Citrix Reports Third Quarter 2017 Financial Results
Quarterly revenue of $691 million up 3% year-over-year. Quarterly GAAP diluted EPS of $0.82; non-GAAP diluted EPS of $1.22. Quarterly GAAP operating margin of 20 percent; non-GAAP operating margin of 32 percent. Deferred revenue of $1.7 billion up 13 percent year-over-year
FORT LAUDERDALE, Fla. - October 25, 2017 - Citrix Systems, Inc. (NASDAQ:CTXS) today reported financial results for the third quarter of fiscal year 2017 ended September 30, 2017.
For the third quarter of fiscal year 2017, Citrix achieved revenue from continuing operations of $691 million, compared to $669 million in the third quarter of fiscal year 2016, representing 3 percent revenue growth.
Net income from continuing operations for the third quarter of fiscal year 2017 was $127 million, or $0.82 per diluted share, compared to $112 million, or $0.71 per diluted share, for the third quarter of fiscal year 2016. Net income from continuing operations for the third quarter of fiscal year 2017 and 2016 includes restructuring charges of $9 million and $12 million, respectively, for severance and facility closing costs. Net income for the third quarter of fiscal year 2017 includes a tax benefit of approximately $8 million, or $0.05 per diluted share, related to the expiration of the statute of limitation for a prior domestic tax year.
Non-GAAP net income from continuing operations for the third quarter of fiscal year 2017 was $186 million, or $1.22 per diluted share, compared to $170 million, or $1.08 per diluted share for the third quarter of fiscal year 2016. Non-GAAP net income from continuing operations for the third quarter of fiscal year 2017 and 2016 excludes the effects of stock-based compensation expense, amortization of acquired intangible assets, amortization of debt discount, restructuring charges, and the tax effects related to these items. Non-GAAP net income from continuing operations for the third quarter of fiscal year 2016 also excludes separation costs and the tax effect related to this item. Non-GAAP net income per diluted share for the third quarter of fiscal year 2017 also reflects the anti-dilutive impact of the company’s convertible note hedges.
“I am pleased with our execution this quarter and our renewed discipline in managing our business. We are moving quickly to drive business transformation across Citrix, aligning with our customers’ desire to support multi-cloud and hybrid-cloud environments,” said David Henshall, president and CEO.
“I am excited about the opportunity we have moving forward and our potential over the next several years.”
Q3 Financial Summary
In reviewing the results from continuing operations for the third quarter of fiscal year 2017 compared to the third quarter of fiscal year 2016:
During the third quarter of fiscal year 2017:
Financial Outlook for Fiscal Year 2017
Citrix management expects to achieve the following results from continuing operations for the fiscal year ending December 31, 2017:
Preliminary Outlook for Fiscal Year 2018
The company's current preliminary outlook for the full fiscal year 2018 is for net revenue to grow by approximately 1 to 2 percent, excluding the transition impact of ASC 606 adoption, which will be effective January 1, 2018. In addition, Citrix management is targeting GAAP operating margin to be in the range of 19 percent to 20 percent, and non-GAAP operating margin to be in the range of 29 percent to 30 percent, excluding 6 percent related to the effects of stock-based compensation expense, 2 percent related to the effects of amortization of acquired intangible assets, and 2 percent related to restructuring charges.
The above statements are based on current targets. These statements are forward-looking, and actual results may differ materially.
Third 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.
Full Financial Report
For media inquiries, contact:
Directions to request a trial
To get started you must have a Citrix Cloud organization ID. If you don’t know your Citrix Cloud OrgID:
Please go to http://onboarding.cloud.com and create a Citrix Cloud account.
Please note: do not re-use the same Citrix Cloud account with other XenApp and XenDesktop services at this time.
Upon completion of Citrix Cloud account request submission, you will receive an email with your Citrix Cloud account credentials. Please go to cloud.citrix.com and login using the username and password you received.
To locate your OrgID, login to your Citrix Cloud account at cloud.citrix.com and click your name on the top left side and choose Account Settings. Your OrgID should be listed under Account info.
Please fill out the following form
Please complete the form below and we will reach out to you to set up your account. Note: One trial per person per organization. Filling out the form does not guarantee a trial.
Citrix (NASDAQ:CTXS) aims to power a world where people, organizations and things are securely connected and accessible to make the extraordinary possible. Its technology makes the world’s apps and data secure and easy to access, empowering people to work anywhere and at any time. Citrix provides a complete and integrated portfolio of Workspace-as-a-Service, application delivery, virtualization, mobility, network delivery and file sharing solutions that enables IT to ensure critical systems are securely available to users via the cloud or on-premise and across any device or platform. With annual revenue in 2016 of $3.42 billion, Citrix solutions are in use by more than 400,000 organizations and 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 CEO and president, statements contained in the Financial and Preliminary 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 and succession risk, including transitions in the company's executive leadership; the success and growth of the company's product lines, including competition, demand and pricing dynamics and our ability to transition to new business models, including a subscription model, and markets for Citrix's virtualization and networking products and secure data services; the impact of the global economy, volatility in global stock markets, foreign exchange rate volatility and uncertainty in the IT spending environment; the risks associated with maintaining the security of our products, services, and networks, including securing customer data stored by our services; changes in Citrix’s pricing and licensing models, promotional programs and product mix, all of which may impact Citrix's revenue recognition; the introduction of new products by competitors or the entry of new competitors into the markets for Citrix's products and services; the concentration of customers in Citrix’s networking business; the company's ability to develop, maintain a high level of quality and commercialize new products and services while growing its established virtualization and networking products and services; changes in our revenue mix towards products and services with lower gross margins; seasonal fluctuations in the company's business; disruptions to execution due to actions that may be taken as a result of Citrix's operational reviews; 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 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 and reliance on large service provider customers; 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 and divestitures, 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, and failure to realize expected benefits or synergies from divestitures; risks associated with the failure to achieve the expected strategic, operational and competitive benefits of the separation of the GoTo business, and the effect of the separation on Citrix’s shareholders, customers, partners and employees; tax risks related to the separation of the GoTo business; the recruitment and retention of qualified employees; risks in effectively controlling operating expenses; 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; 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; the ability to maintain and protect our collection of brands; 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; risks related to servicing our debt; unanticipated changes in tax rates, non-renewal of tax credits or exposure to additional tax liabilities; risks of political uncertainty and social turmoil; and other risks detailed in Citrix'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 property of their respective owners.