Autodesk Reports Second Quarter Results
Announces Restructuring to Accelerate Transition to Cloud and Mobile Computing
Second Quarter Fiscal 2013
-
Revenue was
$569 million , an increase of 4 percent compared to the second quarter of fiscal 2012. - GAAP operating margin was 16 percent, compared to 17 percent in the second quarter of fiscal 2012.
- Non-GAAP operating margin was 25 percent, consistent with the second quarter of fiscal 2012. A reconciliation of GAAP to non-GAAP results is provided in the accompanying tables.
-
GAAP diluted earnings per share were
$0.28 , compared to$0.30 in the second quarter of fiscal 2012. -
Non-GAAP diluted earnings per share were
$0.48 , compared to$0.44 in the second quarter of fiscal 2012. -
Cash flow from operating activities was
$107 million , compared to$132 million in the second quarter of fiscal 2012.
"Our own execution challenges, combined with an uneven global economy,
resulted in disappointing revenue results for the quarter,” said
"Given the uneven macroeconomic environment and the company's desire to deliver operating margin improvement, we have taken a prudent approach to spending in fiscal 2013," continued Bass. "Our ongoing cost management measures contributed to the delivery of non-GAAP EPS within our guidance range for the second quarter."
Second Quarter Operational Overview
EMEA revenue was
Revenue from the Platform Solutions and Emerging Business segment was
Revenue from Flagship products was
Deferred revenue at the end of the second quarter was a record high of
Restructuring
As part of today's announcement,
The company anticipates taking a pre-tax charge in the range of
“This restructuring is squarely focused on our continued transformation
and shift to more cloud and mobile computing," continued Bass. "This
action allows us to continue to invest in recruiting and hiring people
who can bring
Separately, in response to the company's second quarter performance, the
uneven economic environment, and outlook for the rest of the year,
The company expects the combined restructuring and cost savings initiatives, partially offset by planned investments, will result in pre-tax spend (operating expenses plus cost of goods sold) increasing in the second half of fiscal 2013 by between 7 and 11 percent compared to the second half of fiscal 2012 on a GAAP basis and ranging between -2 and 2 percent on a non-GAAP basis. The difference between GAAP and non-GAAP in the pre-tax spend range comparisons is due to the exclusion from non-GAAP pre-tax spend of approximately 5 percent related to stock-based compensation expense, approximately 2 percent for the amortization of acquisition related intangibles, and approximately 2 percent related to restructuring charges, which are included in total GAAP pre-tax spend.
"Although the economic environment is challenging, our market opportunity and prospects remain strong and we remain committed to achieving our long-term growth targets by the end of fiscal 2015," concluded Bass.
Business Outlook
The following statements are forward-looking statements that are based
on current expectations and assumptions, and involve risks and
uncertainties some of which are set forth below.
|
Third Quarter Fiscal 2013 |
||||
| 3Q FY13 Guidance Metrics | 3Q FY13 (ending October 31, 2012) | |||
| Revenue (in millions) | $550 to $570 | |||
| EPS GAAP | $0.02 to $0.07 | |||
| EPS Non-GAAP | $0.40 to $0.45 | |||
|
Non-GAAP earnings per diluted share exclude $0.18 related to stock-based compensation expense, $0.12 related to restructuring charges, and $0.08 for the amortization of acquisition related intangibles, net of tax. |
||||
Full Year Fiscal 2013
Net revenue for fiscal 2013 is now expected to increase by 4 percent to
6 percent compared to fiscal 2012.
