UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
DC 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of
The
Securities Exchange Act of 1934
Date of
Report (Date of earliest event reported)
November 17,
2009
Autodesk,
Inc.
(Exact
name of registrant as specified in its charter)
|
Delaware
|
000-14338
|
94-2819853
|
||
|
(State
or other jurisdiction of
incorporation)
|
(Commission
File Number)
|
(IRS
Employer
Identification
No.)
|
111
McInnis Parkway
San
Rafael, California 94903
(Address
of principal executive offices, including zip code)
(415)
507-5000
(Registrant’s
telephone number, including area code)
(Former
name or former address, if changed since last report)
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions (see General Instruction A.2. below):
|
[ ]
|
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
|
|
[ ]
|
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
|
|
[ ]
|
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
|
|
[ ]
|
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
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Item 2.02.
Results of Operations and Financial Condition.
On
November 17, 2009, Autodesk, Inc. (“Autodesk” or the “Company”) issued a
press release and prepared remarks reporting financial results for the third
quarter ended October 31, 2009. The press release and prepared
remarks are furnished herewith as Exhibit 99.1 and Exhibit 99.2,
respectively, and are incorporated herein by reference.
These
exhibits shall not be deemed “filed” for purposes of Section 18 of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”), or
incorporated by reference in any filing under the Securities Act of 1933, as
amended, or the Exchange Act, except as shall be expressly set forth by specific
reference in such a filing.
Non-GAAP Financial
Measures
To
supplement Autodesk’s consolidated financial statements presented on a GAAP
basis, the press release and prepared remarks furnished herewith as
Exhibit 99.1 and Exhibit 99.2, respectively, provide investors with certain
non-GAAP measures, including but not limited to historical non-GAAP net earnings
and historical and future non-GAAP net earnings per diluted share. For our
internal budgeting and resource allocation process, Autodesk’s management uses
these non-GAAP measures that do not include: (a) stock-based compensation
expenses, (b) amortization of purchased intangibles and purchases of
technology, including in-process research and development, (c) goodwill
impairment, (d) establishment of a valuation allowance on certain net
deferred tax assets, (e) restructuring charges and (f) the income tax
effects on the difference between GAAP and non-GAAP costs and
expenses. Autodesk’s management uses these non-GAAP measures in
making operating decisions because we believe the measures provide meaningful
supplemental information regarding Autodesk’s earning potential. In addition,
these non-GAAP financial measures facilitate comparisons to our and our
competitors’ historical results and operating guidance.
As
described above, Autodesk excludes the following items from its non-GAAP
measures:
A. Stock-based compensation
expenses. Autodesk excludes stock-based compensation expenses
from its non-GAAP measures primarily because they are non-cash expenses and
management finds it useful to exclude certain non-cash charges to assess the
appropriate level of various operating expenses to assist in budgeting, planning
and forecasting future periods.
B. Amortization of purchased
intangibles and in-process research and development expenses. Autodesk
incurs amortization of acquisition-related purchased intangible assets and
charges related to in-process research and development, primarily in connection
with its acquisition of certain businesses and technologies. The amortization of
purchased intangibles varies depending on the level of acquisition activity, and
management finds it useful to exclude these variable charges to assess the
appropriate level of various operating expenses to assist in budgeting, planning
and forecasting future periods.
C. Goodwill impairment. This is
a non-cash charge to write-down goodwill to fair value when there was an
indication that the asset was impaired. As explained above, management finds it
useful to exclude certain non-cash charges to assess the appropriate level of
various operating expenses to assist in budgeting, planning and forecasting
future periods.
D. Establishment of a valuation
allowance on certain net deferred tax assets. This is a non-cash charge
to record a valuation allowance on certain deferred tax assets. As explained
above, management finds it useful to exclude certain non-cash charges to assess
the appropriate level of various expenses to assist in budgeting, planning and
forecasting future periods.
E. Restructuring charges. These
expenses are associated with realigning our business strategies based on current
economic conditions. In connection with these restructuring actions, we
recognize costs related to termination benefits for former employees whose
positions were eliminated, and the closure of facilities and cancelation of
certain contracts. We exclude these charges because these expenses are not
reflective of ongoing operating results in the current period.
F. Income tax effects. The
income tax effects that are excluded from the non-GAAP measures relate to the
tax impact on the difference between GAAP and non-GAAP costs and expenses,
primarily due to differences in the timing of when income tax benefits are
recognized for stock compensation and purchased intangibles for GAAP and
non-GAAP measures.
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. In addition, 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. Management compensates for these limitations by
analyzing current and future results on a GAAP basis as well as a non-GAAP basis
and also by providing GAAP measures in our earnings release and prepared
remarks. The presentation of non-GAAP financial 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. The non-GAAP financial measures are meant to supplement, and
be viewed in conjunction with, GAAP financial measures. Investors should review
the information regarding non-GAAP financial measures provided in our press
release and prepared remarks.
Item
9.01. Financial Statements and Exhibits.
(d)
Exhibits.
|
Exhibit No.
|
Description
|
|
99.1
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Press
release dated as of November 17, 2009, entitled “Autodesk Increases
Profitability in
Third Quarter Fiscal 2010.”
|
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99.2
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Prepared
Remarks dated as of November 17,
2009.
|
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
|
AUTODESK,
INC.
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|||
|
|
By:
|
/s/ Mark J. Hawkins | |
| Mark J. Hawkins | |||
|
Executive
Vice President and Chief Financial Officer
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|||
Date: November 17, 2009
EXHIBIT
INDEX
|
Exhibit No.
|
Description
|
|
99.1
|
Press
release dated as of November 17, 2009, entitled “Autodesk Increases
Profitability in Third Quarter Fiscal 2010.”
|
|
99.2
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Prepared
Remarks dated as of November 17,
2009.
|
Exhibit
99.1
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
Autodesk
Increases Profitability in Third Quarter Fiscal 2010
SAN RAFAEL, Calif., November 17,
2009-- Autodesk, Inc.
