SAN RAFAEL, Calif., Oct. 6 /PRNewswire-FirstCall/ -- Autodesk, Inc.
(Nasdaq: ADSK) today announced an update on the on-going voluntary review of
the Company's stock option grant practices and related accounting issues. The
review is being conducted by the Audit Committee of Autodesk's Board of
Directors with the assistance of independent outside legal counsel. The Audit
Committee is also working closely with Ernst & Young LLP, the Company's
independent registered public accounting firm.
At this time, the Audit Committee has not completed its work, nor has it
reached any final conclusions. Although the review is continuing, the Audit
Committee has reached a preliminary conclusion that the actual measurement
dates for financial accounting purposes of certain broad-based employee stock
option grants issued in the past differ from the recorded grant dates of such
awards. As a result, the Audit Committee believes the Company will record
additional non-cash stock-based compensation expense related to stock option
grants, but it is not yet able to determine the amount of such charges or the
resulting tax and accounting impact of these actions or whether any historical
periods would require restatement. Any additional non-cash stock-based
compensation expense recorded will not affect the Company's previously
reported cash positions or revenues.
The Company plans to become current in its periodic reports required under
the Exchange Act of 1934, as amended, following the completion of the
independent review.
While Autodesk's on-going business remains strong, the Company currently
believes it will incur expenses of approximately $4 million in the third
quarter of fiscal 2007 related to conducting the review, including outside
legal, accounting, auditing and tax advisors. This amount does not include
the previously disclosed one-time payment to employees related to the
Company's employee stock purchase plan.
The Audit Committee's review is ongoing and the conclusions discussed in
this press release are preliminary. There can be no assurance that the
outcome of the review will not result in a change to or restatement of
financial results provided by the Company for any historical or future period.
In addition, the review and possible conclusions have had and may in the
future have an impact on the amount and timing of previously awarded stock-
based compensation and other additional expenses to be recorded, accounting
adjustments to the Company's financial statements for certain periods, and the
Company's ability to timely file required reports with the SEC and meet the
requirements of the NASDAQ Global Select Market for continued listing of its
shares. The stock option grant practices under review and related matters
could also lead to potential claims and proceedings relating to such matters,
including shareholder or employee litigation and action by the SEC and/or
other regulatory agencies, and negative tax or other implications for the
Company resulting from any accounting adjustments or other factors.
Safe Harbor Statement
This press release contains forward-looking statements that involve risks
and uncertainties, including statements regarding the determinations resulting
from the Audit Committee's preliminary conclusions from its review of the
Company's stock option grant practices and related accounting issues,
anticipated expenses related to the review and other statements regarding our
expected performance. Factors that could cause actual results to differ
materially include the final conclusions of the Audit Committee (and the
timing of such conclusions) concerning matters relating to the Company's stock
option grants and related accounting issues. Further information on potential
factors that could affect the Company's results are included in its 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.
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.
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, all of Autodesk
SOURCE Autodesk, Inc. 10/06/2006
7461 10/06/2006 16:15 EDT http://www.prnewswire.com
