================================================================================
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
----------
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported)
FEBRUARY 22, 2005
----------
AUTODESK, INC.
(Exact name of registrant as specified in its charter)
Delaware 000-14338 94-2819853
------------------------------- ------------ -------------------
(State or other jurisdiction of (Commission (IRS Employer
incorporation) File Number) Identification No.)
111 McInnis Parkway
San Rafael, California 94903
(Address of principal executive offices, including zip code)
(415) 507-5000
(Registrant's telephone number, including area code)
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):
[ ] Written communications pursuant to Rule 425 under the Securities
Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange
Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
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ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On February 22, 2005, Autodesk, Inc. issued a press release reporting
its results for the three months and fiscal year ended January 31, 2005. The
press release is filed herewith as Exhibit 99.1 and is incorporated herein by
reference.
ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS
(c) EXHIBITS.
EXHIBIT NO. DESCRIPTION
- ----------- -----------------------------------------------------------------
99.1 Press Release, dated as of February 22, 2005, entitled "Autodesk
Fiscal 2005 Revenues Increase 30 Percent; GAAP EPS Increases 73
Percent."
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
AUTODESK, INC.
By: /s/ Alfred J. Castino
--------------------------------
Alfred J. Castino
Senior Vice President and
Chief Financial Officer
Date: February 22, 2005
3
EXHIBIT INDEX
EXHIBIT NO. DESCRIPTION
- ----------- -----------------------------------------------------------------
99.1 Press Release, dated as of February 22, 2005, entitled "Autodesk
Fiscal 2005 Revenues Increase 30 Percent; GAAP EPS Increases 73
Percent."
4
Exhibit 99.1
AUTODESK FISCAL 2005 REVENUES INCREASE 30 PERCENT
GAAP EPS Increases 73 Percent
SAN RAFAEL, Calif., Feb. 22 /PRNewswire-FirstCall/ -- Autodesk Inc.
(Nasdaq: ADSK) today announced financial results for its fourth fiscal quarter
ended January 31, 2005. For the fourth quarter, Autodesk reported net revenues
of $356 million, a 21 percent increase over $295 million reported in the fourth
quarter of the prior year.
Fourth quarter net income increased to $66 million on a GAAP basis,
compared to $58 million in the prior year. GAAP EPS was $0.26 per diluted share
compared to $0.24 in the prior year. Fourth quarter GAAP net income included a
$12 million pre-tax restructuring charge. In the fourth quarter of the prior
year, GAAP net income included a tax benefit of $7 million and a $3 million
pre-tax restructuring charge. Excluding these items, pro-forma net income for
the fourth quarter was $75 million, compared to $53 million in the prior year.
Pro-forma EPS per diluted share was $0.30 in the fourth quarter, and $0.22 in
the fourth quarter of the prior year.
"Autodesk executed flawlessly again this quarter," said Carol Bartz,
Autodesk chairman and CEO. "We had an outstanding year, exceeding all of our
financial projections. Our results demonstrate that our strategies are working,
our product portfolio is strong, and our customers are satisfied."
Autodesk's performance was driven by strong growth in revenues from new
seats and subscriptions, increasing penetration of its 3D products, and
continued improvement in productivity and efficiency.
Fourth quarter revenues from new commercial seats increased 46 percent over
the prior year, as customers continued to respond to the innovation, quality,
easy implementation, ease of use and quick ROI of Autodesk products. Revenues
from new commercial seats of AutoCAD(R) increased 56 percent over the prior
year.
Full year combined revenues from subscriptions and upgrades increased 26
percent over fiscal 2004. Consistent with company strategy, subscription
revenues, which are labeled as maintenance on the financial statements, grew
faster than upgrades, increasing 54% over last year. Upgrade revenues increased
12 percent over fiscal 2004. Combined revenues from subscriptions and upgrades
continue to represent approximately one-third of total annual revenues.