(NASDAQ: ADSK) today reported financial results for the third quarter of 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 Carl Bass, Autodesk president and CEO. “We posted sequential increases in a number of important metrics including revenue from commercial new seat licenses, revenue from our Americas and EMEA geographies, revenue from our 2D horizontal solutions, and revenue from our 3D animation solutions. These results reflect the business environment that began stabilizing in the second quarter of this fiscal year. |  |
| “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 | |
1
Revenue in
the Americas increased 2 percent sequentially to $164 million and decreased 25
percent compared to the third quarter of fiscal 2009. EMEA revenue
increased 1 percent sequentially as reported, to $159 million, and declined 3
percent on a constant currency basis. EMEA revenue decreased 38
percent compared to the third quarter of fiscal 2009 as reported, and 35 percent
on a constant currency basis. Revenue in Asia Pacific was $94
million, a decrease of 4 percent sequentially as reported, and 7 percent on a
constant currency basis. Revenue in Asia Pacific decreased 29 percent
compared to the third quarter of fiscal 2009 as reported, and 33 percent on a
constant currency basis.
Revenue
from emerging economies was $62 million, a decline of 2 percent sequentially as
reported and 3 percent on a constant currency basis. Revenue from
emerging economies decreased 46 percent compared to the third quarter of fiscal
2009 as reported and 45 percent on a constant currency basis. Revenue
from emerging economies represented 15 percent of total revenue in the
quarter.
Combined
revenue from Autodesk's model-based 3D design solutions was $122 million, flat
sequentially and a decline of 25 percent compared to the third quarter of fiscal
2009. Revenue from 2D horizontal and vertical products was $189
million, a slight decrease sequentially and a decline of 37 percent compared to
the third quarter of fiscal 2009. Combined revenue from our AutoCAD
and AutoCAD LT products increased 2 percent sequentially and decreased 39
percent compared to the third quarter last year.
“With more
than $1 billion in cash and investments, no debt, and positive cash flows,
Autodesk remains in solid financial condition,” continued Bass. “We
are on track to deliver more than $300 million in pre-tax cost savings in fiscal
2010 compared to fiscal 2009. We will continue to strive to increase
our efficiencies and profitability while making essential investments for the
future.”
During the
current quarter, Autodesk determined that the way in which its
third-party software application accounted for estimated forfeitures
in stock-based compensation calculations was incorrect. As a result,
fiscal third quarter 2010 GAAP results include a one-time adjustment to increase
stock-based compensation expense by $7.9 million net of tax, or approximately
$0.03 per diluted share. This is a cumulative adjustment from prior
periods. For the nine month period ended October 31, 2009 the cumulative
adjustment from prior periods was $6.8 million net of tax or $0.03 per diluted
share.
Business
Outlook
2
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, Autodesk expects revenue to be in the range of $420 million
to $440 million. GAAP earnings per diluted share are expected to be in the
range of $0.07 and $0.12. Non-GAAP earnings per diluted share are expected
to be in the range of $0.19 and $0.24, excluding $0.06 related to stock-based
compensation expense and $0.06 for amortization of acquisition related
intangibles.
Full
Year Fiscal 2010
Net
revenue for fiscal 2010 is expected to be in the range of $1.68 billion and $1.7
billion. GAAP earnings per diluted share are expected to be in the range of
$0.11 and $0.16. Non-GAAP earnings per diluted share are expected to be in the
range of $0.88 and $0.93 and exclude $0.29 related to stock-based compensation
expense, $0.18 for the amortization of acquisition related intangibles, $0.15
for restructuring charges, $0.06 related to goodwill impairment, and $0.09
related to the establishment of a valuation allowance on deferred tax
assets.
In
addition, Autodesk anticipates total GAAP pre-tax spend (operating
expenses plus cost of goods sold) for fiscal 2010 to range between $1.65 billion
and $1.66 billion, which is lower than fiscal 2009 by between $407 and $417
million. The company anticipates total non-GAAP pre-tax spend
(operating expenses plus cost of goods sold) for fiscal 2010 to range between
$1.42 billion and $1.43 billion, which is lower than fiscal 2009 by between $300
and $310 million. Total non-GAAP pre-tax spend excludes approximately $95
million of stock-based compensation expense, $60 million of amortization of
acquisition related intangibles, $50 million of restructuring charges and $20
million of goodwill impairment charges, which are included in total GAAP pre-tax
spend.
First
Quarter 2011 and Full Year Fiscal 2011
Autodesk
is not providing specific revenue or EPS guidance for fiscal 2011 at this
time. However, in the first quarter of fiscal 2011, GAAP operating
margin is expected to increase year-over-year as the company recorded
significant impairment charges in the first quarter of fiscal 2010 that it does
not anticipate recording in fiscal 2011. Non-GAAP operating margin in
the first quarter of fiscal 2011 is anticipated to be flat to slightly down
compared to the first quarter of fiscal 2010, as a result of normal seasonality
and the return of some costs that were suppressed in the first quarter of fiscal
2010.
3
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. Autodesk anticipates modest
improvement in non-GAAP operating margin for full year fiscal 2011 compared to
fiscal 2010.
Non-GAAP
operating margin excludes stock-based compensation expense, amortization of
acquisition related intangibles, restructuring charges and goodwill
impairments.
Earnings
Conference Call and Webcast
Autodesk
will host its third quarter conference call today at 5:00 p.m. EST. The live
broadcast can be accessed at http://www.autodesk.com/investors. Supplemental
financial information and prepared remarks for the conference call will be
posted to the investor relations section of our website simultaneously with this
press release.
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 7:00 pm EST at
http://www.autodesk.com/investors. This replay will be maintained on our website
for at least twelve months.
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 Autodesk
consultants, and any unanticipated accounting charges.
