Autodesk 2003 Annual Report Download - page 11

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PART I
FORWARD-LOOKING INFORMATION
This Annual Report contains forward-looking statements that are subject to assumptions, risks and
uncertainties, many of which are discussed in this Annual Report, including under “Risk Factors Which May
Impact Future Operating Results.” Actual results may vary from those projected in the forward-looking
statements. Although we believe the expectations reflected in the forward-looking statements are reasonable, we
cannot guarantee future results, levels of activity, performance or achievements. If our assumptions about the
future do not materialize or prove to be incorrect, the results could differ materially from those expressed or
implied by such forward-looking statements. Accordingly, you should not place undue reliance on these forward-
looking statements. A forward-looking statement is any statement that looks to future events, including any
statements of plans, strategies and objectives of management for the future and any statement of assumptions
underlying any of the foregoing. We assume no obligation to update these forward-looking statements to reflect
events that occur or circumstances that exist after the date on which they were made.
ITEM 1. BUSINESS
GENERAL
Autodesk is one of the world’s leading design software and digital content companies for customers
involved in building design, civil engineering, manufacturing, utilities, telecommunications and media and
entertainment. We provide a broad range of integrated and interoperable design software, Internet services,
wireless development platforms and point-of-location applications that empower more than five million users.
Our software products are sold in over 160 countries, both directly to customers and through a network of
resellers and distributors.
We are organized in two reportable operating segments: the Design Solutions Segment, which accounted for
84% of revenue in fiscal 2003, and the Discreet Segment, which accounted for 16% of revenue in fiscal 2003. A
summary of our net revenues, and condensed results of operations for our business segments is found in Note 13
in the Notes to Consolidated Financial Statements.
The Design Solutions Segment derives revenues from the sale of design software products and services to
professionals or consumers who design, build, manage and own building projects or manufactured goods and
from the sale of mapping and infrastructure management technologies to public and private users. The principal
products sold by the Design Solutions Segment include AutoCAD and AutoCAD LT products, which accounted
for 43% of our consolidated net revenues for fiscal 2003. In addition to software products, the Design Solutions
Segment offers a range of services including consulting, support and training. To date, revenues generated from
these services have been insignificant. Approximately 75% of Design Solutions Segment revenue is derived from
several countries including the United States (“U.S.”), Japan, Germany, United Kingdom, Italy, France, Canada
and China. Additionally, sales of new seat licenses accounted for 72% of fiscal 2003 revenues and upgrades
accounted for 18% of fiscal 2003 Design Solutions Segment revenues. In years when major new products are
released, revenue from customers upgrading and from new seat licenses has increased.
The Design Solutions Segment consists of the following industry specific business divisions: Manufacturing
Solutions Division; Infrastructure Solutions Division (formerly Geographic Information Services); Building
Solutions Division; and Platform Technology Division and Other, which includes revenue from our Location
Services Division and Autodesk Professional Services Division. Autodesk Professional Services, a newly created
separate division, provides integrated consulting, training and support for customers seeking maximum benefit
and performance from our products. Our Location Services Division offers a technology platform designed to
deliver location-based applications to wired, mobile and wireless users. We market our product, LocationLogic,
to wireless carriers and network operators around the world.
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