Autodesk Q3 Revenue Down 31% to $417M with $30M Profit
 SAN
RAFAEL, CA, Nov 18,2009 - Autodesk, Inc. (NASDAQ:ADSK) today reported financial results for the third
quarter of fiscal 2010.
- Revenue was $417 million, flat sequentially, and a decrease of 31
percent compared to the third quarter of fiscal 2009.
- GAAP diluted earnings per share were $0.13, compared to GAAP diluted
earnings per share of $0.05 in the second quarter of fiscal 2010, and
$0.45 in the third quarter of fiscal 2009.
- Non-GAAP diluted earnings per share were $0.27, compared to non-GAAP
diluted earnings per share of $0.24 in the second quarter of fiscal
2010, and non-GAAP diluted earnings per share of $0.56 in the third
quarter of fiscal 2009. A reconciliation of the GAAP and non-GAAP
results is provided in the accompanying tables.
“Our business appears to be increasingly stable,” said
Carl Bass, Autodesk president and CEO. “We posted sequential increases
in a number of important metrics including revenue from commercial new seat
licenses, revenue from our Americas and EMEA geographies, revenue from our
2D horizontal solutions, and revenue from our 3D animation solutions. These
results reflect the business environment that began stabilizing in the
second quarter of this fiscal year.
“In addition, our efforts to reduce operating expenses resulted in a
sequential increase in profitability for the second consecutive quarter,”
continued Bass. “While there are several data points in our business that
are encouraging and represent positive indicators for our business, the
health of the global economic environment remains mixed and the continued
job losses in our core markets represent ongoing challenges to a swift
recovery in our business.”
Operational Overview
Revenue in the Americas increased 2 percent sequentially to $164 million
and decreased 25 percent compared to the third quarter of fiscal 2009. EMEA
revenue increased 1 percent sequentially as reported, to $159 million, and
declined 3 percent on a constant currency basis. EMEA revenue decreased 38
percent compared to the third quarter of fiscal 2009 as reported, and 35
percent on a constant currency basis. Revenue in Asia Pacific was $94
million, a decrease of 4 percent sequentially as reported, and 7 percent on
a constant currency basis. Revenue in Asia Pacific decreased 29 percent
compared to the third quarter of fiscal 2009 as reported, and 33 percent on
a constant currency basis.
Revenue from emerging economies was $62 million, a decline of 2 percent
sequentially as reported and 3 percent on a constant currency basis. Revenue
from emerging economies decreased 46 percent compared to the third quarter
of fiscal 2009 as reported and 45 percent on a constant currency basis.
Revenue from emerging economies represented 15 percent of total revenue in
the quarter.
Combined revenue from Autodesk's model-based 3D design solutions was $122
million, flat sequentially and a decline of 25 percent compared to the third
quarter of fiscal 2009. Revenue from 2D horizontal and vertical products was
$189 million, a slight decrease sequentially and a decline of 37 percent
compared to the third quarter of fiscal 2009. Combined revenue from our
AutoCAD and AutoCAD LT products increased 2 percent sequentially and
decreased 39 percent compared to the third quarter last year.
“With more than $1 billion in cash and investments, no debt, and positive
cash flows, Autodesk remains in solid financial condition,” continued Bass.
“We are on track to deliver more than $300 million in pre-tax cost savings
in fiscal 2010 compared to fiscal 2009. We will continue to strive to
increase our efficiencies and profitability while making essential
investments for the future.”
During the current quarter, Autodesk determined that the way in which its
third-party software application accounted for estimated forfeitures in
stock-based compensation calculations was incorrect. As a result, fiscal
third quarter 2010 GAAP results include a one-time adjustment to increase
stock-based compensation expense by $7.9 million net of tax, or
approximately $0.03 per diluted share. This is a cumulative adjustment from
prior periods. For the nine month period ended October 31, 2009 the
cumulative adjustment from prior periods was $6.8 million net of tax or
$0.03 per diluted share.
Business Outlook
The following are forward-looking statements that are based on current
expectations that involve risks and uncertainties, some of which are set
forth below.
Fourth Quarter Fiscal 2010
For the fourth quarter, Autodesk expects revenue to be in the range of
$420 million to $440 million. GAAP earnings per diluted share are expected
to be in the range of $0.07 and $0.12. Non-GAAP earnings per diluted share
are expected to be in the range of $0.19 and $0.24, excluding $0.06 related
to stock-based compensation expense and $0.06 for amortization of
acquisition related intangibles.