4
Further
information on potential factors that could affect the financial results of
Autodesk are included in Autodesk’s reports on Form 10-K for the year ended
January 31, 2009 and Forms 10-Q for the quarters ended April 30, 2009 and July
31, 2009, which are on file with the U.S. Securities and Exchange
Commission. Autodesk does not assume any obligation to update the
forward-looking statements provided to reflect events that occur or
circumstances that exist after the date on which they were made.
About
Autodesk
Autodesk,
Inc., is a world leader in 2D and 3D design,
engineering and entertainment software for the manufacturing, building and
construction, and media and entertainment markets. Since its introduction of
AutoCAD software in 1982, Autodesk continues to develop the broadest portfolio
of state-of-the-art software to help customers experience their ideas digitally
before they are built. Fortune 100 companies - as well as the last 14 Academy
Award winners for Best Visual Effects - use Autodesk software
tools to design, visualize and simulate their ideas to save time and money,
enhance quality, and foster innovation for competitive advantage. For additional
information about Autodesk, visit www.autodesk.com.
Autodesk,
AutoCAD, AutoCAD LT are registered trademarks or trademarks of Autodesk, Inc.,
and/or its subsidiaries and/or affiliates in the USA and/or other countries.
Academy Award is a registered trademark of the Academy of Motion Picture Arts
and Sciences. All other brand names, product names or trademarks belong to their
respective holders. Autodesk reserves the right to alter product offerings and
specifications at any time without notice, and is not responsible for
typographical or graphical errors that may appear in this document. © 2009
Autodesk, Inc. All rights reserved.
©
2009 Autodesk, Inc. All rights reserved.
5
|
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
|
||||||||
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(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 | ||||||||||||
|
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 in
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 | ||||||||||
Exhibit
99.2
AUTODESK,
INC. (ADSK)
FISCAL
THIRD QUARTER 2010 EARNINGS ANNOUNCEMENT
November
17, 2009
PREPARED
REMARKS
Autodesk
is posting a copy of these prepared remarks in combination with its press
release to its investor website. These prepared remarks are offered
to provide shareholders and analysts with additional time and detail for
analyzing our results in advance of our quarterly conference call. As previously
scheduled, the conference call will begin today, November 17, 2009 at 2:00 pm
PST (5:00 pm EST) and will include only brief comments followed by questions and
answers. These prepared remarks will not be read on the call.
To access
the live broadcast of the question and answer session, please visit the Investor
Relations section of Autodesk’s Website at
www.autodesk.com/investor. A complete reconciliation between GAAP and
non-GAAP results is provided in the tables following these prepared
remarks.
3Q
Fiscal 2010 Overview
Our
business appears to be increasingly stable as evidenced by our sequentially flat
total revenue and sequential increases in a number of important
metrics. In addition, we continued to make progress in reducing our
operating costs, which led to a significant sequential improvement in
profitability.
|
·
|
Revenue
was $417 million, flat sequentially, and a decrease of 31 percent as
compared to the third quarter of fiscal
2009.
|
|
·
|
Total
spend (operating expenses plus cost of goods sold) decreased sequentially
due largely to realizing the full benefit of the restructuring actions
taken in previous quarters, as well as continued focus on increasing
efficiency and further cost
control.
|
|
·
|
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.
|
1
Not
unexpectedly, results were mixed in our various geographies. However,
global economic conditions in Autodesk’s core markets were increasingly stable
relative to the conditions experienced in late calendar 2008, and the early part
of calendar 2009.
In
addition to posting flat sequential revenue and increased profitability, there
were a number of other positive data points including a 4 percent sequential
increase in revenue from new commercial seats. Growth in revenue from
commercial new seats is an essential building block in growing our revenue base
over the long term.
Once again
our government business grew both sequentially and on a year-over-year basis as
we experienced strong growth with U.S. federal agencies. While we are
encouraged by the growth of sales into government organizations, we believe this
is still largely based on our growing presence in this area and not yet related
to U.S. government stimulus spending, which continues to be difficult to
trace.
This
quarter we were pleased to see sequential growth in our 2D horizontal products,
AutoCAD and AutoCAD LT, which had been impacted more significantly than our
other design solutions during this recession. In fact,
revenue from Auto CAD and Auto CAD LT accounted for the majority of the growth
in revenue from commercial new seats.
Revenue
from our model-based 3D design solutions was flat
sequentially. Sequential growth in our Civil 3D, Navisworks, Robot
Structural Analysis and Moldflow products was offset by sequential declines in
both the Inventor and Revit product families.
Emerging
economies were a key component to our growth prior to the recession and we
believe they will continue to be a key component to our revenue mix and future
growth. Revenue from emerging economies posted a small sequential
decrease in the third quarter after showing a sequential increase last
quarter. Our design, manufacturing and engineering solutions are
ideally suited to help these countries build out their
infrastructures. Revenue from emerging economies experienced
significant declines year-over-year.
On the
expense side, we made further progress in creating efficiencies within our
organization and reducing our overall expense structure. GAAP
operating expenses declined 5 percent sequentially and 17 percent compared to
the third quarter last year. Non-GAAP operating expenses declined 1
percent sequentially and 21 percent compared to the third quarter last
year. The cost savings we have achieved in the first nine months of
this fiscal year are significant. These reductions were made to
better align our business
and cost structure with the current operating environment. We
will continue to look for opportunities to improve the progress we’ve made in
this area while making essential investments in the future.
2
Consistent
with normal seasonality, operating expenses are expected to increase
sequentially in the fourth quarter. Regardless, we now believe we
will exceed our plan of reducing pre-tax spend (operating expenses plus cost of
goods sold) by $300 million in fiscal 2010, compared to fiscal
2009.
Autodesk’s
financial position remains solid. The company’s cash and investments
balance increased slightly and remains over $1 billion with no
debt. In addition, during the third quarter, Autodesk repurchased 1.7
million shares of common stock.
While our
markets have become increasingly stable over the past two quarters, reliable
forecasting beyond one quarter remains challenging. While it is
encouraging that some of the broader economic indicators are showing some
improvement, the loss of jobs in our primary markets of architecture,
construction and manufacturing continues to create a headwind for our
business.
