Citrix 2007 Annual Report Download - page 36

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losses related to the impairment of these investments. Fluctuations in economic and market conditions could
adversely affect the value of our investments, and we could lose some of our investment portfolio. A total loss of
an investment could adversely affect our results of operations and financial condition. For further information on
these investments, please refer to “Management’s Discussion and Analysis of Financial Condition and Results of
Operations—Liquidity and Capital Resources.”
ITEM 1B. UNRESOLVED STAFF COMMENTS
We have received no written comments regarding our periodic or current reports from the staff of the
Securities and Exchange Commission that were issued 180 days or more preceding the end of our 2007 fiscal
year that remain unresolved.
ITEM 2. PROPERTIES
We lease and sublease a total of 1,131,695 square feet of office space in the United States, Canada and Latin
America, which is comprised of 474,150 square feet related to our Americas segment, 187,127 square feet related
to our Online Services division and 470,418 square feet relating to our corporate headquarters located in Fort
Lauderdale, Florida. Included in this total square footage is 368,843 square feet of office space in California, and
292,434 square feet of office space in other locations in the United States, Canada and Latin America.
We lease and sublease a total of 412,278 square feet of office space in various other facilities outside of
North and Latin America, 198,899 of which relates to our Europe, the Middle East and Africa, or EMEA,
segment and 213,379 of which relates to our Asia-Pacific segment. In addition, we own land and buildings in the
United Kingdom with approximately 42,000 square feet of office space.
We believe that our existing facilities are adequate for our current needs. As additional space is needed in
the future, we believe that suitable space will be available in the required locations on commercially reasonable
terms.
ITEM 3. LEGAL PROCEEDINGS
Due to the nature of our business, we are subject to patent infringement claims. In 2006, we were sued in the
United States District Court for the Northern District of Ohio for alleged patent infringement by our Online
Services division’s GoToMyPC service and in the United States District Court for the Southern District of
Florida for alleged patent infringement by our Online Services division’s GoToMyPC and GoToMeeting
services. The complaints name Citrix Systems, Inc. and Citrix Online LLC, a wholly-owned subsidiary of Citrix
Systems, Inc., as defendants and seek unspecified damages and other relief. In January 2007, a similar suit
naming Citrix Systems, Inc. was filed in the United States District Court of the Eastern District of Texas. In
response, we filed answers denying infringement and alleging, among other things, that the asserted claims of
these patents are invalid. With respect to the Northern District of Ohio case, on November 2, 2006, the court held
a hearing for the purpose of construing disputed terms of the claims of the patent-in-suit, and on March 13, 2007,
the court issued a claim construction ruling. On March 21, 2007, we moved for leave to amend our answer in that
case to assert an affirmative defense and counterclaim of inequitable conduct, which is a complete defense. On
August 28, 2007, the court granted our motion. On December 7, 2007, we filed motions for summary judgment
in the Northern District of Ohio case, seeking judgment that the asserted patent is invalid and that we have not
infringed the patent, as well as judgments on other, non-dispositive issues. On the same day, we filed a request
with the United States Patent and Trademark Office seeking inter partes reexamination of the patent in suit, and
we subsequently filed a request with the court in the Northern District of Ohio seeking a stay of the litigation
pending the Patent Office’s determination of our reexamination request. The court has all of these motions under
advisement. The Patent Office has not yet ruled on our reexamination request. Trial in the Northern District of
Ohio case currently is scheduled to begin March 24, 2008. Trial in the Southern District of Florida case currently
is scheduled to begin April 28, 2008, and trial in the Eastern District of Texas case currently is scheduled to
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