Autodesk Increases Profitability in Third Quarter Fiscal 2010
-
Revenue was
$417 million , flat sequentially, and a decrease of 31 percent compared to the third quarter of fiscal 2009. -
GAAP diluted earnings per share were
$0.13 , compared to GAAP diluted earnings per share of$0.05 in the second quarter of fiscal 2010, and$0.45 in the third quarter of fiscal 2009. -
Non-GAAP diluted earnings per share were
$0.27 , compared to non-GAAP diluted earnings per share of$0.24 in the second quarter of fiscal 2010, and non-GAAP diluted earnings per share of$0.56 in the third quarter of fiscal 2009. A reconciliation of the GAAP and non-GAAP results is provided in the accompanying tables.
“Our business appears to be increasingly stable,” said
“In addition, our efforts to reduce operating expenses resulted in a sequential increase in profitability for the second consecutive quarter,” continued Bass. “While there are several data points in our business that are encouraging and represent positive indicators for our business, the health of the global economic environment remains mixed and the continued job losses in our core markets represent ongoing challenges to a swift recovery in our business.”
Operational Overview
Revenue in the Americas increased 2 percent sequentially to
Revenue from emerging economies was
Combined revenue from
“With more than
During the current quarter,
Business Outlook
The following are forward-looking statements that are based on current expectations that involve risks and uncertainties, some of which are set forth below.
Fourth Quarter Fiscal 2010
For the fourth quarter,
Full Year Fiscal 2010
Net revenue for fiscal 2010 is expected to be in the range of
In addition,
First Quarter 2011 and Full Year Fiscal 2011
GAAP operating margin for the full year fiscal 2011 is expected to
increase as the company recorded significant impairment charges in
fiscal 2010 that it does not anticipate recording in fiscal 2011.
Non-GAAP operating margin excludes stock-based compensation expense, amortization of acquisition related intangibles, restructuring charges and goodwill impairments.
Earnings Conference Call and Webcast
NOTE: The prepared remarks will not be read on the conference call. The conference call will include only brief remarks followed by questions and answers.
A replay of the broadcast will be available at
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 anticipated market,
economic and revenue trends, cost savings, timing of certain charges and
other statements regarding our expected strategies, market position,
performance and results. Other factors that could cause actual results
to differ materially include the following: general market, economic and
business conditions, our performance in particular geographies,
including emerging economies, the financial and business condition of
our reseller and distribution channels, fluctuation in foreign currency
exchange rates, failure to achieve and maintain planned cost reductions
and productivity increases, slowing momentum in maintenance revenues,
failure to achieve sufficient sell-through in our channels for new or
existing products, pricing pressure, failure to achieve continued
migration from 2D products to 3D products, difficulties encountered in
integrating new or acquired businesses and technologies, the inability
to identify and realize the anticipated benefits of acquisitions,
unexpected fluctuations in our tax rate, the timing and degree of
expected investments in growth opportunities, changes in the timing of
product releases and retirements, failure of key new applications to
achieve anticipated levels of customer acceptance, failure to achieve
continued success in technology advancements, interruptions or
terminations in the business of