Revenue
Analysis
|
(in
millions)
|
3Q 2009 | 4Q 2009 | 1Q 2010 | 2Q 2010 | 3Q 2010 | |||||||||||||||
|
Total
net revenue
|
$ | 607 | $ | 490 | $ | 426 | $ | 415 | $ | 417 | ||||||||||
|
License
and other revenue
|
$ | 421 | $ | 310 | $ | 244 | $ | 231 | $ | 236 | ||||||||||
|
Maintenance
revenue
|
$ | 186 | $ | 180 | $ | 182 | $ | 184 | $ | 181 |
Total net
revenue for the third quarter was $417 million, a slight increase sequentially
and a decrease of 31 percent as compared to the third quarter of fiscal
2009. At constant currency, revenue for the third quarter decreased 2
percent sequentially and decreased 31 percent as compared to the third quarter
of fiscal 2009.
License
and other revenue was $236 million, an increase of 2 percent sequentially, and a
decrease of 44 percent compared to the third quarter last year.
Maintenance
revenue was $181 million, a decrease of 2 percent sequentially, and 3 percent
compared to the third quarter of last year. Maintenance billings
declined 4 percent sequentially and 10 percent year-over-year. Our
maintenance billings metric contains adjustments for a number of items resulting
in what we believe is a clearer reflection of our maintenance billings and the
underlying business trends. For the past four quarters, maintenance
billings have been impacted by lower renewal rates as well as fewer new seats
sold.
3
Encouragingly,
maintenance renewal rates in the third quarter appear to have stabilized
relative to the declines we experienced in the prior four
quarters. This is also reflected in our installed base of commercial
maintenance customers, which was approximately flat
sequentially. Renewal rates had been impacted as customers have
reduced their work forces resulting in fewer seats to renew.
Revenue
by Geography
|
Revenue
by Geography (in millions)
|
3Q 2009 | 4Q 2009 | 1Q 2010 | 2Q 2010 | 3Q 2010 | |||||||||||||||
|
Americas
|
$ | 216 | $ | 172 | $ | 163 | $ | 159 | $ | 164 | ||||||||||
|
EMEA
|
$ | 258 | $ | 219 | $ | 167 | $ | 157 | $ | 159 | ||||||||||
|
Asia
Pacific
|
$ | 133 | $ | 99 | $ | 96 | $ | 99 | $ | 94 | ||||||||||
|
Emerging
Economies
|
$ | 114 | $ | 80 | $ | 59 | $ | 63 | $ | 62 | ||||||||||
|
Emerging
as a percentage of Total Revenue
|
19 | % | 16 | % | 14 | % | 15 | % | 15 | % |
Revenue in
the Americas increased 2 percent sequentially and declined 25 percent compared
to the third quarter last year. Revenue in the U.S., Brazil and
Mexico posted sequential increases while Canada declined
sequentially.
EMEA
revenue increased 1 percent sequentially as reported and decreased 3 percent
sequentially at constant currency. EMEA revenue was led by growth in
Northern Europe as well as emerging countries. EMEA revenue decreased 38 percent
year-over-year as reported and 35 percent at constant currency.
Revenue
from Asia Pacific decreased 4 percent sequentially as reported, and 7 percent at
constant currency. Strong sequential growth in South Korea and India
was offset by sequential declines in most other countries in
APAC. Compared to the third quarter of last year, revenue from Asia
Pacific decreased 29 percent as reported and 33 percent at constant
currency.
4
Revenue
from emerging economies decreased 2 percent sequentially as reported, and 46
percent compared to the third quarter of fiscal 2009. At constant
currency, revenue from emerging economies decreased 3 percent sequentially and
45 percent compared to the third quarter of fiscal 2009. Similar to
our overall results, performance of emerging economies was mixed in various
geographies.
Revenue
by Product Type
|
3D
Products as a % of Total Revenue
|
3Q 2009 | 4Q 2009 | 1Q 2010 | 2Q 2010 | 3Q 2010 | |||||||||||||||
|
Model-based
3D Design Solutions
Revenue
%
|
27 | % | 29 | % | 29 | % | 29 | % | 29 | % |
Revenue
from our model-based 3D design solutions were $122 million, flat sequentially
and a decline of 25 percent compared to third quarter last
year. Sequential growth in our Civil 3D, Navisworks, Robot Structural
Analysis and Moldflow products was offset by sequential declines in both the
Inventor and Revit families.
Our 2D
horizontal products grew 2 percent sequentially, and decreased 39 percent
compared to the third quarter last year. 2D vertical products
continued to show both a sequential and year-over-year
decrease. Combined revenue from 2D horizontal and 2D vertical
products was $189 million, a decrease of 1 percent sequentially and 37 percent
compared to the third quarter of fiscal 2009.
Revenue
by Business Segment
|
Revenue
by Segment (in millions)
|
3Q 2009 | 4Q 2009 | 1Q 2010 | 2Q 2010 | 3Q 2010 | |||||||||||||||
|
Platform
Solutons and
Emerging
Business
|
$ | 239 | $ | 172 | $ | 156 | $ | 150 | $ | 154 | ||||||||||
|
Architecture,
Engineering
and
Construction
|
$ | 164 | $ | 146 | $ | 128 | $ | 123 | $ | 125 | ||||||||||
|
Manufacturing
|
$ | 124 | $ | 115 | $ | 94 | $ | 95 | $ | 90 | ||||||||||
|
Media
and Entertainment
|
$ | 73 | $ | 53 | $ | 48 | $ | 47 | $ | 48 | ||||||||||
|
Other
|
$ | 7 | $ | 4 | $ | - | $ | - | $ | - |
Revenue
from Platform Solutions increased 3 percent sequentially to $154
million. Platform Solutions decreased 36 percent compared to the
third quarter last year.
