Autodesk Reports First Quarter Results
On a pro forma basis, as defined below, first quarter net income was $19 million or $0.16 per diluted share compared to $32 million or $0.28 per diluted share for the same quarter a year ago. These per share amounts have been adjusted for the recent stock split.
First quarter net income was $18 million or $0.15 per diluted share compared to net income for the same quarter a year ago of $28 million or $0.25 per diluted share.
"We are disappointed with the top and bottom line financial performance this quarter. Despite the fundamental strength we saw in most areas, macroeconomic pressure continued to affect customer buying, and Japan and Discreet both missed their numbers significantly," said Carol Bartz, Autodesk chairman and CEO. "However, milestones delivered across our business units reinforced our strategic direction. We had another good performance against competitors. Our channel partners and field sales team have done an outstanding job persevering through conservative customer buying due to macroeconomic pressure."
First Quarter Highlights
- Manufacturing momentum continues with customers adopting Autodesk's 3D modeling solution. 3D commercial seats added were more than 16,000 for the quarter - far exceeding the seats sold by any other 3D modeler on the market.
- Fueled by the flagship product, Autodesk Architectural Desktop, net revenues for the Building Industry Division grew 23% from one year ago to $22 million. A key milestone in the quarter was the early closure of the Revit acquisition on April 1.
- With a focus on homeland security and public works, the Geographic Information Systems Division delivered strong year over year growth of 27% and net revenues of $27 million.
- Autodesk's major account business continues to gain traction. Major account revenues for the Americas region grew by more than 30% year over year.
- Launched last fall, the new subscription program is building revenues with growth in the Americas region of more than 11% versus last quarter.
- Buzzsaw, Autodesk's collaboration service for the building industry, had a great quarter. For the quarter, the customer base increased by 10 percent including adding more than 10,000 new users.
Business Outlook
The following statements are based on current expectations. These statements are forward-looking and actual results may differ materially.
Revenue outlook:
Net revenues for the second quarter of fiscal year 2003 are expected to range between $210 million and $220 million. This brings the company's net revenue expectations for the fiscal year 2003 to a range between $950 million and $1 billion.These revenue expectations are subject to a number of risks, including further slowing in the worldwide economies, especially in Europe and Japan, further slowing in the manufacturing and entertainment sectors, failure to achieve further customer acceptance of the AutoCAD 2002 family of products and subscriptions, failure to grow collaboration services businesses, failure to grow new or emerging businesses in location-based services and Revit, competitive pressure and fluctuations in foreign currency.
Earnings per share outlook:
Earnings per diluted share on a pro forma basis, excluding restructuring and other charges as well as amortization of purchased intangibles, is expected to range between $0.08 and $0.13 per diluted share for the second quarter of fiscal year 2003. This brings pro forma earnings expectations for fiscal year 2003 to range between $0.90 and $1.10 per diluted share.Pro forma earnings per diluted share may vary due to our inability to maintain or grow overall revenue, our inability to further reduce operating costs, inability to successfully integrate new or acquired businesses like Revit, and fluctuations in interest rates and share count.
The statements above contained in the business outlook are forward-looking statements that involve risks and uncertainties. In addition to factors discussed above, other factors that could cause actual results to differ materially include the following: general market and business conditions, pricing pressure, failure to achieve continued success in technology advancements, delays in release of new products and services, failure to successfully integrate new or acquired businesses, changes in customer ordering patterns, failure to grow collaboration or location-based services. 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, 2002, which is on file with the Securities and Exchange Commission.
Autodesk will host a toll free conference call at 800-369-1720 and an audio webcast on the first quarter results beginning at 5:00 p.m. Eastern Time at www.Autodesk.com/investor. An audio webcast replay will be available until June 1, 2002.
