Autodesk Reports Fourth Quarter Results
Fourth quarter net income was $6.4 million or $0.06 per diluted share compared to a net loss of $3.9 million or ($0.03) per share for the third quarter of fiscal 2003. Net income for the same quarter a year ago was $21.8 million or $0.19 per diluted share.
"We are pleased to have grown revenue four percent sequentially in the face of continued economic challenges," said Carol Bartz, Autodesk chairman and CEO. "Strength in our subscription program and our industry verticals demonstrate that our strategy is working. Autodesk delivers the value and return on investment that customers are looking for now."
On a pro forma basis, as defined below, fourth quarter net income was $8.0 million or $0.07 per diluted share compared to $5.8 million or $0.05 per diluted share in the third quarter of fiscal 2003, sequential increases of 38 percent and 40 percent respectively. Pro forma net income was $37.0 million or $0.32 per diluted share for the same quarter a year ago.
Fourth Quarter Highlights
-- Fueled by strong performance from subscriptions and the vertical industries, net revenue grew four percent sequentially, despite the challenging business environment.
-- Momentum for subscription is building, as evidenced by six percent increase in subscription revenue for the quarter. Growth of subscription bookings was an impressive 58 percent. During the quarter, Autodesk closed its largest subscription contract to date, valued in excess of $1 million.
-- All of our Design Solutions vertical markets saw strong sequential growth proving customers see the value of Autodesk's market specific solutions.
-- Our Manufacturing Division grew 11% sequentially on the strength of our 3D business, with Autodesk Inventor(R) 6 seats sold reaching 6,600 worldwide in the quarter. Streamline(R), our product lifecycle management initiative added 19 new customers in the quarter.
-- Our Building Division drove a third consecutive quarter of growth despite the global downturn in construction. The 10 percent sequential increase was driven by an increase in Autodesk(R) Revit(R) 5 revenues of more than 80 percent, coupled with growth in Autodesk(R) Architectural Desktop and Autodesk(R) Building Systems 3.
-- An independent research study of 50 Autodesk(R) Buzzsaw(TM) customers noted their average return on investment in the first year was 370 percent. Breakeven for these customers was within three months, proving that Autodesk solutions do provide quick ROI to customers.
-- Our Infrastructure Division (formerly GIS) grew 10% from last quarter on strong performance from Autodesk MapGuide(R) and Autodesk(R) Land Desktop.
-- Cash and investments were $411 million at the end of the fourth quarter, up from $395 million in the last quarter.
"I have never been more confident about Autodesk's overall position in the market," said Bartz. "We will have significant new releases of all of our products by mid-year, and customers are already raving about them. Our subscription program is a resounding success, providing customers with the value they have come to expect. Our sound financial position and ability to generate positive cash flow in the midst of an industry slowdown continue to be significant competitive advantages for Autodesk."Business Outlook
The following statements are based on current expectations. These statements are forward-looking and actual results may differ materially.
Q1 Fiscal 2004
Net revenues for the first quarter of fiscal 2004 are expected to be in the range of $205 million to $210 million. Earnings per diluted share for the first quarter of fiscal year 2004 are expected to be in the range of $0.03 to $0.06.
Full Year Fiscal 2004
Net revenues for fiscal 2004 are expected to be in the range of $875 million to $900 million. Earnings per diluted share for fiscal year 2004 are expected to be in the range of $0.50 to $0.60.
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, delays in the release of new products and services, failure to achieve customer acceptance of key new design and entertainment applications, pricing pressure, failure to achieve continued success in technology advancements, failure to successfully integrate new or acquired businesses, financial and business condition of our reseller and distribution channels, failure to grow lifecycle management or collaboration.
In accordance with Statement of Financial Accounting Standards No. 5, Autodesk records reserves to cover contingent liabilities, based upon our best current estimates. Our expenses for the fiscal fourth quarter include a $2.5 million reserve for a lawsuit which is scheduled for trial in March. However, due to the inherent uncertainties of litigation, ultimate resolution of this matter could result in liability to the company which is greater or less than the reserved amount. In that event, if litigation is resolved prior to filing our fiscal year 2003 form 10-K, the results for the fiscal fourth quarter would be adjusted accordingly.
