Citrix Systems (CTXS) Message Board

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Technology Stocks : Citrix Systems (CTXS)

CTXS 103.90

0.0%

Nov 2 5:00 PM EST

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To: jhg_in_kc who wrote (7848)	4/19/2000 6:07:00 PM
From: JMD	of 9068

jhg, the short answer to your query is: channel stuffing. NOTE: I am NOT suggesting that is the case here, only that a rapid increase in A/R disproportionate to growth in revenues raises a yellow flag. This is particularly the case for software companies who sell through VARs and the like. The concern, more accurately the potential concern, is that the wholesalers are 'buying' product that is not in turn being resold to the end user market. Most VARs have the right to return unsold merchandise which can then lead to the dreaded restatement of revenues down the road. There are other, more benign, explanations for a ramp in AR such as a flurry of big ticket orders at the end of a quarter. In any event, an increase in AR is ALWAYS worth understanding in detail. I would expect the analysts to address this at the CC. best, mike doyle

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