Autodesk Reports Record Revenues of $378 Million
SAN RAFAEL, Calif., Nov 17, 2005 /PRNewswire-FirstCall via COMTEX News Network/ -- Autodesk, Inc. (Nasdaq: ADSK) today announced financial results for its third fiscal quarter ended October 31, 2005. For the third quarter, Autodesk reported record net revenues of $378 million, a 26 percent increase over $300 million reported in the third quarter of the prior year.
Third quarter net income was $95 million, or $0.38 per diluted share on a GAAP basis and $77 million, or $0.31 per diluted share on a non-GAAP basis. The only adjustment to non-GAAP net income in the current quarter was the exclusion of $18 million in tax benefits. Net income in the third quarter of the prior year was $74 million, or $0.30 per diluted share on a GAAP basis, and $48 million, or $0.19 per diluted share on a non-GAAP basis.
"Solid execution drove another outstanding performance for Autodesk," said Carol Bartz, Autodesk chairman and CEO. "Revenues and profitability increased significantly over last year, driven by strong demand for our products across all divisions and all markets."
Autodesk's performance was driven by strong growth in new seats and subscriptions, increasing penetration of its vertical and 3D products and continued improvement in profitability.
Unlike trends at most major software companies, revenues from new seats and emerging businesses continued to be strong, representing approximately two- thirds of total revenues in the third quarter. Revenues from new commercial seats increased 23 percent over the third quarter of the prior year.
Combined revenues from subscription and upgrades increased 34 percent over the third quarter of fiscal 2005. Consistent with company strategy, subscription revenues, which are called maintenance in the financial statements, increased 62 percent over last year. Combined revenues from subscription and upgrades continue to represent approximately one-third of total revenues.
The company's vertical and 3D products continue to increase their market penetration. In the third quarter, combined revenues from new commercial seats of the Autodesk Inventor Series, Autodesk Inventor Professional, Autodesk Revit Building, Autodesk AutoCAD Revit Series, Autodesk Revit Structure and Autodesk Civil 3D software increased more than 100 percent over the prior year.
During the quarter, Autodesk improved profitability. Operating margins increased to 25 percent on a GAAP and non-GAAP basis. Operating margins were 18 percent on a GAAP basis and 19 percent on a non-GAAP basis in the third quarter of last year.
"I am very confident about the future," said Bartz. "We are investing in the business to drive strong growth in the future. Despite the significant negative impact of foreign currency rates, we are raising our guidance for the fourth quarter and for fiscal 2007."
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.
Alias Acquisition Update
On October 4, 2005, Autodesk announced that it had signed a definitive agreement to acquire Alias. The company currently estimates that the transaction will close late in the fourth fiscal quarter ending January 31, 2006 or early in the first quarter of fiscal 2007, subject to satisfaction of normal regulatory and other closing conditions.
In the first six months after closing, this acquisition is expected to be dilutive to earnings on a non-GAAP basis. In determining the impact of the acquisition on non-GAAP earnings per share, we excluded in-process R&D expenses, acquisition-related restructuring costs, equity-based compensation expenses, and the reduction of deferred revenues assumed by Autodesk as required by US GAAP. In the first twelve months after closing, this acquisition is expected to be slightly accretive to earnings per share on a non-GAAP basis. Autodesk is currently unable to provide estimates of the future impact of this transaction on GAAP earnings per share.
All forward looking statements are for the Autodesk business on a standalone basis, not taking into account the potential impact of the Alias acquisition, unless specifically stated otherwise.
Fourth Quarter Fiscal 2006
Net revenues for the fourth quarter of fiscal 2006 are expected to be between $405 and $415 million. GAAP earnings per diluted share are expected to be between $0.34 and $0.36.
Full Year Fiscal 2006
For fiscal year 2006, net revenues are expected to be between $1.511 and $1.521 billion. GAAP earnings per diluted share are expected to be between $1.32 and $1.34. Non-GAAP earnings per diluted share are expected to be between $1.24 and $1.26. Non-GAAP earnings per share exclude non-recurring tax benefits.
First Quarter Fiscal 2007
Net revenues for the first quarter of fiscal 2007 are expected to be between $400 and $410 million. GAAP earnings per diluted share are expected to be between $0.25 and $0.27. Non-GAAP earnings per diluted share are expected to be between $0.31 and $0.33 excluding the impact of stock based compensation expenses.
