About Citrix Systems, Inc.

Citrix Systems can make you one with everything. Or at least the company's software and network access devices can connect computer systems and networks with employees’ computers and mobile 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 (XenMobile). Citrix also offers managed online collaboration services for meetings, technical support, and remote desktop access.

Operations

itrix sells product and services in several areas.

The company’s Workspace Services, about 60% of revenue, allows customers’ employees to work from outside the office. Its products are XenDesktop and XenApp, which deliver applications to computers and iOS and Android mobile devices. The XenMobile application helps corporate systems meet mobile device security and compliance requirements for "bring your own device" programs. The Citrix Workspace offering puts many of the company’s products and services into one package.

Networking, about 30% of revenue, provides NetScaler ADC (application delivery controller) and NetScaler SD-WAN. The products help manage network loads, improve network performance, and provide security.

Content Collaboration, about 5% of revenue, develops the ShareFile product, which allows workers to share files and collaborate on projects while maintaining the IT department’s control of the system.

Professional Services, 5% of revenue, help customers implement Citrix products.

Citrix uses third-party contractors such as Flex International to make its hardware.

In 2017, Citrix spun off its GoTo business by merging it with LogMeIn. The GoTo products accounted for about 20% of Citrix’s revenue.

Geographic Reach

Citrix rings up almost 60% of revenue in the US, about a third in Europe, and 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). Distributors Ingram Micro and Arrow account for 13% and 12% of Citrix’s revenue, respectively. 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 sales have been trending higher in the past two years after sales dropped 15% in in 2015, following peak sales of $3.1 billion in 2014.

The company posted revenue of $2.8 billion in 2017, a 4% increase from 2016. Revenue from software-as-a-service and Content Collaboration increased in 2017 as did revenue from Workspace Services cloud offerings. Sales of networking products fell from year-to-year.

Citrix incurred a $20 million loss in 2017, off from a $536 million profit in 2016. The company had higher research and development and sales and marketing costs and it took a loss on the discontinued GoTo operations in 2017.

The company reported cash holdings of $1.1 billion in 2017, up from about $957 million in 2016.

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 (SaaS) model in which it sells subscriptions to its products and services. Its SaaS revenue had increased 30% in each of the past two years, but accounts for just 6% of revenue. Deferred revenue, a key measure of software-as-a-service, rose about $180 million in 2017. Citrix depends on the growth of such revenue sources with the divestment of its GoTo business, which supplied about 20% of revenue.

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

Mergers and Acquisitions

Citrix Systems has added to its cloud capabilities through acquisitions.

In 2018 the company acquired Cedexis, a Portland, Oregon software developer that optimizes application performance and content delivery across hybrid and multi-cloud environments.

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.

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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: David J. Henshall
  • Interim CFO: Mark M. Coyle
  • President, CEO, and Director: David J. Henshall
  • 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
  • Bethesda, MD
  • Raleigh, NC
  • Parsippany, NJ
  • Redmond, WA
  • Osaka, Japan
  • Toyota, Japan
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