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Original Source: FD (FAIR DISCLOSURE) WIRE
TODD RAKER, ANALYST, BEAR STEARNS: Good morning. This is the vast presentation before we hit the keynote speakers at lunch. Again, for those of you I haven't met, Todd Raker, the infrastructure software analyst with Deutsche Bank. And it's my pleasure to have Citrix here presenting at our conference, and they have probably the easiest commute of all of us. But we've got the CEO, Mark Templeton, and with that, we're going to turn it over for a very short presentation and then we will open up for Q&A. Mark?
MARK TEMPLETON, CEO, CITRIX: Thank you very much. Good morning everyone and thank you for the opportunity to be here and talk a little bit about Citrix. We are just about 30 miles up the road here, so it's a nice, easy trip for us. Before we get started, I'd like to remind you of the Safe Harbor provisions if I can get the charts to go forward. Maybe I'm supposed to change them here, okay. The Safe Harbor provisions, as you know, basically means that I'm going to talk about the future, and somehow I can't really predict what the future will bring, it turns out. So beware. If you know Citrix, you know that we are synonymous now with the word access. We're the only software company in the world that is 100% focused on access and access solutions. So a full suite of products and services that act as a portfolio for solving the full range of access challenges that customers face.
The reason we're doing this is it's our legacy, it's our heritage, it's our competency, and it's also a marketplace that's growing 2 and 3X faster than other software markets. We call our market the access infrastructure marketplace. It's growing at 12% CAGR, and IDC, their forecast having it grow to over 22 billion in 2007 in software and services. In response to this incredible opportunity, we now have a full portfolio of products that continues to grow. One year ago if I were here at this conference, we would have been talking about five products. Now, this year we're here talking about 10 products. Just three years ago, we had basically 1 1/2 products.
And through last year, we released new major platform releases on our key software products, the Access Suite 3.0, and we executed on two great acquisitions, Citrix Online, which are all our online Access Services products, and Citrix Gateways announced in December providing us SSL VPN products as well as products that help in deploying Voice-over-IP. This is all translated into a tremendous top-line growth story. You can see by this chart we have an accelerating growth story on the top-line, 26% in 2004, and 36% growth in the fourth quarter last year.
At the same time, we've been able to maintain I think a really strong Op margin and profitability story; also an acceleration story, growing 19% in 2004, up 33% in the fourth quarter. All being supported by something really good in our business, and that is the growth of deferred revenue. Due to our -- through our license subscription business as well as our online services business, we are making a huge impact on our balance sheet, now finishing the year at 225 million on the balance sheet, up significantly, in fact, almost about 33% over 2003, giving us this kind of picture. So in '02, you can see 70% of our reported revenue was coming from one source, one product, our presentation server license sales. In 2004, just half of that revenue reported was coming from presentation server licensing and other software licenses, and almost half of our business coming from actually deferred type revenue and services revenue, yielding an incredible cash flow story. Cash flow last year, record in the history of the company; 265 million, 80 million in Q4. And then these cash flow stats translate into some incredible comps; $1.51 in cash flow per share. The cash flow ratio to our adjusted net income of 1.6, very strong; enterprise value to free cash flow, 12.5, very solid. You can see that on our balance sheet, 566 million in cash and all the cash equivalents, and 321 in cash per share. So a tremendous cash flow, cash generation story, and that's because we believe in driving our …