As young tech companies try to establish themselves in the marketplace, they aren’t just looking to book a sale with a new client. They want that client for life. #-ad_banner-#That’s because recurring revenues from an established customer base can greatly aid a company’s cash flow, even when it experiences a tough few quarters. Case in point: Citrix Systems (Nasdaq: CTXS), which has hit a flat spot in terms of new customer wins but remains a solid cash cow, thanks to its lucrative installed base of repeat business. And the stock price, in relation to that cash flow, has become too… Read More
As young tech companies try to establish themselves in the marketplace, they aren’t just looking to book a sale with a new client. They want that client for life. #-ad_banner-#That’s because recurring revenues from an established customer base can greatly aid a company’s cash flow, even when it experiences a tough few quarters. Case in point: Citrix Systems (Nasdaq: CTXS), which has hit a flat spot in terms of new customer wins but remains a solid cash cow, thanks to its lucrative installed base of repeat business. And the stock price, in relation to that cash flow, has become too appealing to pass up. Behind-The-Scenes Support Unless you work in an IT department, you might not be familiar with Citrix. The company sells desktop management software to more than 300,000 global clients. If you’ve ever worked on a corporate desktop that has no local hard drive and instead gets all of its instructions from a central server, than you have probably used Citrix’s software (which has been licensed by Microsoft (Nasdaq: MSFT) and others for roughly two decades). These days, such remote servers form the backbone of cloud computing. Citrix hit the $1 billion sales mark in 2006, $2… Read More