Autodesk 2011 Annual Report Download - page 107

International net revenue represented 69% of our net revenue in fiscal 2010 and 72% of our net revenue in
fiscal 2009. We started to experience some economic difficulty in international sales in the third quarter of fiscal
2009. Global conditions worsened, and the economic downturn significantly impacted our international sales
during the fourth quarter of fiscal 2009, particularly the robust business we had been seeing in emerging
economies. The economic contractions in the countries that contribute a significant portion of our net revenue
had an adverse effect on our business in those countries and our overall financial performance in fiscal 2010.
Net Revenue by Operating Segment
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.
Net revenue for AEC decreased 20% during fiscal 2010, as compared to fiscal 2009, primarily due to a 24%
decrease in revenue from our Revit products, a 32% decrease in revenue from our AutoCAD Architecture
products, a 15% decrease in revenue from our AutoCAD Civil 3D products and a net 13% decrease in revenue
from all other AEC products and services.
Net revenue for MFG decreased 21% during fiscal 2010, as compared to fiscal 2009, primarily due to a 25%
decrease in revenue from our Autodesk Inventor products and a 34% decrease in revenue from our Autodesk
Mechanical products, offset by a net 2% increase in revenue from all other MFG products and services.
Net revenue for M&E decreased 28% during fiscal 2010, as compared to fiscal 2009, primarily due to a
42% decrease in revenue from Creative Finishing and an 18% decrease in revenue from our Animation product
group. The decrease in Animation revenue was primarily due to a 33% decrease in revenue from Autodesk 3ds
Max and a 17% decrease in revenue from Maya, offset by a net 32% increase in revenue from all other M&E
products and services.
Cost of Revenue and Operating Expenses
Cost of Revenue
Fiscal Year
Ended
January 31,
2011
Increase (decrease)
compared to prior
fiscal year
Fiscal Year
Ended
January 31,
2010
Increase (decrease)
compared to
prior fiscal year
Fiscal Year
Ended
January 31,
2009$ % $ %
(in millions)
Cost of revenue:
License and other ........... $162.2 $ (9.8) -6% $172.0 $(31.7) -16% $203.7
Maintenance ............... 34.4 14.6 74% 19.8 4.4 29% 15.4
$196.6 $ 4.8 3% $191.8 $(27.3) -12% $219.1
As a percentage of net revenue ..... 10% 11% 9%
Cost of license and other revenue includes labor costs of order fulfillment and costs of fulfilling consulting
and training services contracts and collaborative project management services contracts. Cost of license and other
revenue also includes stock-based compensation expense, direct material and overhead charges, amortization of
purchased technology, professional services fees and royalties. Direct material and overhead charges include the
cost of hardware sold (mainly PC-based workstations for Creative Finishing in the M&E segment), costs
associated with transferring our software to electronic media, printing of user manuals and packaging materials
and shipping and handling costs.
During the first quarter of fiscal 2011, Autodesk reclassified certain costs of revenue, which primarily
included reclassifying certain shipping and fulfillment expenses from “Cost of license and other revenue” to
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