Further information on potential factors that could affect the financial results of Autodesk are included in the company's reports on Form 10-K, for the year ended January 31, 2002 and Form 10-Q for the quarter ended October 31, 2002, which are on file with the Securities and Exchange Commission.
Autodesk will host a toll free conference call at 800-369-1154 (password: Autodesk) 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, 2003.
A summary of Autodesk's financial results is as follows: Three months ended January 31 2003 2002 Net revenues $195,516,000 $254,034,000 Net income(1)(2) $ 6,413,000 $ 21,769,000 Pro forma net income(3) $ 7,955,000 $ 37,022,000 Diluted net income per share(1)(2) $ 0.06 $ 0.19 Pro forma diluted net income per share(3) $ 0.07 $ 0.32 (1) Net income for the quarter ended January 31, 2003 includes restructuring and other charges of $7.3 million or $0.06 per diluted share and a non-recurring tax benefit of $3.8 million or $0.03 per diluted share. Net income for the quarter ended January 31, 2002, includes restructuring and other charges of $16.6 million or $0.14 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 January 31, 2002 includes $5.0 million or $0.04 per diluted share of goodwill amortization. (3) Pro forma results for the quarter ended January 31, 2003 excludes restructuring and other charges and amortization of purchased intangibles totaling $7.4 million or $0.06 per diluted share and a non-recurring tax benefit of $3.8 million or $0.03 per diluted share. Pro forma results for the quarter ended January 31, 2002 exclude amortization of purchased intangibles totaling $5.2 million or $0.05 per diluted share and restructuring and other charges of $16.6 million or $0.14 per diluted share. Fiscal Year ended January 31 2003 2002 Net revenues $824,945,000 $947,491,000 Net income(4)(5) $ 31,904,000 $ 90,313,000 Pro forma net income(6) $ 47,196,000 $118,976,000 Diluted net income per share(4)(5) $ 0.28 $ 0.80 Pro forma diluted net income per share(6) $ 0.41 $ 1.06 (4) Net income for the year ended January 31, 2003 includes $25.9 million of restructuring and other charges or $0.23 per diluted share and a non-recurring tax benefit of $3.8 million or $0.03 per diluted share. Net income for the year ended January 31, 2002, includes amortization of goodwill and purchased intangibles of $20.9 million or $0.19 per diluted share, restructuring and other charges of $33.6 million or $0.30 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 year ended January 31, 2002 includes $19.9 million or $0.18 per diluted share of goodwill amortization. (6) Pro forma results for the year ended January 31, 2003 excludes restructuring and other charges and amortization of purchased intangibles totaling $26.2 million or $0.23 per diluted share and a non-recurring tax benefit of $3.8 million or $0.03 per diluted share. Pro forma results for the year ended January 31, 2002, exclude amortization of goodwill and purchased intangibles of $20.9 million or $0.19 per diluted share, restructuring and other charges of $33.6 million or $0.30 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, offering customers progressive business solutions through powerful technology products and services. Autodesk helps customers in the building, manufacturing, infrastructure, digital media, and wireless data services fields increase the value of their digital design data and improve efficiencies across their entire project lifecycle management processes. 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 Income
(In thousands, except per share data)
Three Months Ended Year Ended
January 31, January 31,
------------------- -------------------
2003 2002 2003 2002
--------- --------- --------- ---------
(Unaudited) (Unaudited)
Net revenues $195,516 $254,034 $824,945 $947,491
Costs and expenses:
Cost of revenues 33,425 41,486 140,162 151,203
Marketing and sales 80,474 88,842 331,721 343,508
Research and development 39,957 39,195 172,985 168,574
General and administrative 33,084 33,368 128,929 131,499
--------- --------- --------- ---------
186,940 202,891 773,797 794,784
--------- --------- --------- ---------
Income from operations 8,576 51,143 51,148 152,707
Interest and other income, net 2,321 1,745 13,504 19,058
--------- --------- --------- ---------
Income before income taxes 10,897 52,888 64,652 171,765
Provision for income taxes (2,942) (15,866) (17,456) (51,578)
Equity in net loss of
affiliate - - - (1,211)
--------- --------- --------- ---------
Net income $7,955 $37,022 $47,196 $118,976
========= ========= ========= =========
Basic net income per share $0.07 $0.34 $0.42 $1.09
========= ========= ========= =========
Diluted net income per share $0.07 $0.32 $0.41 $1.06
========= ========= ========= =========
Shares used in computing basic
net income per share 112,619 110,382 113,035 108,816
========= ========= ========= =========
Shares used in computing
diluted net income per share 114,161 114,428 114,775 112,276
========= ========= ========= =========
The above pro forma amounts have been
adjusted to exclude the following items:
Amortization of goodwill and
purchased intangibles $26 $5,224 $299 $20,903
Restructuring and other 7,324 16,566 25,887 33,630
Non-recurring tax benefit (3,824) - (3,824) -
Gain on disposal of affiliate - - - (9,461)
Income tax effect (1,984) (6,537) (7,070) (16,409)
--------- --------- --------- ---------
Net difference between actual
results and pro forma net
income $1,542 $15,253 $15,292 $28,663
========= ========= ========= =========
Autodesk, Inc.
