Autodesk 2007 Annual Report Download - page 114

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retirements with those releases. Our AutoCAD 2004-based products were retired in the first quarter
of fiscal 2008. The upgradeable installed base of the AutoCAD-based products not on subscription
during fiscal 2007 was smaller than the upgradeable installed base of AutoCAD-based products not on
subscription during fiscal 2006. As a result, overall maintenance revenue from subscriptions exceeded
revenue from upgrades in fiscal 2007. We expect revenue from upgrades to continue to decline in fiscal
2008 compared to fiscal 2007.
Maintenance revenues consist of revenues derived from the Subscription Program. As a percentage
of total net revenues, maintenance revenues were 23% for fiscal 2007, 18% for fiscal 2006, and 14% for fiscal
2005. Our Subscription Program, available to most customers worldwide, continues to attract new and
renewal customers by providing them with a cost effective and predictable budgetary option to obtain the
productivity benefits of our periodic product release cycle and enhancements. We expect maintenance
revenues to continue to increase both in absolute dollars and as a percentage of total net revenues as a
result of increased Subscription Program enrollment.
Deferred revenue consists primarily of deferred maintenance revenue from our Subscription Program.
To a lesser extent, deferred revenue consists of deferred license and other revenue derived from Autodesk
Buzzsaw services, consulting services and deferred license sales. Backlog from current software license
product orders which we have not yet shipped consists of orders for currently available license software
products from customers with approved credit status and may include orders with current ship dates
and orders with ship dates beyond the current fiscal period. Aggregate backlog at January 31, 2007 and
January 31, 2006 was $395.8 million and $283.5 million, respectively, of which $17.0 million for both fiscal
years related to current software license product orders which have not yet shipped at the end of each
respective fiscal year.
We rely significantly upon major distributors and resellers in both the U.S. and international regions,
including Tech Data Corporation and their affiliates, who accounted for 12% of fiscal 2007 net revenues
and 11% of fiscal 2006 net revenues.
Net Revenues by Geographic Area
Net revenues in the Americas region increased during fiscal 2007, as compared to fiscal 2006, primarily
due to strong maintenance revenues, as well as revenues from products acquired in our acquisition of
Alias in January 2006 and from growth in revenues from sales of new seats driven by new product releases
during fiscal 2007. Revenue from upgrades in the Americas declined by 4% during fiscal 2007 compared
to the same period in the prior fiscal year. Had exchange rates during fiscal 2006 been in effect during the
same period of fiscal 2007, translated net revenues would have been lower by $0.3 million in fiscal 2007.
Net revenues in the Europe, Middle East and Africa (“EMEA”) region increased during fiscal 2007, as
compared to fiscal 2006, primarily due to an increase in the sale of new seats resulting from new product
releases, combined with a strong increase in maintenance revenues and revenue from new products
acquired from Alias. Revenues from upgrades in EMEA experienced a 2% decline from fiscal 2006 to
fiscal 2007. EMEA’s strong growth during fiscal 2007 was primarily due to growth in Germany, the United
Kingdom, France, Italy, and the local emerging economies. Had exchange rates during fiscal 2006 been
in effect during the same period of fiscal 2007, translated net revenues would have been lower by $10.3
million in fiscal 2007.
Net revenues in the Asia/Pacific (“APAC”) region increased during fiscal 2007, as compared to fiscal
2006, primarily due to strong growth in revenues from sales of new seats resulting from new product
releases, followed by strong growth in maintenance revenues. Revenue from upgrades in APAC declined by
29% during fiscal 2007 compared to fiscal 2006. Net revenue growth in APAC during fiscal 2007 primarily
occurred in China, South Korea, Australia and India. The increase in APAC net revenue during fiscal 2007
compared to the same period in the prior fiscal year was also due to revenues from new products acquired
from Alias. This revenue growth was offset by significant declines in the net revenue growth in Japan for