Citrix 2000 Annual Report Download - page 50

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48
CITRIX SYSTEMS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS −− (CONTINUED)
core technology associated with the APM acquisition. In addition, the Company
determined that there was no alternative future use for the acquired technology.
As a result, the Company recorded a write−down of $7.3 million, representing the
net book value of the APM core technology as of December 31, 2000.
The acquired core technology in the VDOnet acquisition consisted primarily
of the ICA Video Services project which allowed video applications and
applications containing videos to be viewed on an ICA client. Subsequent
development efforts resulted in the VideoFrame 1.0 product, which was shipped in
the third quarter of 1999, but has resulted in few sales to end users. Since the
acquisition, the Company has explored alternative uses for the acquired
technology. These uses related primarily to delivering video applications in a
server−based computing environment and video streaming with ICA devices. In the
fourth quarter of 2000, the Company reviewed potential modifications to its cash
flow projections based on alternative uses for the technology. As a result of
its evaluation, the Company did not believe that there were sufficient projected
cash flows to support the carrying value and continued development of the core
technology. As a result, the Company recorded a write−down of $1.8 million,
representing the net book value of the VDOnet core technology as of December 31,
2000.
4. CASH AND INVESTMENTS
The summary of cash and cash equivalents and investments consists of the
following:
DECEMBER 31
−−−−−−−−−−−−−−−−−−−−
2000 1999
−−−−−−−− −−−−−−−−
(IN THOUSANDS)
Cash and cash equivalents:
Cash...................................................... $114,570 $ 36,049
Commercial paper.......................................... 131,248 2,106
Money market funds........................................ 44,157 33,139
Government securities..................................... 85,050 86,196
Corporate securities...................................... −− 58,626
−−−−−−−− −−−−−−−−
Cash and cash equivalents.............................. $375,025 $216,116
======== ========
Short−term investments:
Commercial paper.......................................... $ 14,078 $ 12,236
Corporate securities...................................... 37,062 49,989
Government securities..................................... 40,472 159,753
−−−−−−−− −−−−−−−−
Short−term investments................................. $ 91,612 $221,978
======== ========
Long−term investments:
Corporate securities...................................... $334,961 $ 27,801
Government securities..................................... 42,945 292,704
Other..................................................... 4,618 5,250
−−−−−−−− −−−−−−−−
Long−term investments.................................. $382,524 $325,755
======== ========
The unrealized gain (loss) associated with each individual category of cash
and investments is not significant.
In December 2000, the Company, through a wholly−owned subsidiary, entered
into a forward bond purchase agreement ("Bond Purchase Agreement") with an
investment advisor. Pursuant to the Bond Purchase Agreement, the Company will
purchase zero coupon bonds ("Forward Bonds") from the investment advisor at
certain scheduled dates pursuant to the Bond Purchase Agreement. The purchase
price of the
F−14