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

To: Chuzzlewit who wrote (6918)	8/29/1999 6:13:00 PM
From: Hectorite	Read Replies (1) \| Respond to of 9068

While researching the company, I read this from S&P (the same thing is in the 10Q): "In May 1997, CTXS and Microsoft entered into a $175 million agreement (amended in April 1998) that provides that CTXS license certain multi-user, NT Terminal Server software enhancements to Microsoft, and the companies cooperate in developing future versions of this software. The agreement calls for both companies to promote the use of Windows NT Server-based multi-user software and CTXS's ICA protocol until at least November 1999, and entitles CTXS to license its WinFrame technology based on Windows NT 3.51 until at least September 2001." The expiration of the ICA technology and marketing agreement doesn't seem to have been discussed here. Is the agreement going to be renewed? OK, I admit being psychologically set up to accept conspiracy theories, but the first business risk listed in that section of the 10Q is "Competition with Microsoft," which is not something you want. Near term the network services in NT look rudimentary compared to current generation citrix products, but what is the possibility that a metaframe-like capability ends up "tightly integrated" with oh, say, NT Server 6.0? Citrix must get this question a lot because on the citrix web site they have a little piece about the "state of the Microsoft relationship." citrix.com It is just fluff, though, nothing about an evolution of any solid licencing relationships or anything. Clearly being married up to MS has it obvious benefits, but I would appreciate hearing a sophisticate's view of what the risks might be over the horizon and what licensing issues (with MS) need to be cleared up. There was a point when Oracle, Corel, etc. didn't think MS was much of a threat either. H.