Autodesk Reports Fourth Quarter Results; Company Exceeds Pro Forma Earnings Per Share Expectations by Ten Cents
Autodesk Reports Fourth Quarter Results; Company Exceeds Pro Forma Earnings Per Share Expectations by Ten Cents
Feb 21, 2002
SAN RAFAEL, Calif., Feb 21, 2002 (BUSINESS WIRE) -- Autodesk, Inc. (Nasdaq:
ADSK), the world's leading design software and digital content company, today
announced financial results for its fourth quarter and fiscal year ended January
31, 2002. The Company reported net revenues at the high end of fourth quarter
guidance, and exceeded pro forma earnings per share expectations by ten cents.
Autodesk reported net revenues of $254 million for the fourth quarter of fiscal year 2002. This revenue number is at the high end of the Company's revenue guidance range of between $245 million and $255 million for the fourth quarter. Net revenues for the year ended January 31, 2002 totaled $947 million.
On a pro forma basis, as defined below, fourth quarter net income was $37 million or $0.65 per diluted share compared to $32 million or $0.57 per diluted share for the same quarter a year ago. Pro forma net income for the year ended January 31, 2002 was $119 million or $2.12 per diluted share compared to $109 million or $1.87 per diluted share for the prior year.
Fourth quarter net income was $22 million or $0.38 per diluted share. This compares to net income for the same quarter a year ago of $28 million or $0.51 per diluted share. Net income for the year ended January 31, 2002 was $90 million or $1.61 per diluted share compared to net income of $93 million or $1.59 per diluted share for the prior year.
"The fourth quarter and the year were about operational excellence and solid execution on our business model," said Carol Bartz, Autodesk chairman and CEO. "Despite a difficult economic environment, we have performed. We delivered the strongest family of vertical applications in our history, successfully launched our new subscription program, incorporated three acquisitions that further enhanced our diverse portfolio of assets, and strategically entered an adjacent market to provide location-based services to wireless operators and carriers. Our products, vision, and employees were put to the test and surpassed all expectations."
Fourth Quarter Highlights
-- Solid geographic performances in the Americas and Europe led
to outstanding sequential net revenue increases of 18% and 31%
respectively.
-- A 73% sequential increase in Inventor sales, validates the
Company's manufacturing strategy - customers are moving to 3D.
During the quarter, more than 12,500 commercial users were
added.
-- Design Solutions revenue jumped 24% sequentially to $224
million for the quarter. This was fueled by strong growth in
the Manufacturing, Building Industry and Geographic
Information System Divisions.
-- Our AutoCAD-related product upgrade revenue was $84 million
for the quarter. Not only did R14 customers move to AutoCAD
2002, but they also cross-graded in record numbers to AutoCAD
2002-based design applications in building design,
manufacturing, civil engineering, and mapping. After the first
three quarters of shipments, AutoCAD 2002 is tracking to prior
product upgrade cycles.
FY'02 Highlights
-- This was the year for Inventor. In its fifth release in just
over two years on the market, Inventor is overtaking
competitors in manufacturing markets around the world.
Inventor commercial seats more than doubled last year.
-- We shipped the AutoCAD 2002 family, arguably the strongest
lineup of products. This contributed to net revenue of $790
million, growth of 6%, for the Design Solutions Division.
-- We introduced collaborative services, a key initiative,
starting with the launch of Streamline for manufacturing. We
then acquired Buzzsaw last August. The new building
collaboration group closed the year with a growing base of
construction and facilities management customers.
-- Finally, we entered an adjacent market to provide
location-based services to wireless operators and carriers.
Autodesk Location Services landed key customers and partner
relationships with Ericsson, Fiat, and Telecom Italia Mobile.
Related Announcement
Today we announced our intent to acquire Revit Technology Corporation, a
Massachusetts-based developer of parametric model-based software for building
design, construction and management for $133 million in cash. Please refer to
the Autodesk press release "Autodesk To Acquire Revit Technology Corporation."
Business OutlookThe following statements are based on current expectations. These statements are forward-looking and actual results may differ materially.
Revenue outlook:
-- For fiscal year ended January 31, 2003, the Company expects
net revenues to range between $1.025 billion and $1.045
billion.
-- Net revenue for the first quarter of fiscal year 2003 is
expected to range between $240 million and $250 million.
