Autodesk Reports Second Quarter Earnings; Company Grows Pro Forma Earnings Per Share by 23% and Reaffirms Pro Forma Per Share Guidance for the Year
SAN RAFAEL, Calif.--(BUSINESS WIRE)--Aug. 16, 2001--Autodesk, Inc. (Nasdaq:ADSK) today announced financial results for its second quarter ended July 31, 2001. Autodesk reported net revenues of $231 million for the second quarter of fiscal year 2002 compared to $233 million for the second quarter of fiscal year 2001.
On a pro forma basis, as defined below, second quarter net income was $30 million or $0.53 per diluted share compared to $25 million or $0.43 per diluted share for the same quarter a year ago.
Second quarter net income was $19 million or $0.34 per diluted share and was impacted by nonrecurring charges of $10 million, which was primarily related to facility consolidations in the United States. This compares to net income for the same quarter a year ago of $21 million or $0.35 per diluted share.
"Our customer relationships have never been stronger. The more we talk about how to leverage digital design data into greater productivity and efficiency, the more interest there is in our solutions," said Carol Bartz, Autodesk chairman and chief executive officer. "Customers believe in our vision and strategy. This, combined with our strongest product line ever, may very well offset the current uncertain macroeconomic conditions."
Second Quarter Highlights
-- The Americas region generated record sales of $116 million --
an increase of 9% from one year ago.
-- Record sales in the Americas and strong AutoCAD upgrade
revenue of $55 million indicate launch success for the new
core design applications. Customers are recognizing the value
in the new 2002 family of products as well as the seamless
integrated desktop/network environment. Customers are
embracing the targeted functionality of our industry-specific
applications for building design, manufacturing, and
infrastructure design and management.
-- Fueled by the flagship product, Autodesk Architectural
Desktop, revenues for the Building Industry Division, formerly
known as Architecture, Engineering, and Construction, jumped
42% from one year ago to $18 million. The Company also
bolstered its position in the building industry with its
second quarter announcement of a definitive agreement to
acquire the remaining interest in Buzzsaw.com.
-- Geographic Information Systems also benefited from strong
sales broadly across the product line ranging from recently
shipped Autodesk Map and Autodesk Land Desktop to Autodesk
Civil Design and Autodesk CAD Overlay. Revenues for this
division were $27 million, up 31% from one year ago.
Business Outlook
The following statements are based on current expectations. These statements are forward-looking and actual results may differ materially.
Revenue outlook:
-- For the third quarter of fiscal year 2002, the Company expects
net revenue to range between $225 million and $235 million.
-- Revenue guidance for the full year is being revised down
slightly -- by approximately 3% -- to a new range of $970
million to $990 million.
These revenue expectations depend on a number of factors, including further slowing in the worldwide economies especially in Europe, failure to achieve customer acceptance of key new design and entertainment applications, failure to grow new Internet-related services and businesses, inability of customers to obtain external financing, failure to achieve anticipated revenue results from newly acquired businesses, and foreign currency fluctuations.
Earnings per share outlook:
-- Earnings per share on a pro forma basis, excluding
nonrecurring charges as well as amortization of goodwill and
purchased intangibles, is expected to range between $0.32 and
$0.42 per diluted share for the third quarter of fiscal year
2002.
-- For the full year, the outlook for earnings per diluted share
on a pro forma basis, excluding nonrecurring charges as well
as amortization of goodwill and purchased intangibles, is
being reaffirmed and is expected to range between $2.10 and
$2.25 per diluted share.
Pro forma earnings per diluted share may vary due to our inability to control and further reduce operating costs, inability to successfully integrate new or acquired businesses, future investments and spending related to spin-off business 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 and timely release of new products and services, changes in customer ordering patterns, failure to grow internet-related businesses and operational results and equity financings of partially owned affiliates. 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 April 30, 2001, which are on file with the Securities and Exchange Commission.
Autodesk will host a toll free conference call at 888-343-7141 and an audio webcast on the second quarter results beginning at 5:00 p.m. Eastern Time at www.Autodesk.com/investor. An audio web cast replay will be available until September 1, 2001.
A summary of Autodesk's financial results is as follows:
Three months ended July 31 2001 2000
Net revenues $231,360,000 $232,841,000
Net income(1) $ 19,173,000 $ 20,753,000
Pro forma net income(2) $ 29,636,000 $ 25,328,000
Diluted net income per share(1) $ 0.34 $ 0.35
Pro forma diluted net income
per share(2) $ 0.53 $ 0.43
(1) Net income for the quarter ended July 31, 2001, includes
nonrecurring charges of $9.8 million or $0.18 per diluted
share.
