SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Citrix Systems (CTXS)
CTXS 103.900.0%Nov 2 5:00 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Mike Buckley who wrote (8364)6/12/2000 9:38:00 PM
From: Hectorite  Read Replies (3) of 9068
 
Lets see if I can get one more post out of ya, Mike:

Re: "DSO and receivables have absolutely nothing to do with decreased growth in revenue,"

Doesn't it? I suppose it depends on how they recognize revenue. If they book revenue as the product goes out the Citrix door AND the channel is full like they say, then the resellers stop taking product and revenue falls. I've been told that resellers stretch out payment if they are not moving the product through the channel which in turn is a factor that will inflates DSOs.

An extreme case in point is NETA last year. Their DSO ballooned, then the announced their channel was totally stuffed and they basically could ship no product for a couple months while the got inventories straighten out. I am NOT saying the citrix case is the same thing, only that it seems to me DSO spikes can definitely signal an upcoming revenue glitch for a software company. Channel sell-through was cited as the reason for the one downgrade last week on Citrix and the press release cites the same issue, so it is possible the DSO number from Q1 was being influenced by shrink wrap gumming up the channel more than they thought.

What I don't understand is this "paper" vs boxed software distinction. What does it matter how a license is sold? Isn't the revenue still the same in amount and timing?
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News