Citrix 2007 Annual Report Download - page 3

Virtualize.
Mark Templeton
President and CEO
Citrix Systems, Inc. J 2007 Annual Report 1
Dear Fellow Stockholders,
2007 was another year of solid growth for Citrix – strategically, operationally, and  nancially. Our goal
is to deliver top notch revenue growth with increasing operating pro t and cash  ow. We’re reporting
revenue of $1.4 billion – up 23% over last year – once again surpassing most of our peers in the so ware
industry who grew an average of 15%. We achieved diluted EPS of $1.14, growing 18% from last year, and
cash  ow from operations was up 29% to a record $424 million.  e key measure of  nancial strength –
our balance sheet – is stronger than ever and a critical ingredient of our business transformation.
Citrix is being rewarded for the pace of product innovation, successful selection of acquisitions, and
aggressive expansion of our go-to-market footprint. Citrix products and services are becoming more
strategic and relevant every day. In 2007, revenue from our enterprise businesses drove growth across three
key metrics: 18% product licensing growth; 19% license update growth; and 28% growth in technical
services. And revenue from our Online Services business, mostly with small and medium business customers,
was up 44% over last year.  ese exceptional results demonstrate excellent execution in some of today’s
hottest so ware markets, for virtualization, for application networking and for real-time collaboration.
Over the last  ve years, we’ve achieved top-tier  nancial performance while creating a solid foundation
for sustainable growth. At the same time, we believe our industry has faced the slowest IT spending
environment since the personal computer was born. In spite of this, Citrix has grown briskly – an average
of 21% revenue growth per year – with a focus on building long-term value, for customers, for employees
and for stockholders. Results like this are a credit to Citrix employees, families, and business partners. I’d
like to gratefully thank each one of them.
 is kind of business velocity has taught us a lot about strategic transformation. It has taught us that a
customer-centric vision is highly valuable, that we must be willing to invest to yield longer-term opportunity,
that questioning the status quo creates strength, and that we must not fear the business risks that accompany
innovation. Mostly, we’ve learned that we must face change with optimism because it’s a process that has no
end – only milestones against which we can measure our trajectory.
Driving into the Mainstream
I have not seen a year in Citrix history where our products, message, team and strategic foundation are more
in the market’s mainstream. Driven by the increased complexity of a growing product line, we entered 2007
with a well-cra ed and well-de ned plan for go-to-market simpli cation.  e main theme of the plan was
to better align our products, target customers and selling strategies for medium, large and global enterprises
around the world.  e plan also included growing our share of the real-time collaboration market with small
and medium business customers.  e results speak for themselves.
Great execution in 2007 included a rich set of product launches across all the application delivery markets
we serve.  ere are several that were highly impactful.