Citrix 2007 Annual Report Download - page 55

Overview” and Note 3 to our consolidated financial statements included in this Annual Report on Form 10-K for
the year ended December 31, 2007.
Research and development expenses increased during 2006 as compared to 2005 primarily due to an
increase in staffing and related personnel costs due to the full year impact of our 2005 Acquisitions, our 2006
Acquisitions, continued investments in our business including the hiring of personnel, and additional
compensation expense related to the adoption of SFAS No. 123R.
Sales, Marketing and Support Expenses
Year Ended December 31, 2007
Compared to
2006
2006
Compared to
20052007 2006 2005
(In thousands)
Sales, marketing and support ................. $590,409 $480,343 $394,153 $110,066 $86,190
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 2007 compared to 2006 primarily due to an increase in headcount and the associated increase in salaries
and employee related expenses due to our continued investment in our business and the full year impact of our
2006 Acquisitions and the impact of our 2007 Acquisitions. In addition, sales, marketing and support expenses
increased during 2007 compared to 2006 due to an increase in commissions related to our growing sales-force
and payments made under new programs adopted to promote sales of our newer products, an increase in
commissions paid to our resellers and, to a lesser extent, an increase in marketing program costs related to our
worldwide advertising campaigns. During 2007, we also increased our utilization of personnel for revenue
generating activities, which is reflected as cost of service revenues rather than sales, marketing and support
expenses. In 2008, we currently expect sales, marketing and support expenses to increase due to the full year
impact of our XenSource Acquisition 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 Note 3 to our
consolidated financial statements included in this Annual Report on Form 10-K for the year ended December 31,
2007.
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.
General and Administrative Expenses
Year Ended December 31, 2007
Compared to
2006
2006
Compared to
20052007 2006 2005
(In thousands)
General and administrative .................. $229,229 $178,669 $125,425 $50,560 $53,244
General and administrative expenses consisted primarily of personnel-related related costs and expenses
related to outside consultants assisting with regulatory compliance and information systems, as well as auditing
and legal fees. General and administrative expenses increased during 2007 compared to 2006 primarily due to an
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