Citrix 2012 Annual Report Download - page 48

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44
comparing the first quarter of 2013 to the first quarter of 2012 and when comparing the first quarter of 2013 to the fourth
quarter of 2012 due primarily to increased sales of our Collaboration products.
License updates and maintenance
License updates and maintenance revenue increased during 2012 when compared to 2011 primarily due to an increase in
sales and renewals of our Subscription Advantage product of $114.6 million, and an increase in maintenance revenues of $45.2
million, primarily driven by increased sales of our Networking and Cloud products, led by NetScaler. License updates and
maintenance revenue increased during 2011 when compared to 2010 primarily due to an increase in Subscription Advantage
renewal sales of $59.5 million and an increase in maintenance revenues of $33.9 million, primarily driven by increased sales of
our Networking and Cloud products, led by NetScaler. We currently are targeting that License updates and maintenance
revenue will increase when comparing the first quarter of 2013 to the first quarter of 2012 and when comparing the first quarter
of 2013 to the fourth quarter of 2012.
Professional services
Professional services revenue increased during 2012 when compared to 2011 and during 2011 when compared to 2010
primarily due to increases in consulting revenues related to increased implementation sales of our Enterprise division’s
products. We currently target Professional services revenue to increase when comparing the first quarter of 2013 to the first
quarter of 2012 consistent with the increase in Product and license revenue described above.
Deferred Revenue
Deferred revenues are primarily comprised of License updates and maintenance revenue from our Subscription
Advantage product as well as maintenance and support contracts for our software and hardware products. Deferred revenues
also includes SaaS revenue from annual service agreements for our online services and Professional services revenue primarily
related to our consulting contracts. Deferred revenues increased approximately $238.1 million as of December 31, 2012
compared to December 31, 2011 primarily due to an increase in new and renewal sales of our Subscription Advantage product,
led by XenDesktop, of $133.1 million; an increase in support sales related to our Enterprise division's products of $30.8
million, an increase in sales of maintenance contracts, led by sales of NetScaler, of $23.5 million; and an increase related to
Bytemobile of $19.2 million. Also contributing to the overall increase in deferred revenue is an increase in multi-year contracts
with our larger customers of our Enterprise division. We currently target deferred revenue to continue to increase in 2013.
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 any reporting period. We do not believe that backlog, as of any particular date, is a reliable indicator of future performance.
International Revenues
International revenues (sales outside the United States) accounted for approximately 45.3% of our net revenues for the
year ended December 31, 2012, 43.2% of our net revenues for the year ended December 31, 2011 and 42.7% of our net
revenues for the year ended December 31, 2010. For detailed information on international revenues, please refer to Note 11 to
our consolidated financial statements included in this Annual Report on Form 10-K for the year ended December 31, 2012.
Segment Revenues
Our revenues are derived from sales of Enterprise division products which primarily include Mobility and Desktop
products, Networking and Cloud products and related License updates and maintenance and Professional services and from our
Online Services division’s Collaboration and Data products. The Enterprise division and the Online Services division constitute
our two reportable segments.
An analysis of our reportable segment net revenue is presented below (in thousands):
Year Ended December 31,
Revenue
Growth
Revenue
Growth
2012 2011 2010 2012 to 2011 2011 to 2010
(In thousands)
Enterprise division $ 2,074,800 $ 1,778,646 $ 1,514,045 16.7% 17.5%
Online Services division 511,323 427,746 360,617 19.5% 18.6%
Consolidated net revenues $ 2,586,123 $ 2,206,392 $ 1,874,662 17.2% 17.7%