Full Year Fiscal 2007
For fiscal year 2007, net revenues are expected to increase in the range of 10 to 12 percent as compared to current guidance for fiscal 2006. On a constant currency basis, projected net revenue growth would have been approximately three percentage points higher or 13 to 15 percent. GAAP earnings per diluted share are expected to be between $1.16 and $1.20. Non-GAAP earnings per diluted share are expected to be between $1.41 and $1.45. Non-GAAP earnings per share exclude the impact of stock based compensation expenses.
Fiscal 2006 EPS guidance is based on Autodesk's 20 percent estimated tax rate excluding non-recurring tax benefits. As previously indicated, Autodesk believes that its effective tax rate will increase in fiscal 2007. Autodesk now believes the effective tax rate will be 23 percent in fiscal year 2007.
A reconciliation of the above non-GAAP operating margin, net income and EPS amounts to the corresponding GAAP 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, statements regarding our expected effective tax rate and other statements regarding our anticipated performance. Factors that could cause actual results to differ materially include the following: general market and business conditions, the timing and degree of expected investments in growth opportunities, the timing of product releases and retirements, difficulties encountered in integrating the Alias business or in achieving expected earnings accretion, uncertainties as to the timing of the close of the Alias acquisition, failure to successfully integrate new or acquired businesses and technologies, failure to achieve sufficient sell-through in our channels for new or existing products, failure of key new applications to achieve anticipated levels of customer acceptance, pricing pressure, failure to achieve continued cost reductions and productivity increases, failure to achieve continued migration from 2D products to 3D products, unanticipated changes in tax rates, mix of geographic earnings, and tax laws, failure to achieve continued success in technology advancements, changes in foreign currency exchange rates, the financial and business condition of our reseller and distribution channels, renegotiation or termination of royalty or intellectual property arrangements, interruptions or terminations in the business of the company's third party developers, failure to achieve continued migration from 2D products to 3D products, failure to grow lifecycle management or collaboration products, and unanticipated impact of accounting for technology acquisitions.
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, 2005 and Form 10-Q for the quarter ended July 31, 2005, which are on file with the Securities and Exchange Commission.
Autodesk will host its third quarter earnings announcement today at 5:00 p.m. EDT. The live announcement may be accessed at 866-510-0707 or 617-597-5376 (passcode: 19818852). A replay of the call will be available at 4:00 p.m. PDT on our website at www.autodesk.com/investors or by dialing 888-286-8010 or 617-801-6888 (passcode: 40320593). An audio webcast will also be available beginning at 5:00 p.m. EDT at www.autodesk.com/investors. A replay of this webcast will be maintained on our website for at least twelve months.
About Autodesk
Autodesk, Inc. (Nasdaq: ADSK) is wholly focused on ensuring that great ideas are turned into reality. With six million users, Autodesk is the world's leading software and services company for the building, manufacturing, infrastructure, digital media, and wireless data services fields. Autodesk's solutions help customers create, manage, and share their data and digital assets more effectively. As a result, customers turn ideas into competitive advantage by becoming more productive, streamlining project efficiency, and maximizing profits. Founded in 1982, Autodesk is headquartered in San Rafael, California. For additional information about Autodesk, please visit www.autodesk.com.
Autodesk, AutoCAD, Autodesk Inventor, Civil 3D and Revit are either trademarks or registered trademarks of Autodesk, Inc., in the United States and/or other countries. All other brand names, product names, or trademarks belong to their respective holders.
Investors: Sue Pirri, sue.pirri@autodesk.com, 415-507-6467
John Clancy, john.clancy@autodesk.com, 415-507-6373
Press: Charles Bellfield, charles.bellfield@autodesk.com, 415-547-2498
Nicole Pack, nicole.pack@autodesk.com, 415-507-6282
Autodesk, Inc.
Reconciliation of diluted net income per share on a GAAP basis to diluted
net income per share on a non-GAAP basis
Unaudited
Three months ended Fiscal year ended
January 31, 2006 January 31, 2006
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 $0.34 $0.36 $1.32 $1.34
Dividends received
deduction benefit for
the prior fiscal year -- -- (0.05) (0.05)
Non-recurring
tax benefits -- -- (0.03) (0.03)
Non-GAAP diluted
net income per share $0.34 $0.36 $1.24 $1.26
Autodesk, Inc.
