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

To: jhg_in_kc who wrote (7848)	4/19/2000 5:59:00 PM
From: MikeM54321	Respond to of 9068

jhg- It infers there may be accounts in arrears. BTW, in the CC CTXS would not break out ASP. Said it was still fairly insignificant, and "What there is, is in arrears."<g> Maybe this is part of the answer to the A/R situation. -MikeM(From Florida)

To: jhg_in_kc who wrote (7848)	4/19/2000 6:00:00 PM
From: gbh	Read Replies (1) \| Respond to of 9068

AR growth beyond that of rev's "can be" an early indicator of slowing sales momentum. For example, NN, CPWR and LU had the same problem in recent quarters, and these cases turned out badly. In efffect, a company must "sometimes" factor these receivables in order to get paid at all. In effect, sell the receivable for less than its true value. This results in write downs later on. Not saying this issue yet exists with CTXS, because previous to this, I would consider their balance sheet close to pristine. But it is something to be watched closely, and stuff like this never escapes an analysts eye. Gary

To: jhg_in_kc who wrote (7848)	4/19/2000 6:07:00 PM
From: JMD	Respond to of 9068

jhg, the short answer to your query is: channel stuffing. NOTE: I am NOT suggesting that is the case here, only that a rapid increase in A/R disproportionate to growth in revenues raises a yellow flag. This is particularly the case for software companies who sell through VARs and the like. The concern, more accurately the potential concern, is that the wholesalers are 'buying' product that is not in turn being resold to the end user market. Most VARs have the right to return unsold merchandise which can then lead to the dreaded restatement of revenues down the road. There are other, more benign, explanations for a ramp in AR such as a flurry of big ticket orders at the end of a quarter. In any event, an increase in AR is ALWAYS worth understanding in detail. I would expect the analysts to address this at the CC. best, mike doyle