Further information on potential factors that could affect the financial
results of
About
© 2009
| Autodesk, Inc. | ||||||||||||||||
| Consolidated Statements of Operations | ||||||||||||||||
| (In millions, except per share data) | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| October 31, | October 31, | |||||||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||
| Net revenue: | ||||||||||||||||
| License and other | $ | 236.1 | $ | 421.0 | $ | 710.7 | $ | 1,293.4 | ||||||||
| Maintenance | 180.8 | 186.1 | 546.9 | 532.0 | ||||||||||||
| Total net revenue | 416.9 | 607.1 | 1,257.6 | 1,825.4 | ||||||||||||
|
Cost of revenue: |
||||||||||||||||
| Cost of license and other revenue | 42.0 | 50.5 | 138.6 | 164.1 | ||||||||||||
|
Cost of maintenance revenue |
3.0 | 2.4 | 8.8 | 6.5 | ||||||||||||
| Total cost of revenue | 45.0 | 52.9 | 147.4 | 170.6 | ||||||||||||
| Gross profit | 371.9 | 554.2 | 1,110.2 | 1,654.8 | ||||||||||||
| Operating Expenses: | ||||||||||||||||
| Marketing and sales | 180.3 | 227.0 | 540.6 | 682.7 | ||||||||||||
| Research and development | 109.3 | 137.0 | 340.7 | 437.4 | ||||||||||||
| General and administrative | 51.1 | 50.6 | 150.6 | 156.4 | ||||||||||||
| Impairment of goodwill | - | - | 21.0 | - | ||||||||||||
| Restructuring charges | 4.9 | - | 47.8 | - | ||||||||||||
| Total operating expenses | 345.6 | 414.6 | 1,100.7 | 1,276.5 | ||||||||||||
| Income from operations | 26.3 | 139.6 | 9.5 | 378.3 | ||||||||||||
|
Interest and other income (expense), net |
5.7 | (3.4 | ) | 16.5 | 9.9 | |||||||||||
| Income before income taxes | 32.0 | 136.2 | 26.0 | 388.2 | ||||||||||||
| Provision for income taxes | (2.5 | ) | (31.7 | ) | (18.1 | ) | (99.2 | ) | ||||||||
| Net income | $ | 29.5 | $ | 104.5 | $ | 7.9 | $ | 289.0 | ||||||||
| Basic net income per share | $ | 0.13 | $ | 0.46 | $ | 0.03 | $ | 1.28 | ||||||||
| Diluted net income per share | $ | 0.13 | $ | 0.45 | $ | 0.03 | $ | 1.25 | ||||||||
|
Shares used in computing basic net income per share |
229.6 | 225.3 | 228.5 | 225.2 | ||||||||||||
|
Shares used in computing diluted net income per share |
232.9 | 230.4 | 231.1 | 231.2 | ||||||||||||
| Autodesk, Inc. | |||||||
| Condensed Consolidated Balance Sheets | |||||||
| (In millions) | |||||||
| October 31, | January 31, | ||||||
| 2009 | 2009 | ||||||
| (Unaudited) | |||||||
| ASSETS: | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 698.5 | $ | 917.6 | |||
| Marketable securities | 263.1 | 63.5 | |||||
| Accounts receivable, net | 215.7 | 316.5 | |||||
| Deferred income taxes | 49.8 | 31.1 | |||||
| Prepaid expenses and other current assets | 60.0 | 59.3 | |||||
| Total current assets | 1,287.1 | 1,388.0 | |||||
| Marketable securities | 92.0 | 7.6 | |||||
| Computer equipment, software, furniture and leasehold improvements, net | 111.9 | 120.6 | |||||
| Purchased technologies, net | 88.9 | 113.3 | |||||
| Goodwill | 530.5 | 542.5 | |||||
| Long term deferred income taxes, net | 92.7 | 125.7 | |||||
| Other assets | 112.3 | 123.0 | |||||
| $ | 2,315.4 | $ | 2,420.7 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY: | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 60.0 | $ | 62.4 | |||
| Accrued compensation | 98.9 | 124.3 | |||||
| Accrued income taxes | 9.8 | 16.7 | |||||
| Deferred revenue | 401.2 | 438.8 | |||||
| Borrowings under line of credit | - | 52.1 | |||||
| Other accrued liabilities | 57.4 | 105.8 | |||||
| Total current liabilities | 627.3 | 800.1 | |||||
| Deferred revenue | 68.3 | 113.3 | |||||
| Long term income taxes payable | 123.2 | 116.9 | |||||
| Long term deferred income taxes | - | 22.7 | |||||
| Other liabilities | 64.9 | 57.0 | |||||
| Commitments and contingencies | |||||||
| Stockholders' equity: | |||||||
| Preferred stock | - | - | |||||
|
