SAN RAFAEL, Calif., March 30 /PRNewswire-FirstCall/ -- Autodesk, Inc. (Nasdaq: ADSK), the world's leading design software and digital content company, today announced that it is raising its financial guidance for both the first quarter and full year of fiscal 2005 in conjunction with its annual Investor Day event. The company now expects that first quarter revenue will be between $265 million and $275 million, and that GAAP EPS will be between $0.23 and $0.28. Excluding the impact of restructuring charges, first quarter EPS is expected to be between $0.27 and $0.32. For fiscal 2005, revenues are now expected to be between $1,050 million and $1,070 million. Operating margins are expected to be in the range of 15 to 17 percent for the year on a GAAP basis. GAAP EPS is expected to be between $1.06 and $1.15. Excluding the impact of restructuring charges, full year EPS is expected to be between $1.27 and $1.36, achieving full year operating margins in the company's target range of 18-20 percent. Fourth quarter operating margins are still expected to be at least in the mid 20 percent range. The preceding statements are forward looking and are subject to risks and uncertainties some of which are outlined below.

"Our fiscal year is off to a strong start," said Carol Bartz, Autodesk Chairman and CEO. "We are seeing increased demand across all geographies and industries, particularly in our Design Solutions Group. Customers are enthusiastic about our new product lineup. At our recent annual reseller conference, the feedback was exceptional. The combination of the strong business environment and our continued productivity initiatives is leading to a return to our target operating margins, excluding the impact of restructuring charges, one year ahead of our original commitment."

During fiscal 2005, the company plans to launch major releases of all of its significant products at the same time or earlier than they were released in fiscal 2004. Earlier this month, the company introduced its AutoCAD(R) 2005 family of products and it expects to release significant new versions of other products, including Autodesk Inventor(R) Series, Autodesk Inventor(R) Professional and 3ds max(R) during the remainder of fiscal 2005. In addition, we expect to introduce several new products, including Autodesk(R) Civil 3D(TM) and new Linux based products for the media market.

The company will discuss its long term growth opportunities at its annual Investor Day event today.

With 6 million users, Autodesk solutions are the worldwide design standard, yet only a fraction of those users have migrated to 3-D. The higher selling price of 3-D products presents a significant growth opportunity for the company. Stronger desktop tools provide customers the platform to implement lifecycle management solutions. By providing the tools and functionality to meet the needs of the increasingly globalized worldwide economy, Autodesk's lifecycle management solutions are reaching new customers and providing additional growth opportunities.

"It is clear that our strategy is working," said Bartz. "We are strengthening our desktop design tools, providing customers the ability to create smarter and richer designs. Our 3-D solutions are beginning to gain traction in the market, providing Autodesk a significant growth opportunity. In addition, through our lifecycle management solutions, we are reaching new segments of the market. We have never been better positioned."

The Investor Day event will be available live via webcast at 8:30am EST today at www.autodesk.com/investor.

A reconciliation of the non-GAAP EPS targets to the corresponding GAAP EPS targets is provided at the end of this press release

Safe Harbor Statement

This press release contains forward-looking statements that involve risks and uncertainties, including statements regarding anticipated new products, the significant growth opportunity represented by 3-D products, and the opportunity provided by lifecycle management, as well as Autodesk's relative position in the marketplace. Factors that could cause actual results to differ materially include the following: general market and business conditions, failure to achieve anticipated levels of customer acceptance of key new applications, failure to achieve sufficient sell-through in our channels for new or existing products, pricing pressure, failure to achieve anticipated cost reductions, delays in the release of new products and services, failure to achieve continued success in technology advancements, changes in accounting rules, failure to successfully integrate new or acquired businesses, financial and business condition of our reseller and distribution channels, renegotiation or termination of royalty or intellectual property arrangements, and failure to grow lifecycle management or collaboration products. The targeted GAAP earnings per share will be impacted by the actual number of headcount reductions and facilities closures, the location and seniority of positions eliminated, the actual costs incurred relating to severance arrangements, final determinations regarding facilities closures and the quarterly timing of all of the foregoing restructuring measures.

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, 2003, and form 10-Q for the quarter ended October 31, 2003, which are on file with the Securities and Exchange Commission.

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 about the company, see www.autodesk.com.

    Autodesk, Inc.
     Reconciliation of operating margin on a GAAP basis to
        non-GAAP operating margin
     Unaudited

                                                         Fiscal year ended
                                                         January 31, 2005
                                                        __________________
                                                      Low end       High end
                                                     of range      of range
                                                     _________      ________

    Operating margin on a GAAP basis                     15%            17%
    Restructure costs                                     3%             3%
                                                        ____           ____
    Non-GAAP operating margin                            18%            20%
                                                        ====           ====



    Autodesk, Inc.
     Reconciliation of diluted net income per share on a GAAP basis to
        non-GAAP diluted net income per share
     Unaudited

                                        Three months ended Fiscal year ended
                                          April 30, 2004    January 31, 2005
                                          ______________     _______________
                                         Low end  High end  Low end High end
                                        of range of range  of range of range
                                        ________ ________  ________ _______

    Diluted net income
     per share on a GAAP basis          $ 0.23    $ 0.28    $ 1.06  $ 1.15
    Restructure costs                     0.05      0.05      0.27    0.27
    Income tax effect                    (0.01)    (0.01)    (0.06)  (0.06)
                                        ______    ______    ______   ______
    Non-GAAP diluted
     net income per share               $ 0.27    $ 0.32    $ 1.27  $ 1.36
                                        ======    ======    ======   ======

Autodesk, AutoCAD, Autodesk Inventor, 3ds max and Civil 3D are either registered trademarks or trademarks of Autodesk, Inc., in the USA and/or other countries. All other brand names, product names, or trademarks belong to their respective holders.

Investors: Sue Pirri, 415-507-6467; sue.pirri@autodesk.com

Media: Shannon Hart, 415-507-6241; shannon.hart@autodesk.com

SOURCE Autodesk, Inc. -0- 03/30/2004 /CONTACT: investors, Sue Pirri, +1-415-507-6467, or sue.pirri@autodesk.com, or press, Shannon Hart, +1-415-507-6241, or shannon.hart@autodesk.com, both of Autodesk, Inc./ /Web site: http://www.autodesk.com/ (ADSK) CO: Autodesk, Inc. ST: California IN: CPR STW MLM SU: ERP EB -- SFTU098 -- 2829 03/30/2004 06:00 EST http://www.prnewswire.com