Reconciliation of diluted net income per share on a GAAP basis to diluted
net income per share on a non-GAAP basis
Unaudited
Three months ended Fiscal year ended
April 30, 2006 January 31, 2007
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 $0.25 $0.27 $1.16 $1.20
Stock based
compensation expenses,
net of taxes 0.06 0.06 0.25 0.25
Non-GAAP diluted
net income per share $0.31 $0.33 $1.41 $1.45
Autodesk, Inc.
Consolidated Statements of Income
(In thousands, except per share data)
Three Months Ended Nine Months Ended
October 31, October 31,
2005 2004 2005 2004
(Unaudited) (Unaudited)
Net revenues:
License and other $304,402 $254,450 $910,145 $753,404
Maintenance 73,860 45,708 196,220 124,208
Total net revenues 378,262 300,158 1,106,365 877,612
Costs and expenses:
Cost of license
and other revenues 40,762 39,184 119,302 112,885
Cost of maintenance revenues 1,636 4,210 11,075 12,597
Marketing and sales 136,349 113,205 397,765 327,497
Research and development 74,034 59,942 212,881 176,165
General and administrative 32,444 26,837 92,789 76,856
Restructuring -- 2,922 -- 14,889
Total costs and expenses 285,225 246,300 833,812 720,889
Income from operations 93,037 53,858 272,553 156,723
Interest and other income, net 3,167 2,801 9,011 7,396
Income before income taxes 96,204 56,659 281,564 164,119
Income tax (provision) benefit (1,667) 17,411 (35,651) (8,379)
Net income $94,537 $74,070 $245,913 $155,740
Basic net income per share $0.41 $0.33 $1.08 $0.69
Diluted net income per share $0.38 $0.30 $0.99 $0.63
Shares used in computing basic
net income per share 229,577 227,823 228,687 227,344
Shares used in computing diluted
net income per share 249,462 248,045 247,979 245,492
Autodesk, Inc.
Non-GAAP Consolidated Statements of Income
(See non-GAAP adjustments listed in the tables below)
(In thousands, except per share data)
Three Months Ended Nine Months Ended
October 31, October 31,
2005 2004 2005 2004
(Unaudited) (Unaudited)
Net revenues:
License and other $304,402 $254,450 $910,145 $753,404
Maintenance 73,860 45,708 196,220 124,208
Total net revenues 378,262 300,158 1,106,365 877,612
Costs and expenses:
Cost of license
and other revenues 40,762 39,184 119,302 112,885
Cost of maintenance revenues 1,636 4,210 11,075 12,597
Marketing and sales 136,349 113,205 397,765 327,497
Research and development 74,034 59,942 212,881 176,165
General and administrative 32,444 26,837 92,789 76,856
Total costs and expenses 285,225 243,378 833,812 706,000
Income from operations 93,037 56,780 272,553 171,612
Interest and other income, net 3,167 2,801 9,011 7,396
Income before income taxes 96,204 59,581 281,564 179,008
Provision for income taxes (19,241) (11,916) (56,313) (35,802)
Non-GAAP net income $76,963 $47,665 $225,251 $143,206
Basic non-GAAP
net income per share $0.34 $0.21 $0.98 $0.63
Diluted non-GAAP
net income per share $0.31 $0.19 $0.91 $0.58
Shares used in computing basic
non-GAAP net income per share 229,577 227,823 228,687 227,344
Shares used in computing diluted
non-GAAP net income per share 249,462 248,045 247,979 245,492
Three Months Ended Nine Months Ended
October 31, October 31,
2005 2004 2005 2004
(Unaudited) (Unaudited)
A reconciliation between
operating expenses on a
GAAP basis and non-GAAP
operating expenses is as follows:
GAAP costs and expenses $285,225 $246,300 $833,812 $720,889
Restructuring -- (2,922) -- (14,889)
Non-GAAP costs and expenses $285,225 $243,378 $833,812 $706,000
A reconciliation between income
from operations on a GAAP basis
and non-GAAP income from
operations is as follows:
GAAP income from operations $93,037 $53,858 $272,553 $156,723
Restructuring -- 2,922 -- 14,889
Non-GAAP income
from operations $93,037 $56,780 $272,553 $171,612
A reconciliation between
(provision) benefit for
income taxes on a GAAP basis
