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Table of Contents
Professional services revenues were $238.9 in 2010, $170.7 in 2009 and $147.0 in 2008, representing year-over-year increases of $68.2 or
40% in 2010 and $23.7 or 16% in 2009. Professional services revenues increased as growth in our installed-base led to strong demand for our
professional services, including consulting and customer training. As we continue to invest in our partners and expand our eco-system of third-
party professionals with expertise in our solutions to independently provide professional services to our customers, we do not expect our
professional services revenues to constitute an increasing component of our revenue mix. As a result of this strategy, our professional services
revenue can vary based on the delivery channels used in any given period as well as the timing of engagements.
Operating Expenses
Information about our operating expenses is as follows:
51
For the Year Ended December 31, 2010
Core
Operating
Expenses
Stock
-
Based
Compen-
sation
Capitalized
Software
Development
Costs, net
Other
Expenses
Total
Operating
Expenses
Cost of license revenue
$
52.4
$
1.7
$
99.5
$
23.9
$
177.5
Cost of services revenue
292.3
18.5
—
5.5
316.3
Research and development
537.8
164.4
(60.7
)
11.5
653.0
Sales and marketing
931.7
73.1
—
8.5
1,013.3
General and administrative
230.1
34.0
—
5.2
269.3
Total operating expenses
$
2,044.3
$
291.7
$
38.8
$
54.6
$
2,429.4
Operating income
$
428.0
Operating margin
15.0
%
For the Year Ended December 31, 2009
Core
Operating
Expenses
Stock-
Based
Compen-
sation
Capitalized
Software
Development
Costs, net
Other
Expenses
Total
Operating
Expenses
Cost of license revenue
$
30.8
$
1.3
$
82.9
$
11.7
$
126.7
Cost of services revenue
217.7
14.9
—
0.4
233.0
Research and development
441.6
121.8
(68.6
)
1.8
496.6
Sales and marketing
675.5
58.6
—
2.3
736.4
General and administrative
174.6
34.9
—
2.4
211.9
Total operating expenses
$
1,540.2
$
231.5
$
14.3
$
18.6
$
1,804.6
Operating income
$
219.3
Operating margin
10.8
%
For the Year Ended December 31, 2008
Core
Operating
Expenses
Stock-
Based
Compen-
sation
Capitalized
Software
Development
Costs, net
Other
Expenses
Total
Operating
Expenses
Cost of license revenue
$
24.1
$
1.1
$
51.6
$
11.3
$
88.1
Cost of services revenue
202.2
13.5
—
0.2
215.9
Research and development
432.7
78.0
(90.9
)
9.4
429.2
Sales and marketing
599.5
49.8
—
4.8
654.1
General and administrative
153.9
24.1
—
3.2
181.2
Total operating expenses
$
1,412.4
$
166.5
$
(39.3
)
$
28.9
$
1,568.5
Operating income
$
312.5
Operating margin
16.6
%
(1)
(1)
(1)