Citrix Systems Announces Restatement of Balance Sheets and Cash Flow S

Citrix Systems Announces Restatement of Balance Sheets and Cash Flow Statements Consistent With Previously Disclosed Presentation of Certain Restricted Cash and Investments

    Business Editors/Software Writers

    FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--March 7, 2005--

No Effect on Historical or Future Revenues, Net Income, Earnings Per Share or Cash Flow from Operations
    Citrix Systems, Inc. (Nasdaq: CTXS), the global leader in access infrastructure solutions, today announced that it will restate the presentation of cash and investments on its balance sheet. As previously disclosed in the unaudited balance sheet that accompanied the Company's fourth quarter and year-end earnings press release issued by the Company on January 27, 2005, Citrix will present collateral pledged under the Company's synthetic lease, credit default contracts and interest rate swaps as restricted cash equivalents and investments.
    The nature and extent of all pledged collateral arrangements and restrictions have been fully and consistently disclosed from the inception of each arrangement in narrative form in the Company's reports filed with the SEC. The Company previously believed that its audited balance sheets and cash flow statements, which reflected pledged collateral in cash equivalents, short-term investments and long-term investments, were appropriate under generally accepted accounting principles. As a result of a normal periodic review of the Company's financial reports by the staff of the SEC, the Company has reevaluated its presentation of cash and investments and will present pledged collateral on its balance sheet as restricted. The Company's balance sheet adjustments will not in any way affect the Company's historical or future revenues, net income, earnings per share, cash flow from operations, total assets or total cash and investments. Moreover, these adjustments do not change the Company's liquidity position or its ability to access its funds.
    The Company is restating its consolidated balance sheets and cash flow statements for fiscal years 2002 and 2003 and for the first three quarters of 2004 to revise its presentation of cash and investments. The Company filed its restated financial statements with the SEC today.
    Citrix additionally reclassified, or adjusted its financial statement presentation for, the following items in its restated financial statements:

--	expenses associated with the amortization of acquired intangibles from amortization expense to a component of cost of revenues in the Company's consolidated income statement;
--	proceeds from sales and maturities of the Company's investments, as well as cash flows from the Company's available-for-sale and held-to-maturity investments, now presented separately in the Company's cash flow statement; and
--	investments in auction rate securities from cash equivalents to short term investments pursuant to a recently published accounting interpretation.

    The Company does not currently anticipate any additional revisions to the Company's previously reported fiscal 2004 results of operations and financial position in its Annual Report on Form 10-K, which the Company anticipates filing with the SEC on or before March 16, 2005.
    A reconciliation of amounts previously reported in the Company's consolidated financial statements to adjusted balances is included in this press release.

    About Citrix

    Citrix Systems, Inc. (Nasdaq: CTXS) is the global leader in access infrastructure solutions and the most trusted name in secure access for companies of all sizes. More than 160,000 organizations around the world use Citrix every day. Our software gives people secure and well-managed access to business information wherever it lives--on demand. Citrix customers include 100% of the Fortune 100 companies, 99% of the Fortune 500, and 97% of the Fortune Global 500. Based in Fort Lauderdale, Florida, Citrix has offices in 22 countries, and approximately 7,000 channel and alliance partners in more than 100 countries. For more information visit http://www.citrix.com.

    For Citrix Investors

    This release contains forward-looking statements. 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 concerning the Company's 2004 Annual Report on Form 10-K, 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 success of the Company's product lines; the Company's product concentration and its ability to develop and commercialize new products and services; the success of investments in foreign operations and vertical and geographic markets; the Company's ability to successfully integrate the operations and employees of acquired companies, and the possible failure to achieve anticipated revenues and profits from acquisitions; the Company's ability to maintain and expand its core business in large enterprise accounts; the Company's ability to attract and retain small sized customers; the size, timing and recognition of revenue from significant orders; the effect of new accounting pronouncements on revenue and expense recognition; the Company's reliance on and the success of the Company's independent distributors and resellers for the marketing and distribution of the Company's products and the success of the Company's marketing and licensing programs, including the Advisor Rewards program; increased competition, 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; competition and other risks associated with the market for our Web-based access, training and customer assistance products; as well as risks of downturns in economic conditions generally; political and social turmoil; and the uncertainty in and the effects of a weakened IT spending environment that 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 information contained in this press release or with respect to the announcements described herein.

    Citrix(R) is a registered trademark of Citrix Systems, Inc. in the U.S. and other countries. All other trademarks and registered trademarks are property of their respective owners.

Reconciliation of Amounts Previously Reported in the Company's Consolidated Statements of Income

As Amortization As Reported Reclassification Adjusted ------------------------------------------ 2004 (unaudited) (in thousands) ---------------------------- Net revenues $741,157 $ - $741,157 Cost of revenues 20,296 6,127 26,423 Gross margin 720,861 (6,127) 714,734 Total operating expenses 561,870 (6,127) 555,743 Net income 131,546 - 131,546 Earnings per share - diluted $0.75 $ - $0.75

2003 ---------------------------- Net revenues $588,625 $ - $588,625 Cost of revenues 20,036 11,036 31,072 Gross margin 568,589 (11,036) 557,553 Total operating expenses 414,200 (11,036) 403,164 Net income 126,943 - 126,943 Earnings per share - diluted $0.74 $ - $0.74

2002 ---------------------------- Net revenues $527,448 $ - $527,448 Cost of revenues 19,030 10,811 29,841 Gross margin 508,418 (10,811) 497,607 Total operating expenses 404,558 (10,811) 393,747 Net income 93,920 - 93,920 Earnings per share - diluted $0.52 $ - $0.52

2001 ---------------------------- Net revenues $591,629 $ - $591,629 Cost of revenues 29,848 11,603 41,451 Gross margin 561,781 (11,603) 550,178 Total operating expenses 428,430 (11,603) 416,827 Net income 105,260 - 105,260 Earnings per share - diluted $0.54 $ - $0.54

Reconciliation of Amounts Previously Reported in the Company's Consolidated Balance Sheets

Restatement of Restricted Reclassification Cash of Auction Rate As As Reported Equivalents Investments Adjusted ------------------------------------------------------ 2004 (unaudited) (in thousands) ---------------- Cash and cash equivalents $203,920 $ - $(130,435) $73,485 Short-term investments 29,221 - 130,435 159,656 Long-term investments 183,974 - - 183,974 Restricted cash equivalents and investments 149,051 - - 149,051 ------------------------------------------------------ Total Cash and Investments $566,166 $ - $ - $566,166 ======================================================

2003 ---------------- Cash and cash equivalents $359,343 $(10,134) $(166,240) $182,969 Short-term investments 252,971 (33,780) 166,240 385,431 Long-term investments 285,957 (102,546) - 183,411 Restricted cash equivalents and investments - 146,460 - 146,460 ------------------------------------------------------ Total Cash and Investments $898,271 $ - $ - $898,271 ======================================================

2002 ---------------- Cash and cash equivalents $142,700 $ - $(60,350) $82,350 Short-term investments 77,213 (41,783) 60,350 95,780 Long-term investments 499,491 (130,323) - 369,168 Restricted cash equivalents and investments - 172,106 - 172,106 ------------------------------------------------------ Total Cash and Investments $719,404 $ - $ - $719,404 ======================================================

--30--JC/ny*

CONTACT: Citrix Systems, Inc. For Media and Investor Inquiries: Jeff Lilly, 954-267-2886 jeff.lilly@citrix.com

KEYWORD: FLORIDA INDUSTRY KEYWORD: SOFTWARE NETWORKING EARNINGS SOURCE: Citrix Systems, Inc.

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