Citrix 2007 Annual Report Download - page 9

PART I
This Annual Report on Form 10-K contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended. Actual results could differ materially from those set forth in the forward-looking
statements. Certain factors that might cause such a difference are discussed in this report, including in
Part I, Item 1A “Risk Factors” beginning on page 10.
ITEM 1. BUSINESS
General
Citrix Systems, Inc. is a Delaware corporation founded on April 17, 1989. 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, or VARs, channel distributors, system
integrators, or SIs, independent software vendors, or ISVs, our Websites and original equipment manufacturers,
or OEMs.
Business Overview
Our goal is to enable a world where virtually anyone can work from almost anywhere. In our drive to
achieve our vision, we have been an innovator in the information technology, or IT, industry for more than a
decade, since the completion of our initial public offering in December 1995.
Our three main waves of innovation have had a significant impact on the IT industry:
• Our first wave of innovation, in the mid-1990s, enabled the virtualization of the Windows desktop with
our WinFrame®product. This in turn enabled thin-client computing.
• Our second wave of innovation, from the late 1990s to the early 2000s, focused on bringing the
advantages of application virtualization and IT centralization to businesses with our MetaFrame®line
of presentation server products. When an application is virtualized, the business logic of the application
runs on a central server, and only screen pixels, keystrokes, and mouse movements—not actual data—
are transmitted via an encrypted channel to the user’s computer. Keeping applications under the
centralized control of IT administrators enhances data security and reduces the costs of managing
separate clients and applications on every user’s desktop. Through our application virtualization
solutions, we became a market leader in server-based computing.
• Our third wave of innovation is ongoing, focusing on a unique and holistic approach to solving
application delivery problems, and equipping business to change on-demand. Since 2002, we have
transformed Citrix from a company with one product line, to one that offers a broad portfolio of
solutions that make people more productive through on-demand access to applications from virtually
anywhere. In 2007, we took a major step forward in this wave of innovation by acquiring XenSource,
Inc., or XenSource, a privately held leader in enterprise-grade virtual infrastructure solutions. This
acquisition moves Citrix, a pioneer in the application virtualization market, into adjacent server and
desktop virtualization markets. By acquiring XenSource, Citrix is positioned as the only company to
offer organizations an end-to-end application delivery infrastructure that leverages the method of
application, desktop and server virtualization suited for the dynamic delivery of applications to
virtually any user.
During this period, our revenues have grown from $527.4 million in 2002 to $1.39 billion in 2007.
Today, we design, develop, market, sell and support multiple products in an IT market category called
Application Delivery Infrastructure. Our product family brand, announced in early 2008, for all our infrastructure
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