Citrix 2007 Annual Report Download - page 18

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common within our industry. Such factors historically have resulted in first quarter revenues in any year being
lower than the immediately preceding fourth quarter. This trend is expected to continue through the first quarter
of 2008. In addition, our European operations generally provide lower revenues in the summer months because
of the generally reduced economic activity in Europe during the summer. This seasonal factor also typically
results in higher fourth quarter revenues.
Competition
We sell our products in intensely competitive markets. Some of our competitors and potential competitors
have significantly greater financial, technical, sales and marketing and other resources than we do. For example,
our ability to market our Application Virtualization products, including XenApp and XenApp Platinum and other
future product offerings, could be affected by Microsoft’s licensing and pricing scheme for client devices, servers
and applications. Further, the announcement of the release, and the actual release, of new Windows-based server
operating systems or products incorporating similar features to our products could cause our existing and
potential customers to postpone or cancel plans to license certain of our existing and future product and service
offerings.
Existing or new products and services that provide alternatives to our products and services, including those
relating to application, server and desktop virtualization, Web application optimization, application performance
monitoring, branch office application delivery, WAN optimization, SSL/VPN, gateways, on-demand assistance,
online collaboration and IP telephony, can materially impact our ability to compete in these markets. Our current
competitors in these markets include Adobe Systems, Inc., Cisco Systems, Inc., F5 Networks, Inc., Hewlett-
Packard Company, IBM Corporation, Juniper Networks, Inc., Microsoft Corporation, Oracle Corporation,
Riverbed Technology, Inc., Sun Microsystems, Inc., VMware, Inc., and Virtual Iron Software, Inc.
As the markets for our products and services continue to develop, additional companies, including
companies with significant market presence in the computer appliances, software and networking industries,
could enter the markets in which we compete and further intensify competition. In addition, we believe price
competition could become a more significant competitive factor in the future. As a result, we may not be able to
maintain our historic prices and margins, which could adversely affect our business, results of operations and
financial condition. See “—Technology Relationships” and “Risk Factors.”
Proprietary Technology
Our success is dependent upon certain proprietary technologies and core intellectual property. We have been
awarded a number of domestic and foreign patents and have a number of pending patent applications in the
United States and foreign countries. Our technology is also protected under copyright laws. Additionally, we rely
on trade secret protection and confidentiality and proprietary information agreements to protect our proprietary
technology. We have trademarks or registered trademarks in the United States and other countries, including
Citrix®, Citrix Presentation Server™, Citrix Access Gateway™, Citrix Password Manager™, GoToMeeting®,
GoToAssist®, GoToMyPC®, GoToWebinar™, ICA®, NetScaler®, WanScaler™, and Xen®. While our
competitive position could be affected by our ability to protect our proprietary information, we believe that
because of the rapid pace of technological change in the industry, factors such as the technical expertise,
knowledge and innovative skill of our management and technical personnel, our technology relationships, name
recognition, the timeliness and quality of support services provided by us and our ability to rapidly develop,
enhance and market software products could be more significant in maintaining our competitive position. See
“Risk Factors.”
Available Information
Our Internet address is http://www.citrix.com. We make available, free of charge, on or through our Website
our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, proxy statements
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