Citrix 2009 Annual Report Download - page 53

during 2008 when compared to 2007 primarily due to increasing renewals related to our Subscription Advantage
program over a larger base of subscribers of $51.2 million and an increase in new Subscription Advantage
licenses of $23.5 million. We currently anticipate that License Updates revenue will increase when comparing
the first quarter of 2010 to the fourth quarter of 2009 due primarily to renewals over our installed customer base.
Online Services
Online Services revenue increased during 2009 when compared to 2008 primarily due to increased sales of
our web collaboration products. Online Services revenue increased during 2008 when compared to 2007
primarily due to increased sales of our web collaboration products of $33.8 million and our connectivity products
of $12.2 million. We currently expect our Online Services revenue to increase when comparing the first quarter
of 2010 to the fourth quarter of 2009.
Technical Services
Technical Services revenue increased during 2009 when compared to 2008 primarily due to increased sales
of support services related to our application networking products. Technical Services revenue increased during
2008 when compared to 2007 primarily due to increased sales of support services related to our application
networking products of $18.9 million and an increase in sales of support and consulting related to the
implementation of our application virtualization products of $9.4 million. We currently expect Technical
Services sales to increase when comparing the first quarter of 2010 to the first quarter of 2009 consistent with the
increase in Product License revenue described above.
Deferred Revenue
Deferred revenues are primarily comprised of License Updates revenue from our Subscription Advantage
product, Online Services revenues from annual service agreements for our online services products and Technical
Services revenues related to our support services and consulting contracts. Deferred revenues increased
approximately $85.4 million as of December 31, 2009 compared to December 31, 2008 primarily due to new
sales of our Subscription Advantage product of $35.3 million, increased sales of our support services of $27.0
million and increased renewals of our Subscription Advantage product of $14.9 million. We currently expect
deferred revenue to continue to increase in 2010.
We do not believe that backlog, as of any particular date, is a reliable indicator of future performance. While
it is generally our practice to promptly ship our products upon receipt of properly finalized purchase orders, we
sometimes have product license orders that have not shipped. Although the amount of such product license orders
may vary, the amount, if any, of such product license orders at the end of a particular period has not been
material to total revenue at the end of the same period.
International Revenues
International revenues (sales outside the United States) accounted for approximately 43.6% of our net
revenues for the year ended December 31, 2009, 45.8% of our net revenues for the year ended December 31,
2008 and 44.5% for the year ended December 31, 2007. For detailed information on international revenues,
please refer to Note 12 to our consolidated financial statements included in this Annual Report on Form 10-K for
the year ended December 31, 2009.
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