Citrix 2013 Annual Report Download - page 45

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License updates and maintenance consists of:
• Our Subscription Advantage program, an annual renewable program that provides subscribers with automatic
delivery of unspecified software upgrades, enhancements and maintenance releases when and if they become
available during the term of the subscription, for which fees are recognized ratably over the term of the contract,
which is typically 12 to 24 months; and
• Our maintenance fees, which include technical support and hardware and software maintenance, and which are
recognized ratably over the contract term.
Professional services revenues are comprised of:
• Fees from consulting services related to implementation of our products, which are recognized as the services are
provided; and
• Fees from product training and certification, which are recognized as the services are provided.
Our SaaS revenues, which are recognized ratably over the contractual term, consist of fees related to our SaaS products
including:
• Collaboration products, which primarily include GoToMeeting, GoToWebinar and GoToTraining;
• Data Sharing product, which primarily includes ShareFile;
• Remote Access product, GoToMyPC; and
• Remote IT Support products, which primarily include GoToAssist.
Year Ended December 31, 2013
Compared to
2012
2012
Compared to
2011
2013 2012 2011
(In thousands)
Revenues:
Product and licenses $ 891,630 $ 830,645 $ 744,513 $ 60,985 $ 86,132
Software as a Service 582,872 511,323 430,213 71,549 81,110
License updates and maintenance 1,305,053 1,125,094 940,181 179,959 184,913
Professional Services 138,879 119,061 91,485 19,818 27,576
Total net revenues $ 2,918,434 $ 2,586,123 $ 2,206,392 $ 332,311 $ 379,731
Product and licenses
Product and licenses revenue increased during 2013 when compared to 2012 primarily due to increased sales of our cloud
networking products of $92.0 million, led by NetScaler, and increased sales of our mobility products of $26.2 million, partially
offset by a decrease in sales of our desktop and application virtualization products of $60.0 million. Product and licenses
revenue increased during 2012 when compared to 2011 primarily due to increased sales of our cloud networking products of
$60.0 million, led by NetScaler, and increased sales of our desktop and application virtualization products, led by XenDesktop
of $27.1 million. We currently target Product and licenses revenue to increase when comparing the first quarter of 2014 to the
first quarter of 2013.
Software as a Service
Software as a Service revenue increased during 2013 when compared to 2012 primarily due to increased sales of our
Collaboration products of $45.4 million and due to increased sales of our Data Sharing products of $15.9 million. Software as a
Service revenue increased during 2012 compared to 2011 primarily due to increased sales of our Collaboration products of
$61.0 million and increased sales of our Data Sharing products of $19.3 million. We currently target our Software as a Service
revenue to increase when comparing the first quarter of 2014 to the first quarter of 2013 and when comparing the first quarter
of 2014 to the fourth quarter of 2013.
License updates and maintenance
License updates and maintenance revenue increased during 2013 when compared to 2012 primarily due to an increase in
maintenance revenues of $100.3 million, primarily driven by increased sales of maintenance and support contracts across all of
our Enterprise and Service Provider division's products and an increase in sales and renewals of our Subscription Advantage
product of $79.7 million. 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