Computer Associates 2008 Annual Report Download - page 34

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renewed under our current licensing model, we expect to see an increase in deferred subscription value related to these
licenses, from which subscription revenue will be amortized in future periods. Total deferred subscription value is also
expected to increase as we transition acquired company contracts to our business model, sell additional products and
capacity to existing customers, and enter into new contracts with new customers. The favorable impact on subscription
revenue from the conversion of contracts from our prior business model to our business model is decreasing over time
as the transition is completed. The remaining balance of unbilled installment receivables that were previously recognized
as revenue under our prior business model was $0.40 billion and $0.50 billion as of March 31, 2008 and March 31,
2007, respectively.
Under our license agreements, customers generally make installment payments for the right to use our software
products over the term of the associated software license agreement. While the timing of revenue recognition is affected
by the offering of unspecified future software products, it generally has not changed the timing of how we bill and
collect cash from customers and as a result, our cash generated from operations has generally not been affected by the
offering of unspecified future software products.
Significant Business Events
Acquisitions and Divestitures
In November 2006, we sold our interest in Benit for $3 million.
In September 2006, we acquired Cendura Corporation a privately held provider of IT service management and
application service delivery solutions.
In July 2006, we acquired XOsoft, Inc. (XOsoft), a privately held company that provided continuous application
availability solutions that minimize application downtime and accelerate time to recovery.
In June 2006, we acquired MDY Group International, Inc., a provider of enterprise records management software and
services.
In May 2006, we acquired Cybermation Inc., a privately held provider of enterprise workload automation solutions.
In March 2006, we acquired the common stock of Wily Technology, Inc., a provider of enterprise application
management solutions.
In December 2005, we acquired Control F-1 Corporation, a privately held provider of support automation solutions that
automatically prevent, detect and repair end-user computer problems before they disrupt critical IT services.
In December 2005, we sold our wholly-owned subsidiary MultiGen-Paradigm, Inc. (MultiGen). MultiGen was a provider
of real-time, end-to-end 3D solutions for visualizations, simulations and training applications used for both civilian and
governmental purposes.
In November 2005, we announced an agreement with Garnett & Helfrich Capital, a private equity firm, to create an
independent corporate entity, Ingres Corporation. We divested our Ingresยปopen source database unit into Ingres
Corporation, of which Garnett & Helfrich Capital is the majority shareholder and we hold a minority position.
In October 2005, we acquired iLumin Software Services, Inc., a privately held provider of enterprise message
management and archiving software.
In July 2005, we acquired Niku Corporation (Niku), a provider of information technology management and governance
solutions.
In June 2005, we acquired Concord Communications, Inc. (Concord), a provider of network service management
software solutions.
Performance Indicators
Management uses several quantitative performance indicators to assess our financial results and condition. Each
provides a measurement of the performance of our business model and how well we are executing our plan.
Our predominantly subscription-based business model is unique among our competitors in the software industry and it
may be difficult to compare our results for many of our performance indicators with those of our competitors. The
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