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

To: Roger A. Babb who wrote (5423)	4/7/1998 8:15:00 PM
From: Biomaven	Read Replies (2) \| Respond to of 9068

Roger, <<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.>> This is an accurate quote from the Proxy. <<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">> This is simply poor wording. It should have said "granted or to be granted." If you look at the numbers instead of that phrase it is clear that THERE ARE NOT 16 MILLION OPTIONS OUTSTANDING. If you refuse to look in the essentially contemporaneous 10-K as I suggested, then read the rest of the proxy: "The Corporation currently has three employee stock ownership plans: the 1989 Stock Option Plan, the 1995 Stock Plan and the 1995 Employee Stock Purchase Plan. " "As of the Record Date, options to purchase an aggregate of 1,015,947 shares of Common Stock were issued and outstanding under the 1989 Stock Option Plan, of which options for 1,015,947 shares were then exercisable. The Corporation does not intend to grant any additional options under the 1989 Stock Option Plan." "As of the Record Date, options to purchase an aggregate of 4,135,864 shares of Common Stock were issued and outstanding under the 1995 Stock Plan, of which options for approximately 396,535 shares were then exercisable." The third plan is the ESPP, which essentially does not have options outstanding. Do these add up to 16 million shares? I respect your views on Citrix, but on this matter you are just plain wrong. <<Many analysts add the outstanding options to the outstanding shares when computing per share earnings and revenue values.>> This is simply too naive an approach, as it ignores the price at which the options are granted. The Treasury Stock Method, as prescribed by FAS 128 is more accurate, particularly when the options are already in the money. <<I am sorry this is so difficult to understand.>> More than 200 public companies rely on the software I personally designed for their proxy, FAS 128 and FAS 123 reporting. Believe me I understand this area of financial reporting as well as anyone, and clearly better than you. I appreciate that the Proxy was poorly worded, but this is no basis for not reading the 10-K as I suggested, not reading the rest of the proxy, and making condescending remarks. Peter