Citrix 2006 Annual Report Download - page 41

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
Citrix Systems, Inc.  Annual Report
Sales, Marketing and Support Expenses
Year Ended December 31, 2006
Compared to
2005
2005
Compared to
2004(In thousands) 2006 2005(a) 2004(a)
(Restated) (Restated)
Sales, marketing and support $ 480,343 $ 394,153 $ 337,777 $ 86,190 $ 56,376
(a) See Note 2 to our consolidated financial statements included elsewhere in this Annual Report.
Sales, marketing and support expenses consisted primarily
of personnel-related costs, including sales commissions,
and the costs of marketing programs aimed at increasing
revenue, such as advertising, trade shows, public relations
and other market development programs. Sales, marketing
and support expenses increased during 2006 compared
to 2005 primarily due to an increase in headcount and
the associated increase in salaries, commissions and
other variable compensation and employee related
expenses, the full year impact of our 2005 Acquisitions
and the impact of our 2006 Acquisitions, additional
compensation costs related to our adoption of SFAS
No. 123R and an increase in marketing program costs
related to our worldwide advertising campaigns. During
2006, we increased our utilization of personnel for revenue
generating activities during 2006 as compared to 2005,
which is reflected as cost of service revenues rather than
sales, marketing and support expenses. Excluding the
effects of any pending acquisitions, in 2007, we expect
sales, marketing and support expenses to increase
moderately due to the acquisition of Ardence in January
2007, the full period impact of our 2006 Acquisitions and
increased compensation costs as we continue to make
investments in our business and hire personnel. For more
information regarding our acquisitions see, “Management’s
Discussion and Analysis of Financial Condition and Results
of Operations — Overview” and Notes 4 and 18 to our
consolidated financial statements included elsewhere in
this Annual Report.
Sales, marketing and support expenses increased during
2005 compared to 2004 primarily due to an increase
in headcount and the associated increase in salaries,
commissions and other variable compensation and
employee related expenses, as well as an increase in
staffing and related personnel costs due to the 2005
Acquisitions and, to a lesser extent, the full year impact
of our 2004 Acquisitions. Additionally, we increased our
utilization of personnel for revenue generating activities
for the year ended December 31, 2005 as compared to
the year ended December 31, 2004, which is reflected as
cost of service revenues rather than sales, marketing and
support expenses.
General and Administrative Expenses
Year Ended December 31, 2006
Compared to
2005
2005
Compared to
2004(In thousands) 2006 2005(a) 2004(a)
(Restated) (Restated)
General and administrative $ 178,669 $ 125,425 $ 105,799 $ 53,244 $ 19,626
(a) See Note 2 to our consolidated financial statements included elsewhere in this Annual Report.