Autodesk Reports First Quarter Earnings; Company Grows Earnings Per Share by 19%
SAN RAFAEL, Calif.--(BUSINESS WIRE)--May 17, 2001--Autodesk, Inc. (Nasdaq:ADSK) today announced financial results for its first quarter ended April 30, 2001. Autodesk reported net revenues of $246 million for the first quarter of fiscal year 2002 and growth of 6% compared to $231 million for the first quarter of fiscal year 2001.
On a pro forma basis, as defined below, first quarter net income was $32 million or $0.57 per diluted share compared to $30 million or $0.48 per diluted share for the same quarter a year ago. This equals year over year pro forma earnings per share growth of 19%.
First quarter net income was $28 million or $0.50 per diluted share compared to net income for the same quarter a year ago of $26 million or $0.41 per diluted share. This equals year over year earnings per share growth of 22%.
"Our quarter tracked very well as we grew earnings by 19 percent," said Carol Bartz, Autodesk chairman and chief executive officer. "While for some companies economic uncertainty means backing away from operational commitments, for Autodesk the economy is always just another variable. We believe the diversity of our business -- multiple geographies, markets, and products -- gives us a cushion against a dramatic downturn. With our continued focus on tight fiscal management, we are able to maintain our original earnings guidance for the full year." First Quarter Highlights
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The Asia Pacific region hit a record high, with net revenue jumping 50% sequentially to $68 million for the first quarter.
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Discreet delivered another solid quarter, bolstered by a strong showing at two major industry trade events, Game Developers Conference and National Association of Broadcasters.
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Customers are rapidly adopting Autodesk's 3D mechanical design solution, as evidenced by a 27% sequential rise in sales of Inventor. In just three short months of trial, Autodesk Streamline, our hosted service for sharing personalized design data across the entire extended manufacturing enterprise, has received a very strong market reception, garnering industry recognition at key tradeshows and generating over 1,000 trial accounts opened via the web.
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Point A, our web portal that complements the core design desktop software, continued forward momentum during Q1, delivering consistently strong metrics. Point A is an integral part of many of our customers' Autodesk experience. We are leveraging Point A as a high-touch way to drive migration to the latest releases and software delivery options. Business Outlook
The following statements are based on current expectations. These statements are forward-looking and actual results may differ materially. Revenue outlook:
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For the second quarter of fiscal year 2002, the Company expects net revenue to range between $240 million and $250 million.
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Revenue guidance for the full year is being revised down slightly -- by approximately two to four percent -- to an expected new range between $1,000 million and $1,020 million.
These revenue expectations depend on a number of factors, including timely shipment and customer acceptance of key new products based on the AutoCAD 2002 foundation, the ability to grow new internet-related services and businesses, and may be impacted by foreign currency fluctuations and by further slowing in the overall worldwide economies particularly in the United States and Europe. Earnings per share outlook:
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Earnings per diluted share on a pro forma basis, excluding nonrecurring charges as well as amortization of goodwill and purchased intangibles, is expected to range between $0.40 and $0.50 per diluted share for the second quarter of fiscal year 2002.
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For the full year, the outlook for earnings per diluted share on a pro forma basis, excluding nonrecurring charges as well as amortization of goodwill and purchased intangibles, is being reaffirmed and is expected to range between $2.10 and $2.25.
Pro forma earnings per diluted share may vary due to timely shipment and customer acceptance of key new products based on the AutoCAD 2002 foundation, our ability to control and further reduce operating costs, future investments and spending related to spin-off business and fluctuations in share count.
During the second quarter of fiscal year 2002, the Company expects to take a one-time nonrecurring charge in the range of $10 million to $15 million related primarily to facility consolidations. This charge is excluded in the calculation of pro forma earnings guidance provided in the previous paragraph.
The statements above contained in the business outlook are forward-looking statements that involve risks and uncertainties. In addition to factors discussed above, other factors that could cause actual results to differ materially include the following: general market and business conditions, pricing pressure, continued success in technology advancements and timely release of new products and services, changes in customer ordering patterns, failure to grow internet-related businesses and operational results and equity financings of partially owned affiliates. Further information on potential factors that could affect the financial results of Autodesk are included in the Company's Report on Form 10-K for the year ended January 31, 2001, which is on file with the Securities and Exchange Commission.
