Citrix 2009 Annual Report Download - page 28

If we fail to manage our operations and grow revenue, our future operating results could be adversely
affected.
Historically, the scope of our operations, the number of our employees and the geographic area of our
operations and our revenue have grown rapidly. In addition, we have acquired both domestic and international
companies. This growth and the assimilation of acquired operations and their employees could continue to place
a significant strain on our managerial, operational and financial resources. We need to continue to implement and
improve additional management and financial systems and controls. We may not be able to manage the current
scope of our operations or future growth effectively and still exploit market opportunities for our products and
services in a timely and cost-effective way. Our future operating results could also depend on our ability to
manage:
• our expanding product lines;
• our marketing and sales organizations; and
• our client support organization to the extent required for any increase in installations of our products.
During the past two years, a large portion of our growth has been attributable to the growth of our Desktop
Solutions, as well as growth in our Online Services and the application networking products in our Datacenter
and Cloud product portfolio. We cannot provide any assurance that these markets and the revenues we derive
from these markets will continue to grow, especially given the current adverse economic and market conditions
that we face. In addition, over the last four years we have grown our force of sales professionals that work
closely with partners to sell to primary information technology, or IT, buyers, including Strategic IT Executives,
Network Architects, IT Infrastructure Managers, Desktop Operations Managers and Server Operations Managers,
to address the multiple selling and buying opportunities presented by our expanded product lines. These and
other account penetration efforts are part of our strategy to increase the usage of our products within our
customer’s IT organizations. We cannot provide any assurance that this strategy will be successful or that the
release of our application delivery infrastructure products or other new products or services will sustain or
increase our revenue growth rate.
We may be unable to effectively control our operating expenses, which could negatively impact our
profitability.
Although we endeavor to effectively control our operating expenses, these expenses, which are based on
estimated revenue levels, are relatively fixed in the short term. We cannot assure you that our operating expenses
will be lower than our estimated or actual revenues in any given quarter or that we will not incur unanticipated
expenses. If we experience a shortfall in revenue in any given quarter or if we incur material unanticipated
expenses, we likely will not be able to further reduce operating expenses quickly in response. Any significant
shortfall in revenue or the incurrence of material unanticipated expenses could immediately and adversely affect
our results of operations for that quarter. Also, due to the fixed nature of many of our expenses and the
challenges for revenue growth in the current environment, our income from operations and cash flows from
operating and investing activities could be lower than in recent years.
In addition, to the extent our revenue grows, if at all, we believe that our cost of revenues and certain
operating expenses could also increase. We believe that we could incur additional costs, including royalties, as
we develop, license or buy new technologies or enhancements to our existing products and services. These added
costs and royalties could increase our cost of revenues and operating expenses and lower our gross margins.
However, we cannot currently quantify the costs for such transactions that have not yet occurred or of these
developing trends in our business. In addition, we may need to use a substantial portion of our cash and
investments or issue additional shares of our common stock to fund these additional costs.
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