Autodesk First Quarter Revenues Increase 41 Percent
SAN RAFAEL, Calif., May 18, 2004 /PRNewswire-FirstCall via COMTEX/ -- Autodesk, Inc. (Nasdaq: ADSK), the world's leading design software and digital content company, today announced financial results for its first fiscal quarter ended April 30, 2004. For the first quarter, Autodesk reported net revenues of $298 million, a 41 percent increase over $211 million reported in the first quarter of the prior year.
First quarter net income was $43 million, or $0.36 per diluted share on a GAAP basis, and $49 million, or $0.41 per diluted share on a pro-forma basis. Pro-forma net income excludes an $8 million restructuring charge. Net income in the first quarter of the prior year was $8 million, or $0.07 per diluted share on a GAAP basis. There were no pro-forma adjustments in the prior year.
"I am pleased with the company's outstanding performance during the quarter," said Carol Bartz, Autodesk chairman and CEO. "Strong new releases of our AutoCAD 2005 family of products, led to outstanding results in all markets and divisions. Customers are responding enthusiastically to the improved performance and increased functionality in the new versions."
Autodesk's strong performance was driven by significant increases in revenue from new seats and upgrades, the continuing success of the company's subscription program, and the company's commitment to improving profitability.
During the quarter, the company launched its AutoCAD(R) 2005 family of products, demonstrating the company's continued commitment to delivering lifecycle management solutions to customers. AutoCAD 2005 improves productivity and collaboration by providing the functionality needed for efficient workflow processes and allowing users to create, manage and share complex data and design information more easily.
Subscription revenues, called Maintenance on the financial statements, increased 56 percent over the prior year, to $37 million, as customers continue to recognize the value of the subscription program and the quick return on investment of Autodesk products.
During the quarter, Autodesk continued to deliver on its commitment to improve profitability. Operating margins improved 15 percentage points over the first quarter of fiscal 2004, to 18 percent on a GAAP basis. Pro-forma operating margins, which exclude the $8 million restructuring charge, were 21 percent in the quarter. These results demonstrate the significant leverage in the company's operating margin.
"We got off to a great start in Fiscal Year 2005," said Bartz. "We introduced the AutoCAD 2005 family of products, one of our strongest product offerings ever, just two months after the retirement of AutoCAD 2000. In addition to the successful launch of AutoCAD 2005 family of products, we plan to release significant new versions of all of our other major products this year, including Autodesk Inventor Series, Autodesk Inventor Professional and 3ds max. Our refreshed product line and our focus on increasing profitability combined with the improved global economy, position the company for strong future growth."
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.
Q2 Fiscal 2005
Net revenues for the second quarter of fiscal 2005 are expected to be in the range of $260 million to $270 million. Earnings per diluted share for the second quarter of fiscal year 2005 are expected to be in the range of $0.22 to $0.26 on a GAAP basis and $0.26 to $0.30 on a pro-forma basis.
Full Year Fiscal 2005
For 2005, annual revenue is expected to be in the range of $1.1 billion to $1.125 billion. Earnings per diluted share for the full year are expected to be in the range of $1.29 to $1.36 on a GAAP basis and $1.44 to $1.51 on a pro-forma basis. Fourth quarter fiscal 2005 operating margins are expected to be in the high-20 percent range.
A reconciliation of the above non-GAAP net income and EPS amounts to the corresponding GAAP net income and EPS amounts is provided at the end of this press release.
Safe Harbor Statement
This press release contains forward-looking statements that involve risks and uncertainties, including statements in the paragraphs under "Business Outlook," above and other statements regarding our anticipated product releases and performance. Factors that could cause actual results to differ materially include the following: general market and business conditions, failure of key new applications to achieve anticipated levels of customer acceptance, failure to achieve sufficient sell-through in our channels for new or existing products, pricing pressure, failure to achieve anticipated cost reductions, changes in foreign currency rates, delays in the release of new products and services, failure to achieve continued success in technology advancements, changes in accounting rules, particularly related to stock option expensing, failure to successfully integrate new or acquired businesses, financial and business condition of our reseller and distribution channels, renegotiation or termination of royalty or intellectual property arrangements, and failure to grow lifecycle management or collaboration products.
Further information on potential factors that could affect the financial results of Autodesk are included in the company's report on Form 10-K, for the year ended January 31, 2004, which is on file with the Securities and Exchange Commission.
Autodesk will host a conference call at 800-901-5213 (passcode: 41072538) today and an audio webcast on the first quarter results beginning at 5:00 p.m. Eastern Time at www.autodesk.com/investor. A replay of this webcast will be maintained on our website for at least twelve months.