These revenue expectations are subject to a number of risks, including further
slowing in the worldwide economies, especially in the entertainment sectors,
failure to achieve further customer acceptance of the AutoCAD 2002 family of
products, failure to grow new collaborative or location-based services or newly
acquired products and businesses, and fluctuations in foreign currency.
Earnings per share outlook:
-- Earnings per diluted share on a pro forma basis, excluding
nonrecurring credits or charges as well as amortization of
purchased intangibles, is expected to range between $2.20 and
$2.30 per diluted share for the fiscal year ended January 31,
2003. This pro forma earnings guidance includes $0.10 to $0.12
dilution for the year related to today's announced planned
acquisition of Revit Technology Corporation.
-- For the first quarter of fiscal year 2003, pro forma earnings
are expected to range between $0.40 and $0.50 per diluted
share.
Pro forma earnings per diluted share may vary due to overall revenue
fluctuations, our inability to control and further reduce operating costs,
inability to successfully integrate new or acquired businesses, 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, delays in release of new products and services, failure to successfully integrate new or acquired businesses, changes in customer ordering patterns, failure to grow collaboration or location-based services. 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 October 31, 2001, which are on file with the Securities and Exchange Commission.
Autodesk will host a toll free conference call at 888-391-0100 and an audio webcast on the fourth quarter results beginning at 5:00 p.m. Eastern Time at www.Autodesk.com/investor. An audio webcast replay will be available until March 1, 2002.
A summary of Autodesk's financial results is as follows:
Three months ended January 31 2002 2001
Net revenues $254,034,000 $243,047,000
Net income (1) $ 21,769,000 $ 28,363,000
Pro forma net income (2) $ 37,022,000 $ 32,059,000
Diluted net income per share (1) $ 0.38 $ 0.51
Pro forma diluted net income
per share (2) $ 0.65 $ 0.57
(1) Net income for the quarter ended January 31, 2002, includes
nonrecurring charges of $16.6 million or $0.29 per diluted share.
(2) Pro forma results for the quarter ended January 31, 2002, exclude
amortization of goodwill and purchased intangibles of $5.2 million
or $0.09 per diluted share, and nonrecurring charges of $16.6
million or $0.29 per diluted share. Pro forma results for the
quarter ended January 31, 2001 exclude amortization of goodwill
and purchased intangibles of $5.6 million or $0.10 per diluted
share.
Fiscal Year ended January 31 2002 2001
Net revenues $947,491,000 $936,324,000
Net income (3) $ 90,313,000 $ 93,233,000
Pro forma net income (4) $118,976,000 $109,405,000
Diluted net income per share (3) $ 1.61 $ 1.59
Pro forma diluted net income
per share (4) $ 2.12 $ 1.87
(3) Net income for the year ended January 31, 2002, includes
nonrecurring charges of $33.6 million or $0.60 per diluted share,
and a one-time gain on disposal of affiliate of $9.5 million or
$0.17 per diluted share. Net income for the year ended January 31,
2001 included nonrecurring credits of $1.2 million or $0.02 per
diluted share.
(4) Pro forma results for the year ended January 31, 2002, exclude
amortization of goodwill and purchased intangibles of $20.9
million or $0.37 per diluted share, nonrecurring charges of $33.6
million or $0.60 per diluted share, and a one-time gain on
disposal of affiliate of $9.5 million or $0.17 per diluted share.
Pro forma results for the year ended January 31, 2001 exclude
amortization of goodwill and purchased intangibles of $26.5
million or $0.45 per diluted share and nonrecurring credits of
$1.2 million or $0.02 per diluted share.
