Nov 21 - Autodesk Q3 Revenue Up 13% to $607M with $104M Profit

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Autodesk Q3 Revenue Up 13% to $607M with $104M Profit

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SAN RAFAEL, CA, Nov 21, 2008 - Autodesk, Inc. (Nasdaq: ADSK) today reported revenue of $607 million for the third quarter of fiscal 2009, an increase of 13 percent over the third quarter of fiscal 2008. GAAP diluted earnings per share in the third quarter increased 29 percent to $0.45, compared to $0.35 per diluted share in the third quarter last year. Non-GAAP diluted earnings per share in the third quarter increased 14 percent to $0.56, compared to $0.49 per diluted share in the third quarter last year. A reconciliation between GAAP and non-GAAP results is provided at the end of this press release.

"The sharp downturn in the global economy had a substantial impact on our results for the quarter," said Carl Bass, Autodesk president and CEO. "Our business in the United States slowed as a result of the economic climate. In addition, we started to experience headwinds in some of our international markets.

"While we realize that there is no quick or easy response to the current economic environment, we are focused on serving our customers and helping our channel partners in these challenging times. We are taking actions to stimulate demand and are making appropriate adjustments to our cost structure. In the process we intend to balance these cost reductions with investing in our future. Investment focus areas continue to be increasing channel capacity and developing technology that will help Autodesk better serve our customers."

Operational Highlights

Autodesk's performance in the third quarter of fiscal 2009 was driven by continued growth of maintenance revenue, model-based 3D design solutions, and revenue generated in emerging economies.

Combined revenue from our model-based 3D design solutions, including Inventor, Revit, Civil 3D, Moldflow, NavisWorks, and Robobat, increased 26 percent over the third quarter of fiscal 2008 to $163 million and comprised 27 percent of total revenue for the quarter. Excluding $12 million from Moldflow, which was acquired earlier this year, revenue from model-based 3D design solutions grew 16 percent to $151 million. Autodesk shipped approximately 41,000 commercial seats of its model-based 3D design products, including approximately 9,000 commercial seats of Inventor and Moldflow and 32,000 seats of its Architecture Engineering and Construction products - Revit, Civil 3D, NavisWorks, and Robobat.

Revenue from AutoCAD and AutoCAD LT increased 10 percent and 12 percent, respectively, compared to the third quarter of 2008. Revenue from 2D vertical products decreased 6 percent compared to the third quarter of fiscal 2008.

Revenue from emerging economies increased 25 percent over the third quarter of fiscal 2008 to $114 million and represented 19 percent of total revenue. EMEA revenue was $258 million, an increase of 27 percent as reported over the third quarter of fiscal 2008, and 20 percent at constant currency. Revenue in Asia Pacific was $133 million, an increase of 12 percent as reported year-over-year, and 9 percent at constant currency. Revenue in the Americas decreased 1 percent to $216 million compared to the third quarter of fiscal 2008.

Upgrade revenue and maintenance revenue combined increased 22 percent over the third quarter of fiscal 2008 to $227 million. Total upgrade revenue decreased 4 percent compared to the third quarter of fiscal 2008. Maintenance revenue increased 31 percent compared to the third quarter of fiscal 2008 to $186 million, or 31 percent of total revenue. Deferred maintenance revenue decreased $55 million sequentially and increased $67 million compared to the third quarter of fiscal 2008.

Net income and earnings per share benefited from lower operating expenses than originally expected, which resulted from an accrual adjustment for annual performance-based incentive plans, a hiring freeze, and lower discretionary spending.

Business Outlook

The following statements are forward-looking statements which are based on current expectations and which involve risks and uncertainties some of which are set forth below. Given the uncertainty of the current markets, Autodesk is not providing guidance for fiscal 2010 at this time.

Fourth Quarter Fiscal 2009

Net revenue for the fourth quarter of fiscal 2009 is expected to be in the range of $525 million and $550 million. GAAP earnings per diluted share are expected to be in the range of $0.13 and $0.19. Non-GAAP earnings per diluted share are expected to be in the range of $0.28 and $0.34 and exclude $0.07 related to stock-based compensation expense and $0.08 for the amortization of acquisition related intangibles.

Earnings Conference Call and Webcast

Autodesk will host its third quarter conference call today at 5:00 p.m. EST. The live announcement may be accessed at http://www.autodesk.com/investors or by dialing 866-510-0710 or 617-597-5378 (passcode: 46764406). An audio webcast or podcast of the call 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. An audio replay will also be available for one month beginning at 7:00 pm EST by dialing 888- 286-8010 or 617-801-6888 (passcode: 73660289).

About Autodesk

Autodesk, Inc. is the world leader in 2D and 3D design software for the manufacturing, building and construction, and media and entertainment markets. Since its introduction of AutoCAD software in 1982, Autodesk has developed the broadest portfolio of state-of-the-art digital prototyping solutions to help customers experience their ideas before they are real. Fortune 1000 companies rely on Autodesk for the tools to visualize, simulate and analyze real-world performance early in the design process to save time and money, enhance quality and foster innovation.

For more information, visit http://www.autodesk.com/.

