Autodesk 2007 Annual Report Download - page 116

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growth in AutoCAD, AutoCAD LT, and most major products, and growing sales of our 3D products which
generally have higher sales prices. Revenues from upgrades increased in fiscal 2006, but at a lower rate
than in fiscal 2005 as customers increasingly migrated to our Subscription Program and as we moved the
retirement date of the AutoCAD 2002-based products to the first quarter of fiscal 2007. Revenue from the
sales of our services, training and support are immaterial for all periods presented.
Maintenance revenues consist of revenues derived from the Subscription Program. As a percentage of
total net revenues, maintenance revenues were 18% and 14% for fiscal 2006 and fiscal 2005, respectively.
Net Revenues by Geographic Area
Net revenues in the Americas region increased during fiscal 2006, as compared to fiscal 2005,
primarily due to strong maintenance revenues and new seat revenues, offset in part by lower revenues
from upgrades. Had exchange rates during fiscal 2005 been in effect during the same period of 2006,
translated net revenues would have been lower by $1.7 million in fiscal 2006.
Net revenues in the Europe, Middle East and Africa region increased during fiscal 2006 as compared
to fiscal 2005, primarily due to strong maintenance revenues, increased sales of new seats, increased
revenues from upgrades and growth in the EMEA emerging markets of Russia, Poland, Czech Republic
and the Middle East. Had exchange rates during fiscal 2005 been in effect during the same period of 2006,
translated net revenues would have been higher by $7.4 million in fiscal 2006.
Net revenues in the Asia/Pacific region increased during fiscal 2006, as compared to fiscal 2005,
primarily due to an increase in the sale of commercial new seats, and to a lesser extent from maintenance
revenues and revenues from upgrades as our Subscription Program was introduced in the APAC region
after successful introductions first in the Americas and then in EMEA. We experienced strong growth
during fiscal 2006 in Japan, China, Australia and South Korea. Had exchange rates during fiscal 2005 been
in effect during the same period of 2006, translated net revenues would have been higher by $3.4 million
in fiscal 2006. International sales accounted for 66% of our net revenues in fiscal 2006 as compared to 65%
in the prior fiscal year. Had exchange rates from fiscal 2005 been in effect during fiscal 2006, translated
international revenues would have been $9.1 million higher for fiscal 2006. Net revenues in the emerging
economies of China, India, Eastern Europe and Latin America grew by 61% between fiscal 2005 and fiscal
2006. This growth was a significant factor in our international sales growth during fiscal 2006.
Net Revenues by Operating Segment
Design Solutions Segment net revenues increased during fiscal 2006, as compared to fiscal 2005,
primarily due to strong growth in new seat sales and in maintenance revenues as well as a more modest
increase in net revenues from upgrades. Maintenance revenues from our Subscription Program increased
to 20% of Design Solutions Segment revenue in fiscal 2006, as compared to 16% in fiscal 2005. During
fiscal 2006 and 2005, sales of AutoCAD and AutoCAD LT continue to comprise a significant portion of
our net revenues. Such sales, which are reflected in the net revenues for the Platform Technology Division
and Other, accounted for 43% of our consolidated net revenues in fiscal 2006 and and 44% in fiscal
2005, growing 23% in absolute dollars between the periods. Net revenues for our 3D model-based design
products (Autodesk Inventor Family of Products, Autodesk Revit Family of Products and Autodesk Civil
3D) increased 60% during fiscal 2006 as compared to fiscal 2005. Total sales of 3D model-based design
products accounted for 18% of consolidated net revenues in fiscal 2006 compared to 14% in fiscal 2005.