Autodesk Reports Third Quarter Results
SAN RAFAEL, Calif.--(BUSINESS WIRE)--Nov. 21, 2002--Autodesk, Inc. (Nasdaq:ADSK), the world's leading design software and digital content company, today announced financial results for its third quarter ended October 31, 2002. For the third quarter of fiscal year 2003, Autodesk reported net revenues of $188.7 million, compared to $216.4 million in the third quarter of fiscal year 2002.
On a pro forma basis, as defined below, third quarter net income was $5.8 million or $0.05 per diluted share compared to $20.8 million or $0.19 per diluted share for the same quarter a year ago.
"This is perhaps the toughest technology buying environment we've seen, yet we are still making money and generating cash, we have no debt, and we are financially very healthy," said Carol Bartz, Autodesk chairman and CEO. "Customers are turning to Autodesk for cost savings and productivity improvements. In challenging times like these, customers look to a few key strategic technology partners for a quick ROI and Autodesk is clearly one of those partners."
Third quarter net loss was $3.9 million or $0.03 per diluted share compared to net income for the same quarter a year ago of $21.5 million or $0.19 per diluted share.
Third Quarter Highlights
-
In manufacturing, our 3D business was up 3% over last year. Customers are looking for the productivity improvements associated with 3D solutions. We shipped more than 6,100 commercial 3D seats during the quarter -- well ahead of any other 3D modeling solution on the market.
-
Strong new product releases continue to perform well even in the midst of an economic slowdown. Two notable examples of this are Autodesk Map 5 that grew more than 7% over last year, and 3ds max 5 that grew by more than 36%.
-
Subscriptions had a stellar quarter with Americas growing 5% from last quarter and Europe doubling its subscription revenue. Subscription momentum is building with more customer sign-ups, and growth in order sizes and multiple-product contracts.
-
Autodesk Streamline, a key part of our product lifecycle management strategy that enhances communication of design intent for 2D as well as 3D environments, doubled its reference accounts versus last quarter to a total of 15 accounts that have yielded demonstrable real benefits in productivity, cost savings and quick ROI.
-
Buzzsaw, an integral part of our building lifecycle management solution that increases process efficiency through better use of digital design information, saw 6% sequential growth in its user base, with more than 65,000 users.
Business Outlook
The following statements are based on current expectations. These statements are forward-looking and actual results may differ materially.
Net revenues and pro forma earnings per share for the fourth quarter of fiscal year 2003 are expected to be approximately equal to the third quarter ended October 31, 2002. Pro forma earnings per share exclude restructuring and other charges as well as amortization of purchased intangibles.
These revenue expectations are subject to a number of risks, including the possibility of further slowing in the worldwide economies, or in the manufacturing and entertainment sectors, failure to achieve continuing customer acceptance of new AutoCAD releases, failure to grow new or emerging businesses, competitive pressure, and fluctuations in foreign currency.
Pro forma earnings per diluted share may vary from expectations due to inability to maintain or grow overall revenue, inability to further reduce operating costs, inability to successfully integrate new or acquired businesses like Revit and CAiCE, 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, financial and business condition of our reseller and distribution channels, failure to grow lifecycle management or collaboration. 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, 2002, and Form 10-Q for the quarter ended July 31, 2002 which are on file with the Securities and Exchange Commission.
Autodesk will host a toll free conference call at 800-857-9746 (password: Autodesk) and an audio webcast on the third quarter results beginning at 5:00 p.m. Eastern Time at www.Autodesk.com/investor. An audio webcast replay will be available until December 1, 2002.
A summary of Autodesk's financial results is as follows:
Three months ended October 31 2002 2001
Net revenues $188,701,000 $216,357,000
Net (loss) income (1)(2) $(3,910,000) $21,471,000
Pro forma net income (3) $5,808,000 $20,751,000
Diluted net (loss) income
per share (1)(2) $(0.03) $0.19
Pro forma diluted net
income per share (3) $0.05 $0.19
(1) Net loss for the quarter ended October 31, 2002 includes
restructuring and other charges of $13.3 million or $0.12 per
diluted share. Net income for the quarter ended October 31, 2001,
includes restructuring and other charges of $7.3 million or $0.07
per diluted share and a one-time gain on disposal of affiliate of
$9.5 million or $0.08 per diluted share.
(2) On February 1, 2002, Autodesk adopted new accounting rules which
resulted in the discontinuation of goodwill amortization. Net
income for the quarter ended October 31, 2001 includes $5.0
million or $0.04 per diluted share of goodwill amortization.
(3) Pro forma results for the quarter ended October 31, 2002 exclude
restructuring and other charges and amortization of purchased
intangibles totaling $13.3 million or $0.12 per diluted share. Pro
forma results for the quarter ended October 31, 2001, exclude
amortization of goodwill and purchased intangibles of $5.2 million
or $0.05 per diluted share, restructuring and other charges of
$7.3 million or $0.07 per diluted share and a one-time gain on
disposal of affiliate of $9.5 million or $0.08 per diluted share.
