Net income was $27.8 million for the third quarter of 2001, or $0.14 per share, as compared to $21.6 million, or $0.11 per share, in the comparable period of the prior year. Net income, adjusted to exclude the effect of amortization of intangible assets relating to business combinations, was $41.4 million for the third quarter, or $0.21 per share, as compared to $27.5 million, or $0.14 per share, in the comparable period of the prior year.

For the first nine months of 2001, net revenues were $433.6 million, up 24.9% from $347.1 million for the comparable nine months of 2000. Net income for the first nine months of 2001 was $79.6 million, or $0.41 per share, as compared with net income of $75.1 million, or $0.37 per share, for the comparable nine months of 2000. Net income, adjusted to exclude the effects of write-offs for in-process research and development and amortization of intangible assets relating to business combinations, was $112.0 million, or $0.57 per share, for the first nine months of 2001, as compared to $92.2 million, or $0.46 per share, in the same period last year.

We are pleased that we were able to post our fifth consecutive quarter of positive results, especially given the economic uncertainty that remains in the marketplace, said Mark B. Templeton, Citrix president and chief executive officer. The market has been very receptive to Citrix products and solutions in this environment, demonstrated in the accelerated shift to our MetaFrame XP platform, which accounted for almost two-thirds of our base product sold in the Americas this quarter. This rapid adoption of our new technology demonstrates Citrix’s ability to provide effective solutions to our customers even in tough economic times.

The company reported comparable quarterly year-over-year revenue growth of 35.2%.

International revenue was 47% vs. domestic revenue of 53% for the quarter.

Electronic delivery of licenses this quarter amounted to 29% of product sales.

Operating margin, excluding the effect of amortization of intangible assets relating to business combinations, was 30.8% for the quarter.

Cash flow from operations was approximately $53.0 million for the quarter.

The company repurchased approximately 1.87 million shares of its common stock during the quarter.

Cash and investments totaled $750.1 million at the end of the quarter.

Citrix continued to grow its electronic licensing business, which accounted for approximately 29% of product sales during the quarter, the biggest electronic licensing quarter since the program began, commented John Burris, Citrix’s senior vice president of worldwide sales and services. With electronic licensing, customers are finding it easier to work with Citrix as ordering product and receiving delivery are much more efficient and timely, meeting partner and customer needs.

Significant customer agreements during the quarter included American Express, AOK Sachsen, Career Education Corporation, Cegelec S/A, Centura Health, Crane Group, Ericsson, IKEA, Nationwide Insurance, Qwest, the State of Oregon and Telkom S/A.

This quarter, we saw more medium and large customers ordering product from Citrix as they continued to expand their internal deployments. We believe our customers continue to spend on products that provide a quick payback and decrease internal expenses, continued Burris. As IT organizations move to a more efficient, centralized model of deploying applications, we are delivering solutions that help these organizations save costs, leverage their existing investments, and achieve a substantial ROI on their new investments.

SOURCE: COMPANY PRESS RELEASE