A summary of Autodesk's financial results is as follows:
Three months ended April 30 2002 2001
Net revenues $229,327,000 $245,740,000
Net income (1)(2) $ 17,641,000 $ 27,900,000
Pro forma net income (3) $ 18,915,000 $ 31,567,000
Diluted net income
per share (1)(2) $ 0.15 $ 0.25
Pro forma diluted
net income per share (3) $ 0.16 $ 0.28
(1) Net income for the quarter ended April 30, 2002, includes
restructuring charges of $1.5 million or $0.01 per diluted share.
(2) On February 1, 2002 Autodesk adopted new accounting rules which
resulted in the discontinuation of goodwill amortization. Net
income for the quarter ended April 30, 2001 includes $5.0 million
or $0.04 per diluted share of goodwill amortization.
(3) Pro forma results for the quarter ended April 30, 2002, exclude
amortization of purchased intangibles of $0.2 million or nil per
diluted share, and restructuring charges of $1.5 million or $0.01
per diluted share. Pro forma results for the quarter ended April
30, 2001 exclude amortization of goodwill and purchased
intangibles of $5.3 million or $0.05 per diluted share.
About Autodesk
Autodesk is the world's leading design software and digital content company. Founded in 1982, Autodesk provides design software, Internet portal services, wireless development platforms, and point-of-location applications that empower more than four million customers in over 150 countries to drive business and remain competitive. For more information, contact any Authorized Autodesk Reseller, call Autodesk at 800-964-6432, or visit www.autodesk.com. Discreet(TM) product information is available at 800-869-3504 or via the Web at www.discreet.com.Note to Editors: Autodesk and the Autodesk logo are registered trademarks, and Discreet is a trademark, of Autodesk, Inc., in the United States and/or other countries. All other brand names, product names, or trademarks belong to their respective holders.
Autodesk, Inc.
Pro Forma Consolidated Statements of Income
(See pro forma adjustments listed in the table below)
(In thousands, except per share data)
Three Months Ended
April 30,
2002 2001
(Unaudited)
Net revenues $ 229,327 $ 245,740
--------- ---------
Costs and expenses:
Cost of revenues 40,692 36,725
Marketing and sales 87,336 87,005
Research and development 45,207 46,159
General and administrative 33,159 33,943
--------- ---------
206,394 203,832
--------- ---------
Income from operations 22,933 41,908
Interest and other income, net 2,978 4,986
--------- ---------
Income before income taxes 25,911 46,894
Provision for income taxes (6,996) (14,116)
Equity in net loss of affiliate -- (1,211)
--------- ---------
Pro forma net income $ 18,915 $ 31,567
========= =========
Basic pro forma net income per share $ 0.17 $ 0.29
========= =========
Diluted pro forma net income per share $ 0.16 $ 0.28
========= =========
Shares used in computing basic
pro forma net income per share 113,258 108,066
========= =========
Shares used in computing diluted
pro forma net income per share 118,402 111,373
========= =========
The above pro forma amounts have been adjusted to exclude
the following items:
Amortization of goodwill $ 203 $ 5,307
and purchased intangibles
Restructuring and other 1,542 --
Income tax effect (471) (1,640)
--------- ---------
Net difference between actual
and pro forma net income $ 1,274 $ 3,667
========= =========
Autodesk, Inc.
Consolidated Statements of Income
(In thousands, except per share data)
Three Months Ended
April 30,
2002 2001
(Unaudited)
Net revenues $ 229,327 $ 245,740
--------- ---------
Costs and expenses:
Cost of revenues 40,692 36,725
Marketing and sales 87,336 87,005
Research and development 45,207 46,159
General and administrative 33,159 33,943
Amortization of goodwill and
purchased intangibles 203 5,307
Restructuring and other 1,542 --
--------- ---------
208,139 209,139
--------- ---------
Income from operations 21,188 36,601
Interest and other income, net 2,978 4,986
--------- ---------
Income before income taxes 24,166 41,587
Provision for income taxes (6,525) (12,476)
Equity in net loss of affiliate -- (1,211)
--------- ---------
Net income $ 17,641 $ 27,900
========= =========
Basic net income per share $ 0.16 $ 0.26
========= =========
Diluted net income per share $ 0.15 $ 0.25
========= =========
Shares used in computing basic
net income per share 113,258 108,066
========= =========
Shares used in computing diluted
net income per share 118,402 111,373
========= =========
Autodesk, Inc.
