Autodesk 2003 Annual Report Download - page 28

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result in an annual operating expense run rate between $650.0 million to $660.0 million, exclusive of any
additional restructuring or unusual charges. At this operating expense level, we expect to continue to remain
profitable at recent levels of revenue and be able to fund investments we believe will increase future revenues
and operating margins.
Throughout fiscal 2003, we maintained a financially strong balance sheet and we generated $86.2 million of
cash from our operating activities. We finished the year with $411.0 million in cash and marketable securities
and a significantly higher deferred revenue balance as compared to the previous year. Over 60 percent of the
deferred revenues balance at January 31, 2003 consisted of customer subscription contracts, which as described
previously will be recognized as revenue ratably over the life of the contracts.
Results of Operations
Net Revenues
Increase (decrease)
compared to prior
fiscal year
Increase (decrease)
compared to prior
fiscal year
Fiscal 2003 $percent Fiscal 2002 $percent Fiscal 2001
(in millions)
Net Revenues by Geographic Area:
Americas .................... $374.2 $ (59.5) (14%) $433.7 $ 1.0 0% $432.7
Europe ...................... 263.4 (27.4) (9%) 290.8 (5.2) (2%) 296.0
Asia Pacific .................. 187.3 (35.7) (16%) 223.0 15.4 7% 207.6
$824.9 $(122.6) (13%) $947.5 $ 11.2 1% $936.3
Net Revenues by Operating Segment:
Design Solutions .............. $696.4 $ (95.0) (12%) $791.4 $ 48.3 6% $743.1
Discreet ..................... 128.5 (27.6) (18%) 156.1 (37.1) (19%) 193.2
$824.9 $(122.6) (13%) $947.5 $ 11.2 1% $936.3
Net Design Solutions Revenues:
Manufacturing Solutions Division . $118.8 $ (11.4) (9%) $130.2 $ (3.8) (3%) $134.0
Infrastructure Solutions Division . . 103.4 (13.0) (11%) 116.4 18.9 19% 97.5
Building Solutions Division ..... 73.5 (9.4) (11%) 82.9 25.3 44% 57.6
Platform Technology Division and
Other ..................... 400.7 (61.2) (13%) 461.9 7.9 2% 454.0
$696.4 $ (95.0) (12%) $791.4 $ 48.3 6% $743.1
Our net revenues for fiscal 2003 were $824.9 million as compared to $947.5 million in fiscal 2002. Net
revenues decreased in all three geographic areas. As previously described, the overall decrease was primarily due
to a difficult selling environment across the industries we serve and by a slow year for new product releases.
With most of our competitors suffering similar slowdowns, we do not believe we have lost market share to
competitors. The timing of our product cycles typically impact the amount of sales in periods when new releases
occur. Should the difficult economic environment continue, our net revenues in fiscal 2004 will be adversely
affected.
Net revenues in the Americas decreased to $374.2 million in fiscal 2003 from $433.7 million in fiscal 2002
due primarily to lower sales of Design Solutions products as a result of poor economic conditions in the
industries that constitute our customer base. Net revenues in Europe decreased to $263.4 million in fiscal 2003
from $290.8 million in 2002 due to the impact of lower customer spending across product lines. Net revenues in
Asia Pacific decreased to $187.3 million in fiscal 2003 from $223.0 million in fiscal 2002 due primarily to
weakness in the Japanese economy.
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