Autodesk, Inc.
Consolidated Statements of Income
(In millions, except per share data)

                      Three Months Ended Nine Months Ended
                           October 31,        October 31,
                         2008     2007       2008     2007
                          (Unaudited)         (Unaudited)
Net revenue:
     License and other $421.0 $395.8    $1,293.4 $1,172.6
       Maintenance       186.1   142.6       532.0     400.2
Total net revenue      607.1   538.4     1,825.4   1,572.8
Cost of license and
other revenue             50.3    49.7       163.5     149.8
Cost of maintenance
revenue                    2.4     1.9         6.5       6.3
Total cost of revenue   52.7    51.6       170.0     156.1
       Gross margin      554.4   486.8     1,655.4   1,416.7
Operating Expenses:
   Marketing and sales   225.5   208.9       678.2     600.1
   Research and
development              135.2   123.2       432.1     352.9
   General and
administrative            54.1    49.1       166.8     142.2
   Total operating
expenses                 414.8   381.2     1,277.1   1,095.2
   Income from
operations               139.6   105.6       378.3     321.5
   Interest and
other income, net         (3.4)    4.4         9.9      17.6
   Income before income
taxes                    136.2   110.0       388.2     339.1
   Provision for
income taxes             (31.7) (25.2)      (99.2)    (79.4)
   Net income           $104.5   $84.8      $289.0    $259.7
   Basic net income
per share                 $0.46   $0.37       $1.28     $1.13
   Diluted net income
per share                 $0.45   $0.35       $1.25     $1.07
   Shares used in
computing basic net
income per share         225.3   229.4       225.2     230.3
   Shares used in
computing diluted net
income per share         230.4   239.9       231.2     242.5

Autodesk, Inc.
Condensed Consolidated Balance Sheets
(In millions)

                                 October 31,   January 31,
                                      2008          2008
                                  (Unaudited)

    ASSETS:

    Current assets:
      Cash and cash equivalents      $796.4        $917.9
      Marketable securities           136.8          31.4
      Accounts receivable, net        291.4         386.5
      Deferred income taxes            34.6          98.1
      Prepaid expenses and other
current assets                         51.2          47.9
Total current assets            1,310.4       1,481.8

    Marketable securities               8.3           8.4
    Computer equipment, software,
furniture and leasehold
improvements, net                     116.6          80.2
    Purchased technologies, net       107.7          64.4
    Goodwill                          632.3         443.4
    Deferred income taxes, net         86.2          54.6
    Other assets                      112.2          79.4
                                   $2,373.7      $2,212.2

LIABILITIES AND STOCKHOLDERS' EQUITY:

    Current liabilities:
      Accounts payable                $76.0         $79.3
      Accrued compensation            112.2         146.2
      Accrued income taxes             20.4          14.4
      Deferred revenue                387.5         400.7
      Borrowings under line of credit   3.9           -
      Other accrued liabilities        64.3          89.7
    Total current liabilities         664.3         730.3

    Deferred revenue                  111.9         105.4
    Long term income taxes payable    112.5          86.5
    Long term deferred income taxes    27.7           3.3
    Other liabilities                  57.2          56.2

    Commitments and contingencies

    Stockholders' equity:
      Preferred stock                   -             -
      Common stock and additional
paid-in capital                     1,059.2         998.3
      Accumulated other
comprehensive income                   (6.0)         13.8
      Retained earnings               346.9         218.4
    Total stockholders' equity      1,400.1       1,230.5
                                   $2,373.7      $2,212.2

Autodesk, Inc.
Condensed Consolidated Statements of Cash Flows
(In millions)

                                        Nine Months Ended
                                            October 31,
                                          2008       2007
                                            (Unaudited)
    Operating Activities
     Net income                        $289.0     $259.7
      Adjustments to reconcile net income
       to net cash provided by operating
       activities:
           Depreciation and amortization 64.5       44.1
           Stock-based compensation
           expense                        70.9       73.1
           Charge for acquired in-process
            research and development      18.0        3.6
           Changes in operating assets
            and liabilities,
            net of business combinations 65.1      109.0
    Net cash provided by operating
activities                               507.5      489.5

    Investing Activities
      Purchases of marketable securities(111.2)    (727.9)
      Sales of marketable securities       5.2      795.5
      Business combinations, net of
cash acquired                           (297.3)     (66.0)
      Capital and other expenditures     (59.1)     (29.1)
    Net cash provided by (used in)
     investing activities               (462.4)     (27.5)

    Financing activities
      Draws on line of credit            800.0        -
      Repayments of line of credit      (796.0)       -
      Proceeds from issuance of common
       stock, net of issuance costs       89.1      160.7
      Repurchases of common stock       (256.6)    (463.5)
    Net cash used in financing
activities                              (163.5)    (302.8)

    Effect of exchange rate changes on
     cash and cash equivalents            (3.1)       3.2

    Net increase in cash and cash
     equivalents                        (121.5)     162.4
    Cash and cash equivalents at
     beginning of fiscal year            917.9      665.9
    Cash and cash equivalents at end of
     period                             $796.4     $828.3

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