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Market Update : 
Autodesk Q3 Earnings Call Transcript
Author: 123jump.com Staff
123jump.com
Last Update: 12:35 AM ET December 07 2008


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Sterling Auty - J.P. Morgan

I just want to go back, Carl, to a comment that you made -- I think you said that you just didn’t see the European revenue declining year over year and I just wondered is that just here in the fourth quarter what you are thinking or you just don’t think the economic environment would deteriorate to a point where we would see year-over-year declines from that geography moving forward? Let me just leave it at that.

Carl Bass

I mean, the most straightforward I can be about this, Sterling, is we saw 20% constant currency growth during the quarter. That’s a long ways from going negative. You know, could Europe unwind in the way that the Americas has? Without speculating on that, what I am saying is through now, we saw really strong growth in many places across product lines. We did see some of the places that you would expect, like I mentioned the U.K., were noticeably weaker and reflects what you hear and read and know about their economy.

There are other places that were counter-intuitive in terms of their really strong performance and what I would say right now is our sales force and sales management teams, you know, our distributors and resellers on the ground, while not overly optimistic about next year’s prospects still sees -- I mean, they would still see strong growth out there and when people have gone out -- in our talking with them, as others have gone out and surveyed them, they continue to see strong growth and they have been particularly resilient out there.

Sterling Auty - J.P. Morgan

So even just looking at the next quarter then, as you look at the guidance that’s given, you are basically indicating then a further precipitous fall-off in North America and the other regions to kind of get down to that 525 to 550, or is it more concentrated within North America?

Carl Bass

I would say we are allowing for the possibility of pockets, you know, there’s some in Asia, there’s some in the Americas. You know, there could be some in Europe. I don’t think you will see declines year over year, certainly in Europe, which was the question, but I think we’re saying that given the deterioration in the economy, we could imagine that there are pockets in various places.

Certainly as you look out, we’ve read reports; many companies reporting are talking about weaknesses in Japan. You’re seeing a slow-down in China and other places, so we can certainly imagine slow-downs in those places. What I was really trying to reflect was what we have seen in Europe -- you know, this is our opportunity to give you the best possible insight into what we saw during the quarter. That’s what we saw in Europe, that’s as we sit here today, you know, the insight that we get from our sales team looking forward.

Operator

Ladies and gentlemen, this concludes our Q&A session. I would like to turn the call over to Mr. Dave Gennarelli for closing remarks.

David Gennarelli

Thanks Operator. That concludes our call this afternoon. If you would like to speak to Investor Relations, you can reach me at 415-507-6033. Thanks.

Operator

Thank you for your participation in today’s conference. This concludes our presentation. You may now disconnect.


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