Autodesk 2008 Annual Report Download - page 114

$17.0 million, respectively, related to current software license product orders which have not yet shipped at the
end of each respective fiscal year. 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 and Autodesk Constructware 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.
Net Revenue by Geographic Area
Net revenue in the Americas region increased by 9% during fiscal 2008, as compared to fiscal 2007,
primarily due to a 22% increase in maintenance revenue from our Subscription Program. Revenue from new
seats in the Americas increased 2% during fiscal 2008 as compared to fiscal 2007 driven by new seat revenue
from our 3D model-based design products offset by a decline in new seat revenue from our 2D products
compared to the prior fiscal year. Revenue from upgrades decreased by 14% in the Americas during fiscal 2008
compared to the prior fiscal year. Growth in the Americas was also impacted by a slowing economy that
impacted growth rates for all of our products in the fourth quarter of fiscal 2008. Had exchange rates during
fiscal 2007 been in effect during the same period of fiscal 2008, translated net revenue in the Americas would
have been $0.1 million lower in fiscal 2008.
Net revenue in the Europe, Middle East and Africa (“EMEA”) region increased by 27% during fiscal 2008,
as compared to fiscal 2007, primarily due to a 37% increase in new seat revenue and 40% increase in
maintenance revenue from our Subscription Program. Revenue from new seats in EMEA increased during fiscal
2008 as compared to fiscal 2007 driven by new seat revenue from our 2D design products and 3D model-based
design products. These increases were partially offset by 24% decrease in revenue from upgrades. EMEA’s
growth during fiscal 2008 was primarily due to growth in the local emerging economies and the United
Kingdom, Germany, France, Belgium and Austria. Had exchange rates during fiscal 2007 been in effect during
the same period of fiscal 2008, translated net revenue in EMEA would have been $66.7 million lower in fiscal
2008.
Net revenue in the Asia Pacific (“APAC”) region increased 18% during fiscal 2008, as compared to fiscal
2007, primarily due to an 18% increase in new seats revenue, a 32% increase in maintenance revenue from our
Subscription Program, and a 9% increase in revenue from upgrades. Revenue from new seats in APAC increased
due to strong new seat revenue from our 2D products and 3D model-based design products. Net revenue growth
in APAC during fiscal 2008 occurred primarily due to growth in the local emerging economies, Japan, South
Korea and Australia. Had exchange rates during fiscal 2007 been in effect during the same period of fiscal 2008,
translated net revenue in APAC would have been $4.4 million lower in fiscal 2008.
We believe that international net revenue will continue to comprise a majority of our total net revenue.
Economic weakness in any of the countries that contributes a significant portion of our net revenue could have an
adverse effect on our business in those countries. Changes in the value of the U.S. dollar relative to foreign
currencies could significantly affect our future financial results for a given period. International net revenue
represented 69% of our net revenue in fiscal 2008 and 66% of our net revenue in fiscal 2007. Net revenue in
emerging economies grew by 40% from fiscal 2007 to fiscal 2008, primarily due to revenue from the EMEA
emerging economies, China and India. This growth was a significant factor in our international sales growth
during fiscal 2008.
Net Revenue by Operating Segment
Net revenue for the Design Solutions Segment increased 19% during fiscal 2008, as compared to fiscal
2007, primarily due to a 21% increase in new seat revenue and a 32% increase in maintenance revenue from our
Subscription Program. These increases were partially offset by a 17% decrease in upgrade revenue in fiscal 2008
38