Both third quarter fiscal 2013 and full year fiscal 2013 outlooks assume
annual effective tax rates of approximately 25 percent and 25.5 percent
for GAAP and non-GAAP results, respectively. These rate do not include
the federal R&D tax credit benefit, which expired on
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 regarding our long term
revenue and non-GAAP operating margin targets, the effectiveness of
efforts to reduce our operating expenses, statements in the paragraphs
under “Restructuring” and “Business Outlook” above, and other statements
regarding our expected strategies, market and products positions,
performance, and results. There are a significant number of factors that
could cause actual results to differ materially from statements made in
this press release, including: general market, political, economic and
business conditions; failure to maintain our revenue growth and
profitability; failure to maintain cost reductions and productivity
increases or otherwise control our expenses; the success of our internal
reorganization and restructuring activities; our performance in
particular geographies, including emerging economies; the ability of
governments around the world to meet their financial and debt
obligations, and finance infrastructure projects; failure to
successfully incorporate sales of licenses of products suites into our
overall sales strategy; weak or negative growth in the industries we
serve; failure to successfully expand adoption of our products; slowing
momentum in maintenance billings or revenues; difficulties encountered
in integrating new or acquired businesses and technologies; the
inability to identify and realize the anticipated benefits of
acquisitions; the financial and business condition of our reseller and
distribution channels; dependence on and the timing of large
transactions; fluctuation in foreign currency exchange rates; the
success of our foreign currency hedging program; failure to achieve
sufficient sell-through in our channels for new or existing products;
pricing pressure; unexpected fluctuations in our tax rate; the timing
and degree of expected investments in growth and efficiency
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
© 2012
| Autodesk, Inc. | ||||||||||||||||
| Condensed Consolidated Statements of Operations | ||||||||||||||||
| (In millions, except per share data) | ||||||||||||||||
|
Three Months Ended July 31, |
Six Months Ended July 31, | |||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||
| (Unaudited) | ||||||||||||||||
| Net revenue: | ||||||||||||||||
| License and other | $ | 340.5 | $ | 333.0 | $ | 701.5 | $ | 656.0 | ||||||||
| Maintenance | 228.2 | 213.3 | 455.8 | 418.6 | ||||||||||||
| Total net revenue | 568.7 | 546.3 | 1,157.3 | 1,074.6 | ||||||||||||
| Cost of revenue: | ||||||||||||||||
| Cost of license and other revenue | 49.1 | 45.7 | 96.2 | 88.3 | ||||||||||||
| Cost of maintenance revenue | 10.7 | 11.7 | 22.4 | 23.7 | ||||||||||||
| Total cost of revenue | 59.8 | 57.4 | 118.6 | 112.0 | ||||||||||||
| Gross profit | 508.9 | 488.9 | 1,038.7 | 962.6 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Marketing and sales | 212.4 | 201.0 | 435.6 | 402.9 | ||||||||||||