The company's 3D products continue to increase their market share. In the
fourth quarter of fiscal 2005, revenues from Autodesk Inventor(R)Series,
Autodesk Inventor Professional, Autodesk Revit(R), Autodesk AutoCAD Revit
Series, Autodesk Map(R) 3D and Autodesk Civil 3D(TM), increased 49 percent over
the prior year. For the fourth consecutive year, the Inventor product line was
the world's best selling mechanical design software.
Autodesk continued to demonstrate progress in improving its profitability.
Fourth quarter GAAP operating margins increased 2 percentage points over the
prior year to 22 percent. Pro-forma operating margins increased 4 percentage
points over the prior year to 25 percent.
"We are very optimistic about the coming year and therefore are raising our
guidance," said Bartz. "In March, we will launch the strongest product portfolio
in the company's history, including significant new releases of all of our major
products. Our 3D products continue to increase penetration and market awareness
of our lifecycle management solutions is growing. We remain firmly committed to
continuous improvements in productivity. I have never been more enthusiastic
about Autodesk's opportunities."
Full Year Fiscal Review
Fiscal 2005 revenues increased 30 percent over last year to $1.234 billion.
Net income for fiscal 2005 increased to $222 million on a GAAP basis, compared
to $120 million last year. GAAP EPS was $0.90 per diluted share compared to
$0.52 for fiscal 2004. GAAP net income includes tax benefits totaling $24
million, as well as pre-tax restructuring charges of $27 million. Fiscal 2004
GAAP net income included tax benefits totaling $27 million and a $3 million
pre-tax restructuring charge. Excluding these items, pro-forma net income for
fiscal 2005 was $218 million and $96 million in the prior year. Pro-forma EPS
per diluted share was $0.88 in fiscal 2005 and $0.42 in the prior year. Once
again, GAAP net income was higher than pro-forma.
A reconciliation of the above non-GAAP net income and EPS amounts to the
corresponding GAAP net income and EPS amounts is provided at the end of this
press release.
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.
First Quarter Fiscal 2006
Net revenues for the first quarter of fiscal 2006 are currently expected to
be in the range of $335 million to $345 million. GAAP earnings per diluted share
are currently expected to be in the range of $0.26 to $0.28.
Second Quarter Fiscal 2006
Net revenues for the second quarter of fiscal 2006 are currently expected
to be in the range of $330 million to $340 million. Operating expenses are
expected to increase in the second quarter due to increasing investments in
growth initiatives. GAAP earnings per diluted share are currently expected to be
in the range of $0.21 to $0.23.
Full Year Fiscal 2006
For fiscal year 2006, net revenues are currently expected to be in the
range of $1,360 million to $1,410 million. GAAP earnings per diluted share are
currently expected to be in the range of $1.05 to $1.10. Guidance for fiscal
year 2006 does not take into account the impact of expected required stock
option expensing.
All fiscal 2006 EPS guidance ranges are based on the new 20 percent
estimated effective tax rate. The company believes its effective tax rate will
revert back to the historical effective tax rate of approximately 24 percent in
fiscal year 2007.
Safe Harbor Statement
This press release contains forward-looking statements that involve risks
and uncertainties, including statements in the paragraphs under "Business
Outlook" above, statements regarding our expected effective tax rate and other
statements regarding our anticipated performance. Factors that could cause
actual results to differ materially include the following: general market and
business conditions, changes in accounting rules, particularly related to stock
option expensing, 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 anticipated
cost reductions and productivity increases, delays in the release of new
products and services, failure to achieve continued success in technology
advancements, changes in foreign currency exchange rates, failure to
successfully integrate new or acquired businesses, the financial and business
condition of our reseller and distribution channels, renegotiation or
termination of royalty or intellectual property arrangements, failure to achieve
continued migration from 2D products to 3D products, failure to grow lifecycle
management or collaboration products, and unanticipated impact of accounting for
technology acquisitions.
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, 2004, and Form 10-Q for the quarter ended October 31,
2004, which are on file with the Securities and Exchange Commission.
Autodesk will host its fourth quarter earnings announcement today at 5:00
p.m. Eastern Time. The live announcement may be accessed at 800-291-9234
(passcode: 25553104). An audio webcast will also be available beginning at 5:00
p.m. Eastern Time at www.autodesk.com/investor. A replay of this webcast will be
maintained on our website for at least twelve months.