Consolidated Statements of Income
(In thousands, except per share data)
Three Months Ended Year Ended
January 31, January 31,
------------------- -------------------
2003 2002 2003 2002
--------- ------------------- ---------
(Unaudited) (Audited)
Net revenues $195,516 $254,034 $824,945 $947,491
Costs and expenses:
Cost of revenues 33,425 41,486 140,162 151,203
Marketing and sales 80,474 88,842 331,721 343,508
Research and development 39,957 39,195 172,985 168,574
General and administrative 33,084 33,368 128,929 131,499
Amortization of goodwill
and purchased intangibles 26 5,224 299 20,903
Restructuring and other 7,324 16,566 25,887 33,630
--------- --------- --------- ---------
194,290 224,681 799,983 849,317
--------- --------- --------- ---------
Income from operations 1,226 29,353 24,962 98,174
Interest and other income, net 2,321 1,745 13,504 19,058
Gain on disposal of affiliate - - - 9,461
--------- --------- --------- ---------
Income before income taxes 3,547 31,098 38,466 126,693
Benefit (provision) for income
taxes 2,866 (9,329) (6,562) (35,169)
Equity in net loss of
affiliate - - - (1,211)
--------- --------- --------- ---------
Net income $6,413 $21,769 $31,904 $90,313
========= ========= ========= =========
Basic net income per share $0.06 $0.20 $0.28 $0.83
========= ========= ========= =========
Diluted net income per share $0.06 $0.19 $0.28 $0.80
========= ========= ========= =========
Shares used in computing basic
net income per share 112,619 110,382 113,035 108,816
========= ========= ========= =========
Shares used in computing
diluted net income per share 114,161 114,428 114,775 112,276
========= ========= ========= =========
Autodesk, Inc.