and non-GAAP provision for
income taxes is as follows:
GAAP (provision) benefit
for income taxes $(1,667) $17,411 $(35,651) $(8,379)
Income tax effect on
restructuring at the
normalized rate -- (584) -- (2,978)
Dividends received
deduction benefit for the
current fiscal year -- (4,298) -- --
Dividends received deduction
benefit for the prior
fiscal year (10,613) (15,540) (12,530) (15,540)
Non-recurring tax benefit (6,961) (8,905) (8,132) (8,905)
Non-GAAP provision
for income taxes $(19,241) $(11,916) $(56,313) $(35,802)
A reconciliation between
net income on a GAAP basis and
non-GAAP net income is as follows:
GAAP net income $94,537 $74,070 $245,913 $155,740
Restructuring -- 2,922 -- 14,889
Income tax effect on
restructuring at the
normalized rate -- (584) -- (2,978)
Dividends received deduction
benefit for the
current fiscal year -- (4,298) -- --
Dividends received
deduction benefit for the
prior fiscal year (10,613) (15,540) (12,530) (15,540)
Non-recurring tax benefit (6,961) (8,905) (8,132) (8,905)
Non-GAAP net income $76,963 $47,665 $225,251 $143,206
A reconciliation between
diluted net income per share
on a GAAP basis and
diluted non-GAAP net income
per share is as follows:
GAAP diluted
net income per share $ 0.38 $ 0.30 $ 0.99 $ 0.63
Restructuring $-- $ 0.01 $-- $ 0.06
Income tax effect on
restructuring at
the normalized rate $-- $(0.00) $-- $(0.01)
Dividends received
deduction benefit for the
current fiscal year $-- $(0.02) $-- $--
Dividends received deduction
benefit for the prior
fiscal year $(0.04) $(0.06) $(0.05) $(0.06)
Non-recurring tax benefit $(0.03) $(0.04) $(0.03) $(0.04)
Non-GAAP diluted
net income per share $ 0.31 $ 0.19 $ 0.91 $ 0.58
To supplement our consolidated financial statements presented on a GAAP basis, Autodesk uses non-GAAP 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 non-GAAP 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 non-GAAP 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.
Condensed Consolidated Balance Sheets
(In thousands)
October 31, January 31,
2005 2005
(Unaudited) (Audited)
ASSETS:
Current assets:
Cash and cash equivalents $390,878 $517,654
Marketable securities 157,062 15,038
Accounts receivable, net 201,769 196,827
Inventories 15,112 12,545
Deferred income taxes 68,896 14,250
Prepaid expenses and other current assets 26,069 25,483
Total current assets 859,786 781,797
Computer equipment, software,
furniture and leasehold improvements, net 60,132 69,566
Purchased technologies and
capitalized software, net 16,253 9,319
Goodwill 194,680 166,628
Deferred income taxes, net 141,425 105,061
Other assets 18,353 9,833
$1,290,629 $1,142,204
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities:
Accounts payable $62,483 $46,234
Accrued compensation 101,980 140,622
Accrued income taxes 40,257 41,549
Deferred revenues 210,684 178,701
Other accrued liabilities 48,019 61,234
Total current liabilities 463,423 468,340
Deferred revenues 32,440 15,528
Other liabilities 17,665 10,258
Stockholders' equity:
Preferred stock -- --
Common stock and additional paid-in capital 752,748 625,225
Accumulated other comprehensive loss (7,661) (2,843)
Deferred compensation (307) (269)
Retained earnings 32,321 25,965
Total stockholders' equity 777,101 648,078
$1,290,629 $1,142,204
Autodesk, Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
Nine Months Ended
October 31,
2005 2004
(Unaudited)
Operating Activities
Net income $245,913 $155,740
Adjustments to reconcile net income to
net cash provided by operating activities:
Charge for acquired in-process
research & development 1,200 --
Depreciation and amortization 33,812 38,581
Stock compensation expense 392 2,915
Net loss on fixed asset disposals 52 321
Tax benefits from employee stock plans 103,545 91,414