Common stock and additional paid-in capital |
1,194.2 | 1,080.4 | |||||
|
Accumulated other comprehensive income (loss) |
3.7 | (11.2 | ) | ||||
| Retained earnings | 233.8 | 241.5 | |||||
| Total stockholders' equity | 1,431.7 | 1,310.7 | |||||
| $ | 2,315.4 | $ | 2,420.7 | ||||
| Autodesk, Inc. | ||||||||
| Condensed Consolidated Statements of Cash Flows | ||||||||
| (In millions) | ||||||||
| Nine Months Ended | ||||||||
| October 31, | ||||||||
| 2009 | 2008 | |||||||
| (Unaudited) | ||||||||
| Operating Activities | ||||||||
| Net income | $ | 7.9 | $ | 289.0 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 84.4 | 64.5 | ||||||
| Stock-based compensation expense | 74.7 | 70.9 | ||||||
| Impairment of goodwill | 21.0 | - | ||||||
|
Restructuring charges, net |
47.8 | - | ||||||
| Gain on disposition of assets | (2.3 | ) | - | |||||
| Charge for acquired in-process research and development | - | 18.0 | ||||||
|
Changes in operating assets and liabilities, net of business combinations |
(112.3 | ) | 65.1 | |||||
| Net cash provided by operating activities | 121.2 | 507.5 | ||||||
| Investing Activities | ||||||||
| Purchases of marketable securities | (409.9 | ) | (111.2 | ) | ||||
| Sales of marketable securities | 8.1 | 5.2 | ||||||
| Maturities of marketable securities | 126.5 | - | ||||||
| Capital expenditures | (30.2 | ) | (59.1 | ) | ||||
| Purchase of equity investment | (10.0 | ) | - | |||||
| Business combinations, net of cash acquired | (3.6 | ) | (297.3 | ) | ||||
| Net cash used in investing activities | (319.1 | ) | (462.4 | ) | ||||
| Financing activities | ||||||||
| Draws on line of credit | 2.2 | 800.0 | ||||||
| Repayments of line of credit | (54.3 | ) | (796.0 | ) | ||||
| Proceeds from issuance of common stock, net of issuance costs | 67.5 | 89.1 | ||||||
| Repurchases of common stock | (39.4 | ) | (256.6 | ) | ||||
| Net cash used in financing activities | (24.0 | ) | (163.5 | ) | ||||
| Effect of exchange rate changes on cash and cash equivalents | 2.8 | (3.1 | ) | |||||
| Net decrease in cash and cash equivalents | (219.1 | ) | (121.5 | ) | ||||
| Cash and cash equivalents at beginning of fiscal year | 917.6 | 917.9 | ||||||
| Cash and cash equivalents at end of period | $ | 698.5 | $ | 796.4 | ||||
| Autodesk, Inc. | ||||||||||||||||
| Reconciliation of GAAP financial measures to non-GAAP financial measures | ||||||||||||||||
| (In millions, except per share data) | ||||||||||||||||
|
To supplement our consolidated financial statements presented on a GAAP basis, Autodesk provides investors with certain non-GAAP measures including non-GAAP net income, non-GAAP net income per share, non-GAAP cost of license and other revenue, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP income from operations, non-GAAP interest and other income, net and non-GAAP provision for income taxes. These non-GAAP financial measures are adjusted to exclude certain costs, expenses, gains and losses, including stock-based compensation expense, amortization of purchased intangibles, in-process research and development expenses, restructuring charges, goodwill impairment, establishment of a valuation allowance on certain deferred tax assets and related income tax expenses. See our reconciliation of GAAP financial measures to non-GAAP financial measures herein. We believe these exclusions are appropriate to enhance an overall understanding of our past financial performance and also our prospects for the future, as well as to facilitate comparisons with our historical operating results. 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 our core operating results. In addition, these non-GAAP financial measures are among the primary indicators management uses as a basis for our planning and forecasting of future periods.