About Autodesk
Autodesk is the world's leading design software and digital content company, offering customers progressive business solutions through powerful technology products and services. Autodesk helps customers in the building, manufacturing, infrastructure, digital media, and wireless data services fields increase the value of their digital design data and improve efficiencies across their entire project lifecycle management processes. For more information, contact any Authorized Autodesk Reseller, call Autodesk at 800-964-6432, or visit www.autodesk.com. Discreet product information is available at 800-869-3504 or via the Web at www.discreet.com.
NOTE: Autodesk, AutoCAD, Autodesk Inventor, 3ds max and Discreet are registered trademarks of Autodesk, Inc., and/or Autodesk Canada, Inc. in the United States and/or other countries. All other brand names, product names, or trademarks belong to their respective holders.
Autodesk, Inc.
Reconciliation of diluted net income per share on a GAAP basis to
non-GAAP diluted net income per share
Unaudited
Three months ended Fiscal year ended
July 31, 2004 January 31, 2005
Low end High end Low end High end
of range of range of range of range
Diluted net income per share on
a GAAP basis $0.22 $0.26 $1.29 $1.36
Restructure costs 0.05 0.05 0.20 0.20
Income tax effect (0.01) (0.01) (0.05) (0.05)
Non-GAAP diluted net income per share $0.26 $0.30 $1.44 $1.51
Autodesk, Inc.
Consolidated Statements of Income
(In thousands, except per share data)
Three Months Ended
April 30,
2004 2003
(Unaudited)
Net revenues:
License and other $260,509 $186,881
Maintenance 37,367 23,885
Total net revenues 297,876 210,766
Costs and expenses:
Cost of license and other revenues 37,585 35,047
Cost of maintenance revenues 4,287 3,195
Marketing and sales 109,279 92,354
Research and development 57,881 51,579
General and administrative 27,073 21,984
Restructuring and other 8,250 --
Total costs and expenses 244,355 204,159
Income from operations 53,521 6,607
Interest and other income, net 2,416 3,272
Income before income taxes 55,937 9,879
Provision for income taxes (13,432) (2,371)
Net income $42,505 $7,508
Basic net income per share $0.38 $0.07
Diluted net income per share $0.36 $0.07
Shares used in computing basic
net income per share 112,052 111,775
Shares used in computing diluted
net income per share 119,283 113,446
Autodesk, Inc.
Pro Forma Consolidated Statements of Income
(See pro forma adjustments listed in the tables below)
(In thousands, except per share data)
Three Months Ended
April 30,
2004 2003
(Unaudited)
Net revenues:
License and other $260,509 $186,881
Maintenance 37,367 23,885
Total net revenues 297,876 210,766
Costs and expenses:
Cost of license and other revenues 37,585 35,047
Cost of maintenance revenues 4,287 3,195
Marketing and sales 109,279 92,354
Research and development 57,881 51,579
General and administrative 27,073 21,984
Total costs and expenses 236,105 204,159
Income from operations 61,771 6,607
Interest and other income, net 2,416 3,272
Income before income taxes 64,187 9,879
Provision for income taxes (15,405) (2,371)
Pro forma net income $48,782 $7,508
Basic pro forma net income per share $0.44 $0.07
Diluted pro forma net income per share $0.41 $0.07
Shares used in computing basic
pro forma net income per share 112,052 111,775
Shares used in computing diluted
pro forma net income per share 119,283 113,446
Three Months Ended
April 30,
2004 2003
(Unaudited)
A reconciliation between operating
expenses on a GAAP basis and
pro forma operating expenses is as follows:
GAAP costs and expenses $244,355 $204,159
Restructuring and other (8,250) --
Pro forma costs and expenses $236,105 $204,159
A reconciliation between income from
operations on a GAAP basis and
pro forma income from operations is as follows:
GAAP income from operations $53,521 $6,607
Restructuring and other 8,250 --
Pro forma income from operations $61,771 $6,607
A reconciliation between net income on a
GAAP basis and pro forma net income is as follows:
GAAP net income $42,505 $7,508
Restructuring and other 8,250 --
Income tax effect of pro forma adjustments (1,973) --
Pro forma net income $48,782 $7,508
A reconciliation between diluted net income
per share on a GAAP basis and diluted pro
forma net income per share is as follows:
GAAP diluted net income per share $0.36 $0.07
Restructuring and other $0.07 $--
Income tax effect of pro forma adjustments $(0.02) $--
Pro forma diluted net income per share $0.41 $0.07
To supplement our consolidated financial statements presented on a GAAP
basis, Autodesk uses pro forma measures of operating results, net income
and net income per share, which are adjusted to exclude certain costs,
expenses, gains and losses we believe appropriate to enhance an overall
understanding of our past financial performance and also our prospects for
the future. These adjustments to our GAAP results are made with the intent
of providing both management and investors a more complete understanding
of Autodesk's underlying operational results and trends and our
marketplace performance. For example, the pro forma results are an
indication of our baseline performance before gains, losses or other
charges that are considered by management to be outside of our core
operating results. In addition, these adjusted pro forma results are among
the primary indicators management uses as a basis for our planning and
forecasting of future periods. The presentation of this additional
information is not meant to be considered in isolation or as a substitute
for net income or diluted net income per share prepared in accordance with
generally accepted accounting principles in the United States.