(2) Pro forma results for the quarter ended July 31, 2001, exclude
amortization of goodwill and purchased intangibles of $5.2
million or $0.09 per diluted share and nonrecurring charges of
$9.8 million or $0.18 per diluted share. Pro forma results for
the quarter ended July 31, 2000, exclude amortization of
goodwill and purchased intangibles of $7.3 million or $0.12
per diluted share.
Six months ended July 31 2001 2000
Net revenues $477,100,000 $464,100,000
Net income(3) $ 47,073,000 $ 46,359,000
Pro forma net income(4) $ 61,203,000 $ 55,489,000
Diluted net income per share(3) $ 0.85 $ 0.77
Pro forma diluted net income
per share(4) $ 1.10 $ 0.92
(3) Net income for the six months ended July 31, 2001, includes
nonrecurring charges of $9.8 million or $0.18 per diluted
share.
(4) Pro forma results for the six months ended July 31, 2001,
exclude amortization of goodwill and purchased intangibles and
nonrecurring charges that totaled $20.3 million or $0.36 per
diluted share. Pro forma results for the six months ended July
31, 2000, exclude amortization of goodwill and purchased
intangibles and nonrecurring credits that netted to $14.3
million or $0.24 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, Inc.
Pro Forma Consolidated Statements of Operations
(In thousands, except per share data)
Three Months Ended Six Months Ended
July 31, July 31,
-------- --------
2001 2000 2001 2000
-----------------------------------------
(Unaudited) (Unaudited)
Net revenues $231,360 $232,841 $477,100 $464,100
Costs and expenses:
Cost of revenues 35,193 39,209 71,918 75,935
Marketing and sales 86,552 76,965 173,557 154,467
Research and development 43,583 42,272 89,742 82,527
General and administrative 31,696 33,123 65,639 64,928
-------- -------- -------- --------
Total costs & expenses,
excluding amortization of
goodwill and purchased
intangibles and nonrecurring
charges and credits 197,024 191,569 400,856 377,857
-------- -------- -------- --------
Income from operations 34,336 41,272 76,244 86,243
Interest and other
income, net 8,002 4,301 12,988 7,274
-------- -------- -------- --------
Income before income taxes 42,338 45,573 89,232 93,517
Provision for income taxes (12,702) (14,931) (26,818) (30,469)
Equity in net loss
of affiliate - (5,314) (1,211) (7,559)
-------- -------- -------- --------
Net income $ 29,636 $ 25,328 $ 61,203 $ 55,489
======== ======== ======== ========
Basic net income per share $ 0.55 $ 0.44 $ 1.14 $ 0.95
======== ======== ======== ========
Diluted net income
per share $ 0.53 $ 0.43 $ 1.10 $ 0.92
======== ======== ======== ========
Shares used in computing
basic net income per share 54,012 57,752 53,885 58,397
======== ======== ======== ========
Shares used in computing
diluted net income
per share 55,710 59,073 55,558 60,579
======== ======== ======== ========
Autodesk, Inc.
Consolidated Statements of Operations
(In thousands, except per share data)
Three Months Ended Six Months Ended
July 31, July 31,
-------- --------
2001 2000 2001 2000
-----------------------------------------
(Unaudited) (Unaudited)
Net revenues $231,360 $232,841 $477,100 $464,100
Costs and expenses:
Cost of revenues 35,193 39,209 71,918 75,935
Marketing and sales 86,552 76,965 173,557 154,467
Research and development 43,583 42,272 89,742 82,527
General and administrative 31,696 33,123 65,639 64,928
Amortization of goodwill
and purchased intangibles 5,174 7,272 10,481 15,060
Nonrecurring charges
(credits) 9,774 - 9,774 (800)
-------- -------- -------- --------
211,972 198,841 421,111 392,117
-------- -------- -------- --------
Income from operations 19,388 34,000 55,989 71,983
Interest and other
income, net 8,002 4,301 12,988 7,274
-------- -------- -------- --------
Income before income taxes 27,390 38,301 68,977 79,257
Provision for income taxes (8,217) (12,234) (20,693) (25,339)
Equity in net loss
of affiliate - (5,314) (1,211) (7,559)
-------- -------- -------- --------
Net income $ 19,173 $ 20,753 $ 47,073 $ 46,359
======== ======== ======== ========
Basic net income per share $ 0.35 $ 0.36 $ 0.87 $ 0.79
======== ======== ======== ========
Diluted net income
per share $ 0.34 $ 0.35 $ 0.85 $ 0.77
======== ======== ======== ========
Shares used in computing
basic net income per share 54,012 57,752 53,885 58,397
======== ======== ======== ========
Shares used in computing
diluted net income
per share 55,710 59,073 55,558 60,579
======== ======== ======== ========
Autodesk, Inc.