Consolidated Balance Sheets
(In thousands)
April 30, January 31,
2002 2002
(Unaudited) (Audited)
ASSETS:
Current assets:
Cash and cash equivalents $ 122,167 $ 136,781
Marketable securities 135,666 201,030
Accounts receivable, net 125,650 140,465
Inventories 16,995 17,999
Deferred income taxes 30,099 31,477
Prepaid expenses and other current assets 30,993 36,118
--------- ---------
Total current assets 461,570 563,870
--------- ---------
Marketable securities 165,128 166,800
Computer equipment, software, furniture
and leasehold improvements, at cost:
Computer equipment, software and furniture 207,679 200,568
Leasehold improvements 30,242 29,652
Less accumulated depreciation (162,548) (157,400)
--------- ---------
Net 75,373 72,820
Purchased technologies
and capitalized software, net 36,094 19,336
Goodwill, net 162,655 39,987
Deferred income taxes 18,499 29,459
Other assets 10,312 10,172
--------- ---------
$ 929,631 $ 902,444
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities:
Accounts payable $ 47,449 $ 53,769
Accrued compensation 37,425 57,540
Accrued income taxes 82,786 91,922
Deferred revenues 68,017 65,474
Other accrued liabilities 89,431 101,946
--------- ---------
Total current liabilities 325,108 370,651
--------- ---------
Other liabilities 2,584 2,479
Stockholders' equity:
Common stock and additional paid-in capital 522,684 458,135
Accumulated other comprehensive loss (18,596) (19,972)
Deferred compensation (5,045) (713)
Retained earnings 102,896 91,864
--------- ---------
Total stockholders' equity 601,939 529,314
--------- ---------
$ 929,631 $ 902,444
========= =========
Fiscal Year 2003 QTR 1 YTD2003
Financial Statistics (in millions):
Net Revenues $ 229.3 $ 229.3
Gross Margin 82% 82%
Pro Forma Operating Expenses $ 165.7 $ 165.7
Pro Forma Operating Margin 10% 10%
Pro Forma Net Income (1) $ 18.9 $ 18.9
Pro Forma Earnings Per Share (diluted) $ 0.16 $ 0.16
Total Cash and Marketable Securities $ 423.0 $ 423.0
Days Sales Outstanding 50.0 50.0
Revenue by Geography (in millions):
Americas $ 106.8 $ 106.8
Europe $ 71.8 $ 71.8
Asia/Pacific $ 50.7 $ 50.7
Revenue by Division (in millions):
Design Solutions $ 193.9 $ 193.9
Manufacturing $ 33.7 $ 33.7
GIS $ 27.1 $ 27.1
Building Industry $ 21.8 $ 21.8
Platform Technology Group & Other $ 111.3 $ 111.3
Discreet $ 35.4 $ 35.4
AutoCAD Statistics:
New Units of AutoCAD-based Products 46,700 46,700
Upgrade Revenue of AutoCAD-based Products $ 21.9 $ 21.9
(in millions)
Installed Base 3,091,700 0
Headcount:
Headcount 3,706 3,706
Common Stock Statistics:
Stock Outstanding
(Pro Forma EPS Calculation-diluted) 118,402,000
Stock Repurchased 446,000 446,000
(1) Pro forma net income excludes amortization of purchased
intangibles and restructuring charges.
CONTACT: Autodesk, Inc.
Steve Cakebread, 415-507-6287 (Investor)
steve.cakebread@autodesk.com
Misty Ohmart, 415-507-6208 (Media)
misty.ohmart@autodesk.com
Nicole Pack, 415-507-6282 (Media)
nicole.pack@autodesk.com
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