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

To: David Lawrence who wrote (6100)	1/28/1999 7:59:00 PM
From: Al Chechatka	Read Replies (2) \| Respond to of 9068

From the following below: I thought Citrix had a larger piece of the server-based computing pie. Currently its about 25%. From the article below, Citrix had a ~250 million dollar year, and later in the article, it was mentioned that the total market share of server-based computing in '98 was 1 billion. So a 25% , market share. My question is where is the other 75%? But if server based computing grows to 10 billion in 2001, and Citrix is only at 12.5% market share (half of today's market share), their sales would be at 1.25 billion in 2001, even if the estimates are of by half and server-based computing is only 5 billion in 2001, worst case scenario is Citrix revenues at 750 million. That is the advantage of being in a high growth area. -------------------------------------------------------------------- Jan. 28 (Sun-Sentinel/KRTBN)--As one of the country's most dynamic software companies, Citrix Systems saw its revenue increase 101 percent and its work force double in 1998. The Fort Lauderdale-based company forecasts more growth this year with 221 jobs open worldwide and demand for its software at an all time high, said Mark Templeton, the company's president and CEO. The company reported record revenues of $248 million for 1998. "We had a great year for the development, deployment and acquisition of new technologies which are essential for the future," Templeton said during a media briefing at the company's headquarters on Wednesday. This year marks Citrix's 10th anniversary. It has grown from just a few employees to 610 employees worldwide today and the company occupies more than 110,000 square feet of office space in an office park off Cypress Creek Boulevard. Driving its growth is customers like JM Lexus, the largest volume retail dealership of the Toyota luxury line vehicle in the United States. JM Lexus began using Citrix's MetaFrame software last year. The software has lowered the dealership's support costs by more than 80 percent, said Bill Dowd, information technology director for JM Lexus, based in Margate. JM Lexus is just one of thousands of customers who use Citrix's software which lets older computers or terminals connected to a powerful server run the latest Microsoft Windows-based applications. Almost half of all the Fortune 500 companies use Citrix software, Templeton said. Citrix's technology is called server-based computing because software programs run on a computer server not on the desktop. The networked machines are cheaper to buy and support than a PC and they can run PC software as a well as a PC. Citrix's MetaFrame software costs about $500 per user or $7,500 for a 15-user license. The technology saves companies up to 40 percent or more in software and computer support, Templeton said. The market for server-based computing was $1 billion last year and is projected to grow to $10 billion by the 2001, said Ed Iacobucci, Citrix's founder, chairman and chief technical officer. "Our goal is to make server-based computing more pervassive than personal computing," Iacobucci said. Citrix plans to expand its international business which made up 40 percent of its revenues for 1998 to 50 percent this year and eventually it could make up as much as 60 percent, Iacobucci said. Citrix also plans to continue to expand into new markets with its software including wireless devices and set top boxes for the television, Iacobucci said. A few weeks ago, Citrix licensed its technology to Motorola for use in its digital wireless devices inlcuding its hand-held wireless telephone and two-way radio.