Citrix 2007 Annual Report Download - page 53

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such product license orders at the end of a particular period has not been material to total revenue at the end of
the same period.
International Revenues
International revenues (sales outside the United States) accounted for approximately 44.5% of our net
revenues for the year ended December 31, 2007, 47.4% of our net revenues for the year ended December 31,
2006 and 50.0% for the year ended December 31, 2005. The decrease in international revenue as a percent of net
revenues for the year ended December 31, 2007 compared to the year ended December 31, 2006 is primarily due
to increased sales performance and growth in our Online Services products, which are currently primarily
comprised of domestic revenues, and increased performance in the United States across most product offerings.
For detailed information on international revenues, please refer to Note 12 to our consolidated financial
statements included in this Annual Report on Form 10-K for the year ended December 31, 2007.
Segment Revenues
An analysis of our reportable segment net revenue is presented below:
Year Ended December 31, Revenue
Growth
2006 to 2007
Revenue
Growth
2005 to 20062007 2006 2005
(In thousands)
Americas(1) .............................. $ 614,181 $ 499,278 $397,233 23.0% 25.7%
EMEA(2) ................................ 447,201 391,650 334,900 14.2 16.9
Asia-Pacific ............................. 116,816 94,596 77,492 23.5 22.1
Online Services division ................... 213,744 148,795 99,097 43.6 50.2
Consolidated net revenues .............. $1,391,942 $1,134,319 $908,722 22.7 24.8
(1) Our Americas segment is comprised of the United States, Canada and Latin America.
(2) Defined as Europe, Middle East and Africa.
With respect to our segment revenues, the increase in net revenues for the comparative periods presented
was due primarily to the factors previously discussed across our reportable segments. For additional information
on our segment revenues, please refer to Note 12 of our consolidated financial statements included in this Annual
Report on Form 10-K for the year ended December 31, 2007.
Cost of Revenues
Year Ended December 31, 2007
Compared to
2006
2006
Compared to
20052007 2006 2005
(In thousands)
Cost of product license revenues ................ $ 42,984 $32,911 $14,404 $10,073 $18,507
Cost of services revenues ...................... 65,027 46,585 26,929 18,442 19,656
Amortization of product related intangible assets . . . 29,596 19,202 16,766 10,394 2,436
Total cost of revenues .................... $137,607 $98,698 $58,099 $38,909 $40,599
Cost of product license revenues consists primarily of hardware, product media and duplication, manuals,
packaging materials, shipping expense, server capacity costs and royalties. Cost of services revenue consists
primarily of compensation and other personnel-related costs of providing technical support and consulting, as
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