Autodesk, Inc.
Consolidated Balance Sheets
(In thousands)
April 30, January 31,
2004 2004
(Unaudited) (Audited)
ASSETS:
Current assets:
Cash and cash equivalents $304,147 $282,249
Marketable securities 49,780 81,275
Accounts receivable, net 142,630 166,816
Inventories 16,686 17,365
Deferred income taxes 24,170 25,410
Prepaid expenses and other current assets 27,830 24,137
Total current assets 565,243 597,252
Marketable securities 165,463 165,976
Computer equipment, software, furniture
and leasehold improvements, at cost:
Computer equipment, software and furniture 208,614 206,319
Leasehold improvements 34,288 34,526
Less accumulated depreciation (179,350) (174,371)
Net 63,552 66,474
Purchased technologies
and capitalized software, net 18,546 19,378
Goodwill, net 163,885 160,094
Deferred income taxes 3,760 --
Other assets 9,851 7,986
$990,300 $1,017,160
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities:
Accounts payable $46,639 $52,307
Accrued compensation 65,871 92,830
Accrued income taxes 44,403 50,695
Deferred revenues 137,220 127,276
Other accrued liabilities 56,188 61,814
Total current liabilities 350,321 384,922
Deferred income taxes -- 7,849
Other liabilities 2,756 2,746
Stockholders' equity:
Preferred stock -- --
Common stock and additional paid-in capital 519,300 473,673
Accumulated other comprehensive loss (8,889) (4,754)
Deferred compensation (285) (451)
Retained earnings 127,097 153,175
Total stockholders' equity 637,223 621,643
$990,300 $1,017,160
Autodesk, Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
Three Months Ended
April 30,
2004 2003
(Unaudited)
Operating Activities
Net income $42,505 $7,508
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization 12,502 12,307
Stock compensation expense 197 557
Net loss on fixed asset disposals 212 --
Write-downs of cost method investments -- 26
Tax benefits from employee stock plans 24,414 --
Restructuring related charges, net 4,326 --
Changes in operating assets
and liabilities (28,993) (2,992)
Net cash provided by operating activities 55,163 17,406
Investing Activities
Net sales and maturities of
available-for-sale marketable securities 30,757 1,876
Business combinations, net of cash acquired (6,500) (5,150)
Capital and other expenditures (5,864) (4,083)
Other investing activities (843) 52
Net cash provided by (used in)
investing activities 17,550 (7,305)
Financing activities
Proceeds from issuance of common stock,
net of issuance costs 104,934 15,123
Repurchase of common stock (149,033) (29,881)
Dividends paid (3,302) (3,347)
Net cash used in financing activities (47,401) (18,105)
Effect of exchange rate changes on
cash and cash equivalents (3,414) 1,070
Net increase (decrease) in cash
and cash equivalents 21,898 (6,934)
Cash and cash equivalents at
beginning of year 282,249 186,377
Cash and cash equivalents
at end of period $304,147 $179,443
Supplemental cash flow information:
Net cash paid (received) paid
during the period for income taxes $4,668 $(123)
Fiscal Year
2005 QTR 1 QTR 2 QTR 3 QTR 4 YTD2005
Financial
Statistics
(in millions):
Total net
revenues $297.9 $297.9
License and
other
revenues $260.5 $260.5
Maintenance
revenues $37.4 $37.4
Gross Margin 86% 86%
GAAP Operating
Expenses $202.5 $202.5
GAAP Operating
Margin 18% 18%
GAAP Net
Income $42.5 $42.5
GAAP Earnings
Per Share
(diluted) $0.36 $0.36
Pro Forma
Operating
Expenses
(A)(B) $194.2 $194.2
Pro Forma
Operating
Margin (A)(C) 21% 21%
Pro Forma Net
Income (A)(D) $48.8 $48.8
Pro Forma
Earnings Per
Share (diluted)
(A)(E) $0.41 $0.41
Total Cash and
Marketable
Securities $519.4 $519.4
Days Sales
Outstanding 43 43
Capital
Expenditures $5.9 $5.9
Cash from
Operations $55.2 $55.2
GAAP Depreciation
and
Amortization $12.5 $12.5
Revenue by
Geography
(in millions):
Americas $121.5 $121.5
Europe $108.8 $108.8
Asia/Pacific $67.6 $67.6
Revenue by
Division
(in millions) (F):
Design Solutions
Group $261.8 $261.8
Manufacturing
Solutions
Division $44.8 $44.8
Infrastructure
Solutions
Division $33.7 $33.7
Building
Solutions
Group $27.2 $27.2
Platform
Technology
Group &
Other $156.1 $156.1
Discreet $36.1 $36.1
Upgrade revenue
(in millions):
Upgrade revenue $66.2 $66.2
Operating Income
(Loss) by Segment
(in millions) (F):
Design
Solutions $115.0 $115.0
Discreet $1.7 $1.7
Unallocated
amounts $(63.2) $(63.2)
Headcount:
Headcount 3,409 3,409
Common Stock
Statistics:
Stock
Outstanding
(Pro Forma EPS
Calculation-
diluted) 119,283,000 119,283,000
Stock Re-
purchased 5,182,600 5,182,600
AutoCAD
Statistics:
Total AutoCAD-
based Installed
Base* 3,469,400 3,469,400
* Includes prior period adjustment of approximately 28,000 seats.
