Citrix 2006 Annual Report Download - page 106

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
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therefore, would only impact opening accumulated earnings
(deficit) or if the amount of the uncorrected difference(s) is
determined to be material to the current period statement of
operations, then such amount would be deemed material
and would have to be corrected for in the manner set forth
above. SAB No. 108 provides for the following transition
guidance in the initial period of adoption: (a) restatement of
prior years is not required if the registrant properly applied
its previous approach, either “rollover” or “iron curtain”
approach, so long as all relevant qualitative factors were
considered; (b) the SEC Staff will not object if a registrant
records a one-time cumulative effect adjustment to correct
errors existing in prior years that previously had been
considered immaterial, quantitatively and qualitatively,
based on the appropriate use of the registrant’s previous
approach; (c) if prior years are not restated, the cumulative
effect adjustment is recorded in opening accumulated
earnings (deficit) as of the beginning of the fiscal year of
adoption (e.g. January 1, 2006 for the Company). The
adoption of SAB No. 108 did not have a material effect on
the Company’s consolidated financial position, results of
operations or cash flows.
In February 2007, the FASB issued SFAS No. 159, The Fair
Value Option for Financial Assets and Financial Liabilities.
SFAS No. No. 159 permits companies to choose to measure
certain financial instruments and certain other items at fair
value. The standard requires that unrealized gains and losses
on items for which the fair value option has been elected
be reported in earnings. SFAS No. 159 is effective for the
Company beginning in the first quarter of fiscal year 2008,
although earlier adoption is permitted. The Company is
currently evaluating the impact that SFAS No. 159 will have
on its consolidated financial statements, if any.
17. Quarterly Results (unaudited)
Quarterly results for the years ended December 31, 2006
and 2005 follow (in thousands, except per share amounts):
(In thousands, except per share amounts)
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter Total Year
(restated) (restated) (restated)
2006
Net revenues $ 259,998 $ 275,468 $ 277,851 $ 321,002 $ 1,134,319
Gross margin 237,869 251,227 253,507 293,018 1,035,621
Income from operations 48,974 49,341 45,067 59,962 203,344
Net income 41,463 44,971 43,660 52,903 182,997
Basic earnings per common share 0.23 0.25 0.24 0.29 1.01
Diluted earnings per common share 0.22 0.23 0.23 0.29 0.97
(In thousands, except per share amounts)
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter Total Year
(restated) (restated) (restated) (restated) (restated)
2005
Net revenues $ 201,890 $ 211,229 $ 226,947 $ 268,656 $ 908,722
Gross margin 192,646 199,829 211,002 247,146 850,623
Income from operations 42,361 51,744 43,778 65,789 203,672
Net income 37,515 29,616 40,153 58,325 165,609
Basic earnings per common share 0.22 0.17 0.23 0.33 0.96
Diluted earnings per common share 0.21 0.17 0.23 0.32 0.93
The sum of the quarterly earnings per share amounts do not add to the annual earnings per share amount due to the weighting of
common and common equivalent shares outstanding during each of the respective periods.