Citrix 2013 Annual Report Download - page 14

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networking deals; clear, published criteria for achieving Gold and Platinum status; and refreshed certification requirements
paired with no cost training subscriptions for Gold and Platinum levels to expedite acquisition of the latest knowledge and
skills. Citrix Advisor Rewards™, is an innovative influencer program that rewards our partners for registering projects and
providing value-added selling even if they do not fulfill the product. Solution Advisors who achieve Gold or Platinum status
through sales volume and training investments earn higher rewards. Introduced in 2013, Citrix Opportunity Registration
provides qualified partners with a competitive edge in cloud networking through an additional upfront discount on the
opportunities they register. We continued to focus on increasing the productivity of our existing partners and building capacity
through targeted recruitment, introducing programs to increase partner mindshare, limit channel conflict and increase partner
loyalty to us.
As Citrix continues to lead with cloud services, we have been cultivating a global base of over 2,600 partners within the
Citrix Service Provider program. These partners, consisting of managed service providers, IT hosting companies and Telcos,
license Citrix desktop, application, networking and MDM products on a monthly subscription basis. With these technologies
partners then create various vertically differentiated offers of their own, consisting of cloud-hosted applications and cloud-
hosted desktops, that they then resell both to SMBs and to enterprise IT. Besides supplying technology, Citrix is actively
engaged in assisting these partners develop their hosted businesses by supplying business and marketing assistance.
For all of our channels, we regularly take actions to improve the effectiveness of our partner programs and strengthen our
channel relationships, including managing non-performing partners, adding new partners with expertise in selling into new
markets and forming additional strategic global and national partnerships. SI and ISV engagement continues to be a substantial
part of our strategy in the large enterprise and government markets. The SI program includes organizations such as Accenture,
Atos Origin, Computer Sciences Corporation, Dimension Data, Hewlett Packard, Fujitsu, IBM Global Services, Wipro and
TATA Consultancy Services Limited, among others. The ISV program has a strong representation from targeted industry
verticals such as healthcare, financial services and telecommunications. Members in the ISV program include Cerner
Corporation, Epic Systems Corporation, McKesson Corporation, and Siemens Medical Health Solutions, among many others.
Our corporate marketing organization provides sales and industry event support, demand generation, web and social
marketing, sales tools and collateral, advertising, direct mail, industry analyst relations and public relations coverage to our
indirect channels to aid in market development and in attracting new customers. Our partner development organization actively
supports our partners to improve their commitment and capabilities with Citrix solutions. Our customer sales organization
consists of field-based systems sales engineers and corporate sales professionals who work directly with our largest customers,
and coordinate integration services provided by our partners. Additional sales personnel, working in central locations and in the
field, provide additional support including recruitment of prospective partners and technical training with respect to our
products.
Although we have thousands of partnerships, one distributor, Ingram Micro, accounted for 14% of our net revenues in
2013, 16% of our total net revenues in 2012 and 17% of our total net revenues in 2011. Our distributor arrangements with
Ingram Micro consist of several non-exclusive, independently negotiated agreements with its subsidiaries, each of which covers
different countries or regions. Each of these agreements is separately negotiated and is independent of any other contract (such
as a master distribution agreement), one of which was individually responsible for over 10% of our total net revenues in each of
the last three fiscal years. In addition, there was no individual VAR that accounted for over 10% of our total net revenues in
2013, 2012 and 2011.
We are not obligated to accept product returns from our channel distributors under any conditions, unless the product
item is defective in manufacture. See “Management's Discussion and Analysis of Financial Condition and Results of
Operations-Critical Accounting Policies and Estimates” and Note 2 to our consolidated financial statements included in this
Annual Report on Form 10-K for the year ended December 31, 2013 for information regarding our revenue recognition policy.
International revenues (sales outside the United States) accounted for approximately 45.4% of our net revenues for the
year ended December 31, 2013, 45.3% of our net revenues for the year ended December 31, 2012 and 43.2% of our net
revenues for the year ended December 31, 2011. For detailed information on our 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, 2013.
Segment Revenue
Our revenues are derived from our Enterprise and Service Provider division products, which primarily include Mobile
and Desktop products, Networking and Cloud products and related license updates and maintenance, support and professional
services and from our SaaS division's Collaboration and Data products. The Enterprise and Service Provider division and the
SaaS division constitute our two reportable segments. See Note 11 to our consolidated financial statements included in this
Annual Report on Form 10-K for the year ended December 31, 2013.