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Technology Stocks : Citrix Systems (CTXS) -- Ignore unavailable to you. Want to Upgrade?

To: David Perfette who wrote (6807)	7/21/1999 8:55:00 PM
From: Chuzzlewit	Read Replies (1) \| Respond to of 9068

From CTXS 10-Q: "Revenue is recognized when earned. The Company's revenue recognition policies are in compliance with the American Institute of Certified Public Accountants Statement of Position ("SOP") 97-2 (as amended by SOP 98-4 and SOP 98-9), "Software Revenue Recognition". Product revenues are recognized upon shipment of the software product only if no significant Company obligations remain, the fee is fixed or determinable, and collection of the resulting receivable is deemed probable. In the case of non-cancelable product licensing arrangements under which certain Original Equipment Manufacturers ("OEMs") have software reproduction rights, initial recognition of revenue also requires delivery and customer acceptance of the product master or first copy. Subsequent recognition of revenues is based upon reported royalties from the OEMs as well as estimates of royalties due through the Company's reporting date. Revenue from packaged product sales to distributors and resellers is recorded when related products are shipped. In software arrangements that include rights to multiple software products, post-contract customer support, and/or other services, the Company allocates the total arrangement fee among each deliverable based on the relative fair value of each of the deliverables determined based on vendor-specific objective evidence. Product returns and sales allowances, including stock rotations, are estimated and provided for at the time of sale. Revenues from training and consulting are recognized when the services are performed. Service and subscription revenues from customer maintenance fees for ongoing customer support and product updates and upgrades are based on the price charged or derived value of the undelivered elements and are recognized ratably over the term of the contract, which is typically twelve months. Service revenues, which are immaterial when compared to net revenues, are included in net revenues on the face of the statement of income."

To: David Perfette who wrote (6807)	7/22/1999 3:38:00 AM
From: Muthusamy SELVARAJU	Read Replies (1) \| Respond to of 9068

IMHO, I think there is a general nervousness among most CFO's on the impact of Y2K on their business prospects for the next 2 quarters. So, there could be a good argument to indulge in a bit of cookie jar accounting so that they could flow back to the P&L the deferred revenues during Q3/4 in case the earnings came in less than expected...after all, CTXS stock price has now had a nice run up during the turbulent Q2 period, even though I feel that they should have let it march up to at least 70... Still hanging in there for the long haul...