Autodesk 2005 Annual Report Download - page 8

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Our core strengths create a foundation for continu-
ous innovation, leading to the release of powerful
new versions of all our products in fiscal 2005 with
significant improvements in features and func-
tionality. Without a doubt, it’s our commitment to
product innovation and improvement that drove
revenue from new licenses to a 38 percent increase
over fiscal 2004. Autodesk is unique among major
software companies in that 65 percent of our
fiscal 2005 revenues came from new licenses and
emerging businesses.
Our 3D products continued to gain traction and
reshape the market. As we add new licenses from
our 2D product line, the opportunity to move
customers to powerful, industry-targeted 3D
solutions continues to grow even greater. The
modeling capabilities and rich data created in 3D
improve productivity, reduce errors and shorten
design time. As a result, revenues from our 3D
products—Autodesk Inventor Series, Autodesk
Inventor Professional, Autodesk Revit Building,
Autodesk AutoCAD Revit Series and Autodesk
Civil 3D—increased 69 percent over fiscal 2004.
We also took important steps toward complete
lifecycle management. Using our 3D products,
customers can create rich design data that needs
to be managed in an efficient and timely manner.
Our lifecycle management solutions enable our
customers to manage and share richer design data
with team members. With five to ten downstream
users of that design information, the lifecycle
management opportunity is substantial. In fiscal
2005, we made significant additions to our lifecycle
management product offerings, and we plan to
continue developing and introducing solutions
to help our customers succeed throughout the
product lifecycle.
This year also saw tremendous improvements to
our business model. We improved the predictabil-
ity of our results through strong annual releases
and the continued success of our subscription
program, which saw an increase in revenues
by 54 percent. We kept our focus on productiv-
ity, completing the restructuring announced in
November 2003. We decreased our salary expense
as a percentage of revenue by 7 percentage points.
And our operating margin reached 19 percent, a
year earlier than our target. We accomplished all
this by setting short- and long-term productivity
targets throughout the company and then working
hard to hit those goals.
Autodesk Annual Report 2005P.4