There are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with generally accepted accounting principles and may be different from non-GAAP financial measures used by other companies. The non-GAAP financial measures are limited in value because they exclude certain items that may have a material impact upon our reported financial results. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with generally accepted accounting principles in the United States. Investors should review the reconciliation of the non-GAAP financial measures to their most directly comparable GAAP financial measures as provided in the tables accompanying this press release. |
||||||||||||||||
| The following table shows Autodesk's non-GAAP results reconciled to GAAP results included in this release. | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| October 31, | October 31, | |||||||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||
| GAAP cost of license and other revenue | $ | 42.0 | $ | 50.5 | $ | 138.6 | $ | 164.1 | ||||||||
|
Stock-based compensation expense |
(1.1 | ) | (1.0 | ) | (2.4 | ) | (3.1 | ) | ||||||||
| Amortization of developed technology | (8.7 | ) | (6.4 | ) | (25.3 | ) | (15.2 | ) | ||||||||
| Non-GAAP cost of license and other revenue | $ | 32.2 | $ | 43.1 | $ | 110.9 | $ | 145.8 | ||||||||
| GAAP gross profit | $ | 371.9 | $ | 554.2 | $ | 1,110.2 | $ | 1,654.8 | ||||||||
|
Stock-based compensation expense |
1.1 | 1.0 | 2.4 | 3.1 | ||||||||||||
|
Amortization of developed technology |
8.7 | 6.4 | 25.3 | 15.2 | ||||||||||||
| Non-GAAP gross profit | $ | 381.7 | $ | 561.6 | $ | 1,137.9 | $ | 1,673.1 | ||||||||
| GAAP marketing and sales | $ | 180.3 | $ | 227.0 | $ | 540.6 | $ | 682.7 | ||||||||
|
Stock-based compensation expense |
(13.5 | ) | (10.1 | ) | (32.5 | ) | (30.6 | ) | ||||||||
| Non-GAAP marketing and sales | $ | 166.8 | $ | 216.9 | $ | 508.1 | $ | 652.1 | ||||||||
| GAAP research and development | $ | 109.3 | $ | 137.0 | $ | 340.7 | $ | 437.4 | ||||||||
|
Stock-based compensation expense |
(9.5 | ) | (7.2 | ) | (23.7 | ) | (23.3 | ) | ||||||||
| In-process research and development | - | (1.2 | ) | - | (18.0 | ) | ||||||||||
| Non-GAAP research and development | $ | 99.8 | $ | 128.6 | $ | 317.0 | $ | 396.1 | ||||||||
| GAAP general and administrative | $ | 51.1 | $ | 50.6 | $ | 150.6 | $ | 156.4 | ||||||||
|
Stock-based compensation expense |
(6.2 | ) | (4.2 | ) | (16.1 | ) | (13.9 | ) | ||||||||
|
Amortization of customer relationships and trademarks |
(6.4 | ) | (7.2 | ) | (19.5 | ) | (16.5 | ) | ||||||||
| Non-GAAP general and administrative | $ | 38.5 | $ | 39.2 | $ | 115.0 | $ | 126.0 | ||||||||
| GAAP impairment of goodwill | $ | - | $ | - | $ | 21.0 | $ | - | ||||||||
| Impairment of goodwill | - | - | (21.0 | ) | - | |||||||||||
| Non-GAAP impairment of goodwill | $ | - | $ | - | $ | - | $ | - | ||||||||
| GAAP restructuring charges | $ | 4.9 | $ | - | $ | 47.8 | $ | - | ||||||||
| Restructuring charges | (4.9 | ) | - | (47.8 | ) | - | ||||||||||
| Non-GAAP restructuring charges | $ | - | $ | - | $ | - | $ | - | ||||||||
| GAAP operating expenses | $ | 345.6 | $ | 414.6 | $ | 1,100.7 | $ | 1,276.5 | ||||||||
|
Stock-based compensation expense |
(29.2 | ) | (21.5 | ) | (72.3 | ) | (67.8 | ) | ||||||||
|
Amortization of customer relationships and trademarks |
