SAN RAFAEL, Calif., Aug. 17 /PRNewswire-FirstCall/ -- Autodesk, Inc.
(Nasdaq: ADSK) today reported record quarterly revenues of $450 million, an
increase of 21% over the second quarter of last year.
FINANCIAL HIGHLIGHTS
-- For the second quarter ended July 31, 2006, Autodesk reported quarterly
net revenues of $450 million, a 21 percent increase over $373 million
reported in the second quarter of the prior year.
-- Spending in the quarter was approximately $5 million less than the
amount used in the high end of previously delivered guidance, due to
the timing of spending related to growth investment initiatives. The
company now believes it will make those investments in the third
quarter of fiscal 2007.
-- Total product backlog increased by $16 million sequentially to $353
million as of July 31, 2006, including $331 million of deferred
revenue. Deferred subscription revenue increased $12 million
sequentially to $264 million. In addition, total product backlog
includes $21 million of unshipped product orders which represents an
increase of $12 million sequentially.
-- Channel inventory was at the low end of the normal range of 3 to 4
weeks.
-- DSO's decreased 6 days sequentially to 52 days.
-- Cash, cash equivalents and marketable securities increased by $82
million sequentially to $468 million as of July 31, 2006.
-- Capital expenditures were $7 million.
-- The company received $15 million from employee stock plans and spent
$89 million repurchasing 2.5 million shares of stock.
-- As of July 31, 2006, there were 230 million total shares outstanding
and 243 million diluted shares outstanding.
"We are very pleased with the progress we made in the business this
quarter," said Carl Bass, Autodesk president and CEO. "Customer demand was
robust and our operational execution, including expense management, was
strong. Our products provide innovation and productivity that translate into
real competitive advantage which our customers need in every economic
environment."
Stock Option Review
During the quarter, the company began a voluntary review of the company's
historical stock option granting practices and the related accounting. This
voluntary review was initiated in light of news about the option practices of
numerous companies across several industries. The Audit Committee of
Autodesk's Board of Directors, comprised of three independent board members,
is leading this effort and has engaged independent outside legal counsel to
conduct the review. Because this review is ongoing, at this time, the company
has not yet determined if it needs to record any non-cash adjustments to
compensation expense related to prior stock option grants. The company is
following evolving best practice in the industry, and will provide only select
financial information while it completes the review.
"The Audit Committee is working to complete this review as quickly and
thoroughly as possible," said Bass. "Early analysis of the review suggests
that we will be reaching conclusions, reporting results, and moving forward.
We have a solid management team committed to Autodesk whose attention remains
firmly rooted on driving execution within the business."
Operational Highlights
Autodesk's performance was driven by strong increases in revenue from new
seats, subscriptions and emerging economies as well as increasing penetration
of its 3D products. In addition, the Media and Entertainment segment showed
substantial improvement compared to the first quarter of fiscal 2007.
Revenue from new seats increased by 24 percent compared to the second
quarter of last year. Revenue from new seats of 3D model-based design
products increased 41 percent over last year, on particularly strong sales of
the Revit family of products. Revenue from new seats of AutoCAD and AutoCAD
LT increased by 23 percent compared to the second quarter of last year.
Revenue from new seats and emerging businesses continues to represent
approximately two-thirds of total revenues.
Subscription revenue increased 65 percent compared to the second quarter
of last year to $104 million or 23 percent of revenue. Strong subscription
attach rates and renewal rates drove a $12 million sequential increase in
deferred subscription revenue. Upgrade revenues declined as expected.
Combined subscription and upgrade revenues increased 14 percent compared to
the second quarter of last year and continue to represent approximately one-
third of total revenues.
The company's 3D products, Inventor, Revit and Civil 3D continue to
increase their market penetration. Combined revenues from the company's 3D
model-based design products increased approximately 37 percent over the second
quarter of last year to $91 million or 20 percent of total revenue. In total,
more than 32,000 commercial seats of 3D were shipped in the quarter. The
Revit family of products led 3D growth again this quarter. Revit revenue
increased 96 percent compared to the second quarter of fiscal 2006. Autodesk
shipped more than 15,000 commercial seats of Revit in the quarter.
