Autodesk Reports Second Quarter Earnings; Company Grows Pro Forma Earnings Per Share by 23% and Reaffirms Pro Forma Per Share Guidance for the Year
SAN RAFAEL, Calif.--(BUSINESS WIRE)--Aug. 16, 2001--Autodesk, Inc. (Nasdaq:ADSK) today announced financial results for its second quarter ended July 31, 2001. Autodesk reported net revenues of $231 million for the second quarter of fiscal year 2002 compared to $233 million for the second quarter of fiscal year 2001.
On a pro forma basis, as defined below, second quarter net income was $30 million or $0.53 per diluted share compared to $25 million or $0.43 per diluted share for the same quarter a year ago.
Second quarter net income was $19 million or $0.34 per diluted share and was impacted by nonrecurring charges of $10 million, which was primarily related to facility consolidations in the United States. This compares to net income for the same quarter a year ago of $21 million or $0.35 per diluted share.
"Our customer relationships have never been stronger. The more we talk about how to leverage digital design data into greater productivity and efficiency, the more interest there is in our solutions," said Carol Bartz, Autodesk chairman and chief executive officer. "Customers believe in our vision and strategy. This, combined with our strongest product line ever, may very well offset the current uncertain macroeconomic conditions."
Second Quarter Highlights
-- The Americas region generated record sales of $116 million -- an increase of 9% from one year ago. -- Record sales in the Americas and strong AutoCAD upgrade revenue of $55 million indicate launch success for the new core design applications. Customers are recognizing the value in the new 2002 family of products as well as the seamless integrated desktop/network environment. Customers are embracing the targeted functionality of our industry-specific applications for building design, manufacturing, and infrastructure design and management. -- Fueled by the flagship product, Autodesk Architectural Desktop, revenues for the Building Industry Division, formerly known as Architecture, Engineering, and Construction, jumped 42% from one year ago to $18 million. The Company also bolstered its position in the building industry with its second quarter announcement of a definitive agreement to acquire the remaining interest in Buzzsaw.com. -- Geographic Information Systems also benefited from strong sales broadly across the product line ranging from recently shipped Autodesk Map and Autodesk Land Desktop to Autodesk Civil Design and Autodesk CAD Overlay. Revenues for this division were $27 million, up 31% from one year ago.
Business Outlook
The following statements are based on current expectations. These statements are forward-looking and actual results may differ materially.
Revenue outlook:
-- For the third quarter of fiscal year 2002, the Company expects net revenue to range between $225 million and $235 million. -- Revenue guidance for the full year is being revised down slightly -- by approximately 3% -- to a new range of $970 million to $990 million.
These revenue expectations depend on a number of factors, including further slowing in the worldwide economies especially in Europe, failure to achieve customer acceptance of key new design and entertainment applications, failure to grow new Internet-related services and businesses, inability of customers to obtain external financing, failure to achieve anticipated revenue results from newly acquired businesses, and foreign currency fluctuations.
Earnings per share outlook:
-- Earnings per share on a pro forma basis, excluding nonrecurring charges as well as amortization of goodwill and purchased intangibles, is expected to range between $0.32 and $0.42 per diluted share for the third quarter of fiscal year 2002. -- 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 per diluted share.
Pro forma earnings per diluted share may vary due to our inability to control and further reduce operating costs, inability to successfully integrate new or acquired businesses, future investments and spending related to spin-off business and fluctuations in interest rates and share count.
The statements above contained in the business outlook are forward-looking statements that involve risks and uncertainties. In addition to factors discussed above, other factors that could cause actual results to differ materially include the following: general market and business conditions, pricing pressure, failure to achieve continued success in technology advancements 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, and Form 10-Q for the quarter ended April 30, 2001, which are on file with the Securities and Exchange Commission.
Autodesk will host a toll free conference call at 888-343-7141 and an audio webcast on the second quarter results beginning at 5:00 p.m. Eastern Time at www.Autodesk.com/investor. An audio web cast replay will be available until September 1, 2001.