Restructuring related charges, net -- 4,773
Changes in operating assets and liabilities (83,748) (64,318)
Net cash provided by operating activities 301,166 229,426
Investing Activities
Net (purchases) sales and maturities
of available-for-sale marketable securities (142,010) 105,238
Capital and other expenditures (15,318) (29,291)
Business combinations, net of cash acquired (52,677) (11,750)
Other investing activities 79 (1,487)
Net cash (used in) provided by
investing activities (209,926) 62,710
Financing activities
Proceeds from issuance of common stock,
net of issuance costs 127,110 211,456
Repurchases of common stock (339,714) (400,066)
Dividends paid (3,406) (10,146)
Net cash used in financing activities (216,010) (198,756)
Effect of exchange rate changes
on cash and cash equivalents (2,006) 1,519
Net (decrease) increase in
cash and cash equivalents (126,776) 94,899
Cash and cash equivalents at beginning of year 517,654 282,249
Cash and cash equivalents at end of period $390,878 $377,148
Supplemental cash flow information:
Net cash paid during the period
for income taxes $23,522 $12,123
Supplemental non-cash investing activity:
Accounts receivable and other receivable
reductions as partial consideration
in business combinations $2,371 $--
Fiscal Year 2006 QTR 1 QTR 2 QTR 3 QTR 4 YTD2006
Financial Statistics (in millions):
Total net revenues $355.1 $373.0 $378.3 $1,106.4
License and
other revenues $296.4 $309.4 $304.4 $910.2
Maintenance revenues $58.7 $63.6 $73.9 $196.2
Gross Margin 88% 88% 89% 88%
GAAP Operating
Expenses $221.0 $239.6 $242.8 $703.4
GAAP Operating Margin 26% 24% 25% 25%
GAAP Net Income $76.1 $75.3 $94.5 $245.9
GAAP Net Income
Per Share (diluted) $0.31 $0.30 $0.38 $0.99
Non-GAAP Operating
Expenses (1) (2) $221.0 $239.6 $242.8 $703.4
Non-GAAP Operating
Margin (1) (3) 26% 24% 25% 25%
Non-GAAP
Net Income (1) (4) $74.9 $73.4 $77.0 $225.3
Non-GAAP
Net Income Per Share
(diluted) (1) (5) $0.30 $0.29 $0.31 $0.91
Total Cash
and Marketable
Securities $537.8 $521.5 $547.9 $547.9
Days Sales Outstanding 48 49 48 48
Capital Expenditures $ 5.5 $4.4 $5.4 $15.3
Cash from Operations $63.3 $113.0 $124.9 $301.2
GAAP Depreciation
and Amortization $12.6 $11.7 $9.5 $33.8
Revenue by Geography (in millions):
Americas $130.5 $141.3 $160.3 $432.1
Europe $134.1 $140.6 $133.4 $408.1
Asia/Pacific $90.5 $91.1 $84.6 $266.2
Revenue by Division (in millions):
Design Solutions
Segment $313.2 $325.8 $333.8 $972.8
Manufacturing
Solutions Division $59.1 $60.2 $63.3 $182.6
Infrastructure
Solutions Division $39.3 $42.4 $44.1 $125.8
Building
Solutions Division $37.1 $43.0 $45.1 $125.3
Platform Technology
Division and other $177.7 $180.2 $181.3 $539.1
Media and
Entertainment Segment $41.2 $45.1 $42.9 $129.3
Upgrade Revenue
(in millions):
Upgrade Revenue $64.6 $71.0 $63.6 $199.2
Deferred Maintenance
Revenue (in millions):
Deferred Maintenance
Revenue Balance $166.1 $179.2 $185.0 $185.0
Operating Income
(Loss) by Segment
(in millions):
Design Solutions $151.5 $155.0 $161.4 $467.9
Media
and Entertainment $ 8.4 $9.5 $5.5 $23.4
Unallocated amounts $(69.3) $(75.6) $(73.8) $(218.7)
Common Stock
Statistics:
Stock
Outstanding 228,612,000 228,412,000 230,179,000 230,179,000
Fully Diluted
Shares
Outstanding 249,272,000 250,310,000 249,462,000 247,979,000
Stock Repurchased 2,497,700 3,503,896 3,223,775 9,225,371
Installed Base
Statistics:
Total AutoCAD-based
Installed Base 3,700,800 3,747,000 3,803,000 3,803,000
Total Inventor
Installed Base 445,800 470,800 511,300 511,300
(1) To supplement our consolidated financial statements presented on a GAAP basis, Autodesk uses non-GAAP 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 non-GAAP 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 non-GAAP 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.