About AutodeskAutodesk 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 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
(See pro forma adjustments listed in the table below)
(In thousands, except per share data)
Three Months Ended Year Ended
January 31, January 31,
2002 2001 2002 2001
------------------ --------------
(Unaudited) (Unaudited)
Net revenues $ 254,034 $ 243,047 $ 947,491 $ 936,324
Costs and expenses:
Cost of revenues 41,486 36,307 151,203 150,198
Marketing and sales 88,842 82,105 343,508 317,806
Research and development 39,195 45,302 168,574 170,487
General and administrative 33,368 35,209 131,499 132,524
------- ------- ------- -------
202,891 198,923 794,784 771,015
------- ------- ------- -------
Income from operations 51,143 44,124 152,707 165,309
Interest and other income,
net 1,745 7,402 19,058 21,048
------- ------- ------- -------
Income before income taxes 52,888 51,526 171,765 186,357
Provision for income taxes (15,866) (16,633) (51,578) (60,663)
Equity in net loss of
affiliate -- (2,834) (1,211) (16,289)
------- ------- ------- -------
Pro forma net income $ 37,022 $ 32,059 $ 118,976 $ 109,405
======= ======= ======= =======
Basic pro forma net income
per share $ 0.67 $ 0.58 $ 2.19 $ 1.91
======= ======= ======= =======
Diluted pro forma net
income per share $ 0.65 $ 0.57 $ 2.12 $ 1.87
======= ======= ======= =======
Shares used in computing
basic pro forma net income
per share 55,191 55,270 54,408 57,188
======= ======= ======= =======
Shares used in computing
diluted pro forma net
income per share 57,214 56,144 56,138 58,514
======= ======= ======= =======
The above pro forma amounts have been adjusted to
exclude the following items:
Amortization of goodwill
and purchased intangibles $ 5,224 $ 5,613 $ 20,903 $ 26,529
Nonrecurring charges(a)
(credits) 16,566 -- 33,630 (1,234)
Gain on disposal of
affiliate -- -- (9,461) --
Income tax effect (6,537) (1,917) (16,409) (9,123)
------- ------- ------- -------
Net difference between actual
and pro forma net income $ 15,253 $ 3,696 $ 28,663 $ 16,172
======= ======= ======= =======
(a) Nonrecurring charges generally consist of restructuring
related costs and acquisition-related amounts associated with
in-process research and development.
Autodesk, Inc.
Consolidated Statements of Operations
(In thousands, except per share data)
Three Months Ended Year Ended
January 31, January 31,
2002 2001 2002 2001
-------------------- --------------
(Unaudited) (Audited)
Net revenues $ 254,034 $ 243,047 $ 947,491 $ 936,324
Costs and expenses:
Cost of revenues 41,486 36,307 151,203 150,198
Marketing and sales 88,842 82,105 343,508 317,806
Research and development 39,195 45,302 168,574 170,487
General and administrative 33,368 35,209 131,499 132,524
Amortization of goodwill
and purchased intangibles 5,224 5,613 20,903 26,529
Nonrecurring charges
(credits) 16,566 -- 33,630 (1,234)
-------- -------- -------- --------
224,681 204,536 849,317 796,310
-------- -------- -------- --------
Income from operations 29,353 38,511 98,174 140,014
Interest and other income,
net 1,745 7,402 19,058 21,048
Gain on disposal of
affiliate -- -- 9,461 --
-------- -------- -------- --------
Income before income taxes 31,098 45,913 126,693 161,062
Provision for income taxes (9,329) (14,716) (35,169) (51,540)
Equity in net loss of
affiliate -- (2,834) (1,211) (16,289)
-------- -------- -------- --------
Net income $ 21,769 $ 28,363 $ 90,313 $ 93,233
========= ========= ========= =========
Basic net income per share $ 0.39 $ 0.51 $ 1.66 $ 1.63
========= ========= ========= =========
Diluted net income per
share $ 0.38 $ 0.51 $ 1.61 $ 1.59
========= ========= ========= =========
Shares used in computing
basic net income per
share 55,191 55,270 54,408 57,188
========= ========= ========= =========
Shares used in computing
diluted net income per
share 57,214 56,144 56,138 58,514
========= ========= ========= =========
Autodesk, Inc.
