Citrix 2009 Annual Report Download - page 51

tax authority rulings. Due to the evolving nature of tax rules combined with the large number of jurisdictions in
which we operate, it is possible that our estimates of our tax liability and the realizability of our deferred tax
assets could change in the future, which may result in additional tax liabilities and adversely affect our results of
operations, financial condition and cash flows.
The following discussion relating to the individual financial statement captions, our overall financial
performance, operations and financial position should be read in conjunction with the factors and events
described in “— Overview” and Part 1 – Item 1A entitled “Risk Factors,” which could impact our future
performance and financial position.
Results of Operations
The following table sets forth our consolidated statements of income data and presentation of that data as a
percentage of change from year-to-year.
Year Ended December 31, 2009
Compared to
2008
2008
Compared to
20072009 2008 2007
(In thousands)
Revenues:
Product licenses ................... $ 538,975 $ 620,215 $ 577,144 (13.1)% 7.5%
License updates ................... 604,968 559,340 484,669 8.2 15.4
Online services ................... 308,177 260,065 213,744 18.5 21.7
Technical services ................. 161,968 143,734 116,385 12.7 23.5
Total net revenues ..................... 1,614,088 1,583,354 1,391,942 1.9 13.8
Cost of net revenues:
Cost of product license revenues ...... 52,160 47,801 42,984 9.1 11.2
Cost of services revenues ........... 87,233 79,303 65,027 10.0 22.0
Amortization of product related
intangible assets ................ 47,917 48,028 29,596 (0.2) 62.3
Total cost of net revenues ....... 187,310 175,132 137,607 7.0 27.3
Gross margin ......................... 1,426,778 1,408,222 1,254,335 1.3 12.3
Operating expenses:
Research and development .......... 281,980 288,109 205,103 (2.1) 40.5
Sales, marketing and services ........ 679,053 669,569 590,409 1.4 13.4
General and administrative .......... 239,623 256,679 229,229 (6.6) 12.0
Restructuring ..................... 26,473 — — * *
Amortization of other intangible
assets ......................... 20,972 22,724 17,387 (7.7) 30.7
In-process research and
development ................... — 1,140 9,800 * (88.4)
Total operating expenses ........ 1,248,101 1,238,221 1,051,928 0.8 17.7
Income from operations ................ 178,677 170,001 202,407 5.1 (16.0)
Interest income ....................... 14,683 31,506 49,704 (53.4) (36.6)
Interest expense ....................... (426) (444) (737) (4.1) (39.8)
Other income (expense), net ............. 958 (4,140) (466) * *
Income before income taxes ............. 193,892 196,923 250,908 (1.5) (21.5)
Income taxes ......................... 2,875 18,647 36,425 (84.6) (48.8)
Net income .................. $ 191,017 $ 178,276 $ 214,483 7.1 (16.9)
* not meaningful.
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