Citrix 2013 Annual Report Download - page 46

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maintenance revenues of $45.2 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 2014 to the first quarter of 2013.
Professional services
Professional services revenue increased during 2013 when compared to 2012 and during 2012 when compared to 2011
primarily due to increases in consulting revenues related to increased implementation sales of our Enterprise and Service
Provider division's products. We currently target Professional services revenue to increase when comparing the first quarter of
2014 to the first quarter of 2013 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 include revenue from annual service agreements for our SaaS products and Professional services revenue primarily related
to our consulting contracts. Deferred revenues increased approximately $213.7 million as of December 31, 2013 compared to
December 31, 2012 primarily due to increased new and renewal sales of our Subscription Advantage product of $106.2 million;
increased sales of our hardware and software maintenance contracts of $44.4 million and increased support contracts primarily
related to our Mobile and Desktop products of $34.8 million. We currently target deferred revenue to increase in 2014.
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 45.4% 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 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 Revenues
Our revenues are derived from sales of Enterprise and Service Provider 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 SaaS division’s Collaboration and Data products. The Enterprise and Service Provider division and the
SaaS division constitute our two reportable segments.
An analysis of our reportable segment net revenue is presented below:
Year Ended December 31,
Revenue
Growth
Revenue
Growth
2013 2012 2011 2013 to 2012 2012 to 2011
(In thousands)
Enterprise and Service Provider
division $ 2,335,562 $ 2,074,800 $ 1,778,646 12.6% 16.7%
SaaS division 582,872 511,323 427,746 14.0% 19.5%
Consolidated net revenues $ 2,918,434 $ 2,586,123 $ 2,206,392 12.8% 17.2%
With respect to our segment revenues, the increase in net revenues for the comparative periods presented was due
primarily to the factors previously discussed above. See Note 11 of our consolidated financial statements included in this
Annual Report on Form 10-K for the year ended December 31, 2013 for additional information on our segment revenues.