Revenue
from our AEC segment increased 2 percent sequentially to $125
million. Revenue from our AEC segment decreased 24 percent compared
to the third quarter last year. Revenue from our Civil 3D family of
products increased 8 percent sequentially and decreased 18 percent compared to
the third quarter last year. Revenue from our Revit family of
products decreased 2 percent sequentially and 31 percent compared to the third
quarter last year.
5
Revenue
from our Manufacturing segment was $90 million, a decrease of 6 percent
sequentially, and 28 percent compared to the third quarter last
year. Revenue from the Inventor family of products decreased 6
percent sequentially and 29 percent compared to the third quarter last
year.
Revenue
from our Media and Entertainment segment was $48 million, a 3 percent increase
sequentially and a decrease of 34 percent compared to the third quarter last
year. Revenue from animation products including 3dsMax and Maya
increased 12 percent sequentially and decreased 20 percent compared to the third
quarter last year. Revenue from Advanced Systems declined 15 percent
sequentially and 54 percent compared to the third quarter last
year. Going forward, we expect animation products to continue to grow
as a part of the media and entertainment revenue mix.
Margins
and EPS Review
|
Gross
Margin
|
3Q 2009 | 4Q 2009 | 1Q 2010 | 2Q 2010 | 3Q 2010 | |||||||||||||||
|
Gross
Margin - GAAP
|
91 | % | 90 | % | 88 | % | 88 | % | 89 | % | ||||||||||
|
Gross
Margin - Non-GAAP
|
93 | % | 92 | % | 90 | % | 90 | % | 92 | % | ||||||||||
|
Operating
Expenses (in millions)
|
3Q 2009 | 4Q 2009 | 1Q 2010 | 2Q 2010 | 3Q 2010 | |||||||||||||||
|
Operating
Expenses - GAAP
|
$ | 415 | $ | 575 | $ | 393 | $ | 362 | $ | 346 | ||||||||||
|
Operating
Expenses - Non-GAAP
|
$ | 385 | $ | 372 | $ | 327 | $ | 308 | $ | 305 | ||||||||||
|
Earnings
Per Share
|
3Q 2009 | 4Q 2009 | 1Q 2010 | 2Q 2010 | 3Q 2010 | |||||||||||||||
|
Diluted
Net Income (Loss) Per Share - GAAP
|
$ | 0.45 | $ | (0.47 | ) | $ | (0.14 | ) | $ | 0.05 | $ | 0.13 | ||||||||
|
Diluted
Net Income Per Share - Non-GAAP
|
$ | 0.56 | $ | 0.31 | $ | 0.18 | $ | 0.24 | $ | 0.27 |
GAAP gross
margin in the third quarter was 89 percent. Non-GAAP gross margin in
the third quarter was 92 percent. The sequential margin improvement
resulted primarily from normal seasonality in subscription fulfillments,
decreased vendor costs, and a more favorable product mix.
6
GAAP
operating margin increased 5 percentage points on a sequential basis to 6
percent, driven primarily by reduced restructuring costs. Non-GAAP
operating margin, which excludes restructuring costs among other things, rose 2
percentage points on a sequential basis to 18 percent. GAAP and
non-GAAP operating margins in the third quarter decreased compared to the third
quarter last year primarily due to the year-over-year drop in
revenue.
During the
current quarter, we determined that the way in which our third-party software
application accounted for estimated forfeitures in our stock-based compensation
calculations was incorrect. As a result, fiscal third quarter 2010 GAAP
results include a one-time adjustment to increase stock-based compensation
expense by $7.9 million net of tax, or approximately $0.03 per diluted
share. This is a cumulative adjustment from prior periods. For the
nine month period ended October 31, 2009 the cumulative adjustment from prior
periods was $6.8 million net of tax or $0.03 per diluted share.
The
effective tax rate for our third quarter was 8 percent for our GAAP results and
includes one-time tax benefits for statute closures, stock option exercises, and
the tax impact of the stock-based compensation adjustment discussed
above. The third quarter effective tax rate for our non-GAAP results
was 23 percent and includes a one-time tax benefit for statute
closures.
Earnings
per diluted share for the third quarter were $0.13 GAAP and $0.27
non-GAAP.
A complete
reconciliation between GAAP and non-GAAP results is provided in the tables
following these prepared remarks.
Foreign
Exchange Impact
|
Favorable
(Unfavorable) Impact of U.S. Dollar Translation Relative to Foreign
Currencies
Compared
to Comparable Prior Year Period
(in
millions)
|
3Q 2009 | 4Q 2009 | 1Q 2010 | 2Q 2010 | 3Q 2010 | |||||||||||||||
|
FX
Impact on Total Net Revenue
|
$ | 18 | $ | (19 | ) | $ | (31 | ) | $ | (24 | ) | $ | (4 | ) | ||||||
|
FX
Impact on Operating Expenses
|
$ | (3 | ) | $ | 17 | $ | 22 | $ | 14 | $ | 2 | |||||||||
|
FX
Impact on Operating Income (Loss)
|
$ | 15 | $ | (2 | ) | $ | (9 | ) | $ | (10 | ) | $ | (2 | ) |
Compared
to the second quarter, the foreign currency impact was $10 million favorable on
revenue and $5 million unfavorable on expenses.
7
Compared
to the third quarter of last year, the impact of foreign currency exchange rates
in the third quarter was $4 million unfavorable on revenue and $2 million
favorable on expenses.
Balance
Sheet Items and Cash Review
|
Financial
Statistics (in millions)
|
3Q 2009 | 4Q 2009 | 1Q 2010 | 2Q 2010 | 3Q 2010 | |||||||||||||||
|
Total
Cash and Marketable Securities
|
$ | 941 | $ | 989 | $ | 966 | $ | 1,029 | $ | 1,054 | ||||||||||
|
Days
Sales Outstanding
|
44 | 59 | 49 | 49 | 47 | |||||||||||||||
|
Capital
Expenditures
|
$ | 19 | $ | 19 | $ | 14 | $ | 11 | $ | 6 | ||||||||||
|
Cash
Flow from Operating Activities
|
$ | 107 | $ | 86 | $ | 27 | $ | 47 | $ | 47 | ||||||||||
|
Depreciation
and Amortization
|
$ | 25 | $ | 27 | $ | 27 | $ | 28 | $ | 29 | ||||||||||
|
Deferred
Revenue
|
$ | 499 | $ | 552 | $ | 534 | $ | 502 | $ | 470 |
Total cash
and investments at the end of the third quarter was over $1
billion.