Consolidated Balance Sheets
(In thousands)
July 31, January 31,
2001 2001
--------- ---------
(Unaudited) (Audited)
ASSETS:
Current assets:
Cash and cash equivalents $ 119,028 $ 116,391
Marketable securities 155,771 142,961
Accounts receivable, net 159,367 157,422
Inventories 20,567 17,255
Deferred income taxes 29,134 26,696
Prepaid expenses and
other current assets 35,835 30,596
--------- ---------
Total current assets 519,702 491,321
--------- ---------
Marketable securities 157,904 163,148
Computer equipment, furniture and
leasehold improvements, at cost:
Computer equipment and furniture 192,942 171,176
Leasehold improvements 29,389 27,145
Less accumulated depreciation (155,873) (144,325)
--------- ---------
Net computer equipment, furniture,
and leasehold improvements 66,458 53,996
Purchased technologies and
capitalized software, net 14,410 16,403
Goodwill, net 44,743 54,273
Deferred income taxes 19,334 18,242
Other assets 7,865 10,376
--------- ---------
$ 830,416 $ 807,759
========= =========
LIABILITIES, MINORITY INTEREST & STOCKHOLDERS' EQUITY:
Current liabilities:
Accounts payable $ 54,241 $ 47,962
Accrued compensation 48,983 55,907
Accrued income taxes 103,626 97,109
Deferred revenues 59,000 50,993
Other accrued liabilities 92,964 81,942
--------- ---------
Total current liabilities 358,814 333,913
--------- ---------
Other liabilities 667 1,208
Minority interest 11,549 12,964
Stockholders' equity:
Common stock and additional
paid-in capital 417,811 424,652
Accumulated other
comprehensive loss (19,538) (16,104)
Deferred compensation (1,139) (1,172)
Retained earnings 62,252 52,298
--------- ---------
Total stockholders' equity 459,386 459,674
--------- ---------
$ 830,416 $ 807,759
========= =========
Fiscal Year 2002 QTR 1 QTR 2 QTR 3 QTR 4 YTD2002
Financial Statistics
(in millions):
Net Revenues $ 245.7 $ 231.4 $ 477.1
Gross Margin 85% 85% 85%
Pro Forma Operating Expenses $ 167.1 $ 161.8 $ 328.9
Pro Forma Operating Margin 17% 15% 16%
Pro Forma Net Income (1) $ 31.6 $ 29.6 $ 61.2
Pro Forma Earnings Per
Share (diluted) $ 0.57 $ 0.53 $ 1.10
Total Cash and Marketable
Securities $ 394.8 $ 432.7 $ 432.7
Days Sales Outstanding 55 52
Revenue by Geography
(in millions):
Americas $ 99.9 $ 116.2 $ 216.1
Europe $ 78.1 $ 59.5 $ 137.6
Asia/Pacific $ 67.7 $ 55.7 $ 123.4
Revenue by Division
(in millions):
Design Solutions $ 196.6 $ 191.7 $ 388.3
Manufacturing $ 34.3 $ 27.5 $ 61.8
GIS $ 21.4 $ 27.0 $ 48.4
Building Industry (AEC) $ 17.7 $ 18.4 $ 36.1
Platform Group & Other $ 123.2 $ 118.8 $ 242.0
Discreet $ 49.1 $ 39.7 $ 88.8
AutoCAD Statistics:
AutoCAD Units Sold 77,000 67,000 144,000
AutoCAD Upgrade Revenue
(in millions) $ 17.0 $ 54.7 $ 71.7
Installed Base 2,852,000 2,919,000 2,919,000
Headcount:
Headcount 3,539 3,554 3,554
Common Stock Statistics:
Stock Outstanding
(Pro Forma EPS Calculation -
diluted) 55,687,000 55,710,000 55,558,000
Stock Repurchased 1,825,000 195,000 2,020,000
(1) Pro forma net income excludes amortization of goodwill and
purchased intangibles and nonrecurring charges and credits.
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.
CONTACT: Autodesk, Inc. Steve Cakebread, 415/507-6587 (Investor) steve.cakebread@autodesk.com Misty Ohmart, 415/507-6208 (Investor) misty.ohmart@autodesk.com Sheryl Seapy, 415/507-6271 (Media) sheryl.seapy@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.