Salesforce.com 2008 Annual Report Download - page 50

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Table of Contents
Interest, net consists of investment income on cash and marketable securities balances. Interest, net was $22.7 million during fiscal 2009 and was $24.5
million during the same period a year ago. The decrease was primarily due to a $1.8 million loss for our investment in marketable securities as discussed
under "Liquidity and Capital Resources." Due to the current decline in market interest rates since last year and our focus on capital preservation, investment
income declined when compared to the same periods in the previous year.
Gain on Sale of Investment.
Gain on sale of investment of $1.3 million for fiscal 2008 consists of the gain we recorded when we sold our shares in a privately held professional
service corporation.
Other income (expense).
(In thousands) Fiscal Year Ended January 31, Variance
Dollars 2009 2008
Other income (expense) $ (817) $ 139 $ (956)
Other income (expense) primarily consists of foreign currency translation adjustments. Other income (expense) decreased due to realized and
unrealized gains on foreign currency translations for the year ended January 31, 2009 when compared to the same period a year ago.
Provision for Income Taxes.
Fiscal Year Ended January 31, Variance
Dollars
(In thousands) 2009 2008
Provision for income taxes $ (37,557) $ (23,385) $ (14,172)
Effective tax rate 44% 51%
The fiscal 2009 provision as a percentage of income before provision for income taxes and minority interest was significantly lower than for the same
period a year ago primarily due to a reduced proportion of foreign losses for which no tax benefit can be realized and increased tax credits. The total income
tax benefit recognized in the accompanying consolidated statement of operations related to SFAS 123R was $26.3 million for the current fiscal year. See
Note 7 "Income Taxes" to the Notes to the Consolidated Financial Statements for our reconciliation of income taxes at the statutory federal rate to the
provision for income taxes.
Fiscal Years Ended January 31, 2008 and 2007
Revenues.
Fiscal Year Ended January 31, Variance
(In thousands) 2008 2007 Dollars Percent
Subscription and support $ 680,581 $ 451,660 $ 228,921 51%
Professional services and other 68,119 45,438 22,681 50%
Total revenues $ 748,700 $ 497,098 $ 251,602 51%
Total revenues were $748.7 million for fiscal 2008, compared to $497.1 million during fiscal 2007, an increase of $251.6 million, or 51 percent.
Subscription and support revenues were $680.6 million, or 91 percent of total revenues, for fiscal 2008, compared to $451.7 million, or 91 percent of total
revenues, during fiscal 2007. The increase in subscription and support revenues was due primarily to an increased number of new customers, additional
paying subscriptions from existing customers, and customers who have upgraded. Professional
47