Autodesk 2014 Annual Report Download - page 115

2013 Annual Report
2014 Form 10-K 41
Included within our guidance is the expected reduction in our operating margin for our acquisition of Delcam plc
(“Delcam”).
We remain diligent about managing our spend while making essential investments to drive growth. If we are unable to
successfully achieve our major business initiatives we may not achieve our financial goals.
Results of Operations
Fiscal Year
Ended
January 31,
2014
Increase (decrease)
compared to
prior fiscal year
Fiscal Year
Ended
January 31,
2013
Increase (decrease)
compared to
prior fiscal year
Fiscal Year
Ended
January 31,
2012
$ % $ %
(in millions)
Net Revenue:
License and other (1) $ 1,254.9 $ (109.2) (8)% $ 1,364.1 $ 29.7 2 % $ 1,334.4
Subscription (1) 1,019.0 70.9 7 % 948.1 66.9 8 % 881.2
$ 2,273.9 $ (38.3) (2)% $ 2,312.2 $ 96.6 4 % $ 2,215.6
Net Revenue by Geographic Area:
Americas $ 818.9 $ (17.3) (2)% $ 836.2 $ 37.7 5 % $ 798.5
Europe, Middle East and Africa 851.8 (16.7) (2)% 868.5 6.3 1 % 862.2
Asia Pacific 603.2 (4.3) (1)% 607.5 52.6 9 % 554.9
$ 2,273.9 $ (38.3) (2)% $ 2,312.2 $ 96.6 4 % $ 2,215.6
Net Revenue by Operating Segment:
Platform Solutions and
Emerging Business (1) $ 789.2 $ (53.8) (6)% $ 843.0 $ 9.9 1 % $ 833.1
Architecture, Engineering and
Construction (1) 730.6 29.5 4 % 701.1 74.7 12 % 626.4
Manufacturing (1) 579.4 5.6 1 % 573.8 33.5 6 % 540.3
Media and Entertainment (1) 174.7 (19.6) (10)% 194.3 (21.5) (10)% 215.8
$ 2,273.9 $ (38.3) (2)% $ 2,312.2 $ 96.6 4 % $ 2,215.6
____________________
(1) For comparability, the presentation of the balances at January 31, 2013 and January 31, 2012 were adjusted to align to current year
presentation.
Fiscal 2014 Net Revenue Compared to Fiscal 2013 Net Revenue
License and Other Revenue
License and other revenue consists of two components: all forms of product license revenue and other revenue. Product
license revenue includes: software license revenue from the sale of new seat licenses and upgrades and product revenue for
Creative Finishing. Other revenue includes revenue from consulting, training, Autodesk Developers Network and Creative
Finishing customer support, and is recognized over time, as the services are performed.
Total License and other revenue decreased 8% during fiscal 2014 as compared to fiscal 2013. This decrease was
primarily due to a 7% decrease in product license revenue as compared to the same period in the prior fiscal year. The decline in
product license revenue was primarily due to a decrease of 15% in revenue from our flagship products partially offset by an
increase of 10% in our suites products.
During fiscal 2014, the 7% decrease in product license revenue was due to a 21% decrease in the number of seats sold
partially offset by a 14% increase in the average net revenue per seat. Product license revenue, as a percentage of License and
other revenue, was 84% for fiscal 2014 and 83% for fiscal 2013.
During fiscal 2014, total other revenue represented 16% of License and other revenue. Other revenue decreased by 11%
during fiscal 2014 as compared to fiscal 2013. This decrease is primarily due to a 56% decrease in our education products as a