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To: Mike Buckley who wrote (24519)	5/11/2000 1:51:00 AM
From: chaz	Respond to of 54805

Mike-- I understand your point about how graphs can be made to look, but the data points and the percentage of change in between them are factual numbers that are very impressive no matter how you draw the graph. I don't disagree...but a simple graph can be made to look steep or gradual using the same figures...giving distinctly different impressions. Chaz

To: Mike Buckley who wrote (24519)	5/11/2000 11:16:00 AM
From: John Stichnoth	Respond to of 54805

Re CTXS A belated, partial, response on your query yesterday--Why haven't revenues ramped with licenses? The 10K gives a detailed description of their revenue recognition prcedure, although some numbers remain unclear. The present revenues include the payments earlier from Microsoft, of $75 MM and $100 MM. The $75 MM payment is being amortized at $15 MM per year, while the $100 MM appears to be amortizing over about 4 years, or $25 MM per year. The Microsoft effect will mask, somewhat the growth in third-party revenues. Another factor is that most of the license revenue is amortized, and the amortization follows distribution. A couple of quotes from the 10K-- "Product revenues are recognized upon shipment of the software product only if no significant Company obligations remain" "In the case of non-cancelable product licensing arrangements under which certain original equipment manufacturers 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 OEM's as well as estimates of royalties due through the Company's reporting date." (my emphasis) I take it that the bulk of revenue is realized well after the bulk of Citrix's work is done, as the licensees finalize and begin selling their own products. Best, JS