• Total revenue increased 55% to
• Service revenue increased 89% to
$80.7 millionduring fiscal 2012.
• Service revenue as a percentage of total revenue increased to 38% during
fiscal 2013 from 32% during fiscal 2012, which reflected the increasing
recurring revenue in the business model and the rapid adoption of higher margin subscriptions services in our customer base.
• As of
and investments. • Cash flow provided by operating activities increased 48% to
$114.5 millionduring fiscal 2013 from $77.4 millionduring fiscal 2012. • Deferred revenue increased 84% to $249.2 millionas of July 31, 2013
our support and maintenance and all our subscriptions services. • We completed the reorganization of our corporate structure and
intercompany relationships to more closely align with the international
nature of our business activities. Through changes in international
procurement and sales operations, our corporate structure may cause
short-term volatility but is expected to reduce our overall effective
tax rate over the long term.
We believe that the growth of our business and our short and long term success are dependent upon many factors, including our ability to extend our technology leadership, grow our base of end-customers, expand deployment of our platform within existing end-customers, and focus on end-customer satisfaction. While these areas present significant opportunities for us, they also pose challenges and risks that we must successfully address in order to sustain the growth of our business and improve our operating results. To manage any future growth effectively, we must continue to improve and expand our information technology and financial infrastructure, our operating and administrative systems and controls, and our ability to manage headcount, capital, and processes in an efficient manner. Additionally, we face intense competition in our market, and to succeed, we need to innovate and offer products that are differentiated from existing infrastructure products, as well as effectively hire, retain, train, and motivate qualified personnel and senior management. If we are unable to successfully address these challenges, our business, operating results, and prospects could be adversely affected.
Key Financial Metrics
We monitor the key financial metrics set forth below to help us evaluate growth trends, establish budgets, measure the effectiveness of our sales and marketing efforts, and assess operational efficiencies. We discuss revenue, gross margin, and the components of operating income (loss) and margin below under "-Financial Overview" and "-Results of Operations." Deferred revenue, cash flow provided by operating activities, and free cash flow(non-GAAP) are discussed immediately below the following table.