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41
Net Revenues for the Years Ended December 31, 2014 and 2013
(dollars in thousands)
2014 Change 2013
Net Revenues $ % Net Revenues
Video products and solutions $ 233,464 $ (9,709) (4.0)% $ 243,173
Audio products and solutions 145,163 (7,195) (4.7)% 152,358
Total products and solutions 378,627 (16,904) (4.3)% 395,531
Services 151,624 (16,257) (9.7)% 167,881
Total net revenues $ 530,251 $ (33,161) (5.9)% $ 563,412
The following table sets forth the percentage of our net revenues attributable to geographic regions for the periods indicated:
Year Ended December 31,
2015 2014 2013
United States 37% 36% 39%
Other Americas 7% 9% 7%
Europe, Middle East and Africa 41% 41% 38%
Asia-Pacific 15% 14% 16%
Video Products and Solutions Revenues
2015 Compared to 2014
Video products and solutions revenues decreased $31.9 million, or 13.7%, for 2015, compared to 2014. The decrease in video
revenues was primarily due to lower amortization of deferred revenues attributable to transactions executed on or before
December 31, 2010. As a result of our adoption of ASU No. 2009-13 and ASU No. 2009-14 on January 1, 2011, many of our
product orders now qualify for upfront revenue recognition; however, prior to adoption of this accounting guidance the same
orders required ratable recognition over periods of up to eight years. Deferred revenue associated with transactions executed prior
to the adoption of ASU No. 2009-13 and ASU No. 2009-14 will continue to decline through 2016, before the balance is largely
amortized, contributing less revenue each period. Revenues for the twelve months ended December 31, 2014 were also higher
due to increased demand attributable to the 2014 Winter Olympics and 2014 FIFA World Cup events. Declines in video products
and solutions revenue in 2015 were partially offset by the impact of additional revenue attributed to the sale of Orad products
after completion of the acquisition on June 23, 2015.
2014 Compared to 2013
Video products and solutions revenues decreased $9.7 million, or 4.0%, for 2014, compared to 2013. The decrease in video
revenues was primarily impacted by the previously discussed lower amortization of deferred revenues attributable to transactions
executed on or before December 31, 2010.
Audio Products and Solutions Revenues
2015 Compared to 2014
Audio products and solutions revenues decreased $10.4 million, or 7.1%, for 2015, compared to 2014. The decrease in audio
revenues was primarily the result of the previously discussed lower amortization of deferred revenues attributable to transactions
executed on or before December 31, 2010. Also contributing to the decrease in audio revenues for the year ended December 31,
2015 were delays in the development of certain features related to Pro Tools 12 software, which reduced revenue recognition and,
along with price points that were inconsistent with market dynamics, negatively impacted new product bookings.