Citrix net income up 90%

FORT LAUDERDALE: US specialty software group Citrix Systems Inc. Thursday

said second-quarter net income rose 90 per cent, above analysts' expectations,

as it completed the acquisition of Sequoia Software and expanded its product

line.

Citrix, a leader in application-server software, reported net income,

adjusted to exclude write-offs and amortization of intangible assets relating to

business combinations, of $36.3 million, or 19 cents a share, for the quarter

ended June 30, compared with $20.8 million, or 10 cents a share, in the second

quarter of last year.

Earnings were above the forecasts of 11 analysts, ranging from 16 cents to 18

cents, as tabulated by Thomson Financial/First Call. The mean forecast was 17

cents. Shares of Fort Lauderdale, Florida-based Citrix closed down 59 cents at

$32.47 on Thursday. Earnings were released after the bell.

Net income was $22.9 million, or 12 cents per share, compared to $15 million,

or 7 cents per share, in the prior year.

Revenues were $147.3 million, 11 per cent higher than the $132.8 million

posted in the previous quarter and up 39 per cent from the $106.1 million in

last year's second quarter, the company said in a news release. Citrix, whose

software centralizes much technology work and cuts equipment purchases,

announced in early June that second-quarter sales were rising at a mid-20 per

cent pace rather than the expected low-20s.

The company said it completed the acquisition of Sequoia Software Corp. and

its XML-based portal software during the quarter, allowing Citrix to deliver a

complete application services platform to customers.

"The significant customer wins in the second quarter that contributed to

our financial results are positive evidence that this vision makes sense for IT

departments and end users," Citrix chief executive Mark Templeton said in

the statement.

The company said electronic delivery of licenses in the quarter were 26 per

cent of product sales, compared with 19 per cent in the previous quarter.

Operating margin, excluding the effects of write-offs for research and

development and amortization of intangible assets, was 31.2 per cent for the

quarter, it said.

For the first six months of the year, net revenues were $280.1 million, up 20

per cent from $233.6 million for the first six months of 2000, the company said.

Adjusted net income for the six months was $70.2 million, or 36 cents per share,

compared with $64.7 million, or 31 cents a share in the same period last year,

it said.

Net income for the six months was $51.8 million, or 27 cents a share,

compared with $53.5 million, or 26 cents a share, in the prior year period.

(C) Reuters Limited 2001.