(2) GAAP Operating
Expenses $221.0 $239.6 $242.8 $-- $703.4
Non-GAAP Adjustment $-- $-- $-- $-- $--
Non-GAAP Operating
Expenses $221.0 $239.6 $242.8 $-- $703.4
(3) GAAP Operating
Margin 26% 24% 25% 0% 25%
Non-GAAP Adjustment 0% 0% 0% 0% 0%
Non-GAAP
Operating Margin 26% 24% 25% 0% 25%
(4) GAAP Net Income $76.1 $75.3 $94.5 $-- $245.9
Dividends received
deduction benefit
for prior
fiscal years $-- $(1.9) $(10.6) $-- $(12.5)
Non-recurring
tax benefit $(1.2) $-- $(6.9) $-- $(8.1)
Non-GAAP Net Income $74.9 $73.4 $77.0 $-- $225.3
(5) GAAP Net Income
Per Share
(diluted) $0.305 $0.301 $0.379 $-- $0.992
Dividends
received deduction
benefit for
prior fiscal years $-- $(0.008) $ (0.042) $-- $(0.050)
Non-recurring
tax benefit $(0.005) $-- $(0.028) $-- $(0.033)
Non-GAAP
Net Income
Per Share
(diluted) $0.300 $0.293 $0.309 $-- $0.908
Fiscal Year
2005 QTR 1 QTR 2 QTR 3 QTR 4 YTD2005
Financial
Statistics
(in millions):
Total net
revenues $297.9 $279.6 $300.2 $356.2 $1,233.8
License and
other
revenues $260.5 $238.5 $254.5 $303.7 $1,057.1
Maintenance
revenues $37.4 $41.1 $45.7 $52.5 $176.7
Gross Margin 86% 86% 86% 88% 86%
GAAP Operating
Expenses $202.5 $190.0 $202.9 $234.0 $829.5
GAAP Operating
Margin 18% 18% 18% 22% 19%
GAAP Net Income $42.5 $39.2 $74.1 $65.8 $221.5
GAAP Net Income
Per Share
(diluted) (6) $0.18 $0.16 $0.30 $0.26 $0.90
Non-GAAP
Operating
Expenses
(1) (2) $194.2 $186.3 $200.0 $222.2 $802.7
Non-GAAP
Operating
Margin (1) (3) 21% 19% 19% 25% 21%
Non-GAAP
Net Income
(1) (4) $51.3 $44.2 $47.7 $75.2 $218.4
Non-GAAP
Net Income
Per Share
(diluted)
(1) (5) (6) $0.22 $0.18 $0.19 $0.30 $0.88
Total Cash
and
Marketable
Securities $519.4 $571.7 $518.0 $532.7 $532.7
Days Sales
Outstanding 43 51 50 50 50
Capital
Expenditures $5.9 $9.9 $13.5 $11.5 $40.8
Cash from
Operations $55.2 $83.5 $90.8 $143.7 $373.1
GAAP Depreciation
and
Amortization $12.5 $12.9 $13.2 $13.4 $52.0
Revenue by
Geography
(in millions):
Americas $121.5 $115.1 $137.0 $137.3 $510.9
Europe $108.8 $98.9 $95.8 $140.2 $443.7
Asia/Pacific $67.6 $65.6 $67.4 $78.7 $279.2
Revenue by
Division
(in millions):
Design
Solutions
Segment $260.2 $242.4 $256.4 $312.3 $1,071.3
Manufacturing
Solutions
Division $44.8 $44.2 $50.4 $60.3 $199.7
Infrastructure
Solutions
Division $35.5 $33.6 $35.8 $42.9 $147.8
Building
Solutions
Division $27.2 $28.8 $29.1 $39.2 $124.3
Platform
Technology
Division and
other $152.7 $135.8 $141.1 $169.9 $599.5
Media and
Entertainment
Segment $37.6 $36.7 $43.1 $42.6 $160.0
Upgrade Revenue
(in millions):
Upgrade Revenue $66.7 $46.1 $57.1 $92.9 $262.8
Deferred
Maintenance
Revenue
(in millions):
Deferred
Maintenance
Revenue Balance $96.7 $107.1 $113.0 $140.8 $140.8
Operating Income
(Loss) by Segment
(in millions):
Design
Solutions $123.0 $105.5 $114.9 $147.6 $491.0
Media and
Entertainment $3.4 $6.7 $7.0 $10.8 $27.9
Unallocated
amounts $(72.9) $(62.8) $(68.1) $(80.2) $(284.0)
Common Stock
Statistics
(6):
Stock Out-
standing 226,048,000 229,031,000 228,101,000 227,611,000 227,611,000
Fully Diluted
Shares Out-
