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CITRIX SYSTEMS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Current assets acquired in connection with the 2007 Acquisitions consisted mainly of accounts receivable.
Current liabilities acquired in the acquisition of Ardence consisted primarily of short-term debt, other accrued
expenses and long-term liabilities consisted primarily of facilities related costs. Approximately $184.5 million,
$62.0 million and $11.0 million of goodwill related to the 2007 Acquisitions was assigned to the Company’s
Americas, EMEA and Asia-Pacific segments, respectively and is not deductible for tax purposes. See Note 12 for
segment information.
Identifiable intangible assets purchased in the 2007 Acquisitions, in thousands, and their weighted average
lives are as follows:
Ardence
Weighted
Average Life XenSource
Weighted
Average Life
Covenants not to compete ............................ $ — — $ 3,160 2.0 years
Trade names ....................................... 60 1.0years 15,900 7.0 years
Customer relationships .............................. 4,800 6.4 years 32,380 8.0 years
Core and product technologies ........................ 17,300 5.3 years 95,000 7.0 years
Total ......................................... $22,160 $146,440
2007 Acquisitions Pro Forma Financial Results
The results of operations of the 2007 Acquisitions were included in the Company’s results of operations
beginning after their respective acquisition dates. The following unaudited pro forma information combines the
consolidated results of operations of Citrix and the companies that it acquired in 2007 as if the acquisitions had
occurred at the beginning of fiscal year 2006 (in thousands, except per share data):
December 31,
2007 2006
Revenues ................................... $1,394,461 $1,149,845
Income from operations ....................... 126,142 102,806
Net income ................................. 164,232 115,164
Per share—basic ............................. 0.88 0.61
Per share—diluted ............................ 0.84 0.59
2006 Acquisitions
During 2006, the Company 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 (the “2006 Acquisitions”). The 2006
Acquisitions strengthen the Company’s Citrix Delivery Center 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, including approximately $0.3 million related to stock-based
awards that were granted and vested upon consummation of the acquisitions. As part of the 2006 Acquisitions,
the Company assumed approximately 0.4 million non-vested stock-based awards upon the closing of the
transaction. Revenues from the acquired products are primarily included in the Company’s Product License
revenue and Technical Services revenue. The sources of funds for consideration paid in these transactions
consisted of available cash and investments. In connection with the 2006 Acquisitions, the Company allocated
F-20