Consolidated Balance Sheets
(In thousands)
January 31, January 31,
2003 2002
----------- -----------
(Audited) (Audited)
ASSETS:
Current assets:
Cash and cash equivalents $158,949 $136,781
Marketable securities 88,071 201,030
Accounts receivable, net 132,803 140,465
Inventories 12,284 17,999
Deferred income taxes 28,923 31,477
Prepaid expenses and other current assets 28,602 36,118
----------- -----------
Total current assets 449,632 563,870
----------- -----------
Marketable securities 164,029 166,800
Computer equipment, software, furniture and
leasehold improvements, at cost:
Computer equipment, software and furniture 210,900 200,568
Leasehold improvements 32,913 29,652
Less accumulated depreciation (167,691) (157,400)
----------- -----------
76,122 72,820
Purchased technologies and capitalized
software, net 30,125 19,336
Goodwill, net 155,945 39,987
Deferred income taxes, net 0 29,459
Other assets 7,797 10,172
----------- -----------
$883,650 $902,444
=========== ===========
LIABILITIES & STOCKHOLDERS' EQUITY:
Current liabilities:
Accounts payable $45,122 $53,769
Accrued compensation 44,869 57,540
Accrued income taxes 40,859 91,922
Deferred revenues 93,241 65,474
Other accrued liabilities 86,994 101,946
----------- -----------
Total current liabilities 311,085 370,651
----------- -----------
Deferred income taxes, net 1,678 0
Other liabilities 2,736 2,479
Stockholders' equity:
Common stock and additional paid-in
capital 479,874 458,135
Accumulated other comprehensive loss (12,625) (19,972)
Deferred compensation (2,185) (713)
Retained earnings 103,087 91,864
----------- -----------
Total stockholders' equity 568,151 529,314
----------- -----------
$883,650 $902,444
=========== ===========
Autodesk
Fiscal Year 2003
QTR 1 QTR 2 QTR 3 QTR 4 YTD2003
Financial Statistics
(in millions):
Net Revenues $ 229.3 $ 211.4 $ 188.7 $ 195.5 $ 824.9
Gross Margin 82% 84% 83% 83% 83%
Pro Forma
Operating
Expenses $ 165.7 $ 163.0 $ 151.4 $ 153.5 $ 633.6
Pro Forma
Operating
Margin 10% 7% 3% 4% 6%
Pro Forma Net
Income (1) $ 18.9 $ 14.5 $ 5.8 $ 8.0 $ 47.2
Pro Forma
Earnings
Per Share
(diluted) $ 0.16 $ 0.13 $ 0.05 $ 0.07 $ 0.41
Total Cash and
Marketable
Securities $ 423.0 $ 406.7 $ 395.2 $ 411.0 $ 411.0
Days Sales
Outstanding 50 56 62 62
Revenue by
Geography
(in millions):
Americas $ 106.8 $ 92.7 $ 87.4 $ 87.3 $ 374.2
Europe $ 71.8 $ 66.2 $ 58.2 $ 67.2 $ 263.4
Asia/Pacific $ 50.7 $ 52.5 $ 43.1 $ 41.0 $ 187.3
Revenue by
Division
(in millions):
Design Solutions
Group $ 193.9 $ 178.6 $ 158.2 $ 165.7 $ 696.4
Manufacturing
Solutions
Division $ 33.7 $ 33.3 $ 24.6 $ 27.2 $ 118.8
Infrastructure
Solutions
Division
(formerly
GIS) $ 27.1 $ 26.0 $ 23.9 $ 26.4 $ 103.4
Building
Solutions
Group $ 21.8 $ 16.2 $ 16.9 $ 18.6 $ 73.5
Platform
Technology
Division &
Other $ 111.3 $ 103.1 $ 92.8 $ 93.5 $ 400.7
Discreet $ 35.4 $ 32.8 $ 30.5 $ 29.8 $ 128.5
AutoCAD
Statistics:
New Units of
AutoCAD-based
Products 46,700 35,300 46,000 50,300 178,300
Upgrade Revenue
of AutoCAD-
based
Products $ 21.3 $ 13.1 $ 10.9 $ 23.7 $ 69.0
(in millions)
Installed
Base 3,091,700 3,127,000 3,173,000 3,223,300 3,223,300
Headcount:
Headcount 3,706 3,715 3,622 3,498 3,498
Common Stock
Statistics:
Stock
Outstanding
(Pro Forma
EPS
Calculation
-diluted) 118,402,000 114,275,000 113,558,000 114,161,000 114,161,000
Stock
Repurchased 446,000 2,003,000 641,000 1,300,000 4,390,000
(1) Pro forma net income excludes amortization of goodwill and
purchased intangibles, restructuring and other charges, and a
non-recurring tax benefit recognized during the fourth quarter of
fiscal 2003.
CONTACT: Autodesk, Inc. Al Castino, 415/507-6287 (Investor) al.castino@autodesk.com Misty Ohmart, 415/507-6208 (Investor) misty.ohmart@autodesk.com Shannon Hart, 415/507-6241 (Media) shannon.hart@autodesk.com URL: http://www.businesswire.com Today's News On The Net - Business Wire's full file on the Internet with Hyperlinks to your home page.
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