Financial Results: 1st Quarter 2004

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Financial Results1st Quarter - 2004

• Mark Templeton
• President CEO
• David Henshall
• Vice President, Finance CFO

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Use of Non-GAAP Financial Measures

• This presentation contains non-GAAP financial
  measures as defined by SEC Regulation G. These
  non-GAAP financial measures should not be
  construed as superior to GAAP financial measures.
  The GAAP financial measure most directly
  comparable to each non-GAAP financial measure
  used or discussed in this presentation and a
  reconciliation of the differences between each
  non-GAAP financial measure and the comparable
  GAAP financial measure can be found on the
  Investor Relations page of the Citrix corporate
  website at www.citrix.com/investors.

http//www.citrix.com/site/resources/content/inves
torsGlossary/GAAPrecon.pdf
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Safe Harbor Provisions

• Forward-looking statements in this presentation
  are made pursuant to the safe harbor provisions
  of Section 21E of the Securities Exchange Act of
  1934. Investors are cautioned that statements
  during this conference call, which are not
  strictly historical statements, including,
  without limitation, statements by management, the
  statements regarding business outlook and in the
  reconciliation of non-GAAP measures to comparable
  U.S. GAAP measures concerning managements
  forecast of revenue and earnings per share,
  statements regarding the companys existing and
  new products, demand and pipeline growth, the
  potential size of product markets, and statements
  concerning internal operations, marketing,
  managements plans, objectives and strategies,
  and management's assessment of market factors,
  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,
  success of the companys product lines the
  company's product concentration and its ability
  to develop and commercialize new products and
  services the success in investments in foreign
  operations and markets the success in
  acquisitions the company's success in expanding
  into new geographic and vertical markets the
  company's ability to maintain and expand its core
  business in large enterprise accounts the size,
  timing and recognition of revenue from
  significant orders and other revenue recognition
  changes, including increases in deferred revenue
  the Companys reliance on and the success of the
  Companys independent distributors and resellers
  for the marketing and distribution of its
  products increased competition, including
  potential competition from Microsoft and other
  companies changes in the company's pricing
  policies or those of its competitors management
  of operations and operating expenses charges in
  the event of the impairment of assets acquired
  through business combinations and licenses the
  management of anticipated future growth and the
  recruitment and retention of qualified employees
  as well as risks of downturns in economic
  conditions generally political and social
  turmoil and the uncertainty in and the effects
  of a weak IT spending environment which has
  impacted the overall demand for software and
  related services and other risks detailed in the
  company's filings with the Securities and
  Exchange Commission. Citrix assumes no obligation
  to update any forward-looking statements or
  announcements made herein.

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Q104 Financial Results

• Revenue 161.3 million up 12.4 over 2003
• Net Income 9.3 million 0.05 per share
• 2003 30.3 million or 0.18 per share
• Includes convertible debt redemption costs
  in-process RD costs of Expertcity acquisition
• Adjusted Net Income 32.8 million 0.19 per
  share
• 2003 32.2 million 0.19 per share
• Deferred revenue up 19 million sequentially to
  184 million

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Todays Takeaways

• 2003 Momentum Continues
• Expanded geographic coverage product portfolio
  and partner programs
• Solid Q1 Sales Metrics
• Pipeline creation up sharply
• On track Citrix Online Integration
• Solid Q1 metrics early cross-selling traction
• Aggressive Business-building
• Increase sales capacities standard SAR
  processes and Citrix brand visibility
• Confident Outlook Going Forward

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Financials

• David Henshall
• Vice President, Finance CFO

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Revenue by Geography
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Product Revenue
Software license updates is mainly Subscription
Advantage
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Product Revenue
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Total Revenue Split
Some amounts may not add due to rounding
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Top Deal Metrics

• Top Deal Metrics
• 5 deals gt 500K
• 2 of those deals gt 1 million
• Top 10 Deals 5 in EMEA 4 in North America 1 in
  Latin America

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Income Statement (In Millions)
Results exclude amortization of intangibles,
write down of In-process RD, and deferred
issuance costs
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Balance Sheet Summary

• March 31, 2004
• Cash equivalents 201 million
• Short-term Investments 50 million
• Long-term Investments 285 million
• Total Cash Investments 536 million
• Cash Flow from Operations 78 million
• Accounts receivable, net 68 million
• Days Sales Outstanding 37 days
• Deferred Revenue (Total) 184 million

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Deferred Revenue
184M
15
Stock Repurchase Program
Some amounts may not add due to rounding
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Financial Summary

• Good execution
• Core business remains strong
• Continued increase in deferred revenue
• Improved visibility
• Investments in sales, marketing and product
  development continue
• Growing pipeline
• Focus on license growth
• Continued adoption of Subscription Advantage
• Focus on new products during 2004
• Integration of acquisition is progressing on plan

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2004 Strategy and Plans

• Mark Templeton

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2003 Momentum Continues

• MetaFrame becomes the Citrix MetaFrame Access
  Suite
• Presentation Server, Secure Access Manager,
  Conferencing Manager and Password Manager
• Access Suite license bundling three editions
  available in Q403
• Secure Access Manager 2.2
• Shipped in Q1
• SSL-based Synchronization for Microsoft Outlook
• User Interface flexibility
• Citrix Strategy Day, April 27th

Joyce Vonada CIO AutoNation
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Solid Q1 Sales Metrics

• Q1 Customer Highlight iZB Soft
• iZB Soft Supports Germanys Largest Network of
  Savings Banks
• Sparkasse - over 80 institutions 8,000 branches
  throughout Germany
• Over 35,000 licenses for secure access to 350
  applications
• Sales Training
• 1st Annual Global Summit Week Sales training
  choreography around strategy, products, sales
  methodology partnering
• On Tour training our channel

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On track Citrix Online Integration

• Solid Business Metrics For Q1
• Executing while integrating with Citrix
• Leveraging the Citrix Brand
• GoToAssist Top 5 deal in Q1 with US
  telecommunications firm
• Cross-selling Citrix Customers With Citrix
  solution advisors
• Subscription Advantage trial program
• Sales lead referral program
• Coordinated Strategic Alliance Partnering
• Q1 agreement with Sharp GoToMyPC on all Sharp
  Actius MM20 notebook computers
• Citrix GoToMeeting instant online meetings
• Impromptu meeting use and intuitive setup
• Beta testing now Customer preview coming

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Aggressive Business-building

• Innovative product development
• Citrix brand visibility
• Increased sales capacities
• Citrix Advisor Rewards Program
• Introduced in January part of next-generation
  partnering program Citrix accessPARTNER Network
• Agency-type fee paid for value-selling Citrix
  infrastructure along with partner intellectual
  integration services

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Confident Outlook Going Forward
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Forward-looking Guidance

• Q2 2004 Guidance
• Revenue 170M - 180M
• GAAP EPS 0.14 - 0.16
• Adjusted EPS 0.16 - 0.18

Excludes amortization of intangibles and
non-cash charges
All guidance includes impact of Expertcity
acquisition
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Summary

• 2003 Momentum Continues
• Expanded geographic coverage product portfolio
  and partner programs
• Solid Q1 Sales Metrics
• Pipeline creation up sharply
• On track Citrix Online Integration
• Solid Q1 metrics early cross-selling traction
• Aggressive Business-building
• Increase sales capacities standard SAR
  processes and Citrix brand visibility
• Confident Outlook Going Forward
• Top-quartile Financials - Topline growth, new
  product revenue and expense management targets

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Summary Questions