Nine months ended October 31 2002 2001
Net revenues $629,429,000 $693,457,000
Net income (4)(5) $25,491,000 $68,544,000
Pro forma net income (6) $39,241,000 $81,954,000
Diluted net income
per share (4)(5) $0.22 $0.61
Pro forma diluted net
income per share (6) $0.34 $0.74
(4) Net income for the nine months ended October 31, 2002 includes
$18.6 million of restructuring and other charges or $0.16 per
diluted share. Net income for the nine months ended October 31,
2001, includes restructuring and other charges of $17.1 million or
$0.15 per diluted share and a one-time gain on disposal of
affiliate of $9.5 million or $0.08 per diluted share.
(5) On February 1, 2002, Autodesk adopted new accounting rules which
resulted in the discontinuation of goodwill amortization. Net
income for the nine months ended October 31, 2001 includes $14.9
million or $0.13 per diluted share of goodwill amortization.
(6) Pro forma results for the nine months ended October 31, 2002
excludes restructuring and other charges and amortization of
purchased intangibles totaling $18.8 million or $0.16 per diluted
share. Pro forma results for the nine months ended October 31,
2001, exclude amortization of goodwill and purchased intangibles
of $15.7 million or $0.14 per diluted share, restructuring and
other charges of $17.1 million or $0.15 per diluted share and a
one-time gain on disposal of affiliate of $9.5 million or $0.08
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 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. (c)Copyright 2002 Autodesk, Inc. All rights reserved.
Autodesk, Inc.
Pro Forma Consolidated Statements of Income
(In thousands, except per share data)
Three Months Ended Nine Months Ended
October 31, October 31,
------------------ ------------------
2002 2001 2002 2001
------------------ ------------------
(Unaudited) (Unaudited)
Net revenues $188,701 $216,357 $629,429 $693,457
Costs and expenses:
Cost of revenues 31,835 37,799 106,737 109,717
Marketing and sales 82,129 81,109 251,247 254,666
Research and development 41,179 39,637 133,028 129,379
General and administrative 28,091 32,492 95,845 98,131
------------------ ------------------
183,234 191,037 586,857 591,893
------------------ ------------------
Income from operations 5,467 25,320 42,572 101,564
Interest and other income, net 2,489 4,325 11,183 17,313
------------------ ------------------
Income before income taxes 7,956 29,645 53,755 118,877
Provision for income taxes (2,148) (8,894) (14,514) (35,712)
Equity in net loss of affiliate -- -- -- (1,211)
------------------ ------------------
Net income $ 5,808 $ 20,751 $ 39,241 $ 81,954
================== ==================
Basic net income per share $ 0.05 $ 0.19 $ 0.35 $ 0.76
================== ==================
Diluted net income per share $ 0.05 $ 0.19 $ 0.34 $ 0.74
================== ==================
Shares used in computing basic
net income per share 112,809 108,740 113,161 108,186
================== ==================
Shares used in computing diluted
net income per share 113,558 112,020 114,950 111,502
================== ==================
The above pro forma amounts
have been adjusted to exclude
the following items:
Amortization of goodwill and
purchased intangibles $ 26 $ 5,198 $ 273 $ 15,679
Restructuring and other 13,286 7,290 18,563 17,064
Gain on disposal of affiliate -- (9,461) -- (9,461)
Income tax effect (3,594) (3,747) (5,086) (9,872)
------------------ ------------------
Net difference between actual
results and pro forma
net income $ 9,718 $ (720) $ 13,750 $ 13,410
================== ==================
Autodesk, Inc.
Consolidated Statements of Operations
(In thousands, except per share data)
Three Months Ended Nine Months Ended
October 31, October 31,
------------------ ------------------
2002 2001 2002 2001
-------------------------------------
(Unaudited) (Unaudited)
Net revenues $188,701 $ 216,357 $629,429 $693,457
Costs and expenses:
Cost of revenues 31,835 37,799 106,737 109,717
Marketing and sales 82,129 81,109 251,247 254,666
Research and development 41,179 39,637 133,028 129,379
General and administrative 28,091 32,492 95,845 98,131
Amortization of goodwill and
purchased intangibles 26 5,198 273 15,679
Restructuring and other 13,286 7,290 18,563 17,064
-------- --------- -------- --------
196,546 203,525 605,693 624,636
-------- --------- -------- --------
(Loss) income from operations (7,845) 12,832 23,736 68,821
Interest and other income, net 2,489 4,325 11,183 17,313
Gain on disposal of affiliate 0 9,461 0 9,461
--------- ------------------ --------
(Loss) income before income taxes (5,356) 26,618 34,919 95,595
Benefit (provision) for income
taxes 1,446 (5,147) (9,428) (25,840)
Equity in net loss of affiliate -- -- -- (1,211)
---------------------------- --------
Net (loss) income $ (3,910)$ 21,471 $ 25,491 $ 68,544
======== ========= ======== ========
Basic net (loss) income per share$ (0.03)$ 0.20 $ 0.23 $ 0.63
======== ========= ======== ========
Diluted net (loss) income per
share $ (0.03)$ 0.19 $ 0.22 $ 0.61
======== ========= ======== ========
Shares used in computing basic
net (loss) income per share 112,809 108,740 113,161 108,186
======== ========= ======== ========
Shares used in computing diluted
net (loss) income per share 112,809 112,020 114,950 111,502
================== ==================
Autodesk, Inc.
