Autodesk 2008 Annual Report Download - page 5

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CEO’s Letter
Across the board, we were pleased with our
financial performance in fiscal 2008. Here are a
few highlights:
xGAAP gross margin increased to 90 percent
from 88 percent in fiscal 2007. Non-GAAP
gross margin increased to 91 percent
compared to 89 percent in fiscal 2007.
xGAAP operating margin increased to 21
percent from 19 percent in fiscal 2007.
Non-GAAP operating margin increased to
27 percent from 25 percent in fiscal 2007.
xCash generated from operating activities
increased 23 percent to $709 million,
compared to fiscal 2007.
xTotal deferred revenue increased 34
percent to $506 million, compared to
fiscal 2007.
Strong Divisional Performance
The Design Solutions Group represented 87 percent
of total revenue in fiscal 2008 and increased 19
percent to $1.90 billion, led by strong growth in
each design division.
x Platform Solutions and Emerging Business
revenue increased 13 percent to $997
million, compared to fiscal 2007. This
division represented 46 percent of total
revenue. Our core products of AutoCAD and
AutoCAD LT continue to be the preeminent
design tools and performed very well in the
market. AutoCAD LT posted exceptionally
strong growth compared to fiscal 2007.
x Architecture, Engineering, and
Construction revenue increased 26 percent
to $480 million, compared to fiscal 2007.
This division represented 22 percent of
total revenue. Revit-based products and
AutoCAD Civil 3D software continue to
post strong growth within this division. We
are gaining traction with our rich suite of
design solutions built on the Revit platform,
enabling a design concept pioneered by
Autodesk called building information
modeling (BIM). BIM is the creation
and use of coordinated, computable
information about a building project in
design and construction. The ability to keep
this information up-to-date and accessible
in an integrated digital environment gives
architects, engineers, builders, and owners
a clear overall vision of their projects and
contributes to the ability to make better
decisions faster, helping to improve quality
and increase the profitability of projects.
x Manufacturing Solutions revenue increased
25 percent to $418 million, compared to
fiscal 2007. This division represented 19
percent of total revenue. Performance
continues to be positively influenced by
the continued adoption of 3D modeling
solutions. Our Inventor family of products
is still the world’s best-selling 3D
mechanical design software. AutoCAD
Mechanical software also posted very
strong year-over-year growth.
x Media & Entertainment revenue increased
10 percent to $259 million, compared
to fiscal 2007. This division represented