(6.4 | ) | (7.2 | ) | (19.5 | ) | (16.5 | ) | ||||||||
|
In-process research and development |
- | (1.2 | ) | - | (18.0 | ) | ||||||||||
| Impairment of goodwill | - | - | (21.0 | ) | - | |||||||||||
| Restructuring charges | (4.9 | ) | - | (47.8 | ) | - | ||||||||||
| Non-GAAP operating expenses | $ | 305.1 | $ | 384.7 | $ | 940.1 | $ | 1,174.2 | ||||||||
| GAAP income from operations | $ | 26.3 | $ | 139.6 | $ | 9.5 | $ | 378.3 | ||||||||
|
Stock-based compensation expense |
30.3 | 22.5 | 74.7 | 70.9 | ||||||||||||
| Amortization of developed technology | 8.7 | 6.4 | 25.3 | 15.2 | ||||||||||||
|
Amortization of customer relationships and trademarks |
6.4 | 7.2 | 19.5 | 16.5 | ||||||||||||
|
In-process research and development |
- | 1.2 | - | 18.0 | ||||||||||||
| Impairment of goodwill | - | - | 21.0 | - | ||||||||||||
| Restructuring charges | 4.9 | - | 47.8 | - | ||||||||||||
| Non-GAAP income from operations | $ | 76.6 | $ | 176.9 | $ | 197.8 | $ | 498.9 | ||||||||
| GAAP provision for income taxes | $ | (2.5 | ) | $ | (31.7 | ) | $ | (18.1 | ) | $ | (99.2 | ) | ||||
|
Establishment of valuation allowance on deferred tax assets |
- | - | 21.0 | - | ||||||||||||
|
Income tax effect on difference between GAAP and non-GAAP total costs and expenses at a normalized rate |
(16.7 | ) | (11.8 | ) | (55.4 | ) | (32.1 | ) | ||||||||
| Non-GAAP provision for income tax | $ | (19.2 | ) | $ | (43.5 | ) | $ | (52.5 | ) | $ | (131.3 | ) | ||||
| GAAP net income | $ | 29.5 | $ | 104.5 | $ | 7.9 | $ | 289.0 | ||||||||
|
Stock-based compensation expense |
30.3 | 22.5 | 74.7 | 70.9 | ||||||||||||
| Amortization of developed technology | 8.7 | 6.4 | 25.3 | 15.2 | ||||||||||||
|
Amortization of customer relationships and trademarks |
6.4 | 7.2 | 19.5 | 16.5 | ||||||||||||
| In-process research and development | - | 1.2 | - | 18.0 | ||||||||||||
| Impairment of goodwill | - | - | 21.0 | - | ||||||||||||
| Restructuring charges | 4.9 | - | 47.8 | - | ||||||||||||
|
Establishment of valuation allowance on deferred tax assets |
- | - | 21.0 | - | ||||||||||||
|
Income tax effect on difference between GAAP and non-GAAP total costs and expenses at a normalized rate |
(16.7 | ) | (11.8 | ) | (55.4 | ) | (32.1 | ) | ||||||||
| Non-GAAP net income | $ | 63.1 | $ | 130.0 | $ | 161.8 | $ | 377.5 | ||||||||
| GAAP diluted net income per share | $ | 0.13 | $ | 0.45 | $ | 0.03 | $ | 1.25 | ||||||||
|
Stock-based compensation expense |
0.13 | 0.10 | 0.33 | 0.31 | ||||||||||||
| Amortization of developed technology | 0.04 | 0.03 | 0.11 | 0.06 | ||||||||||||
|
Amortization of customer relationships and trademarks |
0.02 | 0.03 | 0.08 | 0.07 | ||||||||||||
| In-process research and development | - |
- |
- | 0.07 | ||||||||||||
| Impairment of goodwill | - | - | 0.09 | - | ||||||||||||
| Restructuring charges | 0.02 | - | 0.21 | - | ||||||||||||
|
Establishment of valuation allowance on deferred tax assets |
- | - | 0.09 | - | ||||||||||||
|
Income tax effect on difference between GAAP and non-GAAP total costs and expenses at a normalized rate |
(0.07 | ) | (0.05 | ) | (0.24 | ) | (0.14 | ) | ||||||||
| Non-GAAP diluted net income per share | $ | 0.27 | $ | 0.56 | $ | 0.70 | $ | 1.62 | ||||||||
|
GAAP diluted shares used in per share calculation |
