Autodesk 2012 Annual Report Download - page 72

FORWARD-LOOKING INFORMATION
The discussion in this Annual Report on Form 10-K contains trend analyses and other forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-
looking statements are any statements that look to future events and consist of, among other things, our business strategies;
anticipated future financial results; our belief that the strength of our channel network, technological leadership, brand
recognition, breadth of product line and large installed base are benefitting us as global economies recover; expected trends in
certain financial metrics; expected market trends, including the growth of cloud, mobile and social computing; our ability to
successfully expand adoption of our products, our ability to gain market acceptance of new businesses and sales initiatives, and
our ability to successfully increase sales of product suites as part of our overall sales strategy; our belief that emerging
economies continue to present long-term growth opportunities for us; the impact of our restructuring activities; the sufficiency
of our cash to meet our working capital and operating resource expenditure requirements over the next 12 months and our
ability to generate sufficient future taxable income in appropriate tax jurisdictions to realize our net deferred tax assets. In
addition, forward-looking statements also consist of statements involving expectations regarding product acceptance, activity
related to our stock repurchase program, and short-term and long-term cash requirements, as well as, statements involving
trend analyses and statements including such words as “may,” “believe,” “could,” “anticipate,” “would,” “might,” “plan,”
“expect,” and similar expressions or the negative of these terms or other comparable terminology. These forward-looking
statements speak only as of the date of this Annual Report on Form 10-K and are subject to business and economic risks. As
such, our actual results could differ materially from those set forth in the forward-looking statements as a result of a number of
factors, including those set forth below in Item 1A, “Risk Factors,” and in our other reports filed with the U.S. Securities
Exchange Commission. We assume no obligation to update forward-looking statements to reflect events that occur or
circumstances that exist after the date on which they were made.
PART I
ITEM 1. BUSINESS
Note: A glossary of terms used in this Form 10-K appears at the end of this Item 1.
GENERAL
We are a world leading design software and services company, offering customers productive business solutions through
powerful technology products and services. We serve customers in the architecture, engineering and construction;
manufacturing; and digital media and entertainment industries. Our sophisticated software products enable our customers to
experience their ideas before they are real by allowing them to imagine, design and create their ideas and to visualize, simulate
and analyze real-world performance early in the design process by creating digital prototypes. These capabilities allow our
customers to optimize and improve their designs, help save time and money, improve quality and foster innovation. Our
software products are sold globally, both directly to customers and through a network of resellers and distributors.
Segments
We are organized into four reportable operating segments:
• Platform Solutions and Emerging Business (“PSEB”), which accounted for 38% of our net revenue in fiscal 2012,
• Architecture, Engineering and Construction (“AEC”), which accounted for 28% of our net revenue in fiscal 2012,
• Manufacturing (“MFG”), which accounted for 24% of our net revenue in fiscal 2012; and,
• Media and Entertainment (“M&E”), which accounted for 10% of our net revenue in fiscal 2012.
A summary of our net revenue and results of operations for our business segments is found in Note 13, “Segments,” in the
Notes to our Consolidated Financial Statements.
Our PSEB, AEC and MFG segments derive revenue from the sale of licenses for software products and services to
customers who design, build, manage or own building, manufacturing and infrastructure projects. In addition to software
products, the PSEB, AEC and MFG segments offer a range of services including consulting, support and training, largely
dedicated to enhancing our ability to sell licenses to our software products. Our M&E segment derives revenue from the sale of
licenses of software products to creative professionals, post-production facilities, and broadcasters for a variety of applications,
including feature films, television programs, commercials, music and corporate videos, interactive game production, web
design and interactive web streaming. In addition, our animation products produced by our M&E segment are often used by
customers of products from our other segments for the visualization of their designs.
4
• Flagship products, which accounted for approximately 58% of our net revenue in fiscal 2012, are our core standalone
horizontal, vertical and model-based design products including AutoCAD, AutoCAD LT, AutoCAD Civil 3D, AutoCAD
Mechanical, AutoCAD Architecture, Autodesk 3ds Max and Autodesk Maya.
• Suites, which accounted for approximately 27% of our net revenue in fiscal 2012, are a combination of products that
target a specific user objective (product design, building design, etc.) and support a set of workflows for that objective,
including Autodesk Product Design Suites, Autodesk Building Design Suites, Autodesk Educational Suites and Autodesk
Entertainment Creation Suites.
• New and Adjacent products, which accounted for approximately 16% of our net revenue in fiscal 2012, are new product
offerings as well as products that are not considered flagship or suites including Autodesk Creative Finishing products,
Autodesk Moldflow products, Autodesk Navisworks products and Autodesk Robot Structural Analysis.
We were incorporated in California in April 1982 and were reincorporated in Delaware in May 1994. Our principal
executive office is located at 111 McInnis Parkway, San Rafael, California 94903 and the telephone number at that address is
[phone]. Our internet address is www.autodesk.com. The information posted on our website is not incorporated into this
Annual Report on Form 10-K. Our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form
8-K and amendments to reports filed or furnished pursuant to Sections 13(a) and 15(d) of the Securities Exchange Act of 1934,
as amended, are available free of charge on the Investor Relations portion of our web site at www.autodesk.com as soon as
reasonably practicable after we electronically file such material with, or furnish it to, the SEC.
The principal product offerings from Autodesk’s different segments are as follows:
Our PSEB segment includes our design product, AutoCAD. Our AutoCAD product is a platform product that underpins
our design product offerings for all the industries we serve. For example, our AEC and MFG segments offer tailored versions of
AutoCAD software for the industries they serve. Our AutoCAD product also provides a platform for our developer partners to
build custom solutions for a range of diverse design-oriented markets. PSEB’s revenue primarily includes revenue from sales of
licenses of our design products, AutoCAD and AutoCAD LT, as well as the Autodesk Design Suite and many other design and
consumer products. The segment’s principal product offerings included the following during fiscal 2012:
•
AutoCAD software, which is our largest revenue-generating product, is a customizable and extensible computer-aided
design (CAD) application for professional design, drafting, detailing, and visualization. AutoCAD software provides digital
tools that can be used independently and in conjunction with other specific applications in fields ranging from construction to
manufacturing, civil engineering and process plant design.
•
AutoCAD LT software is purpose built for professional drafting and detailing. AutoCAD LT includes document sharing
capability without the need for software customization or certain advanced functionality found in our AutoCAD product. Users
can share all design data with team members who use our AutoCAD product or other Autodesk products built on AutoCAD.
AutoCAD LT software is our second largest revenue-generating product.
Our AEC software products help to improve the way building, civil infrastructure, process plant and construction projects
are designed, built and managed. A broad portfolio of solutions enables greater efficiency, accuracy and sustainability across the
entire project lifecycle. Our AEC solutions include advanced technology for building information modeling (“BIM”),
AutoCAD-based design and documentation productivity software, sustainable design analysis applications, collaboration and
project management solutions. BIM, an integrated process for building and infrastructure design, analysis, documentation and
construction, uses consistent, coordinated information to improve communication and collaboration between the extended
project team. AEC provides a comprehensive portfolio of BIM solutions that help customers deliver projects faster and more
economically, while minimizing environmental impact. The segment’s principal product offerings included the following
during fiscal 2012: