"We are pleased to finish another year of outstanding execution and revenue growth," said Carl Bass, Autodesk president and CEO. "In fiscal 2007, we delivered revenues of $1.84 billion, nearly double the level of three years ago. Our fourth quarter growth was driven by strong performance from emerging economies, our subscription program and, most significantly, record revenues from our model-based 3D products. Looking to fiscal 2008, we expect Autodesk to continue to focus on delivering industry-leading 3D design software solutions that help our customers be more productive, improve quality and foster greater innovation."
Autodesk's performance was driven by robust increases in revenue from model-based 3D products, maintenance revenue from subscription, and revenue in the emerging economies. In addition, revenues from crossgrades -- customers moving from one product to another -- and new seats showed strong growth.
The Company's model-based 3D products, Inventor, Revit and Civil 3D, continue to increase their market penetration. Combined revenues from these model-based design products increased 40 percent over the fourth quarter of fiscal 2006 to a record $121 million or 24 percent of total revenues in the quarter. In total, Autodesk shipped more than 47,000 commercial seats of 3D in the quarter including 23,000 seats of Revit, over 15,000 seats of Inventor and nearly 9,000 seats of Civil 3D.
Once again, emerging economies contributed robust growth in revenues. Revenues from the emerging economies in Asia Pacific, Eastern Europe, the Middle East and Latin America increased 44 percent over the fourth quarter of fiscal 2006 to $75 million and represented 15 percent of total revenues in the fourth quarter.
Maintenance revenues from subscription increased 53 percent compared to the fourth quarter of fiscal 2006 to $123 million or 25 percent of total revenues. Continued strength in subscription attach rates and renewal rates drove a $53 million sequential increase in deferred maintenance revenue from subscription. Total upgrade revenues increased slightly compared to the fourth quarter of fiscal 2006 driven by a 45 percent increase in crossgrade revenue.
Revenues from new seats increased by 15 percent compared to the fourth quarter of last year. Revenues from new seats of Revit and Civil 3D increased 95 percent and 26 percent, respectively, compared to the fourth quarter of fiscal 2006. Revenues from new seats of AutoCAD Mechanical and Inventor Professional increased by 68 percent and 62 percent, respectively, compared to the fourth quarter of last year. Revenues from new seats of flame increased by over 100 percent compared to the fourth quarter of fiscal 2006.
OTHER FINANCIAL HIGHLIGHTS * Cash, cash equivalents and marketable securities increased by $181 million sequentially to $778 million as of January 31, 2007. * Total backlog was $415 million as of January 31, 2007, including $398 million of deferred revenues. Deferred maintenance revenues from subscription increased $53 million sequentially to $328 million. In addition, there was $17 million of unshipped product orders, or shippable backlog, at quarter end. * Channel inventory decreased sequentially and was below the normal range of three to four weeks. * As a result of strong subscription bookings in the quarter, DSO's increased to 55 days. * Capital expenditures were $10 million. * As a result of the voluntary review of the Company's historical stock option granting practices and the related accounting, the Company did not issue or repurchase any shares during the quarter. * There were approximately 231 million total shares outstanding and 244 million diluted shares outstanding in the fourth quarter. * Revenues in the Americas increased 15 percent over the fourth quarter of fiscal 2006 to $203 million. * Revenues in EMEA increased 26 percent over the fourth quarter of fiscal 2006 to $189 million. * Revenues in Asia Pacific increased 18 percent over the fourth quarter of fiscal 2006 to $105 million. Revenues in Japan decreased three percent compared to last year. Excluding Japan, revenues in Asia Pacific increased 34 percent compared to last year. * In the fourth quarter of fiscal 2007, spending on total costs and expenses -- which include cost of license and other revenue, cost of maintenance revenues, marketing and sales, research and development, and general and administrative -- increased by $5 million sequentially. * Spending related to the voluntary stock option review included $3 million in legal, tax and accounting fees. * Interest and other income decreased by $2 million sequentially to $4 million. Fiscal 2007 Full Year Review
Revenues for fiscal 2007 increased 21 percent over fiscal 2006 to $1.84 billion, driven by strength in revenues from model-based 3D products, new seat revenue, maintenance revenue from subscription, and revenue in the emerging economies. Combined revenues from the Company's model-based 3D products increased 41 percent over fiscal 2006 to a record $399 million. In total, Autodesk shipped nearly 150,000 commercial seats of 3D including nearly 70,000 seats of Revit, nearly 48,000 seats of Inventor and nearly 31,000 seats of Civil 3D.
Revenue from the emerging economies in Asia Pacific, Eastern Europe, the Middle East and Latin America increased 39 percent over fiscal 2006 to $258 million.
Revenue from new seats increased 19 percent over fiscal 2006. Maintenance revenue from subscription increased 53 percent in fiscal 2007 to $424 million.
Because Autodesk has not yet filed its second and third quarter fiscal 2007 financial statements, several adjustments have been made to the financial results of the second and third quarters of fiscal 2007. Events that occurred subsequent to these quarters provided additional information which differed from the estimates that were originally provided. The changes result in a decrease in our after-tax GAAP expenses for the second quarter of $13.6 million and an increase in our GAAP expenses for the third quarter of $2.6 million. On a Non-GAAP basis, these adjustments decreased our after-tax spending for the second and third quarters of fiscal 2007 by $2.9 million and $0.7 million, respectively. Please refer to the table below for a reconciliation of the Non-GAAP to GAAP results.
Reconciliation of GAAP Subsequent Event Adjustments to Non-GAAP Subsequent Event Adjustments Amounts in millions, net of tax Q2 Q3 GAAP adjustments $13.6 $(2.6) Settlement-based reversal of legal accrual (9.9) (2.3) Tax benefit and rate true-up (0.8) (0.4) SFAS 123R termination-related modifications -- 6.0 Non-GAAP adjustments $2.9 $0.7 Business Outlook