Autodesk 2008 Annual Report Download - page 116

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 revenue and 11%
of fiscal 2006 net revenue.
Net Revenue by Geographic Area
Net revenue in the Americas region increased 18% during fiscal 2007, as compared to fiscal 2006, primarily
due to strong maintenance revenue, as well as revenue from products acquired in our acquisition of Alias in
January 2006 and from growth in revenue 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 revenue would have been lower by $0.3 million in fiscal 2007.
Net revenue in the EMEA region increased 23% 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 revenue and revenue from new products acquired from Alias. Revenue 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 the local emerging economies, Germany, the United Kingdom, France and Italy. Had
exchange rates during fiscal 2006 been in effect during the same period of fiscal 2007, translated net revenue
would have been lower by $10.3 million in fiscal 2007.
Net revenue in the APAC region increased 17% during fiscal 2007, as compared to fiscal 2006, primarily
due to strong growth in revenue from sales of new seats resulting from new product releases, followed by strong
growth in maintenance revenue. 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 revenue from new products acquired from Alias. This revenue growth was offset
by significant declines in the net revenue growth in Japan for 2D and 3D products. Had exchange rates for fiscal
2006 been in effect during the same period of fiscal 2007, translated net revenue in the APAC region would have
been higher by $9.7 million in fiscal 2007.
International net revenue represented 66% of our net revenue in both fiscal 2007 and fiscal 2006. Net
revenue in emerging economies grew by 39% from fiscal 2006 to fiscal 2007, primarily due to revenue from
China, India, EMEA emerging economies and Latin America. This growth was a significant factor in our
international sales growth during fiscal 2007. Had exchange rates during fiscal 2006 been in effect during the
same period of fiscal 2007, translated international revenue would have been $1.0 million lower in fiscal 2007.
Net Revenue by Operating Segment
Net revenue for the Design Solutions Segment increased 19% during fiscal 2007, as compared to fiscal
2006, primarily due to a 20% increase in new seat revenue and a 48% increase in maintenance from our
Subscription Program. These increases were partially offset by a 6% decrease in revenue from upgrades in fiscal
2007 as compared to fiscal 2006. Maintenance revenue from our Subscription Program increased to 24% of
Design Solutions Segment revenue during fiscal 2007 compared to 20% in fiscal 2006. Sales of AutoCAD and
AutoCAD LT continued to comprise a significant portion of our net revenue. Such sales, reflected in the net
revenue for the Platform Solutions and Emerging Business Division and Other, represented 40% of net revenue
in fiscal 2007 and 43% of consolidated net revenue in the same period of the prior fiscal year, increasing 11% in
absolute dollars between the periods. Net revenue for our 3D model-based design products (Autodesk Inventor
products, Revit products and AutoCAD Civil 3D) increased 41% during fiscal 2007 compared to fiscal 2006.
Total sales of 3D model-based design products represented 22% of consolidated net revenue in fiscal 2007
compared to 18% in fiscal 2006.
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