Autodesk 2010 Annual Report Download - page 132

lower during fiscal 2010 because of the relatively smaller size of the upgradeable base of our AutoCAD-based
products, as compared to the upgradeable base of our AutoCAD-based products during fiscal 2009, due to a
higher percentage of customers on our maintenance program, which includes unspecified upgrades when and if
available. Over the long term, we expect revenue from upgrades to decrease as we continue to move customers
onto our maintenance program.
Revenue from the sales of our services, training and support, included in “License and other revenue,”
represented less than 4% of net revenue for all periods presented.
Maintenance Revenue
Our maintenance revenue relates to a program known by our user community as the Subscription Program.
Our maintenance program provides our commercial and educational customers with a cost effective and
predictable budgetary option to obtain the productivity benefits of our new releases and enhancements when and
if released during the term of their contracts. Under our maintenance program, customers are eligible to receive
unspecified upgrades when and if available, downloadable training courses and online support. We recognize
maintenance revenue ratably over the maintenance contract periods.
Maintenance revenue increased 3% during fiscal 2010, as compared to fiscal 2009, primarily due to a 3%
increase in commercial maintenance revenue. The increase in commercial maintenance revenue is due to
8 percentage points from higher net revenue per maintenance seat, partially offset by 5 percentage points from
lower program enrollment due to the economic downturn. Commercial maintenance revenue represented 98% of
maintenance revenue for both fiscal 2010 and 2009. Changes in maintenance revenue lag changes in maintenance
billings because we recognize the revenue ratably over the life of the maintenance contracts, which is
predominantly one year. Our 3% increase in maintenance revenue in fiscal 2010, as compared to fiscal 2009,
reflects an 18% increase in maintenance billings in fiscal 2009 as compared to fiscal 2008, partially offset by a
7% decline in maintenance billings in fiscal 2010 as compared to fiscal 2009. As a percentage of total net
revenue, maintenance revenue was 43% and 31% for fiscal 2010 and 2009, respectively. Total program
enrollment at January 31, 2010 consisted of about 2.2 million users. The number of users increased from
1.7 million at January 31, 2009 to 2.2 million at January 31, 2010 primarily due to a one-time adjustment of
0.6 million educational seats for users who were migrated to a standard educational maintenance plan during the
second fiscal quarter ended July 31, 2009. These users were not previously captured in our maintenance installed
base prior to the second quarter of fiscal 2010. We do not believe these additional seats will have a material
impact on our future maintenance revenue.
Maintenance billings declined 7% in fiscal 2010, as compared to fiscal 2009. This decrease was due to
fewer new seats sold and a decrease in renewal rates as customers have reduced their work force. The year over
year growth in billings for maintenance contracts began to slow in the second quarter of fiscal 2009, although
maintenance billings increased slightly in the fourth quarter of fiscal 2010 as compared to the fourth quarter of
fiscal 2009. We recognize the revenue ratably over the life of the maintenance contracts, which is predominantly
one year, but may also be two or three year terms. This year-over-year decrease in maintenance billings will
cause downward pressure on future maintenance revenue, however future maintenance revenue will also be
impacted by other factors such as the amount, timing and mix of contract terms of future maintenance billings.
Aggregate backlog at January 31, 2010 and January 31, 2009 was $542.5 million and $569.5 million,
respectively, of which $516.5 million and $552.1 million, respectively, represented deferred revenue. Backlog
related to current software license product orders that had not shipped at the end of the quarter increased by $8.6
million during fiscal 2010 from $17.4 million at January 31, 2009 to $26.0 million at January 31, 2010. Deferred
revenue consists primarily of deferred maintenance revenue. To a lesser extent, deferred revenue consists of
deferred license and other revenue derived from collaborative project management services, consulting services
and deferred license sales. Backlog from current software license product orders that we have not yet shipped
consists of orders for currently available licensed 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.
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