Autodesk 2012 Annual Report Download - page 100

rate changes during fiscal 2012, as compared to fiscal 2011. Had applicable exchange rates from fiscal 2011 been in effect
during fiscal 2012 and had we excluded foreign exchange hedge gains and losses from fiscal 2012, (“on a constant currency
basis”), net revenue would have increased 12% compared to the prior fiscal year. During fiscal 2012, total spend, defined as
cost of revenue plus operating expenses, increased 11% compared to the prior fiscal year as reported and increased 13% on a
constant currency basis. Changes in the value of the U.S. dollar may have a significant effect on net revenue, total spend and
income from operations in future periods. We use foreign currency contracts to reduce the exchange rate effect on a portion of
the net revenue of certain anticipated transactions, but do not attempt to completely mitigate the impact of fluctuation of such
foreign currency against the U.S. dollar.
We rely significantly upon major distributors and resellers in both the U.S. and international regions, including Tech Data
Corporation and its global affiliates (collectively, “Tech Data”). Tech Data accounted for 17% and 16% of our consolidated net
revenue during fiscal year 2012 and 2011, respectively. On October 27, 2011, Tech Data purchased certain assets of Mensch
und Maschine Software (“MuM”), which has been a distributor of our products in Europe. The acquisition concentrates
additional sales through Tech Data, which on a consolidated basis would have accounted for 21% and 22% of our net revenue
for fiscal years 2012 and 2011, respectively, if the acquisition had taken place at the beginning of fiscal 2011.We believe our
business is not substantially dependent on Tech Data. Our customers through Tech Data are the resellers and end users who
purchase our software licenses and services. Should any of the agreements between us and Tech Data be terminated for any
reason, we believe the resellers and end users who currently purchase our products through Tech Data would be able to
continue to do so under substantially the same terms from one of our many other distributors without substantial disruption to
our revenue.
Our primary goals for fiscal 2013 are to grow revenue and improve our operating margin percentage by delivering our
market-leading products and solutions to our customers and investing in product functionality and new product lines, including
suites offerings. However, there can be no assurance that we will achieve our financial goals and improve our financial results.
Additionally, we believe that unemployment rates and the availability of credit to major industries we serve are important
indicators for our business; if global economic conditions deteriorate we may not achieve our financial goals.
Revenue from flagship products was 58% of total net revenue during fiscal 2012, respectively, and increased 8% for
fiscal 2012, as compared to fiscal 2011. Revenue from suites was 27% of total net revenue for fiscal 2012, and increased 31%
as compared to fiscal 2011. During fiscal 2012, we released our new design and creation suites that include English language
versions of our Autodesk Design Suite, Autodesk Factory Design Suite, Autodesk Product Design Suite, Autodesk Building
Design Suite, Autodesk Entertainment Creation Suite, Autodesk Infrastructure Design Suite and Autodesk Plant Design Suite,
as well as a Japanese language version of our Autodesk Entertainment Creation Suite. Suites revenue and growth rates for
suites consist primarily of revenue from our pre-existing suite families, such as Inventor and Revit suites. Revenue from new
and adjacent products was 16% of total net revenue during the fiscal 2012, and increased 8% as compared to fiscal 2011. We
anticipate, as our new and existing customers migrate from our stand-alone products, that our revenue from suites will increase
as a percentage of revenue and that our revenue from our flagship and new and adjacent products will decline as a percentage
of revenue.
At January 31, 2012, we had $1,604.1 million in cash and marketable securities. We completed fiscal 2012 with a higher
deferred revenue balance and a higher accounts receivable balance as compared to fiscal 2011. Our deferred revenue balance at
January 31, 2012 included $633.3 million of customer maintenance contracts, which will be recognized as revenue ratably over
the life of the contracts. Our maintenance contracts are for a term of one year, but may be two or three year, or occasionally as
long as five year terms. We repurchased 9.7 million shares of our common stock for $327.4 million during fiscal 2012.
Comparatively, we repurchased 9.0 million shares of our common stock for $280.3 million during fiscal 2011.
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