Consolidated Balance Sheets
(In thousands)
January 31, January 31,
2002 2001
--------- ---------
(Audited) (Audited)
ASSETS:
Current assets:
Cash and cash equivalents $ 136,781 $ 116,391
Marketable securities 201,030 142,961
Accounts receivable, net 140,465 157,422
Inventories 17,999 17,255
Deferred income taxes 31,477 26,696
Prepaid expenses and other
current assets 36,118 30,596
--------- ---------
Total current assets 563,870 491,321
--------- ---------
Marketable securities 166,800 163,148
Computer equipment, software,
furniture and leasehold
improvements, at cost:
Computer equipment, software
and furniture 200,568 171,176
Leasehold improvements 29,652 27,145
Less accumulated depreciation (157,400) (144,325)
--------- ---------
Net 72,820 53,996
Purchased technologies and
capitalized software, net 19,336 16,403
Goodwill, net 39,987 54,273
Deferred income taxes 29,459 18,242
Other assets 10,172 10,376
--------- ---------
$ 902,444 $ 807,759
========= =========
LIABILITIES, MINORITY INTEREST & STOCKHOLDERS' EQUITY:
Current liabilities:
Accounts payable $ 53,769 $ 47,962
Accrued compensation 57,540 55,907
Accrued income taxes 91,922 97,109
Deferred revenues 65,474 50,993
Other accrued liabilities 101,946 81,942
--------- ---------
Total current liabilities 370,651 333,913
--------- ---------
Other liabilities 2,479 1,208
Minority interest 0 12,964
Stockholders' equity:
Common stock and additional
paid-in capital 458,135 424,652
Accumulated other
comprehensive loss (19,972) (16,104)
Deferred compensation (713) (1,172)
Retained earnings 91,864 52,298
--------- ---------
Total stockholders' equity 529,314 459,674
--------- ---------
$ 902,444 $ 807,759
========= =========
Autodesk
Fiscal Year 2002 QTR 1 QTR 2 QTR 3 QTR 4 YTD2002
Financial Statistics
(in millions):
Net Revenues $ 245.7 $ 231.4 $ 216.4 $ 254.0 $ 947.5
Gross Margin 85% 85% 83% 84% 84%
Pro Forma Operating
Expenses $ 167.2 $ 161.8 $ 153.2 $ 161.4 $ 643.6
Pro Forma Operating
Margin 17% 15% 12% 20% 16%
Pro Forma Net
Income $ 31.6 $ 29.6 $ 20.8 $ 37.0 $ 119.0
Pro Forma Earnings
Per Share (diluted) $ 0.57 $ 0.53 $ 0.37 $ 0.65 $ 2.12
Total Cash and
Marketable
Securities $ 394.8 $ 432.7 $ 427.6 $ 504.6 $ 504.6
Days Sales Outstanding 50 52 50 50
Revenue by Geography
(in millions):
Americas $ 99.9 $ 116.2 $ 99.7 $ 117.9 $ 433.7
Europe $ 78.1 $ 59.5 $ 66.4 $ 86.9 $ 290.9
Asia/Pacific $ 67.7 $ 55.7 $ 50.3 $ 49.2 $ 222.9
Revenue by Division
(in millions):
Design Solutions $ 196.6 $ 191.7 $ 179.6 $ 223.5 $ 791.4
Manufacturing $ 34.3 $ 27.5 $ 28.1 $ 40.3 $ 130.2
GIS $ 21.4 $ 27.0 $ 28.5 $ 39.5 $ 116.4
Building Industry
(AEC) $ 17.7 $ 18.4 $ 18.6 $ 28.2 $ 82.9
Platform Group &
Other $ 123.2 $ 118.8 $ 104.4 $ 115.5 $ 461.9
Discreet $ 49.1 $ 39.7 $ 36.8 $ 30.5 $ 156.1
AutoCAD Statistics:
AutoCAD Units Sold 77,000 67,000 65,000 62,000 271,000
AutoCAD Upgrade Revenue
(in millions) $ 17.0 $ 54.7 $ 36.6 $ 84.5 $ 192.8
Installed Base 2,852,000 2,919,000 2,984,000 3,046,000 3,046,000
Headcount:
Headcount 3,539 3,554 3,654 3,646 3,646
Common Stock Statistics:
Stock Outstanding
(Pro Forma EPS
Calculation-
diluted) 55,687,000 55,710,000 56,010,000 57,214,000 56,138,000
Stock Repurchased 1,825,000 195,000 349,000 262,500 2,631,500
CONTACT: Autodesk
Investor:
Steve Cakebread, 415/507-6587
steve.cakebread@autodesk.com
Misty Ohmart, 415/507-6208
misty.ohmart@autodesk.com
Media:
Nicole Pack, 415/507-6282
nicole.pack@autodesk.com
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Click here for pdf version of this release.
Click here for pdf version of the Balance Sheet.
Click here for pdf version of the Consolidated Operations.
Click here for pdf version of the Pro Forma.