Once again, emerging economies contributed robust revenue growth. Revenue
from the emerging economies in Asia Pacific, Eastern Europe, Latin America and
the Middle East increased 32 percent over last year and represented 13 percent
of total revenue in the second quarter.
Revenue from the Media and Entertainment segment increased 30 percent over
the second quarter of fiscal 2006. Advanced Systems revenues were
approximately flat over the second quarter of fiscal 2006 and increased by 40
percent sequentially on strong adoption of the new Linux-based offerings.
Animation revenues increased by nearly 100 percent over the second quarter of
last year and by 12 percent sequentially. As planned, the remaining Alias
integration activities were substantially completed during the quarter, and
new versions of both 3ds Max and Maya were announced during the quarter.
Business Outlook
The following statements are forward-looking statements which are based on
current expectations and which involve risks and uncertainties some of which
are set forth below. As a result of the ongoing review of stock option grant
practices, the company is not providing EPS guidance at this time. The
company did indicate that spending levels for the year have not changed.
However, the company believes that spending in the third quarter will increase
by approximately $10 million sequentially, in part as a result of the $5
million of spend for growth initiatives which was planned for the second
quarter of fiscal 2007 but did not occur.
Third Quarter Fiscal 2007
Net revenues for the third quarter of fiscal 2007 are expected to be
between $450 million and $460 million.
Full Year Fiscal 2007
For fiscal year 2007, net revenues are expected to be between $1.82
billion and $1.85 billion.
Safe Harbor Statement
This press release contains forward-looking statements that involve risks
and uncertainties, including statements in the paragraphs under "Stock Option
Review" above, statements in the paragraphs under "Business Outlook" above,
statements regarding the timing of spending related to growth investment
initiatives, statements regarding anticipated market trends and other
statements regarding our expected performance. Factors that could cause
actual results to differ materially include the following: the final
conclusions of the Audit Committee (and the timing of such conclusions)
concerning matters relating to the company's stock option grants, general
market and business conditions, the timing and degree of expected investments
in growth opportunities, slowing momentum in maintenance or subscription
revenue, changes in the timing of product releases and retirements, continued
fluctuation in foreign currency exchange rates, difficulties encountered in
integrating the Alias business, failure to successfully integrate other new or
acquired businesses and technologies, failure to achieve sufficient sell-
through in our channels for new or existing products, failure of key new
applications to achieve anticipated levels of customer acceptance, pricing
pressure, failure to achieve continued cost reductions and productivity
increases, failure to achieve continued migration from 2D products to 3D
products, failure to achieve continued success in technology advancements, the
financial and business condition of our reseller and distribution channels,
interruptions or terminations in the business of the company's consultants or
third party developers, failure to grow lifecycle management or collaboration
products, and unanticipated impact of accounting for technology acquisitions.
In addition, the company's Audit Committee is conducting a voluntary
review of the company's past stock option granting practices and the related
accounting impact. There can be no assurance that the outcome of that review
will not result in a change to or restatement of financial results provided by
the company for this or any historical period. In addition, the review and
possible conclusions may have an impact on the amount and timing of previously
awarded stock-based compensation and other additional expenses to be recorded;
accounting adjustments to our financial statements for the periods in
question; our ability to file required reports with the SEC on a timely basis;
our ability to meet the requirements of the NASDAQ Stock Market for continued
listing of our shares; potential claims and proceedings relating to such
matters, including shareholder litigation and action by the SEC and/or other
governmental agencies; and negative tax or other implications for the company
resulting from any accounting adjustments or other factors.
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, 2006 and Form 10-Q for the quarter ended April 30, 2006
which are on file with the Securities and Exchange Commission. Autodesk does
not assume any obligation to update the forward-looking statements provided to
reflect events that occur or circumstances that exist after the date on which
they were made.
Autodesk will host its second quarter conference call today at 5:00 p.m.
