Hereen,
Thank you very much for your detailed post concerning that post I found on the Yahoo board about web apps. Secondly, I very much agree with your assessment on DSO's, operating expenses and the whole ASP movement. However, I disagree that the dow jones article was "balanced". If it was balanced they would have interviewed more analyst who have alot more insight into what the company is trying to accomplish. I think we all agree that when your dealing with larger companies and larger orders, your DSO's are going to rise, that is the nature of large corporations. While it should be a concern, I think it is very explainable why this is taking place (and I think CTXS management is much too straigh forward to risk any kind of aggressive accounting). On the operating expenses, I think CTXS is spending a GREAT deal of money to make sure they are in the middle of the ASP movement when it starts to really go, and in my mind this is great forward thinking. I would rather risk money now, of which we have plenty of sitting in the bank, in a movement that will revolutionize the way schools and governments will compute, than miss the train and only get some of it. But, I agree that CTXS as the default enabler is not guaranteed with the expenses. But, the analyst acted disappointed that only 5% of revenues were from the ASP sector. In my mind, for a market that really is not even there yet, that is good. When it takes off......it will take off. And, we are selling to the big Corporations left and right, NOW we will get a crack at the small to medium corps. that would not pay for CTXS. A good friend of mine just starting seeing interest from clients on quoting ASP contracts. He is a small tech service Co., so I can imagine alot of others are just starting to see it move also.
CTXS and Ioubucci (sp?) have always been way ahead of the game. Ever since I invested in them, people have doubted them as to the technolgies in which they were spending corporate resources, even Gates said thin clients would not take off. I truly think this management group deserves the benefit of the doubt and a more detailed interview as to what is driving the company and why the DSO's and Operating expenses are going up. I have not seen that, and I am almost positive the investors of the world would be pretty impressed.
Please feel free to counter me on any point, as this board and posters such as yourself have been extremely helpful to me in understanding the technologies and markets of CTXS.
Red |
