The impact of foreign currency exchange rates was $18 million favorable on revenue and $3 million unfavorable on expenses, compared to the third quarter last year. The foreign currency impact was $14 million unfavorable on revenue and $7 million favorable on expenses when compared to the second quarter of this year.

Turning to the balance sheet, cash and investments were $941 million. At the end of the quarter, more than 80% of our cash and investments was off-shore. During the quarter, we paid down most of the outstanding balance on our lines of credit but we will continue to utilize our lines as needed.

Deferred revenue was up 18% year over year and down 11% sequentially to $499 million, due to the impact of a strengthening dollar and lower subscription billings.

Cash from operating activities was $107 million and was lower sequentially due primarily to the decrease in deferred revenue, as well as other accruals.

Unshipped product orders or shippable backlog decreased by $23 million sequentially to $6 million.

Total backlog, including deferred revenue and unshipped product orders, was $505 million, an increase of $65 million over last year.

Our channel inventory was approximately three weeks. DSOs were 44 days this quarter, decreasing sequentially primarily due to lower billings.

Now let’s talk about our outlook -- as you know, the global economic environment is extremely difficult right now. There is great uncertainty about how much farther the problems will spread and how long this will last. As a result, our forecast has been volatile. Our guidance is based upon our current expectations and the information we have available today.

For the fourth quarter, we now expect revenue to be in the range of $525 million to $550 million. GAAP earnings per diluted share are expected to be in the range of $0.13 to $0.19. Non-GAAP EPS is expected to be between $0.28 and $0.34, excluding $0.07 related to stock-based compensation and $0.08 for the amortization of acquisition-related intangibles. We expect the tax rate to be approximately 26%.

It’s been our practice over the past few years to provide guidance for the first quarter and the next fiscal year at this time. The uncertainty of the current markets has made the forecasting process extraordinarily difficult so we will refrain from providing specific guidance past the fourth quarter. However, we do want to provide insight into some significant factors we are considering for fiscal 2010.

In addition to the impact of the global economy, foreign currency exchange rates have been highly volatile recently. We continue to expand our cash flow hedge program to manage our foreign currency risk as we plan for fiscal 2010. However, if today’s exchange rates were to hold through next year, we would experience a significant currency headwind. In this scenario, the conversion of the Euro would be approximately 14% lower than the average for this year.

As Carl mentioned, to offset this overall environment, we are implementing additional changes in an effort to reduce our operating expenses by approximately 5% in fiscal 2010 compared to fiscal 2009. This represents a reduction of approximately 9% off our expected fourth quarter run-rate.

Now I will turn the call back to Carl.

Carl Bass

Thanks Sue. While the turbulence in the global economy has slowed our business, we are focused on trying to stimulate demand while adjusting our cost structure appropriately. In the process, we will balance these actions with investing in our future.

Slow-downs such as these present an opportunity for us to realign our business. Investments become more targeted, divestments occur, efficiency rises, and resources get realigned. We are already working on many initiatives, including pricing, bundling, and portfolio management to improve our business and strengthen the company.

Autodesk has navigated through several economic downturns in its 26 years of existence and has emerged from each stronger and better positioned competitively. I am confident that however long or deep this global economic downturn is, Autodesk will remain the world leader for 2D and 3D design software and the company will be even stronger, more efficient and more competitive when markets turn around.

With close to $1 billion in cash and virtually no debt, our balance sheet is very strong. Our solid financial position and longstanding market leadership will serve us well as we work with our customers and partners to navigate through this economy together.

With that, I will turn it back over to the Operator so we can take your questions.

Question-and-Answer Session