Autodesk Reports Second Quarter Results
SAN RAFAEL, Calif.--(BUSINESS WIRE)--Aug. 15, 2002--Autodesk, Inc. (Nasdaq: ADSK), the world's leading design software and digital content company, today announced financial results for its second quarter ended July 31, 2002. For the second quarter of fiscal year 2003, Autodesk reported net revenues of $211 million, compared to $231 million in the second quarter of fiscal year 2002.
Second quarter net income was $12 million or $0.10 per diluted share compared to net income for the same quarter a year ago of $19 million or $0.17 per diluted share.
On a pro forma basis, as defined below, second quarter net income was $15 million or $0.13 per diluted share compared to $30 million or $0.27 per diluted share for the same quarter a year ago.
In accordance with Section 906 of the Sarbanes-Oxley Act of 2002, Carol Bartz, Autodesk chairman and CEO, and Al Castino, Senior Vice President and CFO, will be certifying the second quarter Form 10-Q to the SEC. This new certification will start with the filing of our second quarter 10-Q due out in September.
"Although our businesses felt varying degrees of economic softness, we are pleased to deliver on our projected results," said Carol Bartz, Autodesk chairman and CEO. "The fundamentals of our business are strong. Our sales teams around the world drove new product sales, subscriptions, and professional services. As a result, we are gaining market share and are well positioned for growth when the economy turns around."
Second Quarter Highlights
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In Manufacturing, we continue to grow our 3D market share. Division revenues for the quarter were $33 million, up 21% from last year. We added 14,000 3D commercial users during the quarter, far exceeding the seats sold by any other 3D modeler on the market for three consecutive quarters.
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With growth in major accounts, and government and municipality sales, our Geographic Information Systems division generated revenues of $26 million, despite tough market conditions.
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Fueled by strong 3D manufacturing and major account sales, European revenues for the second quarter came in at $66 million, an increase of 11% from last year.
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By helping customers increase business process efficiency through better use of digital design information, our collaboration businesses are gaining momentum.
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Buzzsaw's user base expanded by another 3%, as revenue grew by 5% compared to last quarter,
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Streamline, a key component of our PLM strategy, had four customer wins that stood out this quarter: SPX Airgage, Jacobs Engineering, Arken Design and the Hong Kong government.
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The combination of subscription and professional services are fast becoming an integral part in winning major account engagements, especially in competitive situations. During the quarter, the Americas' subscription program grew 5% sequentially while Europe, in its second quarter with subscriptions, grew exponentially. We also closed our first million-dollar, one year global service contract with a major semiconductor equipment manufacturer.
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 third quarter of fiscal year 2003 are expected to range between $200 million and $210 million. This brings the company's net revenue expectations for the fiscal year 2003 to a range between $860 million and $900 million.
These revenue expectations are subject to a number of risks, including the possibility of further slowing in the worldwide economies, especially in Europe and Japan, or in the commercial construction and entertainment sectors, failure to achieve continuing customer acceptance of the AutoCAD 2002 family of products, failure to grow new or emerging businesses, 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 $0.05 and $0.10 per diluted share for the third quarter of fiscal year 2003. This brings pro forma earnings expectations for fiscal year 2003 to range between $0.50 and $0.70 per diluted share.
Pro forma earnings per diluted share may vary from expectations due to inability to maintain or grow overall revenue, inability to further reduce operating costs, inability to successfully integrate new or acquired businesses like Revit and CAiCE, 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, and Form 10-Q for the quarter ended April 30, 2002 which are on file with the Securities and Exchange Commission.
Autodesk will host a toll free conference call at 888-790-5520 and an audio webcast on the second quarter results beginning at 5:00 p.m. Eastern Time at www.Autodesk.com/investor. An audio webcast replay will be available until September 1, 2002.
A summary of Autodesk's financial results is as follows:
Three months ended July 31 2002 2001
Net revenues $211,401,000 $231,360,000
Net income (1)(2) $ 11,760,000 $ 19,173,000
Pro forma net income (3) $ 14,518,000 $ 29,636,000
Diluted net income per share (1)(2) $ 0.10 $ 0.17
Pro forma diluted net income per share(3) $ 0.13 $ 0.27
(1) Net income for the quarter ended July 31, 2002, includes
restructuring and other charges of $3.7 million or $0.03 per
diluted share. Net income for the quarter ended July 31, 2001,
includes restructuring and other charges of $9.8 million or $0.09
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 July 31, 2001 includes $5.0 million
or $0.04 per diluted share of goodwill amortization.
(3) Pro forma results for the quarter ended July 31 2002, excludes
restructuring and other charges and amortization of purchased
intangibles totaling $3.8 million or $0.03 per diluted share. Pro
forma results for the quarter ended July 31, 2001, excludes
amortization of goodwill and purchased intangibles of $5.2 million
or $0.05 per diluted share and restructuring and other charges of
$9.8 million or $0.09 per diluted share.