During the
third quarter Autodesk used approximately $39 million to repurchase
approximately 1.7 million shares of common stock.
Cash flow
from operating activities during the third quarter was $47 million, flat
sequentially and significantly lower than the third quarter last
year.
Shippable
backlog at the end of the third quarter decreased by $4 million sequentially to
$12 million.
Deferred
revenue was $470 million, a 6 percent decrease both sequentially and compared to
the third quarter last year. The decrease is primarily due to the
reduction in maintenance billings.
Total
backlog at the end of the third quarter, including deferred revenue and
shippable backlog orders was $482 million, a decrease of $23 million compared to
the third quarter of last year.
Channel
inventory at the end of the third quarter declined sequentially in weeks and in
dollars. At the end of the third quarter, channel inventory was
slightly under three weeks and remains healthy.
8
DSO was 47
days in the third quarter.
Business
Outlook
Our
guidance is based on our current expectations and the information we have
available today, including currency exchange rates.
Fourth Quarter
Fiscal 2010
|
4Q
FY10 Guidance Metrics
|
4Q
FY10 (ending January 31, 2010)
|
|||
|
Revenue
(in millions)
|
$420 to $440 | |||
|
EPS
- GAAP
|
$0.07 to $0.12 | |||
|
EPS
- Non-GAAP
|
$0.19 to $0.24 | |||
Non-GAAP
earnings per diluted share exclude $0.06 related to stock-based compensation
expense and $0.06 for amortization of acquisition related
intangibles.
Full
Year Fiscal 2010
|
FY10
Guidance Metrics
|
FY10
(ending January 31, 2010)
|
|||
|
Revenue
(in billions)
|
$1.68 to $1.70 | |||
|
EPS
- GAAP
|
$0.11 to $0.16 | |||
|
EPS
- Non-GAAP
|
$0.88 to $0.93 | |||
Non-GAAP
earnings per diluted share exclude $0.29 related to stock-based compensation
expense, $0.18 for the amortization of acquisition related intangibles, $0.15
for restructuring charges, $0.06 related to goodwill impairment, and $0.09
related to the establishment of a valuation allowance on deferred tax
assets.
In
addition, the company anticipates total GAAP pre-tax spend (operating expenses
plus cost of goods sold) for fiscal 2010 to range between $1.65 billion and
$1.66 billion, which is lower than fiscal 2009 by between $407 and $417
million. The company anticipates total non-GAAP pre-tax spend
(operating expenses plus cost of goods sold) for fiscal 2010 to range between
$1.42 billion and $1.43 billion, which is lower than fiscal 2009 by between $300
and $310 million. Total non-GAAP pre-tax spend excludes approximately $95
million of stock-based compensation expense, $60 million of amortization of
acquisition related intangibles, $50 million of restructuring charges and $20
million of goodwill impairment charges, which are included in total GAAP
pre-tax spend.
9
First
Quarter Fiscal 2011 and Full Year Fiscal 2011
Autodesk
is not providing specific revenue or EPS guidance for fiscal 2011 at this
time. However, in the first quarter of fiscal 2011, GAAP operating
margin is expected to increase year-over-year as the company recorded
significant impairment charges in the first quarter of fiscal 2010 that it does
not anticipate recording in fiscal 2011. Non-GAAP operating margin in
the first quarter of fiscal 2011 is anticipated to be flat to slightly down
compared to the first quarter of fiscal 2010, as a result of normal seasonality
and the return of some costs that were suppressed in the first quarter of fiscal
2010.
GAAP
operating margin for the full year fiscal 2011 is expected to increase more
significantly as the company recorded significant impairment charges in the
first quarter of fiscal 2010 that it does not anticipate recording in fiscal
2011. Autodesk anticipates modest improvement in non-GAAP operating
margin for full year fiscal 2011 compared to fiscal 2010.
Non-GAAP
operating margin excludes stock-based compensation expense, amortization of
acquisition related intangibles, restructuring charges and goodwill
impairments.
Safe
Harbor Statement
These
prepared remarks contain forward-looking statements that involve risks and
uncertainties, including statements in the paragraphs under “Business Outlook”,
statements regarding anticipated market, economic and revenue trends, cost
savings, timing of certain charges, revenue performance (including by geography
and product), market position and other statements regarding our expected
strategies, 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
Autodesk consultants, and any unanticipated accounting charges.
10
Further
information on potential factors that could affect the financial results of
Autodesk are included in Autodesk’s reports on Form 10-K for the year ended
January 31, 2009 and Forms 10-Q for the quarters ended April 30, 2009 and July
31, 2009, which are on file with the U.S. Securities and Exchange
Commission. Autodesk does not assume any obligation to update the
forward-looking statements provided to reflect events that occur or
circumstances that exist after the date on which they were made.