A summary of Autodesk's financial results is as follows:
Three months ended July 31 2001 2000 Net revenues $231,360,000 $232,841,000 Net income(1) $ 19,173,000 $ 20,753,000 Pro forma net income(2) $ 29,636,000 $ 25,328,000 Diluted net income per share(1) $ 0.34 $ 0.35 Pro forma diluted net income per share(2) $ 0.53 $ 0.43 (1) Net income for the quarter ended July 31, 2001, includes nonrecurring charges of $9.8 million or $0.18 per diluted share. (2) Pro forma results for the quarter ended July 31, 2001, exclude amortization of goodwill and purchased intangibles of $5.2 million or $0.09 per diluted share and nonrecurring charges of $9.8 million or $0.18 per diluted share. Pro forma results for the quarter ended July 31, 2000, exclude amortization of goodwill and purchased intangibles of $7.3 million or $0.12 per diluted share. Six months ended July 31 2001 2000 Net revenues $477,100,000 $464,100,000 Net income(3) $ 47,073,000 $ 46,359,000 Pro forma net income(4) $ 61,203,000 $ 55,489,000 Diluted net income per share(3) $ 0.85 $ 0.77 Pro forma diluted net income per share(4) $ 1.10 $ 0.92 (3) Net income for the six months ended July 31, 2001, includes nonrecurring charges of $9.8 million or $0.18 per diluted share. (4) Pro forma results for the six months ended July 31, 2001, exclude amortization of goodwill and purchased intangibles and nonrecurring charges that totaled $20.3 million or $0.36 per diluted share. Pro forma results for the six months ended July 31, 2000, exclude amortization of goodwill and purchased intangibles and nonrecurring credits that netted to $14.3 million or $0.24 per diluted share.
About Autodesk
Autodesk is the world's leading design software and digital content company. Founded in 1982, Autodesk provides design software, Internet portal services, wireless development platforms, and point-of-location applications that empower more than four million customers in over 150 countries to drive business and remain competitive. For more information, contact any Authorized Autodesk Reseller, call Autodesk at 800-964-6432, or visit www.autodesk.com. Discreet(TM) product information is available at 800-869-3504 or via the Web at www.discreet.com.
Autodesk, Inc. Pro Forma Consolidated Statements of Operations (In thousands, except per share data) Three Months Ended Six Months Ended July 31, July 31, -------- -------- 2001 2000 2001 2000 ----------------------------------------- (Unaudited) (Unaudited) Net revenues $231,360 $232,841 $477,100 $464,100 Costs and expenses: Cost of revenues 35,193 39,209 71,918 75,935 Marketing and sales 86,552 76,965 173,557 154,467 Research and development 43,583 42,272 89,742 82,527 General and administrative 31,696 33,123 65,639 64,928 -------- -------- -------- -------- Total costs & expenses, excluding amortization of goodwill and purchased intangibles and nonrecurring charges and credits 197,024 191,569 400,856 377,857 -------- -------- -------- -------- Income from operations 34,336 41,272 76,244 86,243 Interest and other income, net 8,002 4,301 12,988 7,274 -------- -------- -------- -------- Income before income taxes 42,338 45,573 89,232 93,517 Provision for income taxes (12,702) (14,931) (26,818) (30,469) Equity in net loss of affiliate - (5,314) (1,211) (7,559) -------- -------- -------- -------- Net income $ 29,636 $ 25,328 $ 61,203 $ 55,489 ======== ======== ======== ======== Basic net income per share $ 0.55 $ 0.44 $ 1.14 $ 0.95 ======== ======== ======== ======== Diluted net income per share $ 0.53 $ 0.43 $ 1.10 $ 0.92 ======== ======== ======== ======== Shares used in computing basic net income per share 54,012 57,752 53,885 58,397 ======== ======== ======== ======== Shares used in computing diluted net income per share 55,710 59,073 55,558 60,579 ======== ======== ======== ======== Autodesk, Inc. Consolidated Statements of Operations (In thousands, except per share data) Three Months Ended Six Months Ended July 31, July 31, -------- -------- 2001 2000 2001 2000 ----------------------------------------- (Unaudited) (Unaudited) Net revenues $231,360 $232,841 $477,100 $464,100 Costs and expenses: Cost of revenues 35,193 39,209 71,918 75,935 Marketing and sales 86,552 76,965 173,557 154,467 Research and development 43,583 42,272 89,742 82,527 General and administrative 31,696 33,123 65,639 64,928 Amortization of goodwill and purchased intangibles 5,174 7,272 10,481 