To: Thomas Sterner who wrote (9074 ) 2/24/1999 8:30:00 AM From: AlienTech Respond to of 43080
NEW YORK (Dow Jones)--Shares of Network Associates Inc. (NETA) gained 14% Tuesday after some investors downplayed the long-term impact of the Securities and Exchange Commission's investigation of the company, according to analysts. Those investors had a change of heart about Network Associates' SEC woes after another company, under SEC scrutiny, resolved their accounting issues Monday, said Bruce Smith, a Jefferies & Co. Inc. analyst. Citrix Systems Inc. (CTXS) said it reduced a writeoff of in-process research and development, according to a press release that was reported earlier Monday. Citrix restated 1998 results according to SEC guidance. Citrix Systems, based in Fort Lauderdale, Fla., makes computer network products that enable desktop computers to operate from software installed on a central server. Additionally, Citrix stock climbed Monday to close at 81 5/8, up from Friday's close of 74 15/16. "The stock popped," Smith said. Citrix shares added 2 7/8 to close at 84 1/2 Tuesday. "The stock market is telling you that these restatements mean nothing," Smith added. And when Network Associates' NEC issues eventually are resolved, some investors envision the company's stock price will soar higher - so they're covering their "shorts" now, Smith said. Bear Stearns & Co. analyst Bob Lam also issued a bullish research note on the company earlier Tuesday. The note cited Network Associates' strong product cycle among other factors. "I think investors should look beyond that (the SEC investigation)," Lam said. Network Associates' stock closed at 49, up 6 1/8 or 14.3% on volume of 3.4 million shares. Average volume is nearly 3 million shares. It traded as high as 49 1/2 Tuesday. Network Associates, in Santa Clara, Calif., supplies enterprise network security and management services. Officials could not be immediately reached for comment. - Heesun Wee; 201-938-5392 (END) DOW JONES NEWS 02-23-99 06:26 PM