Autodesk will host a toll free conference call at 888-813-7836 and an audio web cast on the first quarter results beginning at 5:00 p.m. Eastern Time at www.Autodesk.com/investor. An audio web cast replay will be available until June 1, 2001. A summary of Autodesk's financial results is as follows: Three months ended April 30 2001 2000 Net revenues $245,740,000 $231,259,000 Net income (1) $27,900,000 $25,606,000 Pro forma net income (2) $31,567,000 $30,161,000 Diluted net income per share (1) $0.50 $0.41 Pro forma diluted net income per share (2) $0.57 $0.48 (1) Net income for the quarter ended April 30, 2000 includes nonrecurring credits of $0.8 million or $0.01 per diluted share.
(2) Pro forma results for the quarter ended April 31, 2001, exclude amortization of goodwill and purchased intangibles of $5.3 million or $0.10 per diluted share. Pro forma results for the quarter ended April 30, 2000, exclude amortization of goodwill and purchased intangibles of $7.8 million or $0.12 per diluted share and nonrecurring credits of $0.8 million or $0.01 per diluted share.
About Autodesk
Autodesk (Nasdaq:ADSK) is the world's leading design software and digital content company for architectural design and land development, manufacturing, utilities, telecommunications, and media and entertainment. Founded in 1982, Autodesk provides design software, Internet portal services, wireless development platforms, and point-of-location applications that empower more than four million customers in over 150 countries to drive business and remain competitive. For more information, contact any Authorized Autodesk Reseller, call Autodesk at 800-964-6432, or visit www.autodesk.com. Discreet(TM) product information is available at 800-869-3504 or via the Web at www.discreet.com.
Note to Editors: Autodesk and the Autodesk logo are registered trademarks, and Discreet is a trademark, of Autodesk, Inc., in the United States and/or other countries. All other brand names, product names, or trademarks belong to their respective holders.
Autodesk, Inc.
Pro Forma Consolidated Statements of Operations
(In thousands, except per share data)
Three Months Ended
April 30,
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2001 2000
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(Unaudited)
Net revenues $245,740 $231,259
Costs and expenses:
Cost of revenues 36,725 36,726
Marketing and sales 87,005 77,502
Research and development 46,159 40,255
General and administrative 33,943 31,805
------------------------
Total costs & expenses, excluding
amortization of goodwill and purchased
intangibles and nonrecurring credits 203,832 186,288
------------------------
Income from operations 41,908 44,971
Interest and other income, net 4,986 2,973
------------------------
Income before income taxes 46,894 47,944
Provision for income taxes (14,116) (15,538)
Equity in net loss of affiliate (1,211) (2,245)
------------------------
Net income $ 31,567 $ 30,161
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Basic net income per share $ 0.58 $ 0.51
========================
Diluted net income per share $ 0.57 $ 0.48
========================
Shares used in computing
basic net income per share 54,033 59,005
========================
Shares used in computing
diluted net income per share 55,687 62,583
========================
Autodesk, Inc.
Consolidated Statements of Operations
(In thousands, except per share data)
Three Months Ended
April 30,
---------
2001 2000
------------------------
(Unaudited)
Net revenues $ 245,740 $ 231,259
Costs and expenses:
Cost of revenues 36,725 36,726
Marketing and sales 87,005 77,502
Research and development 46,159 40,255
General and administrative 33,943 31,805
Amortization of goodwill
and purchased intangibles 5,307 7,788
Nonrecurring credits 0 (800)
------------------------
209,139 193,276
------------------------
Income from operations 36,601 37,983
Interest and other income, net 4,986 2,973
------------------------
Income before income taxes 41,587 40,956
Provision for income taxes (12,476) (13,105)
Equity in net loss of affiliate (1,211) (2,245)
------------------------
Net income $27,900 $25,606
========================
Basic net income per share $ 0.52 $ 0.43
========================
Diluted net income per share $ 0.50 $ 0.41
========================
Shares used in computing
basic net income per share 54,033 59,005
========================
Shares used in computing
diluted net income per share 55,687 62,583
========================
Autodesk, Inc.
