Autodesk 2008 Annual Report Download - page 118

Download and view the complete annual report

Please find page 118 of the 2008 Autodesk annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 176

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176

Marketing and Sales
Fiscal year
Ended
January 31,
2008
Increase
compared to
prior fiscal year
Fiscal year
Ended
January 31,
2007
Increase
compared to
prior fiscal year
Fiscal year
Ended
January 31,
2006
$ % $ %
(in millions)
Marketing and sales .............. $842.7 $146.6 21% $696.1 $140.1 25% $556.0
As a percentage of net revenue ..... 39% 38% 36%
Marketing and sales expenses include salaries, benefits and bonuses for our marketing and sales employees,
travel and facility costs for our marketing, sales, dealer training and support, stock-based compensation expense
under SFAS 123R for stock awards granted to marketing and sales employees, labor costs of order processing,
dealer and sales commissions and overhead charges. These expenses also include costs of programs aimed at
increasing revenue, such as advertising, trade shows and expositions, and various sales and promotional
programs designed for specific sales channels and end users.
Marketing and sales expense increased 21% during fiscal 2008, as compared to fiscal 2007, primarily due to
$95.5 million of higher employee-related costs driven by increased marketing and sales headcount and increased
commissions and commission accelerators from higher revenue in fiscal 2008 as compared to fiscal 2007. The
increase was also due to $18.5 million of increased marketing and promotion costs related to product launches,
trade shows, branding, and demand generation.
The increase of marketing and sales expenses during fiscal 2007, as compared to fiscal 2006, was primarily
due primarily to a $55.8 million increase in employee-related costs driven by increased marketing and sales
headcount, $41.9 million of stock-based compensation expense due to the adoption of SFAS 123R in fiscal 2007,
and $29.6 million of increased marketing and promotion costs related to product launches, trade shows, branding,
and demand generation. Marketing and sales headcount increased as a result of organic growth as well as the
acquisition of Alias.
We expect to continue to invest in marketing and sales of our products to develop market opportunities, to
promote our competitive position and to strengthen our channel support. As a result, we expect marketing and
sales expense to increase in absolute dollars, but remain relatively consistent as a percentage of net revenue in
fiscal 2009, as compared to fiscal 2008.
Research and Development
Fiscal year
Ended
January 31,
2008
Increase
compared to
prior fiscal year
Fiscal year
Ended
January 31,
2007
Increase
compared to
prior fiscal year
Fiscal year
Ended
January 31,
2006
$ % $ %
(in millions)
Research and development .......... $485.3 $79.0 19% $406.3 $103.1 34% $303.2
As a percentage of net revenue ...... 22% 22% 20%
Research and development expenses, which are expensed as incurred, consist primarily of salaries, benefits,
and bonuses for software engineers, fees paid to software development firms and independent contractors, stock-
based compensation expense under SFAS 123R for stock awards granted to research and development
employees, overhead charges, purchased in-process technology and depreciation of computer equipment used in
software development.
Research and development expenses increased 19% during fiscal 2008, as compared to fiscal 2007,
primarily due to an increase in employee related costs of $33.2 million driven by increased research and
42