Autodesk 2004 Annual Report Download - page 40

Date Company Details
April 2002 Revit Technology Corporation This acquisition provided us with parametric building
information modeling technology and provides us
with potential next generation technology. The Revit
acquisition has been integrated with our Building
Solutions Division.
October 2001 Software Division of Media 100 This acquisition provided us with streaming media
technology, cleaner brand encoding software,
production and editing tools. This business has been
integrated with our Discreet segment.
August 2001 Buzzsaw, Inc. We acquired the remaining 60% of stock in Buzzsaw
that we did not own. This acquisition provided us with
leading online project collaboration applications to
improve efficiencies and reduce costs for the building
industry. Buzzsaw’s results are reported in the
Platform Technology Division and Other.
For additional information on each of the acquired businesses described above see Note 10, “Business
Combinations” in the Notes to Consolidated Financial Statements.
Liquidity and Capital Resources
At January 31, 2004, our principal sources of liquidity were cash and marketable securities totaling
$529.5 million and net accounts receivable of $166.8 million. Cash flows from operating activities, together
with the proceeds from stock issuances resulting from our employee stock plans, continue to be our
principal means of generating cash. Cash flows from operating activities have historically resulted from sales
of our software products and changes in working capital accounts.
During fiscal 2004, we generated $220.1 million of cash from operating activities as compared to
$85.6 million in fiscal 2003. Working capital uses of cash included increases in accounts receivable and
inventories and a decrease in other accrued liabilities. Accounts receivable increased over January 2003
levels, primarily due to higher revenue. Our days sales outstanding improved to 51 days at January 31, 2004
as compared to 62 days at January 31, 2003. Overall our inventory levels were higher by 41% at the end of
fiscal 2004 compared to fiscal 2003 primarily due to higher levels of hardware for our newer Discreet
Segment products. The decrease in other accrued liabilities was primarily due to the utilization of
restructuring accruals during fiscal 2004. Working capital sources of cash included increases in accrued
compensation, largely due to higher accruals for bonus and commission expenses based on fiscal 2004
financial performance, and deferred revenue due to higher subscription program revenues.
During fiscal 2004, we used $59.0 million in net cash for investing activities compared to $65.0 million
during fiscal 2003. The increase in cash generated from operating activities compared to fiscal 2003 resulted
in net purchases of available-for-sale investments in fiscal 2004. Capital expenditures decreased to
$25.9 million in fiscal 2004 as compared to $36.1 million in fiscal 2003 due in part to cost saving measures.
Current capital expenditures reflect our continuing investment in our IT infrastructure. In addition, we
acquired two businesses for an aggregate $5.2 million.
We used $76.5 million in net cash for financing activities in fiscal 2004, compared to $3.9 million during
fiscal 2003. The major financing use of cash in both years was for the repurchase of shares. Between
November 1999 and December 2003, the Board of Directors approved plans to repurchase up to 60.0 million
shares of our common stock. The purpose of the stock repurchase program is, among other things, to help
offset the dilution to earnings per share caused by the issuance of stock under our employee stock plans.
During fiscal 2004 we repurchased 9.1 million shares for $178.5 million and during fiscal 2003 we
repurchased 4.4 million shares for $64.8 million. At January 31, 2004 approximately 17.1 million shares
remained available for repurchase under the existing repurchase authorization. We expect to continue our
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