standing 238,565,000 250,607,000 248,045,000 252,674,000 246,977,000
Stock Re-
purchased 10,365,200 3,319,600 8,032,200 4,199,800 25,916,800
Installed Base
Statistics:
AutoCAD
Total
AutoCAD-based
Installed
Base 3,469,400 3,514,600 3,571,800 3,618,000 3,618,000
Stand-alone
AutoCAD 2,490,000
AutoCAD
Mechanical 149,400
AutoCAD Map 203,700
Architectural
Desktop 383,900
Land Desktop 109,900
AutoCAD LT
Installed Base 2,677,900
Total Inventor
Installed
Base 306,600 349,500 388,800 422,900 422,900
(1) To supplement our consolidated financial statements presented on a GAAP basis, Autodesk uses non-GAAP 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 non-GAAP 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 non-GAAP 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.
(2) GAAP Operating Expenses $202.5 $190.0 $202.9 $234.0 $829.5
Restructuring $(8.3) $(3.7) $(2.9) $(11.8) $(26.7)
Non-GAAP Operating
Expenses $194.2 $186.3 $200.0 $222.2 $802.7
(3) GAAP Operating Margin 18% 18% 18% 22% 19%
Restructuring 3% 1% 1% 3% 2%
Non-GAAP Operating
Margin 21% 19% 19% 25% 21%
(4) GAAP Net Income $42.505 $39.165 $74.070 $65.768 $221.508
Restructuring $8.250 $3.717 $2.922 $11.811 $26.700
Income tax effect on
restructuring (7) $(1.650) $(0.744) $(0.584) $(2.363) $(5.341)
Dividends Received
Deduction benefit for
current fiscal year
(7) $2.244 $2.054 $(4.298) $-- $--
Dividends Received
Deduction benefit for
prior fiscal years
(7) $-- $-- $(15.540) $-- $(15.540)
Non-recurring tax
benefit $-- $-- $(8.905) $-- $(8.905)
Non-GAAP Net Income $51.349 $44.192 $47.665 $75.216 $218.422
(5) GAAP Net Income Per
Share (diluted) (6) $0.178 $0.156 $0.299 $0.260 $0.897
Restructuring $0.035 $0.015 $0.012 $0.047 $0.108
Income tax effect on
restructuring (7) $(0.007) $(0.003) $(0.002) $(0.009) $(0.022)
Dividends Received
Deduction benefit for
current fiscal year
(7) $0.009 $0.008 $(0.017) $-- $--
Dividends Received
Deduction benefit for
prior fiscal years
(7) $-- $-- $(0.064) $-- (0.063)
Non-recurring tax
benefit $-- $-- $(0.036) $-- $(0.036)
Non-GAAP Net Income
Per Share (diluted)
(6) $0.215 $0.176 $0.192 $0.298 $0.884
(6) On November 16, 2004 the Board of Directors authorized a two-for-one
stock split in the form of a stock dividend to stockholders of record
as of December 6, 2004. Historical common stock statistics and per
share amounts have been restated to reflect the effect of the stock
split.
(7) In the third quarter of fiscal 2005, Autodesk determined that its
consolidated fiscal year effective income tax rate declined from 24%
to 20%.
For purposes of comparison, we have assumed the new estimated
effective income tax rate of 20% in calculating our non-GAAP net
income and non-GAAP earnings per share for each individual quarter of
fiscal 2005.
SOURCE Autodesk, Inc.
Investors - Sue Pirri,
+1-415-507-6467,
or sue.pirri@autodesk.com,
or John Clancy,
+1-415-507-6373,
or john.clancy@autodesk.com,
or Press - Charles Bellfield,
+1-415-547-2498,
or charles.bellfield@autodesk.com,
or Nicole Pack,
+1-415-507-6282,
or nicole.pack@autodesk.com