Six months ended July 31 2002 2001
Net revenues $440,728,000 $477,100,000
Net income (4)(5) $ 29,401,000 $ 47,073,000
Pro forma net income (6) $ 33,433,000 $ 61,203,000
Diluted net income per share (4)(5) $ 0.25 $ 0.42
Pro forma diluted net income per share(6)$ 0.29 $ 0.55
(4) Net income for the six months ended July 31, 2002, includes $5.3
million of restructuring and other ¶ charges or $0.05 per diluted
share. Net income for the six months ended July 31, 2001, includes
restructuring and other charges of $9.8 million or $0.09 per
diluted share.
(5) On February 1, 2002, Autodesk adopted new accounting rules which
resulted in the discontinuation of goodwill amortization. Net
income for the six months ended July 31, 2001 includes $9.9
million or $0.09 per diluted share of goodwill amortization.
(6) Pro forma results for the six months ended July 31, 2002, excludes
restructuring and other charges and amortization of purchased
intangibles totaling $5.5 million on $0.05 per diluted share. Pro
forma results for the six months ended July 31, 2001, excludes
amortization of goodwill and purchased intangibles of $10.5
million or $0.09 per diluted share, and restructuring and other
charges of $9.8 million or $0.09 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.
Consolidated Balance Sheets
(In thousands)
July 31, January 31,
2002 2002
(Unaudited) (Audited)
ASSETS:
Current assets:
Cash and cash equivalents $ 152,696 $ 136,781
Marketable securities 105,320 201,030
Accounts receivable, net 129,039 140,465
Inventories 17,643 17,999
Deferred income taxes 31,442 31,477
Prepaid expenses and other current assets 32,240 36,118
---------- ----------
Total current assets 468,380 563,870
---------- ----------
Marketable securities 148,728 166,800
Computer equipment, software, furniture
and leasehold improvements, at cost:
Computer equipment, software
and furniture 210,927 200,568
Leasehold improvements 33,366 29,652
Less accumulated depreciation (164,664) (157,400)
---------- ----------
79,629 72,820
Purchased technologies and capitalized
software, net 32,101 19,336
Goodwill, net 162,682 39,987
Deferred income taxes 15,913 29,459
Other assets 10,569 10,172
---------- ----------
$ 918,002 $ 902,444
========== ==========
LIABILITIES & STOCKHOLDERS' EQUITY:
Current liabilities:
Accounts payable $ 46,084 $ 53,769
Accrued compensation 46,648 57,540
Accrued income taxes 71,250 91,922
Deferred revenues 74,222 65,474
Other accrued liabilities 87,833 101,946
---------- ----------
Total current liabilities 326,037 370,651
---------- ----------
Other liabilities 2,674 2,479
Stockholders' equity:
Common stock and additional
paid-in capital 497,749 458,135
Accumulated other comprehensive loss (15,369) (19,972)
Deferred compensation (4,362) (713)
Retained earnings 111,273 91,864
---------- ----------
Total stockholders' equity 589,291 529,314
---------- ----------
$ 918,002 $ 902,444
========== ==========
Autodesk, Inc.
Consolidated Statements of Income
(In thousands, except per share data)
Three Months Ended Six Months Ended
July 31, July 31,
2002 2001 2002 2001
(Unaudited) (Unaudited)
Net revenues $ 211,401 $ 231,360 $ 440,728 $ 477,100
Costs and expenses:
Cost of revenues 34,210 35,193 74,902 71,918
Marketing and
sales 81,782 86,552 169,118 173,557
Research and
development 46,642 43,583 91,849 89,742
General and
administrative 34,595 31,696 67,754 65,639
Amortization of
goodwill and
purchased
intangibles 44 5,174 247 10,481
Restructuring and
other 3,735 9,774 5,277 9,774
---------- ---------- ---------- ----------
201,008 211,972 409,147 421,111
---------- ---------- ---------- ----------
Income from
operations 10,393 19,388 31,581 55,989
Interest and other
income, net 5,716 8,002 8,694 12,988
---------- ---------- ---------- ----------
Income before
income taxes 16,109 27,390 40,275 68,977
Provision for
income taxes (4,349) (8,217) (10,874) (20,693)
Equity in net loss
of affiliate -- -- -- (1,211)
---------- ---------- ---------- ----------
Net income $ 11,760 $ 19,173 $ 29,401 $ 47,073
========== ========== ========== ==========
Basic net income
per share $ 0.10 $ 0.18 $ 0.26 $ 0.44
========== ========== ========== ==========
Diluted net income
per share $ 0.10 $ 0.17 $ 0.25 $ 0.42
========== ========== ========== ==========
Shares used in
computing basic
net income per
share 113,348 108,023 113,326 107,771
========== ========== ========== ==========
Shares used in
computing diluted
net income per
share 114,275 111,420 115,783 111,116
========== ========== ========== ==========
Autodesk, Inc.
