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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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Carl Bass

No.

Steven M. Ashley - Robert W. Baird & Co.

Okay. Thank you.

Operator

Just to remind everyone, if you would like to ask a question, please press “*1” and please limit to one question per caller. Your next question comes from the line of Phil Winslow with Credit Suisse. Please proceed.

Philip Winslow - Credit Suisse

Hi guys. You all mentioned that the backlog was $6 million at the end of the quarter, down 23. I just want to get a sense of where you are targeting that next quarter. Do you expect to build that up back to the previous levels next quarter or is this going to take a couple of quarters?

Carl Bass

You know, we don’t do a lot of forecasting around backlog, Phil, to tell you the truth, so I think it will really depend on end user demand for the products, where it comes. The nature of the products, the timing in the quarter -- there are a lot of things that affect actually what ends up in backlog at the end of the quarter but we really don’t spend a lot of time trying to forecast backlog.

Philip Winslow - Credit Suisse

Okay, great. And then I guess when you do look at your maintenance stream there, it’s a little different than other software companies. Going into a downturn obviously license revenue’s affected but how do you think of the growth rate of that maintenance stream?

Carl Bass

I mean, I think because of the nature of our maintenance revenue are more shorter term contracts than many others have, I think it relies on several things. It relies on new license sales and then attach and renewal rates. So I would see a slowing. I think you will see less slowing generally speaking of maintenance than you would of new licenses. A lot of people recognize that there’s no economic advantage to getting off maintenance that they have to make up the difference when they come back on and so unless people are really strapped for cash, they wouldn’t generally make those choices.

Operator

Your next question comes from the line of Jay Vleeschhouwer with Merrill Lynch. Please proceed.

Jay Vleeschhouwer - Merrill Lynch

Thanks. Carl, I would like to follow-up on that last comment with respect to maintenance, you had a pretty significant decline sequentially in deferred maintenance, which is now back to where it was as of the end of fiscal ’08 in terms of absolute level, so what did you actually see in terms of maintenance declines or refusal to sign up maintenance at the time of new license sales? I mean, at least one of your competitors has been able to hold maintenance pretty constant, if not improved, so in your case this was certainly a pretty significant reversal of these this quarter.

Carl Bass

The biggest change in there, Jay, is FX, so the big change in there is currency, not actual attach and renewal rates.


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