to the acquisition of Cloud.com and an additional $0.01 of dilution related to transaction and closing fees incurred.  Excluded from the $0.02 of dilution is amortization of intangible assets and stock-based compensation expense.  Non-GAAP diluted earnings per share is targeted to be in the range of $0.56 to $0.58, excluding $0.10 related to the effects of amortization of intangible assets primarily related to business combinations, $0.14 related to the effects of stock-based compensation expenses, and $(0.05) to $(0.09) for the tax effects related to these items.  Non-GAAP diluted earnings per share also includes $0.02 of dilution related to the acquisition of Cloud.com and an additional $0.01 of dilution related to transaction and closing fees incurred.
• GAAP tax rate is targeted to be in the range of 18% to 19%. Non-GAAP tax rate, which excludes the effects of amortization of intangible assets primarily related to business combinations and stock-based compensation expense, is targeted to be in the range of 22% to 23%.

The above statements are based on current targets. These statements are forward-looking, and actual results may differ materially.

Financial Outlook for Fiscal Year 2011
Citrix management targets to achieve the following results during fiscal year 2011 ending December 31, 2011:

• Revenue is targeted to be in the range of $2.16 billion to $2.19 billion.
• GAAP diluted earnings per share is targeted to be in the range of $1.80 to $1.84.  This includes $0.04 of dilution related to the acquisition of Cloud.com and an additional $0.01 of dilution related to transaction and closing fees incurred.  Excluded from the $0.04 of dilution is amortization of intangible assets and stock-based compensation expense.  Non-GAAP diluted earnings per share is targeted to be in the range of $2.38 to $2.41, excluding $0.35 related to the effects of amortization of intangible assets primarily related to business combinations, $0.48 related to the effects of stock-based compensation expenses, and $(0.22) to $(0.29) for the tax effects related to these items.  Non-GAAP diluted earnings per share also includes $0.04 of dilution related to the acquisition of Cloud.com and an additional $0.01 of dilution related to transaction and closing fees incurred.

The above statements are based on current targets. These statements are forward-looking, and actual results may differ materially.

Company, Product and Alliance Highlights
During the second quarter of 2011, Citrix announced:

• A new cloud infrastructure product, “Project Olympus,” which helps customers build infrastructure-as-a-service clouds that are scalable, efficient and open by design because they use the same OpenStack project architecture, approach and technology that powers the largest and most successful clouds in the world.  
• Two powerful new cloud networking products, NetScaler® Cloud Gateway and NetScaler Cloud Bridge, giving IT organizations an easy way to extend enterprise datacenters and private clouds to a vast array of external cloud services without compromising security, manageability or performance.
• Citrix XenClient® 2, the second generation of its innovative bare-metal client hypervisor developed in collaboration with Intel, which allows centrally managed virtual desktops to run directly on corporate laptops, even when they are disconnected from the network.
• A significant upgrade to its market-leading Citrix HDX™ technology, enhancing performance, fidelity and bandwidth efficiency for rich media services like video, audio and 3D graphics, especially when delivered over wide area networks or from external cloud environments.
• Multiple updates to Citrix Receiver™, the universal software client that allows companies to deliver corporate apps, desktops and data to any device, whether corporate or employee owned. Enhancements include verified support for more than 1,000 different PC and Mac models, 149 different smartphones, 37 tablets, 10 different classes of thin clients, and all major device operating platforms, including new environments like iOS, Android, webOS and Google ChromeOS.
• Citrix XenDesktop® 5 won the virtualization category in the Microsoft Best of Tech•Ed 2011 awards program, based on its innovation, strategic importance to the market, competitive advantage, and exceptional value to customers.
• The acquisition of Kaviza, makers of the all-in-one “VDI-in-a-Box” solution for small and medium business, adding a VDI-only solution to the Citrix portfolio that complements the Citrix XenDesktop product line for enterprise-class desktop virtualization.
• Citrix Branch Repeater® 6, a wide-area network (WAN) optimization solution that offers unique SmartAcceleration technology to transform WAN optimization from a network-centric infrastructure to a service-centric solution. As a result, branch office users can enjoy a brilliantly fast experience for the increasing range of services delivered from both public and private clouds, including virtual desktops and apps, web and Windows apps, multi-media, voice, video and more.
• Citrix NetScaler® SDX, a new virtualized networking platform designed from the ground up to serve as a “service delivery fabric” for virtual datacenters and clouds, enabling customers to run numerous virtualized NetScaler instances on a single purpose-built physical appliance with full multi-service, multi-tenant support. This provides a far richer “service delivery” required by the adoption of cloud computing and growing user demand for new services delivered to a wide range of consumer devices.

Conference Call Information
Citrix will host a conference call today at 4:45 p.m. ET to discuss its financial results, quarterly highlights and financial 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 by visiting the Investor Relations section of the Citrix corporate website at http://www.citrix.com/investors for approximately 30 days. In addition, an audio replay of the conference call will be available for approximately 15 days by dialing (800) 642-1687 or (706) 645-9291 (passcode required: 78783890).