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: Biomaven who wrote (5419)	4/7/1998 7:42:00 PM
From: Roger A. Babb	Read Replies (1) \| Respond to of 9068

Peter & Doug, the following is word for word direct from the proxy: <<As of the Record Date, there were approximately 41,758,060 shares issued and outstanding and approximately 16,924,589 shares reserved for future issuance pursuant to outstanding options granted under the Corporation's stock plans.>> Please note that it clearly says there are 16,924,589 OUTSTANDING options granted, their words, not mine. And it said "granted", not "to be granted". Please read the proxy for yourself and verify the above quote. The shares will be issued in the future as options are exercised, but the options already exist according to the proxy. Yes, there are more options to be issued under the plans in the future which is why new shares are needed to cover them. 41,758,060 plus 16,924,589 equals 58,682,649 shares either outstanding or granted as of the date of the proxy. Probably safe to assume that it has or will soon hit the 60 million limit. While it is true that exercising the options will bring some cash into CTXS, that cash will go to capital and can not be counted as earnings. Since the per share values (EPS, PE, PS) are computed by dividing by the outstanding shares, as the options are exercised increasing the number of shares, total earnings and revenues must grow in the same proportion as the shares grow just to keep EPS from falling (this is called dilution). Many analysts add the outstanding options to the outstanding shares when computing per share earnings and revenue values. There was a good Baron's article on this a while back. The CTXS options equals 41% of the currently outstanding shares, a high proportion as compared to other tech stocks. I am sorry this is so difficult to understand. The CTXS cfo would probably be willing to explain this in detail if you call him. The sad fact of this bull market is that no one pays any attention to EPS or PE anymore (close your eyes and buy), so this whole debate is a mute point.