In addition, our pro-forma operating margin (excluding stock-based compensation and acquisition-related charges), a ratio that indicates management’s ability to control costs and expenses relative to business operations, increased by one percentage point to 28%. This increase is particularly noteworthy given the continued investments we made in innovation and research and development throughout the year, as well as the increases in global headcount. We added sales and marketing personnel to capitalize on opportunities and leveraged low-cost locations for both R&D and support services.

DRIVING INNOVATION

Our continuing success is based on two key factors: a sharp focus on our customers and a winning product portfolio based on a solid road map for the future.

In dialog with our customers, we have come to the mutual conclusion that future business drivers will be the ability to quickly adapt the business strategy, speed of innovation, and time to market. We see IT as a strategic tool and a powerful enabler of this changing business environment. To succeed, however, requires a new type of IT architecture, one that is as flexible as the business itself and that can be quickly adapted as needed.