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

To: Greg22 who wrote (8425)	6/13/2000 9:59:00 PM
From: puborectalis	Respond to of 9068

From Jubak(MSNBC)... "Turns out that where there was smoke, there was fire. Citrix Systems (CTXS, news, msgs) stock has been under relentless selling pressure since it hit a high of $62.56 on June 6. I passed off the initial decline, related to the substitution of a vice president for the chief financial officer who was originally scheduled to present at a technology company, as much ado about nothing. I had a similar reaction to an analyst's report that sales in the current quarter were running light. This was pretty much the news that I'd heard last quarter, and it didn't seem especially disturbing since the company was in the midst of moving to a new sales and revenue model. But before the market opened on June 12, the company warned that it would miss analyst estimates for the current quarter by a mile -- reporting 9 cents to 11 cents in July when Wall Street had been projecting 21 cents. That sent the stock spinning down to $23.75 by 10 a.m. The reasons cited in the company's press release: the transition to an electronic licensing model for sales is taking place faster than expected, which is producing a short-term negative impact on revenue growth; the expansion to include more large company accounts is going more slowly than expected; and the expansion to some international markets, including Asia, is going more slowly than expected. Of course, none of that is good news. But it is to be expected when a company decides to upset a very successful business and sales model to go after new opportunities. I'm certainly sorry that I missed the warning signs, but given my belief in the potential of Citrix's move to the application-server market, I think I would have still chosen to ride this decline out. A stock price drop of 62% because of short-term earnings problems strikes me as excessive."