Autodesk 2004 Annual Report Download - page 31

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Throughout fiscal 2004, we maintained a strong balance sheet and generated $220.1 million of cash
from our operating activities as compared to $85.6 million in the previous year. We finished the year with
$529.5 million in cash and marketable securities, a higher deferred revenue balance and an improved days
sales outstanding position as compared to the previous year. Approximately 65% of the deferred revenues
balance at January 31, 2004 consisted of customer subscription contracts which will be recognized as
revenue ratably over the life of the contracts, which is generally one year.
Results of Operations
Net Revenues
Increase
(decrease)
compared to
prior
fiscal year
Increase
(decrease)
compared to
prior
fiscal year
Fiscal 2004 $ percent Fiscal 2003 $ percent Fiscal 2002
(in millions)
Net Revenues:
License and Other ............... $836.7 $ 87.8 12% $748.9 $(152.9) (17)% $901.8
Maintenance .................... 114.9 38.9 51% 76.0 30.3 66% 45.7
$951.6 $126.7 15% $824.9 $(122.6) (13)% $947.5
Net Revenues by Geographic Area:
Americas ........................ $409.6 $ 35.4 9% $374.2 $ (59.5) (14)% $433.7
Europe, Middle East and Africa .... 337.2 73.8 28% 263.4 (27.4) (9)% 290.8
Asia Pacific ....................... 204.8 17.5 9% 187.3 (35.7) (16)% 223.0
$951.6 $126.7 15% $824.9 $(122.6) (13)% $947.5
Net Revenues by Operating
Segment:
Design Solutions ................. $811.7 $117.3 17% $694.4 $ (95.8) (12)% $790.2
Discreet ......................... 139.6 11.1 9% 128.5 (27.6) (18)% 156.1
Other ............................ 0.3 (1.7) (85)% 2.0 0.8 67% 1.2
$951.6 $126.7 15% $824.9 $(122.6) (13)% $947.5
Net Design Solutions Revenues:
Manufacturing Solutions Division . $139.5 $ 20.7 17% $118.8 $ (11.4) (9)% $130.2
Infrastructure Solutions Division . . 115.2 11.8 11% 103.4 (13.0) (11)% 116.4
Building Solutions Division ....... 80.3 6.8 9% 73.5 (9.4) (11)% 82.9
Platform Technology Division and
Other ......................... 476.7 78.0 20% 398.7 (62.0) (13)% 460.7
$811.7 $117.3 17% $694.4 $ (95.8) (12)% $790.2
Fiscal 2004 Net Revenues Compared to Fiscal 2003 Net Revenues
Net revenues increased to $951.6 million in fiscal 2004 from $824.9 million in fiscal 2003. Net revenues
increased in all three geographic areas, due primarily to strong upgrade and subscription revenues coupled
with the positive effects of changes in foreign currencies.
In fiscal 2003 and part of fiscal 2004, customers in the industries we serve, particularly manufacturing,
commercial construction and media and entertainment, were impacted by economic pressures in their
own businesses, resulting in a difficult customer purchasing environment. During the last half of fiscal 2004,
we saw a lessening of these economic pressures across the industries that constitute our customer base,
particularly in the manufacturing and media and entertainment sectors. However, uncertainty remains as
to the sustainability of an economic recovery in the industries we serve.
License and other revenues for fiscal 2004 were $836.7 million as compared to $748.9 million in fiscal
2003. The increase was primarily due to increased upgrade revenues across all major products as a result of
our new product releases and the announced retirement of the AutoCAD 2000-based product series for
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