Autodesk 2008 Annual Report Download - page 111

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amortization of acquisition-related intangibles of $11.3 million in fiscal 2008 as compared to fiscal 2007. We
continue to invest in growth and productivity initiatives and, over the longer term we intend to continue to
balance investments in revenue growth opportunities with our goal of increasing our operating margins. Our
operating margins are very sensitive to changes in revenue, given the relatively fixed nature of most of our
expenses, which consist primarily of employee-related expenditures, facilities costs, and depreciation and
amortization expense. For fiscal 2009, we expect total costs and expenses to increase in absolute dollars, but
decline slightly as a percentage of net revenue resulting in overall operating margin improvement as compared to
fiscal 2008. We will continue to balance investments in revenue growth opportunities with our focus on
increasing profitability.
We generate a significant amount of our revenue in the United States, Japan, Germany, United Kingdom,
Italy, France, Canada, China, South Korea and Australia. The weaker value of the U.S. dollar relative to foreign
currencies had a positive effect of $47.4 million on operating income in fiscal 2008 compared to fiscal 2007. Had
exchange rates from fiscal 2007 been in effect during fiscal 2008, translated international revenue billed in local
currencies would have been $71.2 million lower and operating expenses would have been $23.8 million lower.
Foreign currencies had a minimal effect on financial results for fiscal 2007. Changes in the value of the U.S.
dollar may have a significant effect on net revenue in future periods. We use foreign currency option collar
contracts to reduce a portion of the current quarter exchange rate effect on the net revenue of certain anticipated
transactions.
Throughout fiscal 2008, we maintained a strong balance sheet, generating $708.5 million of cash from
operating activities as compared to $576.6 million during the previous fiscal year. We finished fiscal 2008 with
$957.7 million in cash and marketable securities, of which $8.4 million is classified as long-term. This is an
increase from the $777.9 million balance at January 31, 2007. We managed to achieve this increase while
repurchasing 12.1 million shares of our common stock and continuing to invest in our business through
acquisitions, including Robobat, NavisWorks and Hanna Strategies and investments in other growth initiatives.
Comparatively, during the prior fiscal year we repurchased 4.2 million shares of our common stock, completed
the acquisition of Constructware and invested in a 28% interest in Hanna Strategies. We completed fiscal 2008
with a higher deferred revenue balance and higher accounts receivable balance as compared to the previous fiscal
year. Our deferred revenue balance at January 31, 2008 included $433.8 million of customer maintenance
contracts related to our Subscription Program, which will be recognized as maintenance revenue ratably over the
life of the contracts, which is predominantly one year.
35
2008 Annua
l Report