Citrix 2014 Annual Report Download - page 49

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Professional services
Professional services revenue increased during 2014 when compared to 2013 primarily due to increases in product
training and certification and consulting revenues related to increased implementation sales of our Enterprise and Service
Provider division's products. Professional services revenue increased during 2013 when compared to 2012 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 be consistent when comparing the first quarter of 2015 to the
first quarter of 2014.
Deferred Revenue
Deferred revenues are primarily comprised of License updates and maintenance revenue from our Subscription
Advantage product as well as maintenance contracts for our software and hardware products. Deferred revenues also include
SaaS revenue from annual service agreements and Professional services revenue primarily related to our consulting contracts.
Deferred revenues increased approximately $146.1 million as of December 31, 2014 compared to December 31, 2013 primarily
due to an increase in sales of our hardware maintenance offerings of $66.2 million, an increase in license updates and software
maintenance offerings of $49.1 million, an increase related to our support contracts of $26.0 million and increased sales of our
Mobility Apps products of $7.5 million. We currently target deferred revenue to increase in 2015.
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 45.2% of our net revenues for the
year ended December 31, 2014, 45.4% of our net revenues for the year ended December 31, 2013 and 45.3% of our net
revenues for the year ended December 31, 2012. 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, 2014.
Segment Revenues
Our revenues are derived from sales of Enterprise and Service Provider division products which primarily include
Workspace Services solutions, Delivery Networking products and related License updates and maintenance and Professional
services and from our Mobility Apps division’s Communications Cloud, Documents Cloud and Workflow Cloud products. The
Enterprise and Service Provider division and the Mobility Apps 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
2014 2013 2012 2014 to 2013 2013 to 2012
(In thousands)
Enterprise and Service Provider
division $ 2,491,294 $ 2,335,562 $ 2,074,800 6.7% 12.6%
Mobility Apps division 651,562 582,872 511,323 11.8% 14.0%
Consolidated net revenues $ 3,142,856 $ 2,918,434 $ 2,586,123 7.7% 12.8%
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, 2014 for additional information on our segment revenues.