Autodesk 2008 Annual Report Download - page 105

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
The discussion in our MD&A contains trend analyses and other forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.
Forward-looking statements are any statements that look to future events and consist of, among other things, our
business strategies, anticipated future operating results, including net revenue, product backlog, upgrade,
crossgrade and maintenance revenue, the effect of fluctuations in exchange rates on net revenue and expenses,
costs and expenses, including cost of revenue and operating expenses, future income, our anticipated tax rate,
planned product retirement and annual release cycle. In addition, forward-looking statements also consist of
statements involving expectations regarding product acceptance, continuation of our stock repurchase program,
and short-term and long-term cash requirements, as well as, statements involving trend analyses and statements
including such words as “may,” “believe,” “could,” “anticipate,” “would,” “might,” “plan,” “expect,” and
similar expressions or the negative of these terms or other comparable terminology. These forward-looking
statements speak only as of the date of this Annual Report on Form 10-K and are subject to business and
economic risks. As such, our actual results could differ materially from those set forth in the forward-looking
statements as a result of the factors set forth above in Item 1A, “Risk Factors,” and in our other reports filed
with the Securities and Exchange Commission. We assume no obligation to update the forward-looking
statements to reflect events that occur or circumstances that exist after the date on which they were made.
Strategy
Our goal is to be the world’s leading 2D and 3D design software and services company for the architecture,
engineering, construction, manufacturing, geospatial mapping and digital media markets. Our focus is to offer
our customers the ability to visualize, simulate and analyze real-world performance early in the design process to
foster innovation, enhance quality, and save time and money. Worldwide business trends such as globalization,
sustainability, investment in infrastructure, and the price of oil are creating pressure on our customers to increase
innovation while improving productivity. Our customers are seeking differentiation through design, and we
believe our products provide a competitive advantage to succeed in this environment.
We believe that our ability to make technology available to mainstream markets is one of our competitive
advantages. By innovating in existing technology categories, we bring powerful design products to volume
markets. Our products are designed to be easy to learn and use, and to provide customers low cost of deployment,
low total cost of ownership and a rapid return on investment. In addition, our software architecture allows for
extensibility and integration.
We have created a large global community of resellers, third-party developers and customers, which
provides us with a broad reach into volume markets. Our reseller network is extensive and provides our
customers with global resources for the purchase and support of our products as well as resources for effective
and cost efficient training services. We have a significant number of registered third-party developers, creating
products that operate with our software products, further extending our reach into volume markets. Users trained
on our products are broadly available both from universities and the existing work force, reducing the cost of
training for our customers. To train the next generation of users, we offer education programs, including
classroom support, standardized curricula, instructor development, and specially priced software-purchasing
options.
Our growth strategy derives from these core strengths. We continue to increase the business value of our
desktop design tools in a number of ways. We improve the performance and functionality of existing products
with each new release. Our most recent product release commenced in March 2008. Beyond our 2D horizontal
design products, we develop products addressing industry-specific needs including 2D vertical and 3D model-
based products. We continually strive to improve our product functionality and specialization by industry while
increasing product interoperability and usability. By doing this, we drive technology democratization and
increase customer loyalty.
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2008 Annua
l Report