Consolidated Balance Sheets
(In thousands)
October 31, January 31,
2002 2002
----------------------------
(Unaudited) (Audited)
ASSETS:
Current assets:
Cash and cash equivalents $ 134,642 $ 136,781
Marketable securities 94,983 201,030
Accounts receivable, net 129,007 140,465
Inventories 15,510 17,999
Deferred income taxes 33,027 31,477
Prepaid expenses and other current
assets 29,555 36,118
-----------------------------
Total current assets 436,724 563,870
-----------------------------
Marketable securities 165,595 166,800
Computer equipment, software, furniture
and leasehold
improvements, at cost:
Computer equipment, software and
furniture 210,065 200,568
Leasehold improvements 33,685 29,652
Less accumulated depreciation (165,991) (157,400)
-----------------------------
77,759 72,820
Purchased technologies and capitalized
software, net 30,932 19,336
Goodwill, net 170,217 39,987
Deferred income taxes 9,761 29,459
Other assets 9,497 10,172
-----------------------------
$ 900,485 $ 902,444
=============================
LIABILITIES & STOCKHOLDERS' EQUITY:
Current liabilities:
Accounts payable $ 46,100 $ 53,769
Accrued compensation 43,500 57,540
Accrued income taxes 62,994 91,922
Deferred revenues 76,656 65,474
Other accrued liabilities 83,071 101,946
-----------------------------
Total current liabilities 312,321 370,651
-----------------------------
Other liabilities 2,637 2,479
Stockholders' equity:
Common stock and additional paid-in
capital 501,112 458,135
Accumulated other comprehensive loss (16,151) (19,972)
Deferred compensation (3,380) (713)
Retained earnings 103,946 91,864
-----------------------------
Total stockholders' equity 585,527 529,314
-----------------------------
$ 900,485 $ 902,444
=============================
Autodesk, Inc.
Financial Fact Sheet
Fiscal Year 2003 QTR 1 QTR 2 QTR 3 QTR 4 YTD2003
Financial
Statistics (in
millions):
Net Revenues $ 229.3 $ 211.4 $ 188.7 $ 629.4
Gross Margin 82% 84% 83% 83%
Pro Forma
Operating
Expenses $ 165.7 $ 163.0 $ 151.4 $ 480.1
Pro Forma
Operating
Margin 10% 7% 3% 7%
Pro Forma Net
Income (1) $ 18.9 $ 14.5 $ 5.8 $ 39.2
Pro Forma Earnings
Per Share
(diluted) $ 0.16 $ 0.13 $ 0.05 $ 0.34
Total Cash and
Marketable
Securities $ 423.0 $ 406.7 $ 395.2 $ 395.2
Days Sales
Outstanding 50 56 62
Revenue by
Geography (in
millions):
Americas $ 106.8 $ 92.7 $ 87.4 $ 286.9
Europe $ 71.8 $ 66.2 $ 58.2 $ 196.2
Asia/Pacific $ 50.7 $ 52.5 $ 43.1 $ 146.3
Revenue by
Division
(in millions):
Design Solutions $ 193.9 $ 178.6 $ 158.2 $ 530.7
Manufacturing $ 33.7 $ 33.3 $ 24.6 $ 91.6
GIS $ 27.1 $ 26.0 $ 23.9 $ 77.0
Building
Industry $ 21.8 $ 16.2 $ 16.9 $ 54.9
Platform
Technology
Group & Other $ 111.3 $ 103.1 $ 92.8 $ 307.2
Discreet $ 35.4 $ 32.8 $ 30.5 $ 98.7
AutoCAD
Statistics:
New Units of
AutoCAD-based
Products 46,700 35,300 46,000 128,000
Upgrade Revenue of
AutoCAD-based
Products $ 21.3 $ 13.1 $ 10.9 $ 45.3
(in millions)
Installed Base 3,091,700 3,127,000 3,173,000 3,173,000
Headcount:
Headcount 3,706 3,715 3,622 3,622
Common Stock
Statistics:
Stock Outstanding
(Pro Forma EPS
Calculation-
diluted) 118,402,000 114,275,000 113,558,000 114,950,000
Stock Repurchased 446,000 2,003,000 641,000 3,090,000
(1) Pro forma net income excludes amortization of goodwill and
purchased intangibles and restructuring and other charges.
CONTACT: Autodesk, Inc. Investor:Al Castino, 415/507-6287al.castino@autodesk.comMisty Ohmart, 415/507-6208misty.ohmart@autodesk.comMedia:Shannon Hart, 415/507-6241shannon.hart@autodesk.com
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.