Citrix 2009 Annual Report Download - page 54

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Segment Revenues
An analysis of our reportable segment net revenue is presented below:
Year Ended December 31, Revenue
Growth
2008 to 2009
Revenue
Growth
2007 to 20082009 2008 2007
(In thousands)
Americas (1) ........................... $ 696,205 $ 670,523 $ 614,181 3.8% 9.2%
EMEA (2) ............................. 480,720 524,465 447,201 (8.3) 17.3
Asia-Pacific ........................... 128,986 128,301 116,816 0.5 9.8
Online Services division ................. 308,177 260,065 213,744 18.5 21.7
Consolidated net revenues ............ $1,614,088 $1,583,354 $1,391,942 1.9 13.8
(1) Our Americas segment is comprised of the United States, Canada and Latin America.
(2) Defined as Europe, Middle East and Africa.
In the Americas segment, the increase in net revenue was primarily due to renewals related to our
Subscription Advantage program and increased sales of our support and consulting services. When comparing
2009 to 2008 License Updates revenue increased $25.3 million and Technical Services revenue increased $13.1
million. These increases were partially offset by a decrease in Product License revenue of $12.8 million when
comparing 2009 to 2008.
In EMEA the decrease in revenue was primarily driven by the continued economic downturn impacting the
region. The decrease in revenue was primarily due to a decrease in Product License revenue. When comparing
2009 to 2008, Product License revenue in EMEA decreased $65.4 million. The decrease was partially offset by
increases in renewals related to our Subscription Advantage program. When comparing 2009 to 2008 License
Updates revenue in EMEA increased $18.2 million.
In Asia-Pacific the increase in revenues was not significant.
The increases in the Online Services division’s revenues for 2009 compared to 2008 were due primarily to
increased sales of our web collaboration products.
With respect to the increase in our segment revenues when comparing 2008 to 2007, the increase in net
revenues was due primarily to the factors previously discussed across our reportable segments. See Note 12 of
our consolidated financial statements for additional information on our segment revenues.
Cost of Net Revenues
Year Ended December 31, 2009
Compared to
2008
2008
Compared to
20072009 2008 2007
(In thousands)
Cost of product license revenues .............. $ 52,160 $ 47,801 $ 42,984 $ 4,359 $ 4,817
Cost of services revenues .................... 87,233 79,303 65,027 7,930 14,276
Amortization of product related intangible
assets ................................. 47,917 48,028 29,596 (111) 18,432
Total cost of net revenues ............... $187,310 $175,132 $137,607 $12,178 $37,525
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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