| Research and development | 144.9 | 139.2 | 297.6 | 275.8 | ||||||||||||
| General and administrative | 58.7 | 55.0 | 118.6 | 111.6 | ||||||||||||
| Restructuring benefits | — | (1.3 | ) | — | (1.3 | ) | ||||||||||
| Total operating expenses | 416.0 | 393.9 | 851.8 | 789.0 | ||||||||||||
| Income from operations | 92.9 | 95.0 | 186.9 | 173.6 | ||||||||||||
| Interest and other income (expense), net | (0.8 | ) | (0.8 | ) | 2.7 | 5.1 | ||||||||||
| Income before income taxes | 92.1 | 94.2 | 189.6 | 178.7 | ||||||||||||
| Provision for income taxes | (27.5 | ) | (23.0 | ) | (46.1 | ) | (38.2 | ) | ||||||||
| Net income | $ | 64.6 | $ | 71.2 | $ | 143.5 | $ | 140.5 | ||||||||
| Basic net income per share | $ | 0.28 | $ | 0.31 | $ | 0.63 | $ | 0.61 | ||||||||
| Diluted net income per share | $ | 0.28 | $ | 0.30 | $ | 0.62 | $ | 0.59 | ||||||||
| Weighted average shares used in computing basic net income per share | 227.8 | 229.4 | 228.0 | 228.8 | ||||||||||||
| Weighted average shares used in computing diluted net income per share | 232.1 | 236.6 | 233.1 | 236.9 | ||||||||||||
| Autodesk, Inc. | |||||||
| Condensed Consolidated Balance Sheets | |||||||
| (In millions) | |||||||
|
July 31, |
January 31, | ||||||
| 2012 | 2012 | ||||||
|
(Unaudited)
|
|||||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 930.2 | $ | 1,156.9 | |||
| Marketable securities | 500.5 | 254.4 | |||||
| Accounts receivable, net | 361.4 | 395.1 | |||||
| Deferred income taxes | 44.8 | 30.1 | |||||
| Prepaid expenses and other current assets | 65.8 | 59.4 | |||||
| Total current assets | 1,902.7 | 1,895.9 | |||||
| Marketable securities | 286.1 | 192.8 | |||||
| Computer equipment, software, furniture and leasehold improvements, net | 109.0 | 104.5 | |||||
| Purchased technologies, net | 71.4 | 84.6 | |||||
| Goodwill | 739.2 | 682.4 | |||||
| Deferred income taxes, net | 136.8 | 135.8 | |||||
| Other assets | 130.7 | 131.8 | |||||
| $ | 3,375.9 | $ | 3,227.8 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 82.9 | $ | 89.3 | |||
| Accrued compensation | 136.6 | 183.9 | |||||
| Accrued income taxes | 17.0 | 14.4 | |||||
| Deferred revenue | 590.9 | 582.3 | |||||
| Other accrued liabilities | 74.0 | 84.2 | |||||
| Total current liabilities | 901.4 | 954.1 | |||||
| Deferred revenue | 161.1 | 136.9 | |||||
| Long term income taxes payable | 179.0 | 174.8 | |||||
| Other liabilities | 83.1 | 79.1 | |||||
| Commitments and contingencies | |||||||
| Stockholders’ equity: | |||||||
| Preferred stock | — | — | |||||
| Common stock and additional paid-in capital | 1,457.3 | 1,365.4 | |||||
| Accumulated other comprehensive income | 0.6 | 5.9 | |||||
| Retained earnings | 593.4 | 511.6 | |||||
| Total stockholders’ equity | 2,051.3 | 1,882.9 | |||||
| $ | 3,375.9 | $ | 3,227.8 | ||||
| Autodesk, Inc. | ||||||||
| Condensed Consolidated Statements of Cash Flows | ||||||||
| (In millions) | ||||||||
|
Six Months Ended July 31, |
||||||||
| 2012 | 2011 | |||||||
| (Unaudited) | ||||||||
| Operating activities: | ||||||||
| Net income | $ | 143.5 | $ | 140.5 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 58.1 | 54.2 | ||||||
| Stock-based compensation expense | 66.9 | 53.2 | ||||||
