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

To: gbh who wrote (8432)	6/14/2000 2:33:00 PM
From: puborectalis	Respond to of 9068

More vultures........Shareholders sue software firm Citrix (UPDATE: Updates with Citrix declining comment, graph 3, trading, graph 5) MIAMI, June 14 (Reuters) - Shareholders of Citrix Systems Inc. (NasdaqNM:CTXS - news) have filed suit against the heavily-traded speciality software company, alleging the company lied about its financial condition and growth potential. The lawsuit was filed late Tuesday in U.S. District Court in the Southern District of Florida and seeks class action status on behalf of those who owned shares between Oct. 20, 1999, and June 9, 2000. Citrix spokesman Robert Bartolotta said company policy was not to comment on litigation. Citrix shares dropped by more than 45 percent on Monday when the Fort Lauderdale, Fla.-based company cut its second-quarter earnings estimates to 9-11 cents per share, compared with 16 cents for the second quarter of 1999. Analysts' consensus estimate for the quarter was 21 cents a share before the warning, First Call/Thomson Financial said. The stock, which closed at 59-11/16 on June 7, declined sharply late last week and closed at 22-1/4 on Monday after the earnings warning was issued. Shares rebounded slightly on Tuesday but were down 11/16 at 24-1/4 in afternoon trading on the Nasdaq on Wednesday, down from a 52-week high of 122-5/16. The Fort Lauderdale, Fla.-based company makes software that allows desktop and mobile computers to be centrally run from central server computers. The lawsuit, filed by the law firm of Cauley & Geller LLP, alleged the company and its officers and directors violated federal securities law by making false and misleading statements about operating results and customer demand for its software. It also alleged that company officials knew or recklessly disregarded that the firm's financial condition was deteriorating ``and that its seemingly stellar growth was not likely to continue into 2000.'' The company said on Monday that it would suffer a short-term revenue slowdown due to a market shift from ``shrink-wrap box'' licensing, in which programmes are individually loaded into computers, to ``paper licensing,'' which delivers programmes and upgrades electronically, such as over the Internet, to larger groups of computers. Citrix also blamed its lowered earnings forecast on slower-than-expected expansion of accounts with large companies and in certain markets, especially Asia.