About Autodesk
Autodesk, Inc. is wholly focused on ensuring that great ideas are turned
into reality. With more than six million users, Autodesk is the world's leading
software and services company for the building, manufacturing, infrastructure,
digital media, 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 by
becoming more productive, streamlining project efficiency, and maximizing
profits.
Founded in 1982, Autodesk is headquartered in San Rafael, California. For
additional information about Autodesk, please visit www.autodesk.com.
NOTE: Autodesk, AutoCAD, Autodesk Inventor, Autodesk Map, Civil 3D and
Revit are either trademarks or registered trademarks of Autodesk, Inc., in the
United States and/or other countries. All other brand names, product names, or
trademarks belong to their respective holders.
Investors:
Sue Pirri, sue.pirri@autodesk.com, 415-507-6467
John Clancy, john.clancy@autodesk.com 415-507-6373
Press:
Nicole Pack, nicole.pack@autodesk.com, 415-507-6282
Autodesk, Inc.
Consolidated Statements of Income
(In thousands, except per share data)
Three Months Ended Year Ended
January 31, January 31,
-------------------------- --------------------------
2005 2004 2005 2004
----------- ----------- ----------- -----------
(Unaudited) (Unaudited) (Audited)
Net revenues:
License and other $ 303,704 $ 262,119 $ 1,057,108 $ 836,737
Maintenance 52,451 33,191 176,659 114,906
Total net revenues 356,155 295,310 1,233,767 951,643
Costs and expenses:
Cost of license and other
revenues 39,561 32,535 152,446 132,727
Cost of maintenance revenues 4,400 4,696 16,997 15,401
Marketing and sales 134,435 115,652 461,932 393,234
Research and development 63,239 55,102 239,404 209,349
General and administrative 24,559 26,393 101,415 91,512
Restructuring 11,811 3,183 26,700 3,183
Total costs and expenses 278,005 237,561 998,894 845,406
Income from operations 78,150 57,749 234,873 106,237
Interest and other income, net 4,059 8,812 11,455 16,959
Income before income taxes 82,209 66,561 246,328 123,196
Provision for income taxes (16,441) (8,961) (24,820) (2,880)
Net income $ 65,768 $ 57,600 $ 221,508 $ 120,316
Basic net income per share $ 0.29 $ 0.26 $ 0.98 $ 0.54
Diluted net income per share $ 0.26 $ 0.24 $ 0.90 $ 0.52
Shares used in computing basic
net income per share 227,821 222,929 227,036 222,993
Shares used in computing diluted
net income per share 252,674 239,674 246,977 231,304
Autodesk, Inc.
Pro Forma Consolidated Statements of Income
(See pro forma adjustments listed in the tables below)
(In thousands, except per share data)
Three Months Ended Year Ended
January 31, January 31,
-------------------------- --------------------------
2005 2004 2005 2004
----------- ----------- ----------- -----------
(Unaudited) (Unaudited)
Net revenues:
License and other $ 303,704 $ 262,119 $ 1,057,108 $ 836,737
Maintenance 52,451 33,191 176,659 114,906
Total net revenues 356,155 295,310 1,233,767 951,643
Costs and expenses:
Cost of license and other
revenues 39,561 32,535 152,446 132,727
Cost of maintenance revenues 4,400 4,696 16,997 15,401
Marketing and sales 134,435 115,652 461,932 393,234
Research and development 63,239 55,102 239,404 209,349
General and administrative 24,559 26,393 101,415 91,512
Total costs and expenses 266,194 234,378 972,194 842,223
Income from operations 89,961 60,932 261,573 109,420
Interest and other income, net 4,059 8,812 11,455 16,959
Income before income taxes 94,020 69,744 273,028 126,379
Provision for income taxes (18,804) (16,739) (54,606) (30,332)
Pro forma net income $ 75,216 $ 53,005 $ 218,422 $ 96,047
Basic pro forma net income per
share $ 0.33 $ 0.24 $ 0.96 $ 0.43
Diluted pro forma net income per
share $ 0.30 $ 0.22 $ 0.88 $ 0.42
Shares used in computing basic
pro forma net income per