| Excess tax benefits from stock-based compensation | (28.1 | ) | (13.5 | ) | ||||
| Restructuring benefits | — | (1.3 | ) | |||||
| Other operating activities | 3.9 | — | ||||||
| Changes in operating assets and liabilities, net of business combinations | 2.1 | 27.5 | ||||||
| Net cash provided by operating activities | 246.4 | 260.6 | ||||||
| Investing activities: | ||||||||
| Purchases of marketable securities | (725.3 | ) | (307.8 | ) | ||||
| Sales of marketable securities | 138.9 | 61.6 | ||||||
| Maturities of marketable securities | 250.5 | 220.7 | ||||||
| Capital expenditures | (28.2 | ) | (39.8 | ) | ||||
| Acquisitions, net of cash acquired | (69.2 | ) | (94.4 | ) | ||||
| Other investing activities | (18.0 | ) | (15.1 | ) | ||||
| Net cash used in investing activities | (451.3 | ) | (174.8 | ) | ||||
| Financing activities: | ||||||||
| Proceeds from issuance of common stock, net of issuance costs | 158.8 | 129.6 | ||||||
| Repurchases of common stock | (210.3 | ) | (169.4 | ) | ||||
| Excess tax benefits from stock-based compensation | 28.1 | 13.5 | ||||||
| Net cash used in financing activities | (23.4 | ) | (26.3 | ) | ||||
| Effect of exchange rate changes on cash and cash equivalents | 1.6 | (3.1 | ) | |||||
| Net increase (decrease) in cash and cash equivalents | (226.7 | ) | 56.4 | |||||
| Cash and cash equivalents at beginning of fiscal year | 1,156.9 | 1,075.1 | ||||||
| Cash and cash equivalents at end of period | $ | 930.2 | $ | 1,131.5 | ||||
| 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 profit, non-GAAP operating expenses, non-GAAP restructuring charges, non-GAAP income from operations 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, restructuring charges, gain and loss on strategic investments, discrete tax provision items 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 | Six Months Ended | |||||||||||||||
| July 31, | July 31, | |||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||
| GAAP cost of license and other revenue | $ | 49.1 | $ | 45.7 | $ | 96.2 | $ | 88.3 | ||||||||
| Stock-based compensation expense | (1.2 | ) | (1.0 | ) | (2.5 | ) | (1.9 | ) | ||||||||
| Amortization of developed technology | (9.6 | ) | (8.5 | ) | (19.4 | ) | (16.6 | ) | ||||||||
| Non-GAAP cost of license and other revenue | $ | 38.3 | $ | 36.2 | $ | 74.3 | $ | 69.8 | ||||||||
| GAAP gross profit | $ | 508.9 | $ | 488.9 | $ | 1,038.7 | $ | 962.6 | ||||||||
| Stock-based compensation expense | 1.2 | 1.0 | 2.5 | 1.9 | ||||||||||||
| Amortization of developed technology | 9.6 | 8.5 | 19.4 | 16.6 | ||||||||||||
| Non-GAAP gross profit | $ | 519.7 | $ | 498.4 | $ | 1,060.6 | $ | 981.1 | ||||||||
| GAAP marketing and sales | $ | 212.4 | $ | 201.0 | $ | 435.6 | $ | 402.9 | ||||||||
| Stock-based compensation expense | (16.1 | ) | (11.3 | ) | (30.7 | ) | (23.1 | ) | ||||||||
| Non-GAAP marketing and sales | $ | 196.3 | $ | 189.7 | $ | 404.9 | $ | 379.8 | ||||||||
| GAAP research and development | $ | 144.9 | $ | 139.2 | $ | 297.6 | $ | 275.8 | ||||||||
| Stock-based compensation expense | (10.4 | ) | (9.8 | ) | (21.5 | ) | (18.7 | ) | ||||||||
| Non-GAAP research and development | $ | 134.5 | $ | 129.4 | $ | 276.1 | $ | 257.1 | ||||||||
