Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Innuit who wrote (8349)	6/12/2000 2:57:00 PM
From: Redman	Respond to of 9068

Innuit, Can I borrow some money so I can take that "vacation"? Red

To: Innuit who wrote (8349)	6/12/2000 3:00:00 PM
From: wrm1	Read Replies (1) \| Respond to of 9068

RESEARCH ALERT - Citrix (NASDAQ:CTXS) ratings cut (Reuters, 06/12/2000 14:49) NEW YORK, June 12 (Reuters) - Two brokerages on Monday cut their ratings on shares of Citrix Systems Inc. after the customer-management software maker said its second-quarter earnings would not meet expectations. Credit Suisse First Boston said in a research note it had cut its rating to a buy from a strong buy. CSFB said: -- "From our perspective, the most surprising data point from today is that CTXS' channel demand is slowing at the same time the company's enterprise sales strategy is not achieving its targets (Q2, at least). While enterprise sales do involve longer sales cycles, if overall customer and market demand is still increasing there should be a relatively proportional demand transfer from channel to enterprise, rather than a simultaneous decline in both distribution channels." PaineWebber said in a research note it had removed Citrix from its "highlighted stocks" list and cut its rating from buy to neutral. PaineWebber said: -- "While we believe server-based computing will continue to be a healthy trend, we believe Citrix may be challenged to grow at faster than 25 percent longer term." Citrix shares were down 19 at 22-3/16 on Nasdaq. WRM1

To: Innuit who wrote (8349)	6/12/2000 4:09:00 PM
From: Riskmgmt	Respond to of 9068

Innuit; Good questions. Let us try to answer what we can. What is the "damage" actually inflicted on the company? Well market cap is now a fraction of what it was, losing about 7.5 billion in the last week. next quarter earnings cut in half, stock selling off Friday and today on huge volume. Is the damage long term? Not if management executes. They did in '96 when the stock tanked and within a few months it went from a low of about 10 to 25 plus. When will it be fixed? That we can only guess at. Based on past performance and the fact Ed Iacobucci still has 1,345,0000 shares or so I would say they have the skill and the motivation to fix it. Can the guys running CTXS now do the fixing? I'd have to say yes, again based on past performance and experience with the company. What is in the product pipeline that is exciting that will reignite interest in CTXS? Veritgo? perhaps, or stream line video or ?? I must admit frustration at identifying, exactly the problem. As Red and Mike have said the cc didn't make it much clearer at least to me. For example the CFO John Cunningham still maintains the DSO's "Is NOT an indication of a problem" To make his point he gave the definition of DSO's and said the 59 days was because of most of the sales were in March. in June he expects the figure to be down (low 50). He said days of inventory in channel in US=40 days. The reason he gives for the earnings is the transition to 6-9 months from the 90 day collections in the shrink wrap. If this is true, then after a transition period of 2Q's we should be back on track. Now perhaps all of you accounting training can make sense of it and comment. I for one am not buying or selling until I have more of an understanding. Ray