Autodesk 2003 Annual Report Download - page 29

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Net revenues for the Discreet Segment were $128.5 million in fiscal 2003 as compared to $156.1 million in
fiscal 2002 as advanced system sales were significantly affected by the timing of new product releases and delays
in customer purchases as those customers were severely impacted by the economic slow down in the media,
advertising and entertainment sectors. Discreet advanced system sales are dependent upon capital spending from
post production companies. Demand from post production companies is largely dependent upon television
advertising spending. Television advertising spending has been weak over the past two years.
In the Design Solutions Segment, net revenues from sales of combined AutoCAD and AutoCAD LT
products decreased to $357.0 million in fiscal 2003 from $439.8 million in fiscal 2002 due primarily to a weak
spending environment across the industries we serve, and reduced revenues in anticipation of new product
releases. Although we have been reducing our dependence on key product lines, sales of AutoCAD, AutoCAD
upgrades and AutoCAD LT continue to be a significant portion of our net revenues. Such sales, which are
reflected in the net revenues for the Platform Technology Division and Other, accounted for 43 percent of our
consolidated net revenues in fiscal 2003 and 46 percent of our consolidated net revenues in fiscal 2002. Should
sales of AutoCAD, AutoCAD upgrades and AutoCAD LT products decrease as a result of weakened demand due
to poor economic conditions in the industries that constitute our customer base, our results of operations will be
adversely affected.
The weaker value of the U.S. dollar, relative to international currencies, had a positive impact on net
revenues in fiscal 2003. Had exchange rates from the prior year been in effect in fiscal 2003, translated
international revenue billed in local currencies would have been $14.1 million lower. Changes in the value of the
U.S. dollar may have a significant impact on net revenues in fiscal 2004.
International sales accounted for approximately 61 percent of our net revenues in fiscal 2003 as compared to
66 percent in the prior fiscal year. We believe that international sales will continue to be a significant portion of
total revenues. Many world economies are in the midst of current economic slowdowns. Economic weakness in
any of the countries which contribute a significant portion of our net revenues would have a material adverse
effect on our business.
Our net revenues for fiscal 2002 were $947.5 million as compared to $936.3 million in fiscal 2001.
Increased net revenues in Asia Pacific and the Americas were partially offset by lower sales in Europe.
Net revenues for the Discreet Segment were $156.1 million in fiscal 2002 as compared to $193.2 million in
the prior fiscal year as advanced system sales were significantly affected by a slowdown in the media, advertising
and entertainment sectors upon which product sales depend.
Net revenues for the Design Solutions Segment were $791.4 million in fiscal 2002 as compared to $743.1
million in the prior fiscal year. The overall increase in segment revenues was attributable to a stronger portfolio
of product offerings, such as Autodesk Inventor, Autodesk Architectural Desktop, Autodesk Map, Autodesk
Land Desktop and AutoCAD 2002, and increased customer demand for greater productivity tools. Sales of
AutoCAD, AutoCAD upgrades and AutoCAD LT accounted for 46 percent of our consolidated net revenues in
fiscal 2002 and 47 percent of our consolidated net revenues in fiscal 2001.
The stronger value of the U.S. dollar, relative to international currencies, had a negative impact on net
revenues in fiscal 2002. Had exchange rates from the prior year been in effect in fiscal 2002, translated
international revenue billed in local currencies would have been $23.2 million higher.
International sales accounted for approximately 66 percent of our net revenues in fiscal 2002 as compared to
60 percent in the prior fiscal year. We believe that international sales will continue to be a significant portion of
total revenues.
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