Citrix 2000 Annual Report Download - page 25

23
The Company believes existing cash and investments together with cash flow
expected from operations will be sufficient to meet operating and capital
expenditures requirements through 2001. The Company may from time to time seek
to raise additional funds through public or private financings. The Company may
also acquire or make investments in companies it believes are related to its
strategic objectives. Such investments may reduce the Company's available
working capital.
CERTAIN FACTORS WHICH MAY AFFECT FUTURE RESULTS
The Company's operating results and financial condition have varied in the
past and may in the future vary significantly depending on a number of factors.
Except for the historical information in this report, the matters contained in
this report include forward−looking statements that involve risks and
uncertainties. The following factors, among others, could cause actual results
to differ materially from those contained in forward−looking statements made in
this report and presented elsewhere by management from time to time. Such
factors, among others, may have a material adverse effect upon the Company's
business, results of operations and financial condition.
Reliance Upon Strategic Relationship with Microsoft
Microsoft is the leading provider of desktop operating systems. The Company
depends upon the license of key technology from Microsoft, including certain
source and object code licenses and technical support. The Company also depends
upon its strategic alliance agreement with Microsoft pursuant to which the
Company and Microsoft have agreed to cooperate to develop advanced operating
systems and promote Windows application program interfaces. The Company's
relationship with Microsoft is subject to the following risks and uncertainties:
− Competition with Microsoft. Windows Server Operating Systems are, and
future product offerings by Microsoft may be, competitive with the
Company's current MetaFrame products, and any future product offerings by
the Company.
− Expiration of Microsoft's Endorsement of the ICA Protocol. Microsoft's
obligation to endorse only the Company's ICA protocol as the preferred
method to provide multi−user Windows access for devices other than
Windows clients expired in November 1999. Microsoft may now market or
endorse other methods to provide multi−user Windows access to non−Windows
client devices.
− Dependence on Microsoft for Commercialization. The Company's ability to
successfully commercialize certain of its MetaFrame products depends on
Microsoft's ability to market Windows Server Operating Systems products.
The Company does not have control over Microsoft's distributors and
resellers and, to the Company's knowledge, Microsoft's distributors and
resellers are not obligated to purchase products from Microsoft.
− Product Release Delays. There may be delays in the release and shipment
of future versions of Windows Server Operating Systems.
− Termination of Development Agreement Obligations. The Company's
Development Agreement with Microsoft expires in May 2002. Upon
expiration, Microsoft may change its Windows NT, Terminal Server Edition
or Windows 2000 products to render them inoperable with the Company's
MetaFrame product offerings. Further, upon termination of the Development
Agreement, Microsoft may facilitate the ability of third parties to
compete with the Company's MetaFrame products. Finally, future product
offerings by Microsoft do not need to provide for interoperability with
the Company's products. The lack of interoperability between present or
future Microsoft products and the Company's products could cause a
material adverse effect in the Company's business, results of operations
and financial condition.
Dependence Upon Broad−Based Acceptance of ICA Protocol
The Company believes that its success in the markets in which it competes
will depend upon its ability to make ICA protocol a widely accepted standard for
supporting Windows and UNIX applications. If another
23