Autodesk 2000 Annual Report Download - page 9

8FY 00 Autodesk, Inc.
Part I
Forward-Looking Information
The forward-looking statements included in this
report, which reflect management’s best judgment
based on factors currently known, involve risks and
uncertainties. Actual results could differ materially
from those anticipated in the forward-looking state-
ments included herein as a result of a number of
factors, including but not limited to those discussed
in Item 7, “Management’s Discussion and Analysis of
Financial Condition and Results of Operations.”
Item 1. Business
General
Autodesk was incorporated in California in April
1982 and was reincorporated in Delaware in May
1994. Autodesk’s two-dimensional, or 2D, and three-
dimensional,or 3D,products are used across industries
and in the home for architectural design, mechanical
design, spatial data management and mapping,
animation, and visualization applications. Autodesk’s
flagship product, AutoCAD®, is one of the world’s
leading computer-aided design, or CAD, tools, with
an installed base of more than 2.5 million units world-
wide.Autodesk’s software products are sold worldwide,
primarily through a network of resellers and distributors.
In March 1999, Autodesk acquired Discreet Logic
Inc.in a business combination accounted for as a pool-
ing of interests.The Discreet Division develops, assem-
bles, markets and supports nonlinear digital systems
and software for creating, editing and compositing
imagery. The Discreet Division’s products are used
extensively in film and video postproduction, games
and multimedia,broadcasters’graphics,programming
and on-air event coverage,as well as by designers and
architects for 3D visualization and conceptualization.
During the second quarter of fiscal 2000, Autodesk
reorganized its operations into four business divisions
with industry-specific charters: the Design Solutions
Division (consisting primarily of the Mechanical
Computer-Aided Design, or MCAD, and Architecture,
Engineering and Construction, or AEC, market groups
and most of the Personal Solutions Group), the Geo-
graphic Information Systems Solutions, or GIS, Divi-
sion, Autodesk Ventures and the Discreet Division
(consisting of the Kinetix® and Discreet businesses).
Autodesk’s operating results have been aggregated
into two reportable segments: the Discreet Segment
and the Design Solutions Segment, which includes
GIS and Autodesk Ventures. The Design Solutions
and GIS divisions have similar production processes,
customer types and distribution methods. Autodesk
Ventures’ segment information is not material.
The Design Solutions Segment develops and sells
design software products for professionals, occasional
users or consumers who design, draft and diagram.
The end users of the design software products include
architects, engineers, construction firms, designers
and drafters. The Discreet Segment derives revenues
from the sale of its products to creative professionals
for a variety of applications, including feature films,
television programs, commercials, music and corpo-
rate videos, interactive game production, live broad-
casting and Web design. Both segments primarily
distribute their respective products through author-
ized resellers and distributors,and,in some cases,they
also sell their products directly to end-users.
Products
The principal product offerings from the Design
Solutions Segment are described below:
AutoCAD
AutoCAD software is a general-purpose CAD tool used
independently and in conjunction with other specific
applications in fields ranging from construction and
manufacturing to process plant design and mapping.
Professionals utilize AutoCAD for design, modeling,
drafting,mapping,rendering and facility management
tasks. AutoCAD currently runs on Microsoft Windows
95, Windows 98 and Windows NT for Intel and Intel-
compatible hardware platforms.
AutoCAD 2000 was introduced in April 1999. Built as
a platform for efficiently connecting design teams,
AutoCAD 2000 includes enhancements in areas that
influence team and individual productivity, includ-
ing: 3D visualization and geometry creation tools,
Internet integration and in-place reference file edit-
ing. AutoCAD 2000 also introduced key new design
technology including: a new environment for work-
ing with multiple design files, an object property
manager, the AutoCAD DesignCenter™ for drag-and-
drop access of local and web-based design content,
a new high-performance hardcopy system, and a
complete overhaul of the AutoLISP customization
environment. In addition to providing significant new
features, AutoCAD 2000 demonstrated superior relia-
bility, winning the 1999 All-Star Award from Cadalyst
Magazine and the 1999 Editors’ Choice Award from
Cadence Magazine.