(A) To supplement our consolidated financial statements presented on a
GAAP basis, Autodesk uses pro forma measures of operating results,
net income and net income per share, which are adjusted to exclude
certain costs, expenses, gains and losses we believe appropriate to
enhance an overall understanding of our past financial performance
and also our prospects for the future. These adjustments to our GAAP
results are made with the intent of providing both management and
investors a more complete understanding of Autodesk's underlying
operational results and trends and our marketplace performance. For
example, the pro forma results are an indication of our baseline
performance before gains, losses or other charges that are considered
by management to be outside of our core operating results.
In addition, these adjusted pro forma results are among the primary
indicators management uses as a basis for our planning and
forecasting of future periods. The presentation of this additional
information is not meant to be considered in isolation or as a
substitute for net income or diluted net income per share prepared in
accordance with generally accepted accounting principles in the
United States.
(B) GAAP
Operating
Expenses $202.5 $-- $-- $-- $202.5
Restructuring
and other $(8.3) $-- $-- $-- $(8.3)
Pro Forma
Operating
Expenses $194.2 $-- $-- $-- $194.2
(C) GAAP Operating
Margin 18% 0% 0% 0% 18%
Restructuring
and other 3% 0% 0% 0% 3%
Pro Forma
Operating
Margin 21% 0% 0% 0% 21%
(D) GAAP Net
Income $42.5 $-- $-- $-- $42.5
Restructuring
and other $8.3 $-- $-- $-- $8.3
Income tax
effect $(2.0) $-- $-- $-- $(2.0)
Pro Forma
Net Income $48.8 $-- $-- $-- $48.8
(E) GAAP Earnings
Per Share
(diluted) $0.36 $-- $-- $-- $0.36
Restructuring
and other $0.07 $-- $-- $-- $0.07
Income tax
effect $(0.02) $-- $-- $-- $(0.02)
Pro Forma
Earnings
Per Share
(diluted) $0.41 $-- $-- $-- $0.41
(F) In the first quarter of fiscal 2005, Autodesk modified its segment
disclosure. For purposes of comparison with previous periods, the
segment data has been restated to reflect the current segment
reporting.
CONTACT: media, Nicole Pack, +1-415-507-6282, or nicole.pack@autodesk.com; or investors, Sue Pirri, +1-415-507-6467, or sue.pirri@autodesk.com, or Marlene Peterson, +1-415-507-6732, or marlene.peterson@autodesk.com, all of Autodesk.
SOURCE Autodesk, Inc.
media, Nicole Pack, +1-415-507-6282, or nicole.pack@autodesk.com; or investors, Sue Pirri, +1-415-507-6467, or sue.pirri@autodesk.com, or Marlene Peterson, +1-415-507-6732, or marlene.peterson@autodesk.com, all of Autodesk
http://www.autodesk.com
Click here for pdf version of this release.
Click here for pdf version of the Consolidated Statements of Income.
Click here for pdf version of the Consolidated Balance Sheets.
Click here for pdf version of the Pro Forma Consolidated Statements of Income.
Click here for pdf version of the Condensed Consolidated Statements of Cash Flows.
Click
here for pdf version of the Factsheet
Click here for excel version of the Consolidated Statements of Income.
Click here for excel version of the Consolidated Balance Sheets.
Click here for excel version of the Pro Forma Consolidated Statements of Income.
Click here for excel version of the Condensed Consolidated Statements of Cash Flows.
Click
here for Excel version of the Factsheet