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BUSINESS DESCRIPTION
Citrix Systems is a supplier of access infrastructure software and services that enable the enterprise-wide deployment and management of applications and information, including those designed for Microsoft Windows operating systems, for UNIX operating systems, such as Sun Solaris, HP-UX or IBM AIX and for Web-based information systems. The company?s MetaFrame products enable organizations to provide secure access to Windows based, Web-based and UNIX applications without regard to location, network connection, or type of client hardware platforms.
Citrix Systems? access infrastructure software enables workers to find, organize and interactively work with business applications and information securely from virtually anywhere. At the same time, the company?s access infrastructure software enables corporate information technology teams to centrally provide, manage and support secure access to applications, while monitoring service quality, measuring resource usage and controlling access. Citrix Systems? products and services enable enterprise resources to be available on demand across the Internet, intranets, extranets, wide area networks, local area networks and wireless networks to remote and mobile employees.
Citrix Systems? products are based on a range of industry-standard technologies. In addition, some Citrix products also include the company?s proprietary technology known as the Independent Computing Architecture protocol, which allows an application?s graphical user interface to be displayed on virtually any client device while the application logic is executed on a central server. Because the ICA protocol moves client-based application processing to the server, this approach enables centralized management of applications, users, servers, licenses and other system components. The company?s products are also based on the industry-standard Extensible Markup Language.
The company?s products are marketed under the Citrix MetaFrame brand and include MetaFrame 1.8 for Windows Terminal Server, MetaFrame XP presentation servers and the MetaFrame Secure Access Manager. This suite of infrastructure software and services enable organizations to deploy, manage and access applications across the extended enterprise to a variety of client devices, operating platforms or network connections.
The MetaFrame software suite includes two products that work together and can also be used separately. These products are licensed with software subscription, or Citrix Subscription Advantage, offering customers all updates, when and if they become available during the first year of their license.
Citrix Systems also provides a range of consulting services that help to ensure the successful implementation of Citrix technologies. The company?s range of consulting services includes technical support services and product training and certification services. Citrix Systems? technical support services accommodate the ongoing support needs of customers. The company offers five support-level options, global coverage and personalized relations management within this area. Citrix Systems? product training and certification services include a series of courses designed to allow customers and channel members to learn new skills and effective strategies to help plan, implement and administer Citrix products.
Citrix Systems markets and licenses its products through multiple channels such as value-added resellers, distributors, system integrators and independent software vendors, managed by the company?s worldwide sales force. The company also promotes its products through relationships with a variety of industry participants, including Microsoft Corporation.
MAJOR PRODUCTS & SERVICES
Citrix Systems is a global supplier of application delivery and management software and services. For the fiscal year ended December 2003, the company generated revenues of $588.6 million. The company reports its revenue breakdown through three segments, namely software licenses, software license updates, and services.
Software licenses
A driver of revenue increases in 2003 was the expansion of the software licenses division. This division witnessed a 3.1% increase on 2002 figures, generating $374.4 million in 2003.
Software license updates
The company sells most of its software products bundled with an initial subscription for software license updates that provide the end-user with free enhancements and upgrades to the licensed product on a when and if available basis. This segment saw a 59.7% increase in revenues to $168.8 million. This increase was due to the continued acceptance of the renewable Subscription Advantage program.
Services
Services generated $45.4 million in 2003, an increase of 2%. Services consist primarily of technical support services revenue recognized ratably over the contract term, revenue from product training and certification, and consulting services revenue related to implementation of software products.
International revenues.
International revenues (sales outside of the United States) accounted for approximately 54.6% of the company?s net revenues for the year ended December 31, 2003. This is a 0.9% increase on 2002 figures, at 53.7% of net revenues.
The Americas constituted 49.5% of revenues in 2003, a 0.9% increase on the previous year. In Europe, Middle East and Africa, the proportion of revenues generated in this region increased 1.7% in 2003 to 41.7% in 2003. The Asia Pacific region comprised 9.1% of revenues in 2003, a 0.1% decrease on 2002.
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