Autodesk 2007 Annual Report Download - page 113

53
2007 Annual Report
Increase
(decrease)
compared to
prior
fiscal year
Increase
(decrease)
compared to
prior
fiscal year
Fiscal 2007 $ % Fiscal 2006 $ % Fiscal 2005
As Restated (1) As Restated (1)
(in millions)
Net Revenues by Operating Segment:
Design Solutions . . . . . . . . . . . . . . . . . . . . . . . $1,594.6 $ 250.1 19% $1,344.5 $ 273.2 26% $ 1,071.3
Media and Entertainment . . . . . . . . . . . . . . . 234.6 62.3 36% 172.3 12.3 8% 160.0
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.6 (9.8) (48)% 20.4 12.8 168% 7.6
$1,839.8 $302.6 20% $ 1,537.2 $ 298.3 24% $1,238.9
Net Revenues—Design Solutions Segment:
Platform Technology Division
and Other. . . . . . . . . . . . . . . . . . . . . . . . . . . $ 806.1 $ 74.5 10% $ 731.6 $ 132.1 22% $ 599.5
Manufacturing Solutions Division. . . . . . . . 333.1 76.2 30% 256.9 57.2 29% 199.7
Building Solutions Division. . . . . . . . . . . . . . 241.9 64.3 36% 177.6 53.3 43% 124.3
Infrastructure Solutions Division. . . . . . . . . 213.5 35.1 20% 178.4 30.6 21% 147.8
$1,594.6 $ 250.1 19% $1,344.5 $ 273.2 26% $ 1,071.3
(1) See the “Explanatory Note” immediately preceding Part I, Item 1 and Note 2, “Restatement of
Consolidated Financial Statements,” in the Notes to Consolidated Financial Statements of this
Form 10-K.
Fiscal 2007 Net Revenues Compared to Fiscal 2006 Net Revenues
License and other revenues are comprised of two components: all forms of product license revenues
and other revenues. Product license revenues include revenues from the sale of new seats, revenues from
the Autodesk Upgrade Program and revenues from the Autodesk Crossgrade Program. Other revenues
consist of revenue from consulting and training services as well as revenue from the Autodesk Developers
Network. Maintenance revenues consist of revenue from our Subscription Program.
The increase in net revenues during fiscal 2007, as compared to fiscal 2006, was due to an increase in
sales of new seats, an increase in the sales of subscription contracts which are recognized as maintenance
revenues and an increase in crossgrade revenues. Revenue from the sale of new seats increased due
to volume growth and higher average sales prices in our AutoCAD, AutoCAD LT, and our 3D products.
In addition, the introduction of our Maya and StudioTools products resulting from the January 2006
acquisition of Alias contributed to the growth in revenues during fiscal 2007. We experienced strong
growth in all three of our geographic regions and strong growth rates in the emerging economies of
Asia/Pacific, Eastern Europe and the Middle East, and Latin America from fiscal 2006 to fiscal 2007. These
increases were partially offset by a decline in revenue from upgrades resulting primarily from the relatively
smaller size of the upgradeable base of our AutoCAD-based products during fiscal 2007 compared to the
upgradeable base of our AutoCAD-based products as of the same period in the prior fiscal year.
Growth in license and other revenues during fiscal 2007, as compared to fiscal 2006, was primarily
due to an increase in the sale of commercial new seats for most major products driven by our new product
releases during fiscal 2007. Increases in revenue from the sale of new seats were driven by volume growth
in AutoCAD, AutoCAD LT and most major products, as well as growing sales of our 3D products. These
increases were partially offset by a 7% decrease in revenues from upgrades driven by the relatively smaller
size of the upgradeable base of our AutoCAD-based products in fiscal 2007 compared to the size of our
AutoCAD-based products and the success of our Subscription Program in fiscal 2006. Revenue from the
sales of services, training and support are immaterial for all periods presented.
We attempt to release new product versions on a regular basis and synchronize our major product