Autodesk 2010 Annual Report Download - page 133

Net Revenue by Geographic Area
Net revenue in the Americas geography decreased by 16% both as reported and on a constant currency
basis, during fiscal 2010, as compared to fiscal 2009. This decrease was primarily due to a 27% decrease in
revenue from new seats, partially offset by a 5% increase in upgrade revenue in the Americas during fiscal 2010
as compared to fiscal 2009. Maintenance revenue growth was flat in fiscal 2010 as compared to fiscal 2009.
Growth in the Americas continues to be affected by a economic volatility that impacted growth rates for all of
our products during fiscal 2010.
Net revenue in the EMEA geography decreased by 33%, or 26% on a constant currency basis, during fiscal
2010 as compared to fiscal 2009. The decrease was primarily due to a 50% decrease in new seat revenue and a
49% decrease in revenue from upgrades. These decreases were partially offset by a 2% increase in maintenance
revenue in EMEA during fiscal 2010 as compared to fiscal 2009. The EMEA geography’s decline in revenue
during fiscal 2010 was primarily due to economic contraction in virtually all countries in that geography. The
decrease in our revenue in that geography was led by emerging economy countries followed by Germany,
France, Italy and the United Kingdom. The negative effect of the stronger value of the U.S. dollar relative to the
euro, the British pound and other European currencies also contributed to the decrease in net revenue in EMEA.
Net revenue in the APAC geography decreased by 27%, or 28% on a constant currency basis, during fiscal
2010, as compared to fiscal 2009, primarily due to a 38% decrease in new seat revenue and a 42% decrease in
upgrade revenue. These decreases were partially offset by a 13% increase in maintenance revenue. Net revenue
contraction in the APAC geography during fiscal 2010 occurred in virtually all countries, led by Japan and
followed by China, South Korea, India and Australia.
Revenue from emerging economies decreased 37% during fiscal 2010 as compared to fiscal 2009. Revenue
from emerging economies represented 15% and 18% of net revenue during fiscal 2010 and 2009, respectively.
This decrease contributed to our international sales contraction during fiscal 2010.
We believe that international net revenue will continue to comprise a majority of our total net revenue. The
recent economic contractions in the countries that contribute a significant portion of our net revenue had, and
may continue to have, an adverse effect on our business in those countries and our overall financial performance.
Changes in the value of the U.S. dollar relative to other currencies have significantly affected, and could continue
to significantly affect, our financial results for a given period even though we hedge a portion of our current and
projected revenue. International net revenue represented 69% of our net revenue in fiscal 2010 and 72% of our
net revenue in fiscal 2009.
Net Revenue by Operating Segment
We have four reportable segments: Platform Solutions and Emerging Business (“PSEB”), Architecture,
Engineering and Construction (“AEC”), Manufacturing (“MFG”) and Media and Entertainment (“M&E”).
Location Services (“LBS”), which we disposed of in February 2009, is not included in any of the above
reportable segments and is reflected as Other. In the first quarter of fiscal 2010, we reorganized our business to
better align with our customers and accelerate product innovation. As part of this change there has been some
product movement between business segments, including the movement of Geospatial and Process and Power
design market products from PSEB to AEC. Certain reclassifications to segment revenue and gross profit have
been made to prior year amounts to conform to the current presentation. We have no material inter-segment
revenue.
Net revenue for PSEB decreased 31% during fiscal 2010, as compared to fiscal 2009, primarily due to a
38% decrease in revenue from our AutoCAD LT products and a 31% decrease in revenue from our AutoCAD
products, offset by a net 12% increase in revenue from all other PSEB products and services.
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