232.9 | 230.4 | 231.1 | 231.2 | ||||||||||||
|
Impact of stock-based compensation on diluted shares |
0.9 | - | 0.8 | 0.3 | ||||||||||||
|
Non-GAAP diluted shares used in per share calculation |
233.8 | 230.4 | 231.9 | 231.5 | ||||||||||||
|
Autodesk |
||||||||||||||||||
|
Other Supplemental Financial Information (*) |
||||||||||||||||||
| Fiscal Year 2010 | QTR 1 | QTR 2 | QTR 3 |
QTR 4 |
YTD 2010 | |||||||||||||
| Financial Statistics ($ in millions, except per share data): | ||||||||||||||||||
| Total net revenue | $ | 426 | $ | 415 | $ | 417 | $ | 1,258 | ||||||||||
| License and other revenue | $ | 244 | $ | 231 | $ | 236 | $ | 711 | ||||||||||
| Maintenance revenue | $ | 182 | $ | 184 | $ | 181 | $ | 547 | ||||||||||
| GAAP Gross Margin | 88 | % | 88 | % | 89 | % | 88 | % | ||||||||||
| Non-GAAP Gross Margin (1)(2) | 90 | % | 90 | % | 92 | % | 90 | % | ||||||||||
| GAAP Operating Expenses | $ | 393 | $ | 362 | $ | 346 | $ | 1,101 | ||||||||||
| GAAP Operating Margin | -5 | % | 1 | % | 6 | % | 1 | % | ||||||||||
| GAAP Net Income (Loss) | $ | (32 | ) | $ | 10 | $ | 30 | $ | 8 | |||||||||
| GAAP Diluted Net Income (Loss) Per Share | $ | (0.14 | ) | $ | 0.05 | $ | 0.13 | $ | 0.03 | |||||||||
| Non-GAAP Operating Expenses (1)(3) | $ | 327 | $ | 308 | $ | 305 | $ | 940 | ||||||||||
| Non-GAAP Operating Margin (1)(4) | 13 | % | 16 | % | 18 | % | 16 | % | ||||||||||
| Non-GAAP Net Income (1)(5) | $ | 42 | $ | 57 | $ | 63 | $ | 162 | ||||||||||
| Non-GAAP Diluted Net Income Per Share (1)(6) | $ | 0.18 | $ | 0.24 | $ | 0.27 | $ | 0.70 | ||||||||||
| Total Cash and Marketable Securities | $ | 966 | $ | 1,029 | $ | 1,054 | $ | 1,054 | ||||||||||
| Days Sales Outstanding | 49 | 49 | 47 | 47 | ||||||||||||||
| Capital Expenditures | $ | 14 | $ | 11 | $ | 6 | $ | 30 | ||||||||||
| Cash from Operations | $ | 27 | $ | 47 | $ | 47 | $ | 121 | ||||||||||
| GAAP Depreciation and Amortization | $ | 27 | $ | 28 | $ | 29 | $ | 84 | ||||||||||
| Deferred Maintenance Revenue Balance | $ | 469 | $ | 444 | $ | 420 | $ | 420 | ||||||||||
| Revenue by Geography (in millions): | ||||||||||||||||||
| Americas | $ | 163 | $ | 159 | $ | 164 | $ | 486 | ||||||||||
| Europe | $ | 167 | $ | 157 | $ | 159 | $ | 484 | ||||||||||
| Asia/Pacific | $ | 96 | $ | 99 | $ | 94 | $ | 288 | ||||||||||
|
Revenue by Segment (in millions):*** |
||||||||||||||||||
| Platform Solutions and Emerging Business | $ | 156 | $ | 150 | $ | 154 | $ | 460 | ||||||||||
| Architecture, Engineering and Construction | $ | 128 | $ | 123 | $ | 125 | $ | 376 | ||||||||||
| Manufacturing | $ | 94 | $ | 95 | $ | 90 | $ | 279 | ||||||||||
| Media and Entertainment | $ | 48 | $ | 47 | $ | 48 | $ | 143 | ||||||||||
| Other | $ | - | $ | - | $ | - | $ | - | ||||||||||
| Other Revenue Statistics: | ||||||||||||||||||
|
% of Total Rev from AutoCAD and AutoCAD LT*** |
33 | % | 31 | % | 32 | % | 32 | % | ||||||||||
| % of Total Rev from 3D design products | 29 | % | 29 | % | 29 | % | 29 | % | ||||||||||
| % of Total Rev from Emerging Economies | 14 | % | 15 | % | 15 | % | 15 | % | ||||||||||
| Upgrade Revenue (in millions) | $ | 43 | $ | 26 | $ | 26 | $ | 96 | ||||||||||
|
Favorable (Unfavorable) Impact of U.S. Dollar Translation Relative to Foreign Currencies Compared to Comparable Prior Year Period (in millions): |
||||||||||||||||||