©
2009 Autodesk, Inc. All rights reserved.
#
# #
11
|
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 in
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 | ||||||||||
|
Fiscal
Year 2009
|
QTR
1
|
QTR
2
|
QTR
3
|
QTR
4
|
YTD
2009
|
|||||||||||||||
|
Financial
Statistics ($ in millions, except per share data):
|
||||||||||||||||||||
|
Total
net revenue
|
$ | 599 | $ | 620 | $ | 607 | $ | 490 | $ | 2,315 | ||||||||||
|
License
and other revenue
|
$ | 432 | $ | 440 | $ | 421 | $ | 310 | $ | 1,603 | ||||||||||
|
Maintenance
revenue
|
$ | 167 | $ | 180 | $ | 186 | $ | 180 | $ | 712 | ||||||||||
|
GAAP
Gross Margin
|
90 | % | 90 | % | 91 | % | 90 | % | 91 | % | ||||||||||
|
Non-GAAP
Gross Margin (1)(2)
|
91 | % | 91 | % | 93 | % | 92 | % | 92 | % | ||||||||||
|
GAAP
Operating Expenses
|
$ | 421 | $ | 441 | $ | 415 | $ | 575 | $ | 1,852 | ||||||||||
|
GAAP
Operating Margin
|
20 | % | 19 | % | 23 | % | -27 | % | 11 | % | ||||||||||
|
GAAP
Net Income (Loss)
|
$ | 95 | $ | 90 | $ | 104 | $ | (105 | ) | $ | 184 | |||||||||
|
GAAP
Diluted Net Income (Loss) Per Share
|
$ | 0.41 | $ | 0.39 | $ | 0.45 | $ | (0.47 | ) | $ | 0.80 | |||||||||
|
Non-GAAP
Operating Expenses (1)(3)
|
$ | 394 | $ | 396 | $ | 385 | $ | 372 | $ | 1,546 | ||||||||||
|
Non-GAAP
Operating Margin (1)(4)
|
25 | % | 28 | % | 29 | % | 16 | % | 25 | % | ||||||||||
|
Non-GAAP
Net Income (1)(5)
|
$ | 117 | $ | 130 | $ | 130 | $ | 70 | $ | 448 | ||||||||||
|
Non-GAAP
Diluted Net Income Per Share (1)(6)
|
$ | 0.50 | $ | 0.56 | $ | 0.56 | $ | 0.31 | $ | 1.95 | ||||||||||
|
Total
Cash and Marketable Securities
|
$ | 950 | $ | 970 | $ | 941 | $ | 989 | $ | 989 | ||||||||||
|
Days
Sales Outstanding
|
51 | 48 | 44 | 59 | 59 | |||||||||||||||
|
Capital
Expenditures
|
$ | 14 | $ | 26 | $ | 19 | $ | 19 | $ | 78 | ||||||||||
|
Cash
from Operations
|
$ | 185 | $ | 215 | $ | 107 | $ | 86 | $ | 594 | ||||||||||
|
GAAP
Depreciation and Amortization
|
$ | 17 | $ | 22 | $ | 25 | $ | 27 | $ | 92 | ||||||||||
|
Deferred
Maintenance Revenue Balance
|
$ | 474 | $ | 488 | $ | 433 | $ | 475 | $ | 475 | ||||||||||
|
Revenue
by Geography (in millions):
|
||||||||||||||||||||
|
Americas
|
$ | 191 | $ | 203 | $ | 216 | $ | 172 | $ | 782 | ||||||||||
|
Europe
|
$ | 259 | $ | 267 | $ | 258 | $ | 219 | $ | 1,003 | ||||||||||
|
Asia/Pacific
|
$ | 149 | $ | 150 | $ | 133 | $ | 99 | $ | 530 | ||||||||||
|
Revenue
by Segment (in millions):
|
||||||||||||||||||||
|
Platform
Solutions and Emerging Business
|
$ | 253 | $ | 237 | $ | 239 | $ | 172 | $ | 901 | ||||||||||
|
Architecture,
Engineering and Construction
|
$ | 155 | $ | 176 | $ | 164 | $ | 146 | $ | 641 | ||||||||||
|
Manufacturing
|
$ | 119 | $ | 131 | $ | 124 | $ | 115 | $ | 489 | ||||||||||
|
Media
and Entertainment
|
$ | 67 | $ | 69 | $ | 73 | $ | 53 | $ | 262 | ||||||||||
|
Other
|
$ | 5 | $ | 6 | $ | 7 | $ | 4 | $ | 22 | ||||||||||
|
Other
Revenue Statistics:
|
||||||||||||||||||||
|
% of
Total Rev from AutoCAD and AutoCAD LT
|
41 | % | 35 | % | 35 | % | 32 | % | 36 | % | ||||||||||
|
% of
Total Rev from 3D design products
|
24 | % | 26 | % | 27 | % | 29 | % | 27 | % | ||||||||||
|
% of
Total Rev from Emerging Economies
|
17 | % | 18 | % | 19 | % | 16 | % | 18 | % | ||||||||||
|
Upgrade
Revenue (in millions)
|
$ | 61 | $ | 58 | $ | 41 | $ | 34 | $ | 194 | ||||||||||
|
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
|
$ | 41 | $ | 42 | $ | 18 | $ | (19 | ) | $ | 82 | |||||||||
|
FX
Impact on Total Operating Expenses
|
$ | (14 | ) | $ | (11 | ) | $ | (3 | ) | $ | 17 | $ | (11 | ) | ||||||
|
FX
Impact on Total Net Income (Loss)
|
$ | 27 | $ | 31 | $ | 15 | $ | (2 | ) | $ | 71 | |||||||||
|
Gross
Margin by Segment (in millions):
|
||||||||||||||||||||
|
Platform
Solutions and Emerging Business
|
$ | 240 | $ | 226 | $ | 231 | $ | 164 | $ | 861 | ||||||||||
|
Architecture,
Engineering and Construction
|
$ | 143 | $ | 162 | $ | 152 | $ | 135 | $ | 592 | ||||||||||
|
Manufacturing
|
$ | 110 | $ | 122 | $ | 117 | $ | 108 | $ | 457 | ||||||||||
|
Media
and Entertainment
|
$ | 49 | $ | 52 | $ | 57 | $ | 40 | $ | 198 | ||||||||||
|
Unallocated
amounts
|
$ | (1 | ) | $ | (2 | ) | $ | (3 | ) | $ | (6 | ) | $ | (12 | ) | |||||
|
Common
Stock Statistics:
|
||||||||||||||||||||
|
GAAP
Shares Outstanding
|
223,616,000 | 224,528,000 | 226,248,000 | 226,354,000 | 226,354,000 | |||||||||||||||
|
GAAP
Fully Diluted Weighted Average Shares Outstanding
|
232,607,000 | 231,078,000 | 230,364,000 | 226,299,000 | 230,068,000 | |||||||||||||||
|
Shares
Repurchased
|
8,001,000 | - | - | - | 8,001,000 | |||||||||||||||
|
Installed
Base Statistics:
|
||||||||||||||||||||
|
Maintenance
Installed Base
|
1,587,000 | 1,644,000 | 1,696,000 | 1,704,000 | 1,704,000 | |||||||||||||||
|
Note: Totals may
not agree with the sum of the components due to rounding.
