Net revenues for the first quarter ending March 31, 2001, were $132.8 million, up 7.7% sequentially from $123.4 million in the fourth quarter, and up 4.2% from $127.5 million in the comparable period of the prior year. Net income was $28.9 million for the first quarter of 2001, or $0.15 per share, as compared with net income of $19.4 million, or $0.10 per share, in the fourth quarter, and compared to $38.5 million, or $0.19 per share, in the comparable period of the prior year. Net income, adjusted to exclude the amortization of intangible assets relating to business combinations, was $33.9 million for the first quarter, or $0.17 per share, as compared to $31.7 million, or $0.16 per share, in the fourth quarter (which also excluded the effect of a technology write-down), and $43.9 million, or $0.21 per share, in the comparable period of the prior year.

We are extremely pleased with the positive results reported for this quarter, especially, given the ongoing volatility in the marketplace, said Mark Templeton, Citrix president. In addition to meeting our financial objectives, we made significant progress in Q1 with our strategic goals in launching our MetaFrame XP family of products, announcing our intention to acquire leading portal software provider Sequoia, and bolstering the management team with the hiring of a new Chief Technology Officer and a new Vice President for the Europe/Middle East/Africa region.

FINANCIAL HIGHLIGHTS

The company experienced sequential quarterly revenue growth of 7.7% and comparable quarterly year-over-year revenue growth of 4.2%.

Electronic delivery of licenses this quarter amounted to 19% of product sales compared to 24% in the previous quarter.

Operating margins, excluding the amortization of intangible assets relating to business combinations and technology write-down, increased during the quarter to 31.6%.

Cash flow from operations was $56.9 million for the quarter.

The company’s cash and investments totaled $877.6 million at the end of the quarter.

The company repurchased approximately 1.6 million shares of its common stock during the quarter.