| GAAP general and administrative | $ | 58.7 | $ | 55.0 | $ | 118.6 | $ | 111.6 | ||||||||
| Stock-based compensation expense | (5.8 | ) | (5.2 | ) | (12.2 | ) | (9.5 | ) | ||||||||
| Amortization of customer relationships and trade names | (7.9 | ) | (9.3 | ) | (15.7 | ) | (15.8 | ) | ||||||||
| Non-GAAP general and administrative | $ | 45.0 | $ | 40.5 | $ | 90.7 | $ | 86.3 | ||||||||
|
GAAP restructuring benefits |
$ | — | $ | (1.3 | ) | $ | — | $ | (1.3 | ) | ||||||
|
Restructuring benefits |
— | 1.3 | — | 1.3 | ||||||||||||
|
Non-GAAP restructuring benefits |
$ | — | $ | — | $ | — | $ | — | ||||||||
| GAAP operating expenses | $ | 416.0 | $ | 393.9 | $ | 851.8 | $ | 789.0 | ||||||||
| Stock-based compensation expense | (32.3 | ) | (26.3 | ) | (64.4 | ) | (51.3 | ) | ||||||||
|
Restructuring benefits |
— | 1.3 | — | 1.3 | ||||||||||||
| Amortization of customer relationships and trade names | (7.9 | ) | (9.3 | ) | (15.7 | ) | (15.8 | ) | ||||||||
| Non-GAAP operating expenses | $ | 375.8 | $ | 359.6 | $ | 771.7 | $ | 723.2 | ||||||||
| GAAP income from operations | $ | 92.9 | $ | 95.0 | $ | 186.9 | $ | 173.6 | ||||||||
| Stock-based compensation expense | 33.5 | 27.3 | 66.9 | 53.2 | ||||||||||||
|
Restructuring benefits |
— | (1.3 | ) | — | (1.3 | ) | ||||||||||
| Amortization of developed technology | 9.6 | 8.5 | 19.4 | 16.6 | ||||||||||||
| Amortization of customer relationships and trade names | 7.9 | 9.3 | 15.7 | 15.8 | ||||||||||||
| Non-GAAP income from operations | $ | 143.9 | $ | 138.8 | $ | 288.9 | $ | 257.9 | ||||||||
| GAAP interest and other income (expense) | $ | (0.8 | ) | $ | (0.8 | ) | $ | 2.7 | $ | 5.1 | ||||||
|
(Gain) loss on strategic investments (1) |
5.0 | — | 3.9 | — | ||||||||||||
| Non-GAAP interest and other income (expense) | $ | 4.2 | $ | (0.8 | ) | $ | 6.6 | $ | 5.1 | |||||||
| GAAP provision for income taxes | $ | (27.5 | ) | $ | (23.0 | ) | $ | (46.1 | ) | $ | (38.2 | ) | ||||
| Discrete GAAP tax provision items | 2.7 | 0.9 | (3.6 | ) | (3.2 | ) | ||||||||||
| Income tax effect of non-GAAP adjustments | (12.2 | ) | (12.4 | ) | (25.6 | ) | (24.4 | ) | ||||||||
| Non-GAAP provision for income tax | $ | (37.0 | ) | $ | (34.5 | ) | $ | (75.3 | ) | $ | (65.8 | ) | ||||
| GAAP net income | $ | 64.6 | $ | 71.2 | $ | 143.5 | $ | 140.5 | ||||||||
| Stock-based compensation expense | 33.5 | 27.3 | 66.9 | 53.2 | ||||||||||||
| Amortization of developed technology | 9.6 | 8.5 | 19.4 | 16.6 | ||||||||||||
| Amortization of customer relationships and trade names | 7.9 | 9.3 | 15.7 | 15.8 | ||||||||||||
|
Restructuring benefits |
— | (1.3 | ) | — | (1.3 | ) | ||||||||||
|
(Gain) loss on strategic investments (1) |
5.0 | — | 3.9 | — | ||||||||||||
| Discrete GAAP tax provision items | 2.7 | 0.9 | (3.6 | ) | (3.2 | ) | ||||||||||
| Income tax effect of non-GAAP adjustments | (12.2 | ) | (12.4 | ) | (25.6 | ) | (24.4 | ) | ||||||||
| Non-GAAP net income | $ | 111.1 | $ | 103.5 | $ | 220.2 | $ | 197.2 | ||||||||
| GAAP diluted net income per share | $ | 0.28 | $ | 0.30 | $ | 0.62 | $ | 0.59 | ||||||||
| Stock-based compensation expense | 0.15 | 0.12 | 0.29 | 0.22 | ||||||||||||
