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

To: MikeM54321 who wrote (7282)	11/24/1999 1:30:00 PM
From: Innuit	Read Replies (1) \| Respond to of 9068

Here's the article on the MSFT/CTXS agreement: Nov. 24 (The Miami Herald/KRTBN)--Executives at Citrix Systems confirmed Tuesday that Microsoft will not renew a non-compete agreement that has helped make Citrix the software of choice on computer networks that want to run Windows-based applications but don't want to use the Windows operating system. The agreement, which expires this month, is part of a five-year contract signed in May 1997 by Microsoft and the Fort Lauderdale software developer. The key component of that contract -- Microsoft's licensing of Citrix software so that Windows NT can run programs from a server over multiple devices -- remains in effect for the next 2-1/2 years. Citrix executives said the non-compete expiration is a "non-issue" that has long been anticipated. "The company does not expect that the end of this provision will have a material effect on the core Citrix value proposition, namely the rapid, scaleable, reliable deployment of any application over any network to any end-use device," Citrix Chief Executive and founder Ed Iacobucci said in a written statement. "Furthermore, we find that as we near the official release of Windows 2000, the two companies are working more closely than ever to deliver Windows applications to any user on any device or platform." Reaction to the expired non-compete agreement was mixed in the financial community. In a November newsletter, Chris Galvin, an analyst at Hambrecht & Quist, reported the non-compete agreement was not a strategic issue. "It's not a big deal. It's been well-signaled. When they carved that out it was to set up Citrix as the only alternative in Macintosh machines, Linux and Unix for accessing Windows applications from the server," Galvin said. "Whether Citrix has exclusive rights to non-Windows terminals isn't necessary because no one else is doing this. I think it is very unlikely Microsoft devotes resources to develop software for the Linux market, the Unix market or for Macintosh connectivity." Michael Cristinziano, an analyst at Gerard Klauer Mattison, said the stock's drop during the past few days has had nothing to do with the expiration of the non-compete. Rather, an investment bank reported earlier this week that Citrix may have weaker than expected earnings for the quarter, he said. Cristinziano remains bullish. Citrix stock closed at $78.06 per share Tuesday -- down $6.37-1/2 for the day and down more than 21 points from its 52-week high. But Scott Kessler, an analyst at Standard & Poor's Equity Group, said that while the company's long-term prospects may not be in danger, investors likely will react negatively. And the stock could take a hit. "In the short term, investors will be concerned with what this says in relation to Citrix and Microsoft. Frankly, it creates an uncertainty that most companies and investors detest," Kessler said. Business Writer Jim McNair contributed to this report. By Jack Rejtman -0- To see more of The Miami Herald, or to subscribe to the newspaper, go to herald.com (c) 1999, The Miami Herald. Distributed by Knight Ridder/Tribune Business News. CTXS, MSFT, END!A3?MI-MICROSOFT