Autodesk 2008 Annual Report Download - page 115

as compared to fiscal 2007. Maintenance revenue increased to 26% of Design Solutions Segment revenue during
fiscal 2008 compared to 24% in fiscal 2007.
Net revenue for the Media and Entertainment Segment increased 10% during fiscal 2008, as compared to
fiscal 2007. During fiscal 2008, net revenue from our Animation business line increased 22% due to increases in
revenue from our animation products 3ds Max and Maya. Net revenue growth from Advanced Systems was flat
as compared to the prior fiscal year due to the migration of our Advanced Systems solutions from SGI hardware
to PC-based hardware systems which have a lower price but generate better margins.
Fiscal 2007 Net Revenue Compared to Fiscal 2006 Net Revenue
License and Other Revenue
The 12% increase in net revenue during fiscal 2007, as compared to fiscal 2006, was due to an increase in
sales of new seats, an increase in the sales of subscription contracts which are recognized as maintenance revenue
and an increase in crossgrade revenue. Revenue from the sale of new seats increased due to volume growth and
higher average sales prices in our AutoCAD, AutoCAD LT, and our 3D model-based design products. In
addition, the introduction of our Maya and StudioTools products resulting from the January 2006 acquisition of
Alias contributed to the growth in revenue during fiscal 2007. We experienced strong growth in all three of our
geographic regions and strong growth rates in the emerging economies of Asia Pacific, Eastern Europe and the
Middle East, and Latin America from fiscal 2006 to fiscal 2007. These increases were partially offset by a
decline in revenue from upgrades resulting primarily from the relatively smaller size of the upgradeable base of
our AutoCAD-based products during fiscal 2007 compared to the upgradeable base of our AutoCAD-based
products as of the same period in the prior fiscal year.
Growth in license and other revenue during fiscal 2007, as compared to fiscal 2006, was primarily due to an
increase in the sale of commercial new seats for most major products driven by our new product releases during
fiscal 2007. The 19% increase in revenue from the sale of new seats from fiscal 2006 to fiscal 2007 was driven
by volume growth in AutoCAD, AutoCAD LT and most major products, as well as growing sales of our 3D
model-based design products. These increases were partially offset by a 7% decrease in revenue from upgrades
driven by the relatively smaller size of the upgradeable base of our AutoCAD-based products in fiscal 2007
compared to the size of the upgradeable base of our AutoCAD-based products in fiscal 2006 and the success of
our Subscription Program in fiscal 2006. Revenue from the sales of services, training and support are immaterial
for all periods presented.
Maintenance Revenue
Maintenance revenue from our Subscription Program increased 54% for fiscal 2007 as compared to the prior
fiscal year. As a percentage of total net revenue, maintenance revenue was 23% for fiscal 2007 and 18% for
fiscal 2006. The upgradeable installed base of the AutoCAD-based products not on subscription during fiscal
2007 was smaller than the upgradeable installed base of AutoCAD-based products not on subscription during
fiscal 2006. As a result, overall maintenance revenue from subscriptions exceeded revenue from upgrades in
fiscal 2007.
Deferred revenue consists primarily of deferred maintenance revenue from our Subscription Program. To a
lesser extent, deferred revenue consists of deferred license and other revenue derived from Autodesk Buzzsaw
and Autodesk Constructware services, consulting services and deferred license sales. Backlog from current
software license product orders which we have not yet shipped consists of orders for currently available license
software products from customers with approved credit status and may include orders with current ship dates and
orders with ship dates beyond the current fiscal period. Aggregate backlog at January 31, 2007 and January 31,
2006 was $395.8 million and $283.5 million, respectively, of which $17.0 million for both fiscal years related to
current software license product orders which have not yet shipped at the end of each respective fiscal year.
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2008 Annua
l Report