|
|
(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, employee tax reimbursements related to our stock
option review, in-process research and development expenses, restructuring
charges, amortization of purchased intangibles, asset impairment 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 2009
|
QTR
1
|
QTR
2
|
QTR
3
|
QTR
4
|
YTD
2009
|
|||||||||||||||
|
(2)
GAAP Gross Margin
|
90 | % | 90 | % | 91 | % | 90 | % | 91 | % | ||||||||||
|
Stock-based
compensation expense
|
0 | % | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||||
|
Amortization
of developed technology
|
1 | % | 1 | % | 2 | % | 2 | % | 1 | % | ||||||||||
|
Non-GAAP
Gross Margin
|
91 | % | 91 | % | 93 | % | 92 | % | 92 | % | ||||||||||
|
(3)
GAAP Operating Expenses
|
$ | 421 | $ | 441 | $ | 415 | $ | 575 | $ | 1,852 | ||||||||||
|
Stock-based
compensation expense
|
(24 | ) | (22 | ) | (21 | ) | (18 | ) | (87 | ) | ||||||||||
|
Amortization
of customer relationships and trademarks
|
(3 | ) | (6 | ) | (7 | ) | (7 | ) | (24 | ) | ||||||||||
|
In-process
research and development
|
- | (17 | ) | (1 | ) | (9 | ) | (27 | ) | |||||||||||
|
Restructuring
charges
|
- | - | - | (40 | ) | (40 | ) | |||||||||||||
|
Impairment
of goodwill and intangibles
|
- | - | - | (129 | ) | (129 | ) | |||||||||||||
|
Non-GAAP
Operating Expenses
|
$ | 394 | $ | 396 | $ | 385 | $ | 372 | $ | 1,546 | ||||||||||
|
(4)
GAAP Operating Margin
|
20 | % | 19 | % | 23 | % | -27 | % | 11 | % | ||||||||||
|
Stock-based
compensation expense
|
4 | % | 4 | % | 4 | % | 4 | % | 4 | % | ||||||||||
|
Amortization
of developed technology
|
1 | % | 1 | % | 1 | % | 2 | % | 1 | % | ||||||||||
|
Amortization
of customer relationships and trademarks
|
0 | % | 1 | % | 1 | % | 1 | % | 1 | % | ||||||||||
|
In-process
research and development
|
0 | % | 3 | % | 0 | % | 2 | % | 1 | % | ||||||||||
|
Restructuring
charges
|
0 | % | 0 | % | 0 | % | 8 | % | 2 | % | ||||||||||
|
Impairment
of goodwill and intangibles
|
0 | % | 0 | % | 0 | % | 26 | % | 6 | % | ||||||||||
|
Non-GAAP
Operating Margin
|
25 | % | 28 | % | 29 | % | 16 | % | 25 | % | ||||||||||
|
(5)
GAAP Net Income (Loss)
|
$ | 95 | $ | 90 | $ | 104 | $ | (105 | ) | $ | 184 | |||||||||
|
Stock-based
compensation expense
|
25 | 23 | 23 | 19 | 90 | |||||||||||||||
|
Amortization
of developed technology
|
4 | 5 | 6 | 8 | 23 | |||||||||||||||
|
Amortization
of customer relationships and trademarks
|
3 | 6 | 7 | 7 | 24 | |||||||||||||||
|
In-process
research and development
|
- | 17 | 1 | 9 | 27 | |||||||||||||||
|
Impairment
of goodwill and intangibles
|
- | - | - | 129 | 129 | |||||||||||||||
|
Restructuring
charges
|
- | - | - | 40 | 40 | |||||||||||||||
|
Income
tax effect on difference between GAAP and non-GAAP
total
costs and expenses at a normalized rate
|
(9 | ) | (11 | ) | (12 | ) | (36 | ) | (68 | ) | ||||||||||
|
Non-GAAP
Net Income
|
$ | 117 | $ | 130 | $ | 130 | $ | 70 | $ | 448 | ||||||||||
|
(6)
GAAP Diluted Net Income (Loss) Per Share
|
$ | 0.41 | $ | 0.39 | $ | 0.45 | $ | (0.47 | ) | $ | 0.80 | |||||||||
|
Stock-based
compensation expense
|
0.11 | 0.10 | 0.10 | 0.08 | 0.39 | |||||||||||||||
|
Amortization
of developed technology
|
0.01 | 0.02 | 0.03 | 0.04 | 0.10 | |||||||||||||||
|
Amortization
of customer relationships and trademarks
|
0.01 | 0.03 | 0.03 | 0.03 | 0.10 | |||||||||||||||
|
In-process
research and development
|
- | 0.07 | - | 0.04 | 0.12 | |||||||||||||||
|
Impairment
of goodwill and intangibles
|
- | - | - | 0.56 | 0.56 | |||||||||||||||
|
Restructuring
charges
|
- | - | - | 0.18 | 0.18 | |||||||||||||||
|
Income
tax effect on difference between GAAP and non-GAAP
total
costs and expenses at a normalized rate
|
(0.04 | ) | (0.05 | ) | (0.05 | ) | (0.15 | ) | (0.30 | ) | ||||||||||
|
Non-GAAP
Diluted Net Income Per Share
|
$ | 0.50 | $ | 0.56 | $ | 0.56 | $ | 0.31 | $ | 1.95 | ||||||||||