Consolidated Balance Sheets
(In thousands)
April 30, January 31,
2001 2001
------------------------
(Unaudited) (Audited)
ASSETS:
Current assets:
Cash and cash equivalents $122,988 $116,391
Marketable securities 102,431 142,961
Accounts receivable, net 150,477 157,422
Inventories 17,114 17,255
Deferred income taxes 26,622 26,696
Prepaid expenses and other current assets 35,462 30,596
------------------------
Total current assets 455,094 491,321
------------------------
Marketable securities 169,359 163,148
Computer equipment, furniture
and leasehold improvements, at cost:
Computer equipment and furniture 183,318 171,176
Leasehold improvements 27,351 27,145
Less accumulated depreciation (150,235) (144,325)
------------------------
Net computer equipment, furniture,
and leasehold improvements 60,434 53,996
Purchased technologies
and capitalized software, net 15,836 16,403
Goodwill, net 49,358 54,273
Deferred income taxes 17,935 18,242
Other assets 9,080 10,376
------------------------
$777,096 $807,759
========================
LIABILITIES, MINORITY INTEREST & STOCKHOLDERS' EQUITY:
Current liabilities:
Accounts payable $ 52,216 $ 47,962
Accrued compensation 42,339 55,907
Accrued income taxes 101,788 97,109
Deferred revenues 49,671 50,993
Other accrued liabilities 80,259 81,942
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Total current liabilities 326,273 333,913
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Other liabilities 1,208 1,208
Minority interest 12,210 12,964
Stockholders' equity:
Common stock and additional paid-in capital 407,820 424,652
Accumulated other comprehensive loss (18,722) (16,104)
Deferred compensation (1,043) (1,172)
Retained earnings 49,350 52,298
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Total stockholders' equity 437,405 459,674
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$777,096 $807,759
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Fiscal Year 2002 QTR 1 QTR 2 QTR 3 QTR 4 YTD2002
Financial Statistics
(in millions):
Net Revenues $ 245.7 $ 245.7
Gross Margin 85% 85%
Pro Forma Operating Expenses $ 167.1 $ 167.1
Pro Forma Operating Margin 17% 17%
Pro Forma Net Income (1) $ 31.6 $ 31.6
Pro Forma Earnings
Per Share (diluted) $ 0.57 $ 0.57
Total Cash and
Marketable Securities $ 394.8 $ 394.8
Days Sales Outstanding 55
Revenue by Geography
(in millions):
Americas $ 99.9 $ 99.9
Europe $ 78.1 $ 78.1
Asia/Pacific $ 67.7 $ 67.7
Revenue by Division
(in millions):
Design Solutions $ 196.6 $ 196.6
Manufacturing $ 34.3 $ 34.3
GIS $ 21.4 $ 21.4
AEC $ 17.7 $ 17.7
Platform Group & Other $ 123.2 $ 123.2
Discreet $ 49.1 $ 49.1
AutoCAD Statistics:
AutoCAD Units Sold 77,000 77,000
AutoCAD Upgrade Revenue
(in millions) $ 17.0 $ 17.0
Installed Base 2,852,000 2,852,000
Headcount:
Headcount 3,539 3,539
Common Stock Statistics:
Stock Outstanding
(Pro Forma EPS
Calculation-diluted) 55,687,000 55,687,000
Stock Repurchased 1,825,000 1,825,000
(1) Pro forma net income excludes amortization of goodwill and
purchased intangibles and nonrecurring charges and credits.
| CONTACT: | Autodesk, Inc. |
|---|---|
| Steve Cakebread, 415/507-6587 (Investor Contact) | |
| steve.cakebread@autodesk.com | |
| Misty Ohmart, 415/507-6208 (Investor Contact) | |
| misty.ohmart@autodesk.com | |
| Sheryl Seapy, 415/507-6271 (Media Contact) | |
| sheryl.seapy@autodesk.com | |
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