Citrix 2012 Annual Report Download - page 36

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In January 2013, we completed our acquisition of Zenprise, a privately held leading innovator in MDM. We are currently
working to integrate the Zenprise products for MDM with our Citrix CloudGateway product for managing mobile apps and
data to offer our enterprise IT customers comprehensive products that make it easier to manage and secure devices, apps and
data, while allowing users to embrace mobile workstyles and access enterprise apps from virtually any device. We believe our
Mobility products will offer a comprehensive approach that can transform organizations into mobile enterprises with the
security and control IT requires, the ease of use and flexibility users desire, and the productivity business demands.
Our Cloud Networking products power mobile workstyles while altering the traditional economics of the datacenter by
providing greater levels of flexibility of computing resources, especially with respect to servers, improving application
performance and thereby reducing the amount of processing power involved, and allowing easy reconfiguration of servers by
permitting storage and network infrastructure to be added-in virtually rather than physically. Our Cloud Networking products
are also enhancing our differentiation and driving customer interest around desktop virtualization as enterprises are finding
good leverage in deploying these technologies together.
In July 2012, we acquired Bytemobile, Inc., or Bytemobile, a privately held leading provider of data and video
optimization solutions for mobile network operators. The Bytemobile acquisition has given us a strategic foothold in the core
infrastructure of certain mobile operators which are experiencing rapid growth in network traffic, driven by the combination of
new consumer devices, rich multimedia content, and high speed 3G, 4G and LTE networks. Our Bytemobile Smart Capacity
products combined with our Citrix NetScaler line of Cloud Networking products enhance our broader strategy of powering
mobile workstyles and cloud services and allow us to offer mobile operators combined solutions that deliver a high quality user
experience to mobile subscribers.
Our Cloud Platform products allow our customers to build scalable and reliable private and public cloud computing
environments where customers can quickly and easily build cloud services within their existing infrastructure and provision
hosted applications, desktops, services and infrastructure as a service, or IaaS, from the cloud.
Online Services division
Our Online Services division is focused on developing and marketing Collaboration and Data products. These products
are primarily marketed via the web to large enterprises, medium and small businesses, prosumers and individuals. Our Online
Services division's Collaboration products offer secure and cost-effective solutions that allow users to host and actively
participate in online meetings, webinars and training sessions remotely and reduce costs associated with business travel. In
addition, we offer products that offer users a secure, simple and cost efficient way to access their desktops remotely and support
over the Internet on-demand. In the second quarter of 2012, we acquired Podio ApS, or Podio, a privately held provider of a
cloud-based collaborative work platform. Podio became part of our Online Services division and is a natural extension of our
collaboration business, providing today's mobile workforce an easy, secure and social way to come together and work as teams.
Our Data Sharing product, ShareFile, makes it easy for businesses of all sizes to securely store, sync and share business
documents and files, both inside and outside the company. ShareFile's centralized cloud storage capability also allows users to
share files across multiple devices and access them from any location.
Reclassifications
During the first quarter of 2012, we performed a review of the presentation of certain of our revenue categories and
adopted a revised presentation, which we believe is more comparable to those presented by other companies in our industry and
better reflects our evolving product and service offerings. As a result, technical support, hardware maintenance and software
updates revenues, which were previously presented in Technical services and License updates are classified together as License
updates and maintenance. A corresponding change was made to rename Cost of services revenues to Cost of services and
maintenance revenues; however, there was no change in classification. Product training and certification and consulting
services, which were previously presented in Technical services, are classified together as Professional services. Product
licenses has been renamed to Product and licenses to more appropriately describe its composition of both software and
hardware, however, there was no change in classification. The composition and classification of Software as a service remained
unchanged. This change in presentation will not affect our total net revenues, total cost of net revenues or gross margin.
Additionally, during the first quarter of 2012, we revised our methodology for allocating certain IT support costs to more
closely align these costs to the employees directly utilizing the related assets and services and to reflect how management
assesses the cost of headcount. As a result, certain IT support costs have been reclassified from General and administrative
expenses to Cost of services and maintenance revenues, Research and development expenses and Sales, marketing and services
expenses based on the headcount in each of these functional areas. This change in presentation will not affect our income from
operations or cash flows.