| Amortization of developed technology | 0.04 | 0.04 | 0.08 | 0.07 | ||||||||||||
| Amortization of customer relationships and trade names | 0.03 | 0.04 | 0.06 | 0.07 | ||||||||||||
|
Restructuring benefits |
— | (0.01 | ) | — | (0.01 | ) | ||||||||||
|
(Gain) loss on strategic investments (1) |
0.02 | — | 0.02 | — | ||||||||||||
| Discrete GAAP tax provision items | 0.01 | 0.01 | (0.02 | ) | (0.01 | ) | ||||||||||
| Income tax effect of non-GAAP adjustments | (0.05 | ) | (0.06 | ) | (0.11 | ) | (0.10 | ) | ||||||||
| Non-GAAP diluted net income per share | $ | 0.48 | $ | 0.44 | $ | 0.94 | $ | 0.83 | ||||||||
| (1) Effective in the second quarter of fiscal 2013, Autodesk began excluding gains and losses on strategic investments for purposes of its non-GAAP financial measures. Prior period non-GAAP interest and other income (expense), net, net income and earnings per share amounts have been revised to conform to the current period presentation. | ||||||||||||||||
|
Autodesk |
||||||||||||||||
| Other Supplemental Financial Information (a) | ||||||||||||||||
| Fiscal Year 2013 | QTR 1 | QTR 2 | QTR 3 | QTR 4 | YTD 2013 | |||||||||||
| Financial Statistics ($ in millions, except per share data): | ||||||||||||||||
| Total Net Revenue | $ | 589 | $ | 569 | $ | 1,157 | ||||||||||
| License and Other Revenue | $ | 361 | $ | 341 | $ | 702 | ||||||||||
| Maintenance Revenue | $ | 228 | $ | 228 | $ | 456 | ||||||||||
| GAAP Gross Margin | 90 | % | 89 | % | 90 | % | ||||||||||
| Non-GAAP Gross Margin (1)(2) | 92 | % | 91 | % | 92 | % | ||||||||||
| GAAP Operating Expenses | $ | 436 | $ | 416 | $ | 852 | ||||||||||
| GAAP Operating Margin | 16 | % | 16 | % | 16 | % | ||||||||||
| GAAP Net Income | $ | 79 | $ | 65 | $ | 144 | ||||||||||
| GAAP Diluted Net Income Per Share (b) | $ | 0.34 | $ | 0.28 | $ | 0.62 | ||||||||||
| Non-GAAP Operating Expenses (1)(3) | $ | 396 | $ | 376 | $ | 772 | ||||||||||
| Non-GAAP Operating Margin (1)(4) | 25 | % | 25 | % | 25 | % | ||||||||||
|
Non-GAAP Net Income (1)(5)(c) |
$ | 109 | $ | 111 | $ | 220 | ||||||||||
|
Non-GAAP Diluted Net Income Per Share (1)(6)(b)(c) |
$ | 0.47 | $ | 0.48 | $ | 0.94 | ||||||||||
| Total Cash and Marketable Securities | $ | 1,796 | $ | 1,717 | $ | 1,717 | ||||||||||
| Days Sales Outstanding | 46 | 58 | 58 | |||||||||||||
| Capital Expenditures | $ | 12 | $ | 17 | $ | 28 | ||||||||||
| Cash Flow from Operating Activities | $ | 139 | $ | 107 | $ | 246 | ||||||||||
| GAAP Depreciation and Amortization | $ | 29 | $ | 29 | $ | 58 | ||||||||||
| Deferred Maintenance Revenue Balance | $ | 648 | $ | 672 | $ | 672 | ||||||||||
| Revenue by Geography (in millions): | ||||||||||||||||
| Americas | $ | 208 | $ | 199 | $ | 406 | ||||||||||
| Europe, Middle East and Africa | $ | 224 | $ | 210 | $ | 434 | ||||||||||
| Asia Pacific | $ | 157 | $ | 161 | $ | 317 | ||||||||||
| % of Total Rev from Emerging Economies | 14 | % | 15 | % | 15 | % | ||||||||||
| Revenue by Segment (in millions): | ||||||||||||||||
| Platform Solutions and Emerging Business | $ | 229 | $ | 218 | $ | 447 | ||||||||||
| Architecture, Engineering and Construction | $ | 163 | $ | 161 | $ | 324 | ||||||||||
| Manufacturing | $ | 146 | $ | 141 | $ | 287 | ||||||||||
