About CITRIX SYSTEMS, INC.

Citrix Systems can make you one with everything. Or at least the company's software and network access devices can get your computer systems connected with each other and employees' devices. With Citrix products, PCs, IP phones, smartphones, and other devices can get remote and secure access to applications across wired and wireless networks. Its product line includes application virtualization software (XenDesktop), network access devices (NetScaler), cloud computing connectivity, and mobility applications (Communications Cloud and Workflow Cloud). Citrix also offers managed online services for meetings, technical support, and remote desktop access.

Operations

Citrix Systems has divided its business into two segments: Enterprise and Service Provider (primarily consisting of desktop, data center, and cloud products) and GoTo Business. The company sold the GoTo Business segment in early 2017 and is to report it as discontinued operations in 2017. That segment generated about 20% of Citrix's revenue while the Enterprise segment accounts for about 80%.

Products and services in the Enterprise and Service Provider segment include Workspace Services (XenDesktop and XenApp); Enterprise Mobility (XenMobile); Citrix Workspace Suite; Delivery Networking (NetScaler ADC and NetScaler SD-WAN; and Cloud Services (ShareFile and Citrix Cloud).

Workspace Services generates about 50% of Citrix's revenue with Delivery Networking as the next strongest contributor at more than 20%.

Citrix uses third-party contractors to make its hardware. Its main contractor is Flextronics.

Geographic Reach

Citrix rings up about 60% of revenue in the US with a scant amount from other countries in the Americas. Europe, the Middle East and Africa, representing about 30% with about 10% from the Asia/Pacific region.

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.

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 Systems has maintained steady revenue increases over the last decade. Although profit has been up-and-down over that time it zoomed to an all-time high in 2016.

In 2016, the company's software-as-a-service (SaaS) offerings jumped 11%, adding about $85 million in revenue. About two-thirds of that increase came from GoTo products, which the company sold in early 2017. SaaS accounts for a bit less than a quarter of total revenue. License updates and maintenance, about half of revenue, posted a 4% gain for the year. Products and licenses ticked up about 1%. Revenue from professional services fell 11% in 2016 because of reduced training and implementation associated with Workspace services. Citrix businesses grew in all geographic markets in 2016.

Citrix reduced expenses in key areas such as research and development and sales and marketing to raise 2016 net income to $536 million, a 68% increase from 2015. The company also had no impairment charges in 2016 compared to $67 million in 2015.

The company generated $1.12 billion in cash in 2016, up from $1 billion in 2015. Most of the difference came from the company's 2016 profit.

Strategy

Citrix Systems focuses on providing access to digital systems with developing its core enterprise products including XenApp, XenDesktop, XenMobile, ShareFile, and NetScaler. The company is moving to the software-as-a-service model and its revenue in that area grew about 12% to supply about a quarter of revenue in 2016. Deferred revenue, a key measure of software-as-a-service, rose about $140 million in 2016.

Citrix depends on the growth of such revenue sources with the divestment of its GoTo business, which supplied about 20% of revenue. In 2017, Citrix spun off its GoTo business by merging it with LogMeIn. The GoTo products provide remote access conferencing capabilities. They include GoTo Meeting, GoToAssist, GoToWebinar, GoToMyPC, Grasshopper, and OpenVoice. The deal, in which Citrix shareholders received shares of LogMeIn, was valued at about $2 billion.

Citrix is focused on three trends that are reshaping the computing landscape: personal mobility, enterprise cloud evolution, and cloud services build-out. Mobile is at the core of the company's strategy as it shifts from the focus on virtualization. It continues to introduce new versions of its products to address these markets. In 2015 Citrix introduced the NetSCaler MPX 2500 series, an app delivery controller for communications service providers. The product features Citrix's TriScale technology.

Mergers and Acquisitions

In 2017, Citrix acquired Unidesk for about $60 million. Unidesk was the inventor of the Microsoft Windows application packaging and management technology known as application layering. It should help Citrix provide customers a better experience in delivering and managing applications and desktops in the cloud, on-premise, and in hybrid cloud environments.

In 2016 Citrix acquired monitoring technology from a privately-held company for about $24 million. Citrix uses the technology for to deliver monitoring through its products for Microsoft Windows applications and desktop delivery.

In 2015 Citrix acquired data storage company Sanbolic, which aims to make virtual desktops and apps easier and cheaper to use. About 200 Citrix customers already use Sanbolic's technology with XenDesktop and XenApp.

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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) 267-3100

Stats

  • Employer Type: Public
  • Stock Symbol: CTXS
  • Stock Exchange: NASDAQ
  • President, CEO, and Director: Kirill Tatarinov
  • COO and CFO: David J. Henshall
  • President, CEO, and Director: Kirill Tatarinov
  • 2016 Employees: 9,600

Major Office Locations

  • Fort Lauderdale, FL

Other Locations

  • Palo Alto, CA
  • San Francisco, CA
  • Santa Clara, CA
  • Coral Gables, FL
  • Alpharetta, GA
  • Downers Grove, IL
  • Northfield, IL
  • Bethesda, MD
  • Raleigh, NC
  • Parsippany, NJ
  • Bengaluru, India
  • Osaka, Japan
  • Toyota, Japan
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