Citrix Systems, Inc.

Citrix Systems takes connectivity to the next level. The company makes network access devices and software designed to enable PCs, IP phones, smartphones, and other devices to remotely and securely access applications across wired and wireless networks, freeing customers from the difficult and costly task of installing and updating software on each piece of hardware. Its product line includes application virtualization software (XenDesktop), network access devices (NetScaler), cloud computing connectivity and aggregation applications (CloudPlatform), and online meeting software (GoToMeeting). Citrix also offers managed online services for meetings and presentations, technical support, and remote desktop access.

Operations

Citrix divides its business into two reportable segments: Enterprise and Service Provider (primarily consisting of desktop, data center, and cloud products) and Software as a Service, or SaaS (consisting of Web collaboration, remote access, and support services). The Enterprise division accounts for 80% of sales, while the SaaS unit brings in the rest.

Geographic Reach

Florida-based Citrix rings up about 45% of its revenue from outside the US. The Americas (the US, Canada, and Latin America) is the company's largest market segment, accounting for about 60% of sales, followed by Europe, the Middle East and Africa, representing about 30%. The rest comes from the Asia-Pacific region, the company's smallest but fastest-growing market.

Sales and Marketing

Citrix markets and licenses its products and services through multiple channels worldwide, among them value-added resellers (VARs), independent software vendors (ISVs), direct through the Web, and original equipment manufacturers (OEMs). These distribution channels are managed by Citrix's global sales and services organizations, which provide training and certification to integrators, VARs, and consultants for products and services. One distributor, Ingram Micro, accounted for 14% of Citrix's net revenue in 2013.

Its products and services are geared toward customers of all sizes, including consumers who subscribe to its GoToMyPC remote access service (remote access), network engineers who purchase its NetScaler Web application devices (cloud networking), and IT professionals who license its XenDesktop infrastructure products (desktop virtualization). Citrix targets such customers as CIOs, desktop operations managers, IT infrastructure managers, network architects, and server operations managers, as well as small business and individuals.

Financial Performance

Citrix has seen strong revenue growth over the past decade. It reported sales of $2.9 billion in 2013, a 13% increase versus 2012. The double-digit gain was driven by increases in product and license revenue (up 7%) on rising sales of cloud networking products led by NetScaler, software as a service sales (up 14%), license updates and maintenance revenue (up 16%), and revenue from professional services (up 17%). Despite the revenue gain, net income has fallen slightly over the past two years as expenses -- particularly those for sales, marketing, and services -- have grown rapidly. Net income in 2013 was down 4% to $339 million.

Citrix's cash flow from operations has followed the same growth trajectory as revenue. In 2013 it jumped nearly 15% to $928 million (it had risen some 20% the prior year).

Strategy

Citrix is focused on three trends that are reshaping the computing landscape: personal mobility, enterprise cloud evolution, and cloud services build-out. It continues to introduce new versions of its products to address these markets. To that end, in 2013 Citrix introduced XenMobile Enterprise, which allows companies to manage and secure mobile devices, apps, and data while giving employees as much mobility as possible. It also introduced a mobile app ecosystem, Worx App Gallery.

In addition, the company regularly uses acquisitions to broaden its product line and expand into complementary markets.

Mergers and Acquisitions

In 2014 it purchased Framehawk, which provides virtual desktop and application optimization for mobile devices. Early the previous year it acquired Redwood City, California-based mobile device management (MDM) leader Zenprise. Citrix integrated Zenprise with its own products to form a single, integrated enterprise product line for managing mobile devices, apps, and data.

In 2012 Citrix bought privately held Podio, a developer of cloud-based collaboration applications. The acquisition was made to enhance the company's "GoTo" range of cloud products. The same year Citrix also bought online IT service desk technology provider Beetil, another purchase that expands its growing portfolio of cloud-based applications. Also in 2012 Citrix acquired Bytemobile, a global provider of data and video optimization applications for functions such as content caching, policy control, mobile analytics, and traffic management.

In 2011 Citrix bought Germany-based software-as-a-service (SaaS) provider Netviewer to expand its online services presence in Europe. Netviewer served clients in a range of industries in Austria, the Benelux region, France, Germany, Italy and Spain, Switzerland, and the UK. Citrix also bought Kaviza and RingCube in 2011, adding desktop virtualization technology that complemented its XenDesktop product line.

Additionally, Citrix acquired open source software developer Cloud.com that year to address the growing market for cloud-based computing services. Cloud.com specialized in applications used to build, deploy, and manage multi-tier and multi-tenant cloud software systems. In 2011 the company also bought ShareFile, a developer of software that enables businesses to securely transmit large files via the Web, that competed with Dropbox, Box.net, and YouSendIt.

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Citrix Systems, Inc.


851 W Cypress Creek Rd
Fort Lauderdale, FL 33309-2040
Phone: 1 (954) 267-3000
Fax: 1 (954) 2673100
www.citrix.com

STATS


  • Employer Type: Public
  • Stock Symbol: CTXS
  • Stock Exchange: NASDAQ
  • President and CEO: Mark Templeton
  • SVP and General Manager, Desktop and Cloud Division: Sudhakar Ramakrishna
  • President and CEO: Mark Templeton

Major Office Locations

  • Fort Lauderdale, FL

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