| Media and Entertainment | $ | 51 | $ | 49 | $ | 99 | ||||||||||
| Other Revenue Statistics: | ||||||||||||||||
| % of Total Rev from Flagship | 57 | % | 56 | % | 57 | % | ||||||||||
| % of Total Rev from Suites | 28 | % | 29 | % | 29 | % | ||||||||||
| % of Total Rev from New and Adjacent | 15 | % | 15 | % | 15 | % | ||||||||||
| % of Total Rev from AutoCAD and AutoCAD LT | 35 | % | 34 | % | 35 | % | ||||||||||
| Upgrade and Crossgrade Revenue (in millions) | $ | 47 | $ | 32 | $ | 79 | ||||||||||
| 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 | $ | 14 | $ | (1 | ) | $ | 12 | |||||||||
| FX Impact on Cost of Revenue and Total Operating Expenses | $ | (2 | ) | $ | 6 | $ | 5 | |||||||||
| FX Impact on Operating Income | $ | 12 | $ | 5 | $ | 17 | ||||||||||
| Gross Margin by Segment (in millions): | ||||||||||||||||
| Platform Solutions and Emerging Business | $ | 216 | $ | 204 | $ | 420 | ||||||||||
| Architecture, Engineering and Construction | $ | 149 | $ | 146 | $ | 295 | ||||||||||
| Manufacturing | $ | 134 | $ | 130 | $ | 264 | ||||||||||
| Media and Entertainment | $ | 42 | $ | 39 | $ | 81 | ||||||||||
| Unallocated amounts | $ | (11 | ) | $ | (11 | ) | $ | (22 | ) | |||||||
| Common Stock Statistics (in millions): | ||||||||||||||||
| Common Shares Outstanding | 229.7 | 226.7 | 226.7 | |||||||||||||
| Fully Diluted Weighted Average Shares Outstanding | 234.1 | 232.1 | 233.1 | |||||||||||||
| Shares Repurchased | 2.5 | 3.4 | 5.9 | |||||||||||||
| (a) Totals may not agree with the sum of the components due to rounding. | ||||||||||||||||
| (b) Earnings per share were computed independently for each of the periods presented; therefore the sum of the earnings per share amounts for the quarters may not equal the total for the year. | ||||||||||||||||
|
(c) Prior amounts have been conformed to align with the current period presentation. |
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| (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 gross margin, non-GAAP operating expenses, and non-GAAP operating margin. 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, gain and loss on strategic investment, 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. | ||||||||||||||||
| QTR 1 | QTR 2 | QTR 3 | QTR 4 | YTD 2013 | ||||||||||||
| (2) GAAP Gross Margin | 90 | % | 89 | % | 90 | % | ||||||||||
| Stock-based compensation expense | — | % | — | % | — | % | ||||||||||
| Amortization of developed technology | 2 | % | 2 | % | 2 | % | ||||||||||
| Non-GAAP Gross Margin | 92 | % | 91 | % | 92 | % | ||||||||||
| (3) GAAP Operating Expenses | $ | 436 | $ | 416 | $ | 852 | ||||||||||
| Stock-based compensation expense | (32 | ) | (32 | ) | (64 | ) | ||||||||||
| Restructuring (benefits) charges, net | — | — | — | |||||||||||||
| Amortization of customer relationships and trade names | (8 | ) | (8 | ) | (16 | ) | ||||||||||
| Non-GAAP Operating Expenses | $ | 396 | $ | 376 | $ | 772 | ||||||||||
| (4) GAAP Operating Margin | 16 | % | 16 | % | 16 | % | ||||||||||
| Stock-based compensation expense | 6 | % | 6 | % | 6 | % | ||||||||||
| Amortization of developed technology | 2 | % | 2 | % | 2 | % | ||||||||||
