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
Citrix Systems, Inc.  Annual Report
Sensitivity Analysis by Option Vest Year
(in thousands)
Year
Pre-Tax Expense
Based on Selected
Revised Measurement
Dates
Hypothetical
Compensation
Expense Based on
Lowest Closing Price
Within Range of
Potential Alternative
Measurement Dates
Hypothetical
Compensation
Expense Based on
Highest Closing Price
Within Range of
Potential Alternative
Measurement Dates
1996 $ 1,826 $ 322 $ 2,251
1997 6,509 943 8,199
1998 14,598 2,032 19,018
1999 24,557 4,511 35,404
2000 40,627 8,302 77,016
2001 34,926 6,718 86,136
2002 20,271 3,972 50,597
2003 12,985 2,610 37,002
2004 6,226 1,145 19,976
2005 3,142 762 8,546
 $ 165,667 $ 31,317 $ 344,145
For more information regarding the restatement see
Note 2 to our consolidated financial statements included
elsewhere in this Annual Report.
Overview
We design, develop and market technology solutions that
allow applications to be delivered, supported and shared
on-demand with high performance, enhanced security
and improved total cost of ownership, or TCO. We market
and license our products through multiple channels such
as value-added resellers, channel distributors, system
integrators, independent software vendors, our Websites
and original equipment manufacturers.
2006 Acquisitions
During 2006, we acquired all of the issued and outstanding
capital stock of two privately held companies, Reflectent
Software, Inc., a provider of solutions to monitor the
real-time performance of client-server, Web and desktop
applications from an end-user perspective, and Orbital
Data Corporation, a provider of solutions that optimize
the delivery of applications over wide area networks,
collectively, the 2006 Acquisitions. The 2006 Acquisitions
strengthen our Application Delivery Infrastructure products
which are designed to offer comprehensive solutions
across all dimensions of application delivery. The total
consideration for the 2006 Acquisitions was $68.0 million
comprised of cash paid of $65.1 million and other costs
related primarily to estimated direct transaction costs
of $2.9 million. As part of our 2006 Acquisitions, we
assumed approximately 0.4 million non-vested stock-
based awards upon the closing of the transactions. See
Note 7 to our consolidated financial statements included
elsewhere in this Annual Report for more information
regarding the stock-based awards assumed. The results
of operations of the 2006 Acquisitions are included as
part of our results beginning after their respective dates
of acquisition. Revenues from the acquired products
are primarily included in our Product License revenue
and Technical Services revenue in the accompanying
consolidated statements of income. The sources of funds
for consideration paid in these transactions consisted of
available cash and investments.