Citrix 2007 Annual Report Download - page 52

Product Licenses
Product License revenue increased during 2007 when compared to 2006 primarily due to increased sales of
our Application Virtualization and Application Networking products and, to a lesser extent due to sales of our
Provisioning Server products acquired in 2007. Product License revenue increased during 2006 when compared
to 2005 primarily due to the full year impact and increased sales of our Application Networking products and, to
a lesser extent, increased sales of our Application Virtualization products. We currently anticipate that our
Application Virtualization Product License revenue will be flat to slightly down when comparing the first quarter
of 2008 to the fourth quarter of 2007; however, for fiscal year 2008, we expect Product License revenue to
increase overall primarily due to growth from our Application Virtualization products, expected growth from
sales of our newly acquired XenSource products, and to a lesser extent, increased sales of our Application
Networking products.
License Updates
License Updates revenue increased during 2007 when compared to 2006 and increased during 2006 when
compared to 2005 primarily due to a larger base of subscribers and increasing renewals related to our
Subscription Advantage program. We also currently anticipate that License Updates revenue will continue to
increase in 2008 due primarily to increased renewals and continued growth in our installed customer base.
Online Services
Online Services revenue increased during 2007 when compared to 2006 primarily due to increased sales of
our real time application collaboration products. Online Services revenue increased during 2006 when compared
to 2005 primarily due to increased customer adoptions and renewals of our Online Services products. We
currently expect Online Services revenues to continue to increase in 2008 but at a slower rate than experienced
when comparing 2007 to 2006.
Technical Services
Technical Services revenue increased during 2007 when compared to 2006 primarily due to increased sales
of support services related to our Application Networking products and to a lesser extent an increase in sales of
support and services related to the implementation of our Application Virtualization products. Technical Services
revenue increased during 2006 when compared to 2005 primarily due to the full year impact and increased sales
of support and services related to our Application Networking products and an increase in sales of services and
support related to the implementation of our Application Virtualization products.
Deferred Revenue
Deferred revenues are primarily comprised of License Updates revenue from our Subscription Advantage
product, Online Services revenues from annual service agreements for our online services products and Technical
Services revenues related to our support services and consulting contracts. Deferred revenues increased
approximately $86.4 million as of December 31, 2007 compared to December 31, 2006 primarily due to
increased renewals of our Subscription Advantage product, increased new sales of our Subscription Advantage
product, increased sales of our online service agreements and, to a lesser extent, sales of services related to our
Application Networking products. We currently expect deferred revenue to continue to increase in 2008.
We do not believe that backlog, as of any particular date, is a reliable indicator of future performance. 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 or have otherwise not met all the required criteria
for revenue recognition. Although the amount of such product license orders may vary, the amount, if any, of
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