Full Year Fiscal 2010
Net revenue for fiscal 2010 is expected to be in the range of $1.68
billion and $1.7 billion. GAAP earnings per diluted share are expected to be
in the range of $0.11 and $0.16. Non-GAAP earnings per diluted share are
expected to be in the range of $0.88 and $0.93 and exclude $0.29 related to
stock-based compensation expense, $0.18 for the amortization of acquisition
related intangibles, $0.15 for restructuring charges, $0.06 related to
goodwill impairment, and $0.09 related to the establishment of a valuation
allowance on deferred tax assets.
In addition, Autodesk anticipates total GAAP pre-tax spend (operating
expenses plus cost of goods sold) for fiscal 2010 to range between $1.65
billion and $1.66 billion, which is lower than fiscal 2009 by between $407
and $417 million. The company anticipates total non-GAAP pre-tax spend
(operating expenses plus cost of goods sold) for fiscal 2010 to range
between $1.42 billion and $1.43 billion, which is lower than fiscal 2009 by
between $300 and $310 million. Total non-GAAP pre-tax spend excludes
approximately $95 million of stock-based compensation expense, $60 million
of amortization of acquisition related intangibles, $50 million of
restructuring charges and $20 million of goodwill impairment charges, which
are included in total GAAP pre-tax spend.
First Quarter 2011 and Full Year Fiscal 2011
Autodesk is not providing specific revenue or EPS guidance for fiscal
2011 at this time. However, in the first quarter of fiscal 2011, GAAP
operating margin is expected to increase year-over-year as the company
recorded significant impairment charges in the first quarter of fiscal 2010
that it does not anticipate recording in fiscal 2011. Non-GAAP operating
margin in the first quarter of fiscal 2011 is anticipated to be flat to
slightly down compared to the first quarter of fiscal 2010, as a result of
normal seasonality and the return of some costs that were suppressed in the
first quarter of fiscal 2010.
GAAP operating margin for the full year fiscal 2011 is expected to
increase as the company recorded significant impairment charges in fiscal
2010 that it does not anticipate recording in fiscal 2011. Autodesk
anticipates modest improvement in non-GAAP operating margin for full year
fiscal 2011 compared to fiscal 2010.
Non-GAAP operating margin excludes stock-based compensation expense,
amortization of acquisition related intangibles, restructuring charges and
goodwill impairments.
Earnings Conference Call and Webcast
Autodesk will host its third quarter conference call today at 5:00 p.m.
EST. The live broadcast can be accessed at
http://www.autodesk.com/investors. Supplemental financial information
and prepared remarks for the conference call will be posted to the investor
relations section of our website simultaneously with this press release.
NOTE: The prepared remarks will not be read on the conference call. The
conference call will include only brief remarks followed by questions and
answers.
A replay of the broadcast will be available at 7:00 pm EST at
http://www.autodesk.com/investors. This replay will be maintained on our
website for at least twelve months.
See Also
Autodesk Q3 Earning Call Transcript Available
new
- Seeking Alpha
About Autodesk
Autodesk, Inc., is a world leader in 2D and 3D design, engineering and
entertainment software for the manufacturing, building and construction, and
media and entertainment markets. Since its introduction of AutoCAD software
in 1982, Autodesk continues to develop the broadest portfolio of
state-of-the-art software to help customers experience their ideas digitally
before they are built. Fortune 100 companies -- as well as the last 14
Academy Award winners for Best Visual Effects -- use Autodesk software tools
to design, visualize and simulate their ideas to save time and money,
enhance quality, and foster innovation for competitive advantage.
For more information, visit www.autodesk.com.