| FX Impact on Total Net Revenue | $ | (31 | ) | $ | (24 | ) | $ | (4 | ) | $ | (59 | ) | ||||||
| FX Impact on Total Operating Expenses | $ | 22 | $ | 14 | $ | 2 | $ | 37 | ||||||||||
| FX Impact on Total Net Income (Loss) | $ | (9 | ) | $ | (10 | ) | $ | (2 | ) | $ | (22 | ) | ||||||
|
Gross Margin by Segment (in millions):*** |
||||||||||||||||||
| Platform Solutions and Emerging Business | $ | 146 | $ | 140 | $ | 147 | $ | 433 | ||||||||||
| Architecture, Engineering and Construction | $ | 116 | $ | 110 | $ | 113 | $ | 340 | ||||||||||
| Manufacturing | $ | 86 | $ | 88 | $ | 84 | $ | 257 | ||||||||||
| Media and Entertainment | $ | 34 | $ | 36 | $ | 38 | $ | 108 | ||||||||||
| Unallocated amounts | $ | (9 | ) | $ | (9 | ) | $ | (10 | ) | $ | (28 | ) | ||||||
| Common Stock Statistics: | ||||||||||||||||||
| GAAP Shares Outstanding | 228,219,000 | 229,666,000 | 229,665,000 | 229,665,000 | ||||||||||||||
| GAAP Fully Diluted Weighted Average Shares Outstanding | 227,080,000 | 232,286,000 | 232,947,000 | 231,140,000 | ||||||||||||||
| Shares Repurchased | - | - | 1,673,000 | 1,673,000 | ||||||||||||||
| Installed Base Statistics: | ||||||||||||||||||
|
Maintenance Installed Base ** |
1,719,000 | 2,299,000 | 2,236,000 | 2,236,000 | ||||||||||||||
|
* Totals may not agree with the sum of the components due to rounding. |
||||||||||||||||||
|
** The second quarter of fiscal 2010 maintenance installed base includes a one-time adjustment of 581,000 educational seats for users migrated to a standard educational maintenance plan. These users were not previously captured in our maintenance installed base. |
||||||||||||||||||
|
*** In the third quarter of fiscal 2010, Autodesk changed its methodology for allocating certain revenue transactions, including gains and losses from foreign currency. The second quarter of fiscal 2010 amounts have been reclassified to conform to the current presentation. The change of methodology did not have a material effect on any other period. |
||||||||||||||||||
|
(1) To supplement our consolidated financial statements presented on a GAAP basis, Autodesk provides investors with certain non-GAAP measures including non-GAAP net income, non-GAAP net income per share, non-GAAP cost of license and other revenue, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP income from operations, non-GAAP interest and other income, net and non-GAAP provision for income taxes. These non-GAAP financial measures are adjusted to exclude certain costs, expenses, gains and losses, including stock-based compensation expense, restructuring charges, amortization of purchased intangibles, goodwill impairment, establishment of a valuation allowance on certain deferred tax assets and related income tax expenses. See our reconciliation of GAAP financial measures to non-GAAP financial measures herein. We believe these exclusions are appropriate to enhance an overall understanding of our past financial performance and also our prospects for the future, as well as to facilitate comparisons with our historical operating results. 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 our core operating results. In addition, these non-GAAP financial measures are among the primary indicators management uses as a basis for our planning and forecasting of future periods.
