Autodesk 2012 Annual Report Download - page 104

Net revenue in the APAC geography increased by 20%, or 16% on a constant currency basis, during fiscal 2011, as
compared to fiscal 2010, primarily due to a 24% increase in new seat revenue and a 48% increase in upgrade revenue. Net
revenue expansion in the APAC geography during fiscal 2011 occurred in virtually all countries, led by Japan and followed by
South Korea, Australia and India.
Net revenue in emerging economies increased 17% during fiscal 2011 as compared to fiscal 2010, primarily due to
revenue from China, the Russian Federation, India, Brazil and Poland. This growth was a significant factor in our international
sales growth during fiscal 2011. Revenue from emerging economies represented 15% of net revenue for both fiscal 2011 and
2010.
International net revenue represented 71% of our net revenue in fiscal 2011 and 69% of our net revenue in fiscal 2010.
Net Revenue by Operating Segment
We have four reportable segments: Platform Solutions and Emerging Business (“PSEB”), Architecture, Engineering and
Construction (“AEC”), Manufacturing (“MFG”) and Media and Entertainment (“M&E”). Location Services, which we
disposed of in February 2009, is not included in any of the above reportable segments and is reflected as Other.
Net revenue for PSEB increased 15% during fiscal 2011, as compared to fiscal 2010, primarily due to a 20% increase in
revenue from both our AutoCAD and AutoCAD LT products, offset by a net 21% decrease in revenue from all other PSEB
products and services.
Net revenue for AEC increased 11% during fiscal 2011, as compared to fiscal 2010, primarily due to a 24% increase in
revenue from our Revit products, a 6% increase in revenue from our AutoCAD Civil 3D products, and a 27% increase in
revenue from our Navisworks products.
Net revenue for MFG increased 22% during fiscal 2011, as compared to fiscal 2010, primarily due to a 23% increase in
revenue from our Autodesk Inventor products and a 28% increase in our AutoCAD Mechanical products.
Net revenue for M&E increased 4% during fiscal 2011, as compared to fiscal 2010, primarily due to a 5% increase in
revenue from our Animation product group and a 3% increase in revenue from Creative Finishing. The increase in Animation
revenue was primarily due to a 4% increase in revenue from Autodesk 3ds Max.
Cost of Revenue and Operating Expenses
Cost of Revenue
Cost of revenue:
License and other
Maintenance
As a percentage of net
revenue
Fiscal Year
Ended
January 31,
2012
(in millions)
$ 187.1
42.0
$ 229.1
10%
Increase compared to
prior fiscal year
$
$ 24.9
7.6
$ 32.5
%
15%
22%
17%
Fiscal Year
Ended
January 31,
2011
$ 162.2
34.4
$ 196.6
10%
Increase (decrease)
compared to
prior fiscal year
$
$(9.8)
14.6
$ 4.8
%
(6)%
74 %
3%
Fiscal Year
Ended
January 31,
2010
$ 172.0
19.8
$ 191.8
11%
Cost of license and other revenue includes labor costs of order fulfillment and costs of fulfilling consulting and training
services contracts and collaborative project management services contracts. Cost of license and other revenue also includes
stock-based compensation expense, direct material and overhead charges, amortization of purchased technology, professional
services fees and royalties. Direct material and overhead charges include the cost of hardware sold (mainly PC-based
workstations for Creative Finishing in the M&E segment), costs associated with transferring our software to electronic media,
printing of user manuals and packaging materials and shipping and handling costs.
Cost of license and other revenue increased 15% during fiscal 2012, as compared to fiscal 2011 primarily due to
increased support costs and lower margin consulting engagements. Cost of license and other revenue decreased 6% during
fiscal 2011, as compared to fiscal 2010 primarily due to savings on shipping and handling costs resulting from the switch to a
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lower cost vendor as well as an increase in electronic order fulfillment.