Citrix 2012 Annual Report Download - page 46

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42
Results of Operations
The following table sets forth our consolidated statements of income data and presentation of that data as a percentage of
change from year-to-year (in thousands other than percentages):
Year Ended December 31,
2012
Compared to
2011
2011
Compared to
2010
2012 2011 2010
Revenues:
Product and licenses $ 830,645 $ 744,513 $ 619,452 11.6 % 20.2%
Software as a service 511,323 430,213 360,617 18.9 19.3
License updates and maintenance 1,125,094 940,181 835,386 19.7 12.5
Professional services 119,061 91,485 59,207 30.1 54.5
Total net revenues 2,586,123 2,206,392 1,874,662 17.2 17.7
Cost of net revenues:
Cost of product and license revenues 96,962 74,393 66,682 30.3 11.6
Cost of services and maintenance revenues 227,150 164,465 115,080 38.1 42.9
Amortization of product related intangible assets 80,025 54,741 50,504 46.2 8.4
Total cost of net revenues 404,137 293,599 232,266 37.6 26.4
Gross margin 2,181,986 1,912,793 1,642,396 14.1 16.5
Operating expenses:
Research and development 450,571 380,674 361,376 18.4 5.3
Sales, marketing and services 1,060,829 885,066 771,660 19.9 14.7
General and administrative 245,259 213,673 173,394 14.8 23.2
Amortization of other intangible assets 34,549 16,390 14,279 110.8 14.8
Restructuring — 24 971 * *
Total operating expenses 1,791,208 1,495,827 1,321,680 19.7 13.2
Income from operations 390,778 416,966 320,716 (6.3) 30.0
Interest income 10,152 13,819 14,577 (26.5) (5.2)
Other income (expense), net 9,299 (288)(1,473) * *
Income before income taxes 410,229 430,497 333,820 (4.7) 29.0
Income taxes 57,682 74,867 57,379 (23.0) 30.5
Consolidated net income 352,547 355,630 276,441 (0.9) 28.6
Less: Net loss attributable to non-controlling interest — 692 624 * *
Net income attributable to Citrix Systems, Inc. $ 352,547 $ 356,322 $ 277,065 (1.1)% 28.6%
* not meaningful
Revenues by Segment
Net revenues of our Enterprise division include Product and licenses, License updates and maintenance, and Professional
services. Product and licenses primarily represent fees related to the licensing of the following major products:
• Mobile and Desktop (formerly Desktop Solutions) is primarily comprised of our desktop virtualization products
XenDesktop and XenApp; and
• Networking and Cloud (formerly Datacenter and Cloud Solutions) is primarily comprised of cloud networking
products, which include NetScaler, Cloud Bridge (including our product formerly known as Branch Repeater) and
Bytemobile Smart Capacity, and the cloud platform products which include XenServer, CloudPlatform (formerly
CloudStack) and CloudPortal.
In addition, we offer incentive programs to our VADs and VARs to stimulate demand for our products. Product and
license revenues associated with these programs are partially offset by these incentives to our VADs and VARs.