Cash in the bank is always nice to have, but especially in a credit crunch. I agree that Autodesk presently has more cash than we need from the standpoint of survival, but I'd be disinclined to reduce the cash hoard at this time. If we muddle through the present economic problems, we can always bring down the cash once things are more settled. But if we do get a credit crunch and sharp recession, we'll be able to generate substantial earnings from our cash (and apply our high tech company P/E to it, as discussed on page 16 of ``The New Technological Corporation'').
In addition, there's no better time to be a buyer than at the bottom. If we see a repeat of the 1974 recession, it's very likely we might be able to make some very attractive acquisitions and/or investments at bargain basement prices as the bear market reaches the point of panic liquidation. If this kind of situation begins to emerge, we should devote some effort to scanning the horizon for technologies that fit and which will prosper when recovery begins.
Consequently, I recommend that we do nothing to reduce our cash position at this time.