Autodesk 2013 Annual Report Download - page 113

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. Additionally, the U.S. credit-rating downgrade and weak global economic
conditions that have been characterized by restructuring of sovereign debt, high unemployment, and volatility in the financial
markets may impact our future financial results.
Net Revenue by Operating Segment
We have four reportable segments: PSEB, AEC, MFG and M&E. We have no material inter-segment revenue. Note, we
have conformed our explanation of the increases within the individual segments to align with current period presentation.
Net revenue for PSEB, which includes our Autodesk Design Suite, increased 16% during fiscal 2012, as compared to
fiscal 2011, primarily due to a 11% increase in revenue from our flagship AutoCAD LT and AutoCAD products.
Net revenue for AEC increased 10% during fiscal 2012, as compared to fiscal 2011, primarily due to a 37% increase in
revenue from our AEC suites, which includes our Autodesk Building Design Suite.
Net revenue for MFG increased 15% during fiscal 2012, as compared to fiscal 2011, primarily due to a 16% increase in
revenue from our MFG suites, which includes the Autodesk Product Design Suite.
Net revenue for M&E increased 9% during fiscal 2012, as compared to fiscal 2011, primarily due to a 15% increase in
revenue from our Animation product group, which includes our Autodesk Entertainment Creation Suite, offset by a 3%
decrease in revenue from Creative Finishing. The increase in Animation revenue was primarily due to a 13% increase in
revenue from our flagship Autodesk Maya products.
Cost of Revenue and Operating Expenses
Cost of Revenue
Fiscal Year
Ended
January 31,
2013
Increase (decrease)
compared to
prior fiscal year
Fiscal Year
Ended
January 31,
2012
Increase compared to
prior fiscal year
Fiscal Year
Ended
January 31,
2011
$ % $ %
(in millions)
Cost of revenue:
License and other $ 198.1 $ 11.0 6 % $ 187.1 $ 24.9 15% $ 162.2
Maintenance 40.4 (1.6) (4)% 42.0 7.6 22% 34.4
$ 238.5 $ 9.4 4 % $ 229.1 $ 32.5 17% $ 196.6
As a percentage of net revenue 10% 10% 10%
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.
Cost of license and other revenue increased 6% during fiscal 2013, as compared to fiscal 2012, primarily due to an
increase in cloud services-related expenses. Cost of license and other revenue increased 15% during fiscal 2012, as compared
to fiscal 2011, primarily due to increased support costs and lower margin consulting engagements.
Cost of maintenance revenue includes labor costs of providing product support to our maintenance customers, including
stock-based compensation expense for these employees, rent and occupancy, shipping and handling costs, and professional
services fees. Cost of maintenance revenue decreased 4% during fiscal 2013 as compared to fiscal 2012 primarily due to an
increase in electronic fulfillment. Cost of maintenance revenue increased 22% during fiscal 2012 as compared to fiscal 2011
due to an increase in maintenance support headcount and increased annual fulfillment costs related to supplying USB flash
drives of our suites products.
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2013 Annual Report