Autodesk, Inc. Consolidated Statements of Operations
(In millions, except per share data)
Three Months Ended Nine Months Ended
October 31,
October 31,
2009 2008
2009 2008
(Unaudited)
(Unaudited)
Net revenue:
License and other
$236.1 $421.0 $710.7
$1,293.4
Maintenance
180.8 186.1 546.9 532.0
Total net revenue
416.9 607.1 1,257.6 1,825.4
Cost of revenue:
Cost of license and other
revenue
42.0 50.5
138.6 164.1
Cost of maintenance revenue 3.0
2.4 8.8 6.5
Total cost of revenue
45.0 52.9
147.4 170.6
Gross profit
371.9 554.2 1,110.2
1,654.8
Operating Expenses:
Marketing and sales
180.3 227.0
540.6 682.7
Research and development
109.3 137.0
340.7 437.4
General and administrative 51.1
50.6 150.6
156.4
Impairment of goodwill
- -
21.0 -
Restructuring charges
4.9 - 47.8
-
Total operating
expenses 345.6 414.6
1,100.7 1,276.5
Income from operations
26.3 139.6
9.5 378.3
Interest and other income
(expense), net
5.7 (3.4) 16.5
9.9
Income before income taxes 32.0
136.2 26.0
388.2
Provision for income taxes (2.5)
(31.7) (18.1) (99.2)
Net income
$29.5 $104.5 $7.9
$289.0
Basic net income per share
$0.13 $0.46 $0.03
$1.28
Diluted net income per share $0.13
$0.45 $0.03 $1.25
Shares used in computing basic
net income per share
229.6 225.3 228.5 225.2
Shares used in computing diluted
net income per share
232.9 230.4 231.1 231.2
Autodesk, Inc. Condensed Consolidated Balance Sheets
(In millions)
October 31 January 31,
2009
2009
(Unaudited)
ASSETS:
Current assets:
Cash and cash equivalents
$698.5
$917.6
Marketable securities
263.1
63.5
Accounts receivable, net
215.7
316.5
Deferred income taxes 49.8 31.1
Prepaid expenses and other current assets 60.0
59.3
Total current assets
1,287.1 1,388.0
Marketable securities
92.0
7.6
Computer equipment, software, furniture
and leasehold improvements, net
111.9
120.6
Purchased technologies, net
88.9
113.3
Goodwill 530.5 542.5
Long term deferred income taxes, net
92.7
125.7
Other assets
112.3 123.0
$2,315.4 $2,420.7
LIABILITIES AND
STOCKHOLDERS' EQUITY:
Current liabilities:
Accounts payable
$60.0
$62.4
Accrued compensation
98.9
124.3
Accrued income taxes
9.8
16.7
Deferred revenue
401.2
438.8
Borrowings under line of credit
-
52.1
Other accrued liabilities
57.4 105.8
Total current
liabilities
627.3 800.1
Deferred revenue
68.3
113.3
Long term income taxes payable
123.2
116.9
Long term deferred income taxes
-
22.7
Other liabilities
64.9
57.0
Commitments and contingencies Stockholders'
equity: Preferred stock
-
-
Common stock and additional paid-in capital 1,194.2
1,080.4
Accumulated other comprehensive income (loss) 3.7
(11.2)
Retained earnings
233.8 241.5
Total stockholders'
equity
1,431.7 1,310.7
$2,315.4 $2,420.7
Autodesk, Inc.
Condensed Consolidated Statements of Cash Flows
(In millions)
Nine Months Ended
October 31,
2009 2008
(Unaudited)
Operating Activities
Net income
$7.9 $289.0
Adjustments to reconcile net income to
net
cash provided by operating activities:
Depreciation and amortization
84.4 64.5
Stock-based compensation expense
74.7 70.9
Impairment of goodwill
21.0
-
Restructuring charges, net
47.8
-
Gain on disposition of assets
(2.3)
-
Charge for acquired in-process research and
development
-
18.0
Changes in operating assets and liabilities,
net of business combinations
(112.3) 65.1
Net cash provided by
operating activities 121.2
507.5
Investing Activities Purchases of
marketable
securities
(409.9) (111.2)
Sales of marketable securities
8.1 5.2
Maturities of marketable securities
126.5
-
Capital expenditures
(30.2) (59.1)
Purchase of equity investment
(10.0) -
Business combinations, net of cash acquired
(3.6) (297.3)
Net cash used in
investing activities
(319.1) (462.4)
Financing activities
Draws on line of credit
2.2 800.0
Repayments of line of credit
(54.3) (796.0)
Proceeds from issuance of common stock,
net of issuance costs
67.5 89.1
Repurchases of common stock
(39.4) (256.6)
Net cash used in financing activities
(24.0) (163.5)
Effect of exchange rate changes on
cash
and cash equivalents
2.8 (3.1)
Net decrease in cash and cash
equivalents (219.1)
(121.5)
Cash and cash equivalents at beginning of
fiscal year
917.6 917.9
Cash and cash equivalents at end of period
$698.5 $796.4
----------
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