Pro Forma Consolidated Statements of Income
(In thousands, except per share data)
Three Months Ended Six Months Ended
July 31, July 31,
2002 2001 2002 2001
(Unaudited) (Unaudited)
Net revenues $ 211,401 $ 231,360 $ 440,728 $ 477,100
Costs and expenses:
Cost of revenues 34,210 35,193 74,902 71,918
Marketing and
sales 81,782 86,552 169,118 173,557
Research and
development 46,642 43,583 91,849 89,742
General and
administrative 34,595 31,696 67,754 65,639
---------- ---------- ---------- ----------
197,229 197,024 403,623 400,856
---------- ---------- ---------- ----------
Income from
operations 14,172 34,336 37,105 76,244
Interest and other
income, net 5,716 8,002 8,694 12,988
---------- ---------- ---------- ----------
Income before
income taxes 19,888 42,338 45,799 89,232
Provision for
income taxes (5,370) (12,702) (12,366) (26,818)
Equity in net loss
of affiliate -- -- -- (1,211)
---------- ---------- ---------- ----------
Net income $ 14,518 $ 29,636 $ 33,433 $ 61,203
========== ========== ========== ==========
Basic net income
per share $ 0.13 $ 0.27 $ 0.30 $ 0.57
========== ========== ========== ==========
Diluted net income
per share $ 0.13 $ 0.27 $ 0.29 $ 0.55
========== ========== ========== ==========
Shares used in
computing basic
net income per
share 113,348 108,023 113,326 107,771
========== ========== ========== ==========
Shares used in
computing diluted
net income per
share 114,275 111,420 115,783 111,116
========== ========== ========== ==========
The above pro forma
amounts have been
adjusted to exclude
the following
items:
Amortization of
goodwill and
purchased
intangibles $ 44 $ 5,174 $ 247 $ 10,481
Restructuring and
other 3,735 9,774 5,277 9,774
Income tax effect (1,021) (4,485) (1,492) (6,125)
---------- ---------- ---------- ----------
Net difference
between actual
and pro forma
net income $ 2,758 $ 10,463 $ 4,032 $ 14,130
========== ========== ========== ==========
Fiscal Year 2003 QTR 1 QTR 2 QTR 3 QTR 4 YTD2003
Financial Statistics
(in millions):
Net Revenues $229.3 $211.4 $440.7
Gross Margin 82% 84% 83%
Pro Forma Operating
Expenses $165.7 $163.0 $328.7
Pro Forma Operating Margin 10% 7% 8%
Pro Forma Net Income (1) $18.9 $14.5 $33.4
Pro Forma Earnings Per
Share (diluted) $0.16 $0.13 $0.29
Total Cash and Marketable
Securities $423.0 $406.7 $406.7
Days Sales Outstanding 50 56
Revenue by Geography
(in millions):
Americas $106.8 $92.7 $199.5
Europe $71.8 $66.2 $138.0
Asia/Pacific $50.7 $52.5 $103.2
Revenue by Division
(in millions):
Design Solutions $193.9 $178.6 $372.5
Manufacturing $33.7 $33.3 $67.0
GIS $27.1 $26.0 $53.1
Building Industry $21.8 $16.2 $38.0
Platform Technology
Group & Other $111.3 $103.1 $214.4
Discreet $35.4 $32.8 $68.2
AutoCAD Statistics:
New Units of AutoCAD-based
Products 46,700 35,300 82,000
Upgrade Revenue of
AutoCAD-based Products $21.3 $13.1 $34.4
(in millions)
Installed Base 3,091,700 3,127,000 3,127,000
Headcount:
Headcount 3,706 3,715 3,715
Common Stock Statistics:
Stock Outstanding
(Pro Forma EPS
Calculation-diluted) 118,402,000 114,275,000 115,783,000
Stock Repurchased 446,000 2,003,000 2,449,000
(1) Pro forma net income excludes amortization of purchased
intangibles and restructuring and other charges.
CONTACT: Autodesk, Inc. Al Castino, 415/507-6287 (Investor) al.castino@autodesk.com Misty Ohmart, 415/507-6208 (Investor) misty.ohmart@autodesk.com Shannon Hart, 415/507-6241 (Media) shannon.hart@autodesk.com
Click here for pdf version of this release.
Click here for pdf version of the Balance Sheet.
Click here for pdf version of the Consolidated Operations.
Click here for pdf version of the Pro Forma.