There are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with generally accepted accounting principles and may be different from non-GAAP financial measures used by other companies. The non-GAAP financial measures are limited in value because they exclude certain items that may have a material impact upon our reported financial results. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with generally accepted accounting principles in the United States. Investors should review the reconciliation of the non-GAAP financial measures to their most directly comparable GAAP financial measures as provided in the tables accompanying Autodesk's press release. |
||||||||||||||||||
| Fiscal Year 2010 | QTR 1 | QTR 2 | QTR 3 | QTR 4 | YTD 2010 | |||||||||||||
| (2) GAAP Gross Margin | 88 | % | 88 | % | 89 | % | 88 | % | ||||||||||
| Stock-based compensation expense | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||||
| Amortization of developed technology | 2 | % | 2 | % | 3 | % | 2 | % | ||||||||||
| Non-GAAP Gross Margin | 90 | % | 90 | % | 92 | % | 90 | % | ||||||||||
| (3) GAAP Operating Expenses | $ | 393 | $ | 362 | $ | 346 | $ | 1,101 | ||||||||||
| Stock-based compensation expense | (22 | ) | (21 | ) | (30 | ) | (73 | ) | ||||||||||
| Amortization of customer relationships and trademarks | (6 | ) | (7 | ) | (6 | ) | (19 | ) | ||||||||||
| Restructuring charges | (17 | ) | (26 | ) | (5 | ) | (48 | ) | ||||||||||
| Impairment of goodwill | (21 | ) | - | - | (21 | ) | ||||||||||||
| Non-GAAP Operating Expenses | $ | 327 | $ | 308 | $ | 305 | $ | 940 | ||||||||||
| (4) GAAP Operating Margin | -5 | % | 1 | % | 6 | % | 1 | % | ||||||||||
| Stock-based compensation expense | 5 | % | 5 | % | 7 | % | 6 | % | ||||||||||
| Amortization of developed technology | 2 | % | 2 | % | 2 | % | 2 | % | ||||||||||
| Amortization of customer relationships and trademarks | 2 | % | 2 | % | 2 | % | 1 | % | ||||||||||
| Restructuring charges | 4 | % | 6 | % | 1 | % | 4 | % | ||||||||||
| Impairment of goodwill | 5 | % | 0 | % | 0 | % | 2 | % | ||||||||||
| Non-GAAP Operating Margin | 13 | % | 16 | % | 18 | % | 16 | % | ||||||||||
| (5) GAAP Net Income (Loss) | $ | (32 | ) | $ | 10 | $ | 30 | $ | 8 | |||||||||
| Stock-based compensation expense | 23 | 21 | 30 | 75 | ||||||||||||||
| Amortization of developed technology | 8 | 8 | 9 | 25 | ||||||||||||||
| Amortization of customer relationships and trademarks | 6 | 7 | 6 | 19 | ||||||||||||||
| Establishment of valuation allowance on deferred tax assets | 21 | - | - | 21 | ||||||||||||||
| Impairment of goodwill | 21 | - | - | 21 | ||||||||||||||
| Restructuring charges | 17 | 26 | 5 | 48 | ||||||||||||||
|
Income tax effect on difference between GAAP and non-GAAP total costs and expenses at a normalized rate |
(22 | ) | (16 | ) | (17 | ) | (55 | ) | ||||||||||
| Non-GAAP Net Income | $ | 42 | $ | 56 | $ | 63 | $ | 162 | ||||||||||
| (6) GAAP Diluted Net Income (Loss) Per Share | $ | (0.14 | ) | $ | 0.05 | $ | 0.13 | $ | 0.03 | |||||||||
| Stock-based compensation expense | 0.10 | 0.09 | 0.13 |
0.33 |
||||||||||||||
| Amortization of developed technology | 0.04 | 0.03 | 0.04 | 0.11 | ||||||||||||||
| Amortization of customer relationships and trademarks | 0.03 | 0.03 | 0.02 | 0.08 | ||||||||||||||
| Establishment of valuation allowance on deferred tax assets | 0.09 | - | - | 0.09 | ||||||||||||||
| Impairment of goodwill | 0.09 | - | - | 0.09 | ||||||||||||||
| Restructuring charges | 0.07 | 0.11 | 0.02 | 0.21 | ||||||||||||||
|
Income tax effect on difference between GAAP and non-GAAP total costs and expenses at a normalized rate |
(0.10 | ) | (0.07 | ) | (0.07 | ) | (0.24 | ) | ||||||||||
| Non-GAAP Diluted Net Income Per Share | $ | 0.18 | $ | 0.24 | $ | 0.27 | $ |
0.70 |
||||||||||
Source:
Autodesk, Inc.
Investors:
David Gennarelli, 415-507-6033
david.gennarelli@autodesk.com
Press:
Pam
Pollace, 415-547-2441
pam.pollace@autodesk.com
Michael
Cabot, 415-547-2439
michael.cabot@autodesk.com