Citrix 2009 Annual Report Download - page 4

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Two thousand nine: A strong finish to our 20th year
A year ago, the global economy was in deep turmoil and the global financial system was in shock.
As I wrote to you then, Citrix was turning 20, and it was impossible to predict just about anything
—especially how our industry and our business would be impacted. Our plan was to increase our
operational efficiency, intensify execution on strategic initiatives and deliver strong financial results.
I am pleased to say we delivered, growing our standing in core markets for desktop virtualization,
web collaboration, application networking and cloud services.
In a year where global IT spending declined by nearly five percent, Citrix revenue grew to over $1.6
billion, an increase of 2 percent over 2008. We expanded our operating margin more than 100 basis
points to 24 percent, increased EPS by 11 percent and reported record net income of $334 million,
all on a non-GAAP basis. Very good financial results in a not-so-good business climate.
Citrix has consistently generated strong cash flow, which is an excellent indicator of business performance.
Last year, our cash flow from operations was over $480 million. We closed the year with $1.2 billion
in cash and marketable securities. This is after allocating over $200 million for the repurchase of 6.5
million shares of Citrix common stock. And, we have no debt. Our balance sheet is rock solid.
The company’s common stock performed quite well in 2009, increasing 77 percent, outpacing the
NASDAQ Composite Index which increased 44 percent. Since December 8, 1995, when we became
a public company, the NASDAQ index has increased about 125 percent while our stock price has
grown by more than 1,700 percent. We consider our mission to deliver shareholder and customer
value to be a marathon—not a sprint.
Looking forward: The only constant is change
At the beginning of the last decade, we challenged ourselves to define—what’s next—for Citrix. It
started by imagining better ways for people and IT to work. We expressed our imagination in a
seven minute video called “Virtual Workplace” in which we depicted a world where people could
work from anywhere.
We showed secure collaboration across the boundaries of time and corporate firewalls. We invented
an idea called follow me, demonstrating how personal workspaces could seamlessly move between a
wide range of corporate and consumer devices—maintaining continuous access to applications,
documents, personal data, and preferences at every transition. To support this new virtual workstyle,
we envisioned a new datacenter infrastructure so resilient, it could smoothly handle unforeseen outages
and spikes in user demand. Even now, these ideas become more relevant and valuable every day.
More importantly, Virtual Workplace documented our prediction of technical, business and economic
change. We concluded there was a radical transformation of IT and computing ahead—mandated
by a world where the velocity and amplitude of change would increase substantially. This thinking
turned out to be prescient. It shaped the Citrix innovations we’ve designed and acquired over the
past decade.
2 Annual Report 2009 • Citrix Systems, Inc.