EDT. The live announcement may be accessed at 866-362-4832 or 617-597-5364
(passcode: 75643726). An audio replay of the call will be available at 7:00
pm EDT by dialing 888-286-8010 or 617-801-6888 (passcode: 75171303). An
audio webcast and podcast will also be available beginning at 7:00 p.m. EDT at
www.autodesk.com/investors. This replay will be maintained on our website for
at least twelve months.
About Autodesk
Autodesk, Inc. is a Fortune 1000 company, wholly focused on ensuring that
great ideas are turned into reality. With seven million users, Autodesk is the
world's leading software and services company for the manufacturing,
infrastructure, building, media and entertainment, and wireless data services
fields. Autodesk's solutions help customers create, manage and share their
data and digital assets more effectively. As a result, customers turn ideas
into competitive advantage, become more productive, streamline project
efficiency and maximize profits.
Founded in 1982, Autodesk is headquartered in San Rafael, California. For
additional information about Autodesk, please visit www.autodesk.com .
Investors: Sue Pirri, sue.pirri@autodesk.com, 415-507-6467
John Clancy, john.clancy@autodesk.com 415-507-6373
Press: Caroline Kawashima, caroline.kawashima@autodesk.com,
415-547-2498
Autodesk
Fiscal Year 2007 QTR 1 QTR 2 QTR 3 QTR 4 YTD2007
Financial Statistics
(in millions):
Total net revenues $436.0 $449.6 $885.6
License and other
revenues $349.4 $345.5 $694.9
Maintenance
revenues $86.6 $104.1 $190.7
Total Cash and
Marketable Securities $385.8 $468.2 $468.2
Days Sales Outstanding 58 52 52
Capital Expenditures $11.4 $6.9 $18.3
GAAP Depreciation
and Amortization $12.5 $13.5 $26.0
Revenue by Geography
(in millions):
Americas $170.2 $167.7 $337.9
Europe $164.3 $174.2 $338.5
Asia/Pacific $101.5 $107.7 $209.2
Revenue by Division
(in millions):
Design Solutions
Segment $386.7 $388.6 $775.3
Platform Technology
Division and other $207.3 $200.9 $408.2
Manufacturing
Solutions Division $75.0 $75.7 $150.7
Building Solutions
Division $53.2 $56.8 $110.0
Infrastructure
Solutions Division $51.2 $55.2 $106.4
Media and
Entertainment
Segment $46.8 $58.5 $105.3
Other Revenue
Statistics:
% of Total Rev from
AutoCAD, AutoCAD
upgrades and
AutoCAD LT 44% 41% 43%
% of Total Rev from
3D design products 20% 20% 20%
% of Total Rev
from Emerging
Economies 12% 13% 13%
Upgrade Revenue
(in millions) $75.2 $49.1 $124.3
Deferred Maintenance
Revenue (in
millions):
Deferred Maintenance
Revenue Balance $252.4 $263.6 $263.6
Favorable
(Unfavorable)
Impact of U.S.
Dollar Translation
Relative to Foreign
Currencies Compared
to Comparable Prior
Year Period (in
millions):
Total Net Revenues $(19.3) $(2.4) $(21.7)
Common Stock
Statistics:
Shares
Outstanding 231,296,000 230,237,000 230,237,000
Fully Diluted
Shares
Outstanding 244,698,000 243,191,000 244,103,000
Shares Repurchased 1,700,000 2,498,000 4,198,000
Installed Base
Statistics:
Total AutoCAD-
based
Installed Base 3,928,400 3,974,300 3,974,300
Total Inventor
Installed Base 577,700 592,600 592,600
Total Subscription
Installed Base 989,800 1,085,866 1,085,866
SOURCE Autodesk, Inc.
CONTACT:
Investors: Sue Pirri, +1-415-507-6467 or
sue.pirri@autodesk.com, or John Clancy, +1-415-507-6373 or
john.clancy@autodesk.com, or, Press: Caroline Kawashima, +1-415-547-2498 or
caroline.kawashima@autodesk.com, both of Autodesk, Inc.
Web site: http://www.autodesk.com
(ADSK)
