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, online meeting software (GoToMeeting), and mobility applications (Communications Cloud and Workflow Cloud). Citrix also offers managed online services for meetings, technical support, and remote desktop access.
Citrix divides its business into two reportable segments: Enterprise and Service Provider (primarily consisting of desktop, data center, and cloud products) and Mobility Apps (Communications Cloud, Documents Cloud, and Workflow Cloud products). The Enterprise division accounts for 78% of sales, while the Mobility unit delivers the rest.
Florida-based Citrix rings up about 43% 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 61% of sales, followed by Europe, the Middle East and Africa, representing about 29%. The other 10% comes 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.
Its products and services are for 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.
Citrix has seen strong revenue growth over the past decade. It reported sales of $3.3 billion in 2015, a 4% increase from 2014. The company realized gains in license updates and maintenance revenues. Software-as-a-service revenue increased from the performances of communications cloud products, led by GoToMeeting and Grasshopper.
Net income jumped 27% in 2015 to $319 million from $252 million in 2014, boosted by higher revenue and an income tax benefit.
Citrix's cash flow from operations followed the trajectory traced by net income. Cash flow in 2015 rose to $1 billion from $846 million in 2014.
In late 2015, Citrix restructured to cut about 700 jobs and spin off its GoTo online meeting software businesses into a separate company. The company said it would save about $200 million in about 18 months. It plans to focus resources on core enterprise products including XenApp, XenDesktop, XenMobile, ShareFile, and NetScaler. Some of the company's other technologies will be added to strategic products and others will be closed down. The GoTo business, which includes GoTo Meeting, GoToAssist, GoToWebinar, GoToMyPC, Grasshopper, and OpenVoice, contributed about $600 million to Citrix's total $3.1 billion 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. In 2015 Citrix introduced the NetSCaler MPX 2500 series, an app delivery controller for communications service providers. The product features Citrix's TriScale technology.
In 2015 the company sold its CloudPlatform and CloudPortal Business Manager products to Persistent Telecom Solutions.
Mergers and Acquisitions
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.
Citrix added Grasshopper, which provides telephone services for small businesses. The acquisition expands Citrix's communication and collaboration services for small businesses.
In 2014, Citrix bought RightSignature, which develops e-signatures applications, for about $38 million. Prior to the acquisition, the companies had been working together on a joint ShareFile/RightSignature application that provides customers with secure file storage, syncing, sharing, and signing. The RightSignature technology expands Citrix's Documents Cloud product beyond storage and file transfer to support e-signature and approval workflows.
Another 2014 purchase was 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.