15,060 Nonrecurring charges (credits) 9,774 - 9,774 (800) -------- -------- -------- -------- 211,972 198,841 421,111 392,117 -------- -------- -------- -------- Income from operations 19,388 34,000 55,989 71,983 Interest and other income, net 8,002 4,301 12,988 7,274 -------- -------- -------- -------- Income before income taxes 27,390 38,301 68,977 79,257 Provision for income taxes (8,217) (12,234) (20,693) (25,339) Equity in net loss of affiliate - (5,314) (1,211) (7,559) -------- -------- -------- -------- Net income $ 19,173 $ 20,753 $ 47,073 $ 46,359 ======== ======== ======== ======== Basic net income per share $ 0.35 $ 0.36 $ 0.87 $ 0.79 ======== ======== ======== ======== Diluted net income per share $ 0.34 $ 0.35 $ 0.85 $ 0.77 ======== ======== ======== ======== Shares used in computing basic net income per share 54,012 57,752 53,885 58,397 ======== ======== ======== ======== Shares used in computing diluted net income per share 55,710 59,073 55,558 60,579 ======== ======== ======== ======== Autodesk, Inc. Consolidated Balance Sheets (In thousands) July 31, January 31, 2001 2001 --------- --------- (Unaudited) (Audited) ASSETS: Current assets: Cash and cash equivalents $ 119,028 $ 116,391 Marketable securities 155,771 142,961 Accounts receivable, net 159,367 157,422 Inventories 20,567 17,255 Deferred income taxes 29,134 26,696 Prepaid expenses and other current assets 35,835 30,596 --------- --------- Total current assets 519,702 491,321 --------- --------- Marketable securities 157,904 163,148 Computer equipment, furniture and leasehold improvements, at cost: Computer equipment and furniture 192,942 171,176 Leasehold improvements 29,389 27,145 Less accumulated depreciation (155,873) (144,325) --------- --------- Net computer equipment, furniture, and leasehold improvements 66,458 53,996 Purchased technologies and capitalized software, net 14,410 16,403 Goodwill, net 44,743 54,273 Deferred income taxes 19,334 18,242 Other assets 7,865 10,376 --------- --------- $ 830,416 $ 807,759 ========= ========= LIABILITIES, MINORITY INTEREST & STOCKHOLDERS' EQUITY: Current liabilities: Accounts payable $ 54,241 $ 47,962 Accrued compensation 48,983 55,907 Accrued income taxes 103,626 97,109 Deferred revenues 59,000 50,993 Other accrued liabilities 92,964 81,942 --------- --------- Total current liabilities 358,814 333,913 --------- --------- Other liabilities 667 1,208 Minority interest 11,549 12,964 Stockholders' equity: Common stock and additional paid-in capital 417,811 424,652 Accumulated other comprehensive loss (19,538) (16,104) Deferred compensation (1,139) (1,172) Retained earnings 62,252 52,298 --------- --------- Total stockholders' equity 459,386 459,674 --------- --------- $ 830,416 $ 807,759 ========= ========= Fiscal Year 2002 QTR 1 QTR 2 QTR 3 QTR 4 YTD2002 Financial Statistics (in millions): Net Revenues $ 245.7 $ 231.4 $ 477.1 Gross Margin 85% 85% 85% Pro Forma Operating Expenses $ 167.1 $ 161.8 $ 328.9 Pro Forma Operating Margin 17% 15% 16% Pro Forma Net Income (1) $ 31.6 $ 29.6 $ 61.2 Pro Forma Earnings Per Share (diluted) $ 0.57 $ 0.53 $ 1.10 Total Cash and Marketable Securities $ 394.8 $ 432.7 $ 432.7 Days Sales Outstanding 55 52 Revenue by Geography (in millions): Americas $ 99.9 $ 116.2 $ 216.1 Europe $ 78.1 $ 59.5 $ 137.6 Asia/Pacific $ 67.7 $ 55.7 $ 123.4 Revenue by Division (in millions): Design Solutions $ 196.6 $ 191.7 $ 388.3 Manufacturing $ 34.3 $ 27.5 $ 61.8 GIS $ 21.4 $ 27.0 $ 48.4 Building Industry (AEC) $ 17.7 $ 18.4 $ 36.1 Platform Group & Other $ 123.2 $ 118.8 $ 242.0 Discreet $ 49.1 $ 39.7 $ 88.8 AutoCAD Statistics: AutoCAD Units Sold 77,000 67,000 144,000 AutoCAD Upgrade Revenue (in millions) $ 17.0 $ 54.7 $ 71.7 Installed Base 2,852,000 2,919,000 2,919,000 Headcount: Headcount 3,539 3,554 3,554 Common Stock Statistics: Stock Outstanding (Pro Forma EPS Calculation - diluted) 55,687,000 55,710,000 55,558,000 Stock Repurchased 1,825,000 195,000 2,020,000 (1) Pro forma net income excludes amortization of goodwill and purchased intangibles and nonrecurring charges and credits.
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.
CONTACT: Autodesk, Inc. Steve Cakebread, 415/507-6587 (Investor) steve.cakebread@autodesk.com Misty Ohmart, 415/507-6208 (Investor) misty.ohmart@autodesk.com Sheryl Seapy, 415/507-6271 (Media) sheryl.seapy@autodesk.com
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