Autodesk 2014 Annual Report Download - page 117

2013 Annual Report
2014 Form 10-K 43
International net revenue represented 70% and 71% of our total net revenue for fiscal 2014 and 2013, respectively. We
believe that international revenue will continue to comprise a majority of our total net revenue. Unfavorable economic
conditions in the countries that contribute a significant portion of our net revenue, including in emerging economies, 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. Additionally, 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: Platform Solutions and Emerging Business ("PSEB"), AEC, Manufacturing ("MFG")
and Media and Entertainment ("M&E"). We have no material inter-segment revenue.
Net revenue for PSEB decreased by 6% during fiscal 2014 as compared to the prior fiscal year primarily due to a 9% and
4% decrease in revenue from our flagship products, AutoCAD and AutoCAD LT, respectively.
Net revenue for AEC increased by 4% during fiscal 2014 as compared to the prior fiscal year primarily due to a 31%
increase in revenue from our AEC suites, which was primarily driven by Autodesk Building Design Suite and Autodesk
Infrastructure Design Suite.
Net revenue for MFG increased by 1% during fiscal 2014 as compared to the prior fiscal year primarily due to a 9%
increase in revenue from our MFG suites, which was primarily driven by the Autodesk Product Design Suite. This increase was
partially offset by a decrease in revenue from our flagship product, AutoCAD Mechanical.
Net revenue for M&E decreased by 10% during fiscal 2014 as compared to the prior fiscal year, primarily due to a 7%
decrease in revenue from Animation and a 17% decrease in revenue from Creative Finishing. The decrease in Animation
revenue was primarily due to a 9% decrease in revenue from our flagship product, Maya, and a 16% decrease from our M&E
suites, which was driven by our Autodesk Entertainment Creation Suite. The decline in Creative Finishing was marked by a
general decrease in M&E industry end-market demand. As more of our customers move to our suites products, our revenue on
stand-alone products like 3Ds Max is expected to decrease because it is included in a number of our various segments' suites.
Integration of our M&E offerings into our other segments' suites is part of our strategy and we believe it represents a growth
opportunity for us over the long-term.
Fiscal 2013 Net Revenue Compared to Fiscal 2012 Net Revenue
This discussion has been updated to conform with the current period's presentation.
License and Other Revenue
Total license and other revenue increased 2% during fiscal 2013 as compared to fiscal 2012. This increase was primarily
due to a 4% increase in product license revenue as compared to the same period in the prior fiscal year. The increase in product
license revenue was primarily due to an increase of 16% in revenue from our suites products and a 3% increase in revenue from
our flagship products.
During fiscal 2013, the 4% increase in product license revenue was due to a 6% increase in the average net revenue per
seat partially offset by a 2% decrease in the number of seats sold. Product license revenue, as a percentage of License and other
revenue, was 83% for fiscal 2013 and 82% for fiscal 2012.
During fiscal 2013, total other revenue represented 17% of License and other revenue. Other revenue decreased by 7%
during fiscal 2013 as compared to fiscal 2012 primarily due to a 34% decrease in our education products as a result of our
transition to granting no or low-cost software licenses to educational institutions in select regions and to key partners during
fiscal 2013, consistent with our strategy.
Backlog related to current software license product orders that had not shipped at the end of the fiscal year decreased by
$7.1 million during fiscal 2013 from $27.1 million at January 31, 2012 to $20.0 million at January 31, 2013.