Computer Associates 2006 Annual Report Download - page 58

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Identity Management solutions, as well as growth in IT Service and Asset Management solutions. The increase was
also partially attributable to approximately $4 million of services revenue associated with the sale of Netegrity
products. This increase in services revenue was limited due to an increase in services sold in combination with
related software products of approximately $14 million, which requires that such services revenue be recognized
ratably over the life of the related software contract period.
Total Revenue by Geography
The following table presents the amount of revenue earned from sales to unaffiliated customers in the United States
and international regions and corresponding percentage changes for the fiscal years ended March 31, 2006, 2005
and 2004. These comparisons of financial results are not necessarily indicative of future results.
2006 % 2005 % Change 2005 % 2004 % Change
Fiscal Year 2006 Fiscal Year 2005
(restated) (restated) (restated)
(in millions)
United States ..... $2,006 53 $1,878 52 7% $1,878 52 $1,766 53 6%
International ..... 1,790 47 1,725 48 4% 1,725 48 1,566 47 10%
$3,796 100 $3,603 100 5% $3,603 100 $3,332 100 8%
International revenue increased $65 million, or 4%, in fiscal year 2006 as compared with fiscal year 2005, primarily
due to increased new deferred subscription value in prior periods associated with our European business partially
offset by an unfavorable foreign exchange impact of approximately $17 million. The increase in revenue from the
United States was primarily attributable to sales of products related to companies acquired during the fiscal year
2006, an increase in new deferred subscription value in prior periods as well as an increase in professional services
revenue, partially offset by decreases in revenue from maintenance, finance fees and software fees and other
revenues.
International revenue increased $159 million, or 10%, in fiscal year 2005 as compared with fiscal year 2004. The
increase in international revenue was primarily attributable to a positive impact to revenue from fluctuations in
foreign currency exchange rates of approximately $103 million for fiscal year 2005 over fiscal year 2004. The
increase in foreign currency exchange is primarily associated with the strengthening of both the euro and the British
pound versus the U.S. dollar. The increase was also a result of an increase in contract bookings in prior periods
associated with our European business. The increase in revenue from the United States was primarily attributable to
an increase in contract booking in prior periods as well as an increase in professional services revenue. The increase
was partially offset by decreases in revenue from maintenance, finance fees and software fees and other revenues.
Price changes and inflation did not have a material impact in fiscal years 2006, 2005 or 2004.
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