Autodesk 2005 Annual Report Download - page 37

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Results of Operations
Net Revenues
Increase
compared to
prior
fiscal year
Increase
(decrease)
compared to
prior
fiscal year
Fiscal 2005 $ percent Fiscal 2004 $ percent Fiscal 2003
(in millions)
Net Revenues:
License and Other ................... $1,057.1 $220.4 26% $ 836.7 $ 87.8 12% $ 748.9
Maintenance ........................ 176.7 61.8 54% 114.9 38.9 51% 76.0
$1,233.8 $ 282.2 30% $ 951.6 $126.7 15% $824.9
Net Revenues by Geographic Area:
Americas ........................... $ 510.9 $ 101.3 25% $409.6 $ 35.4 9% $ 374.2
Europe, Middle East and Africa ....... 443.7 106.5 32% 337.2 73.8 28% 263.4
Asia Pacific ......................... 279.2 74.4 36% 204.8 17.5 9% 187.3
$1,233.8 $ 282.2 30% $ 951.6 $126.7 15% $824.9
Net Revenues by Operating Segment:
Design Solutions .................... $1,077.3 $259.2 32% $ 818.1 $114.6 16% $ 703.5
Discreet ............................ 154.1 21.0 16% 133.1 13.7 11% 119.4
Other .............................. 2.4 2.0 *% 0.4 (1.6) (80)% 2.0
$1,233.8 $ 282.2 30% $ 951.6 $126.7 15% $824.9
Net Design Solutions Revenues:
Manufacturing Solutions Division ..... $ 199.5 $ 60.0 43% $ 139.5 $ 20.7 17% $ 118.8
Infrastructure Solutions Division ...... 138.3 23.5 20% 114.8 13.5 13% 101.3
Building Solutions Division ........... 124.3 44.0 55% 80.3 6.8 9% 73.5
Platform Technology Division and
Other ............................ 615.2 131.7 27% 483.5 73.6 18% 409.9
$1,077.3 $ 259.2 32% $ 818.1 $114.6 16% $ 703.5
* Percentage is not meaningful
Fiscal 2005 Net Revenues Compared to Fiscal 2004 Net Revenues
Net revenues increased to $1,233.8 million in fiscal 2005 from $951.6 million in fiscal 2004. Net revenues
increased in all three of our geographic areas, due primarily to strong subscription, new seat and upgrade
revenues, coupled with the positive effects of changes in foreign currencies.
During the first 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. However, by the end of fiscal 2004 and
through fiscal 2005, we saw a lessening of these economic pressures.
License and other revenues for fiscal 2005 were $1,057.1 million as compared to $836.7 million in fiscal 2004.
The increase was primarily due to increased new seat and upgrade revenues across all major products as a result
of our new product releases and the announced retirement of the AutoCAD 2000i-based product series for early
calendar 2005. Product retirements generally result in customer upgrades to a product series still supported by
Autodesk. In addition, changes in foreign currencies had a positive impact on revenue. We expect significant
upgrade revenues during fiscal 2006 as a result of new product releases across our divisions and the
announcement of the January 2006 retirement of the AutoCAD 2002-based product series. The remaining
installed base of the AutoCAD 2002 release at January 31, 2005 is significantly larger in size compared to the
remaining installed base of the AutoCAD 2000i release at that same time last year. However, we expect upgrade
revenue in future fiscal years to decline as more end-user customers migrate to our subscription program.
Revenue from the sales of our services, training and support are immaterial for all periods presented.
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