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THE DESCARTES SYSTEMS GROUP INC.

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The following table provides additional analysis of our services and license revenues (in millions of dollars and as<br />

a proportion of total revenues) generated over each of the years indicated:<br />

Year ended January 31, January 31, January 31,<br />

2011 2010 2009<br />

Services revenues 93.7 69.6 61.0<br />

Percentage of total revenues 94% 94% 92%<br />

License revenues 5.5 4.2 5.0<br />

Percentage of total revenues 6% 6% 8%<br />

Total revenues 99.2 73.8 66.0<br />

Our services revenues were $93.7 million, $69.6 million and $61.0 million in 2011, 2010 and 2009, respectively.<br />

The increase in services revenues in 2011 was primarily due to the inclusion of a full year of services revenues<br />

from our March 10, 2009 acquisition of Scancode Systems Inc. (“Scancode”), as well as the inclusion of services<br />

revenues from our acquisitions of Porthus, Imanet and Routing International during 2011.<br />

The increase in services revenues in 2010 from 2009 is primarily due to the inclusion in 2010 of services revenues<br />

from our acquisitions of Oceanwide Inc. (“Oceanwide”) and Scancode in 2010. Additionally, services revenues<br />

increased in 2010 as compared to 2009 from a full year’s contribution from our acquisition of Dexx bvba<br />

(“Dexx”) in October 2008. This increase was partially offset by lower transactional revenues from the GLN in<br />

2010, in part due to lower global shipping volumes, and also by lower revenues in 2010 due to the impact of the<br />

translation of foreign currency revenues in 2010.<br />

Our license revenues were $5.5 million, $4.2 million and $5.0 million in 2011, 2010 and 2009, respectively.<br />

While our sales focus has been on generating services revenues in our on-demand, SaaS business model, we have<br />

continued to see a market for licensing the products in our Delivery Management suite to MRDM enterprises. The<br />

amount of license revenue in a period is dependent on our customers’ preference to license our solutions instead<br />

of purchasing our solutions as a service and we anticipate variances from period to period.<br />

As a percentage of total revenues, our services revenues were 94%, 94% and 92% in 2011, 2010 and 2009,<br />

respectively. Our high percentage of services revenues reflects our continued success in selling to new customers<br />

under our services-based business model rather than our former model that emphasized perpetual license sales.<br />

10

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