| Amortization of customer relationships and trade names | 1 | % | 1 | % | 1 | % | ||||||||||
| Restructuring (benefits) charges, net | — | % | — | % | — | % | ||||||||||
| Non-GAAP Operating Margin | 25 | % | 25 | % | 25 | % | ||||||||||
| (5) GAAP Net Income | $ | 79 | $ | 65 | $ | 144 | ||||||||||
| Stock-based compensation expense | 33 | 34 | 67 | |||||||||||||
| Amortization of developed technology | 10 | 10 | 19 | |||||||||||||
| Amortization of customer relationships and trade names | 8 | 8 | 16 | |||||||||||||
| Restructuring (benefits) charges, net | — | — | — | |||||||||||||
|
(Gain) loss on strategic investments (7) |
(1 | ) | 5 | 4 | ||||||||||||
| Discrete GAAP tax provision items | (6 | ) | 3 | (4 | ) | |||||||||||
| Income tax effect of non-GAAP adjustments | (14 | ) | (12 | ) | (26 | ) | ||||||||||
| Non-GAAP Net Income | $ | 109 | $ | 111 | $ | 220 | ||||||||||
| (6) GAAP Diluted Net Income Per Share | $ | 0.34 | $ | 0.28 | $ | 0.62 | ||||||||||
| Stock-based compensation expense | 0.14 | 0.15 | 0.29 | |||||||||||||
| Amortization of developed technology | 0.04 | 0.04 | 0.08 | |||||||||||||
| Amortization of customer relationships and trade names | 0.03 | 0.03 | 0.06 | |||||||||||||
| Restructuring (benefits) charges, net | — | — | — | |||||||||||||
| (Gain) loss on strategic investments (7) | — | 0.02 | 0.02 | |||||||||||||
| Discrete GAAP tax provision items | (0.03 | ) | 0.01 | (0.02 | ) | |||||||||||
| Income tax effect of non-GAAP adjustments | (0.05 | ) | (0.05 | ) | (0.11 | ) | ||||||||||
| Non-GAAP Diluted Net Income Per Share | $ | 0.47 | $ | 0.48 | $ | 0.94 | ||||||||||
| (7) Effective in the second quarter of fiscal 2013, Autodesk began excluding gains and losses on strategic investments for purposes of its non-GAAP financial measures. Prior period non-GAAP interest and other income (expense), net, net income and earnings per share amounts have been revised to conform to the current period presentation. | ||||||||||||||||
| Reconciliation for Fiscal 2013: | ||||||||||||||||
| The following is a reconciliation of anticipated fiscal 2013 GAAP and non-GAAP operating margins: | ||||||||||||||||
| FISCAL 2013 | ||||||||||||||||
| GAAP operating margin basis point improvement over prior year | (210 | ) | ||||||||||||||
| Stock-based compensation expense | 160 | |||||||||||||||
| Amortization of purchased intangibles | (10 | ) | ||||||||||||||
| Gain and loss on strategic investments | 10 | |||||||||||||||
| Restructuring charges | 200 | |||||||||||||||
| Non-GAAP operating margin basis point improvement over prior year | 150 | |||||||||||||||
| Reconciliation for Long Term Operating Margins: | ||||||||||||||||
| Autodesk is not able to provide targets for our long term (ending with fiscal year 2015) GAAP operating margins at this time because of the difficulty of estimating certain items that are excluded from non-GAAP that affect operating margin, such as charges related to stock-based compensation expense and amortization of acquisition related intangibles, the effect of which may be significant. | ||||||||||||||||
Source:
Autodesk, Inc.
Investors:
David Gennarelli, 415-507-6033
david.gennarelli@autodesk.com
or
Press:
Greg
Eden, 415-547-2135
greg.eden@autodesk.com