Autodesk 2011 Annual Report Download - page 105

upgrade revenue. Net revenue expansion in the APAC geography during fiscal 2011 occurred in virtually all
countries, led by Japan and followed by South Korea, Australia and India.
Net revenue in emerging economies increased 17% during fiscal 2011 as compared to fiscal 2010, primarily
due to revenue from China, the Russian Federation, India, Brazil and Poland. This growth was a significant factor
in our international sales growth during fiscal 2011. Revenue from emerging economies represented 15% of net
revenue for both fiscal 2011 and 2010.
We believe that international revenue will continue to comprise a majority of our total net revenue. The
economic conditions in the countries that contribute a significant portion of our net revenue may 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 71% of our net revenue in fiscal 2011 and 69% of our net revenue in fiscal
2010. We remain cautious regarding our financial prospects primarily due the uncertainty surrounding the
sustainability of the global economic recovery.
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, which we disposed of in February 2009, is not included in any of the above reportable
segments and is reflected as Other. We have no material inter-segment revenue.
Net revenue for PSEB increased 15% during fiscal 2011, as compared to fiscal 2010, primarily due to a 20%
increase in revenue from both our AutoCAD and AutoCAD LT products, offset by a net 21% decrease in revenue
from all other PSEB products and services.
Net revenue for AEC increased 11% during fiscal 2011, as compared to fiscal 2010, primarily due to a 24%
increase in revenue from our Revit products, a 6% increase in revenue from our AutoCAD Civil 3D products,
and a 27% increase in revenue from our Navisworks products.
Net revenue for MFG increased 22% during fiscal 2011, as compared to fiscal 2010, primarily due to a 23%
increase in revenue from our Autodesk Inventor products and a 28% increase in our AutoCAD Mechanical
products.
Net revenue for M&E increased 5% during fiscal 2011, as compared to fiscal 2010, primarily due to a 5%
increase in revenue from our Animation product group and a 3% increase in revenue from Creative Finishing.
The increase in Animation revenue was primarily due to a 4% increase in revenue from Autodesk 3ds Max.
Fiscal 2010 Net Revenue Compared to Fiscal 2009 Net Revenue
License and Other Revenue
Total license and other revenue decreased 39% during fiscal 2010 as compared to fiscal 2009. License and
other revenue from horizontal design and vertical design products decreased 33% and license and other revenue
from model-based design products decreased 19%, each as compared to the prior fiscal year. These decreases
were primarily due to the 44% decrease in commercial new seat revenue during fiscal 2010 as compared to fiscal
2009. During fiscal 2010, 29 percentage points of the 44% decrease was due to decreases in the number of seats
sold, and 15 percentage points was due to lower average net revenue per seat. Commercial new seat revenue, as a
percentage of license and other revenue, was 61% and 67% for fiscal 2010 and 2009, respectively.
Also contributing to the decrease in license and other revenue during fiscal 2010, as compared to fiscal 2009,
was the 32% decrease in upgrade revenue, which includes crossgrade revenue. The decrease in upgrade revenue
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