For 3Q16, $KEYS' non-GAAP revenue grew 8% YoverY to $718MM vs. $665MM in 3Q15. Non-GAAP core revenue, which excludes revenue from acquisitions and the impact of currency, grew 2% YoverY. The company's GAAP operating margin was 15%, while non-GAAP operating margin was 20% for 3Q16.
$MSFT said that with the company's annuity mix as high as it is, it can impact the uptick in the transactional business either way. The company's focus will always be making sure it has a clear road map for customers to make long term commitments through annuity.