Computer Associates 2008 Annual Report Download - page 38

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The following table sets forth, for the fiscal years indicated, the percentage that the items in the accompanying
Consolidated Statements of Operations bear to total revenue.
2008 2007 2006
PERCENTAGE OF TOTAL
REVENUE FOR THE YEAR
ENDED MARCH 31,
Revenue:
Subscription and maintenance revenue 88% 88% 86%
Professional services 998
Software fees and other 336
Total revenue 100% 100% 100%
Expenses:
Costs of licensing and maintenance 6% 6% 6%
Cost of professional services 887
Amortization of capitalized software costs 3912
Selling and marketing 29 32 35
General and administrative 15 16 15
Product development and enhancements 12 14 15
Depreciation and amortization of other intangible assets 444
Other expenses (gains), net ———
Restructuring and other 352
Charge for in-process research and development costs ———
Total expenses before interest and taxes 80% 95% 96%
Income from continuing operations before interest and income taxes 20 54
Interest expense, net 1% 2% 1%
Income from continuing operations before income taxes 19 43
Income tax expense (benefit) 71 (1)
Income from continuing operations 12 34
Revenue
Total revenue was favorably affected by foreign exchange of $165 million for fiscal 2008 compared with fiscal 2007 and
$74 million for fiscal 2007 compared with fiscal 2006.
Subscription and Maintenance Revenue
Subscription and maintenance revenue is the amount of revenue recognized ratably during the reporting period from
either: (i) subscription license agreements that were in effect during the period, which generally include maintenance
that is bundled with and not separately identifiable from software usage fees or product sales, or (ii) maintenance
agreements associated with providing customer technical support and access to software fixes and upgrades which are
separately identifiable from software usage fees or product sales.
For fiscal 2008, subscription and maintenance revenue associated with sales made directly to our end-user customers,
which we define as our direct business, was $3.36 billion compared with $3.16 billion for fiscal 2007. Sales made
through our channel partners, which we define as our indirect business, contributed $403 million to subscription and
maintenance revenue compared with $299 million in fiscal 2007, principally due to items reclassified between direct and
indirect business revenues, as well as favorable impacts from foreign exchange and growth relating to contracts
executed in the prior periods.
For fiscal 2008, we added new deferred subscription value related to our direct business of $3.72 billion compared with
$3.11 billion for fiscal 2007. The increase in new deferred subscription value in our direct business was primarily
attributable to the growth in sales of new products and services, continued improvement in the management of contract
renewals, an increase in the number and dollar amounts of large contracts during the fiscal year and foreign exchange.
During fiscal 2008, we renewed 61 license agreements with contract values in excess of $10 million each, for an
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