The Autodesk share price fell 13% on Friday, partly because of weaker sales in Europe. During his conference call with financial analysts, ceo Carl Bass talked about what he sees in Europe:
People are more optimistic, and I think partially, it's that people have gotten a little bit immune in the business community less than in the financial community to concerns over Greece, Spain, Portugal, whatever. So I think there's a sense in the business community that people need to drive their businesses forward.
I think the business environment remains one in which people feel like they need to move their business forward. In Europe, we're seeing a tightening of credit. That shouldn't be news to anybody if you're reading the newspapers, that the banks are experiencing some amount of trauma.
If we just put a finer point on it and reinforce the strength in Northern and Central Europe and the weakness in Southern Europe. The thing that struck me particularly is that we did well in Manufacturing and AEC and that Germany had a record quarter. And so I think you really just see the tale of two nations, and I think it's Northern and Southern Europe are just going in divergent directions.
Let me a give you a concrete example. The PLM sales force that we continue to build out... it makes no sense in my mind to go there [to Southern Europe] when there's so much business in the U.S., Germany. As you saw from the results, Japan and Korea did well. So you have other places that are really strong in Manufacturing, and so why not go there instead of go to Southern Europe?
I think we're taking a more cautious attitude to EMEA as we look to the long term. I really don't know if I'm going to wake up tomorrow and read that the Eurozone is falling apart and Greek is out of it or whether a bank defaults.