share 227,821 222,929 227,036 222,993
Shares used in computing diluted
pro forma net income per
share 252,674 239,674 246,977 231,304
THREE MONTHS ENDED YEAR ENDED
JANUARY 31, JANUARY 31,
----------------------- -----------------------
2005 2004 2005 2004
(Unaudited) (Unaudited)
---------- ---------- ---------- ----------
A reconciliation between operating expenses on a GAAP basis
and pro forma operating expenses is as follows:
GAAP costs and expenses $ 278,005 $ 237,561 $ 998,894 $ 845,406
Restructuring (11,811) (3,183) (26,700) (3,183)
Pro forma costs and expenses $ 266,194 $ 234,378 $ 972,194 $ 842,223
A reconciliation between income from operations on a GAAP basis
and pro forma income from operations is as follows:
GAAP income from operations $ 78,150 $ 57,749 $ 234,873 $ 106,237
Restructuring 11,811 3,183 26,700 3,183
Pro forma income from operations $ 89,961 $ 60,932 $ 261,573 $ 109,420
A reconciliation between provision for income taxes on a GAAP
basis and pro forma provision for income taxes is as follows:
GAAP provision for income taxes $ (16,441) $ (8,961) $ (24,820) $ (2,880)
Income tax effect on restructuring
at the normalized rate (2,363) (765) (5,341) (765)
Dividends received deduction
benefit for prior fiscal years -- -- (15,540) --
Non-recurring tax benefit -- (7,013) (8,905) (26,687)
Pro forma provision for income taxes $ (18,804) $ (16,739) $ (54,606) $ (30,332)
A reconciliation between net income on a GAAP basis and
pro forma net income is as follows:
GAAP net income $ 65,768 $ 57,600 $ 221,508 $ 120,316
Restructuring 11,811 3,183 26,700 3,183
Income tax effect on restructuring
at the normalized rate (2,363) (765) (5,341) (765)
Dividends received deduction
benefit for prior fiscal years -- -- (15,540) --
Non-recurring tax benefit -- (7,013) (8,905) (26,687)
Pro forma net income $ 75,216 $ 53,005 $ 218,422 $ 96,047
A reconciliation between diluted net income per share on a GAAP
basis and diluted pro forma net income per share is as follows:
GAAP diluted net income per share $ 0.26 $ 0.24 $ 0.90 $ 0.52
Restructuring $ 0.05 $ 0.01 $ 0.11 $ 0.02
Income tax effect on restructuring at the normalized rate $ (0.01) $ -- $ (0.02) $ --
Dividends received deduction
benefit for prior fiscal years $ -- $ -- $ (0.07) $ --
Non-recurring tax benefit $ -- $ (0.03) $ (0.04) (0.12)
Pro forma diluted net income per share $ 0.30 $ 0.22 $ 0.88 $ 0.42
To supplement our consolidated financial statements presented on a GAAP
basis, Autodesk uses pro forma measures of operating results, net income and net
income per share, which are adjusted to exclude certain costs, expenses, gains
and losses we believe appropriate to enhance an overall understanding of our
past financial performance and also our prospects for the future. These
adjustments to our GAAP results are made with the intent of providing both
management and investors a more complete understanding of Autodesk's underlying
operational results and trends and our marketplace performance. For example, the
pro forma results are an indication of our baseline performance before gains,
losses or other charges that are considered by management to be outside of our
core operating results. In addition, these adjusted pro forma results are among
the primary indicators management uses as a basis for our planning and
forecasting of future periods. The presentation of this additional information
is not meant to be considered in isolation or as a substitute for net income or
diluted net income per share prepared in accordance with generally accepted
accounting principles in the United States.
Autodesk, Inc.
Consolidated Balance Sheets
(In thousands)
JANUARY 31, JANUARY 31,
2005 2004
----------- -----------
(Unaudited) (Audited)
ASSETS:
Current assets:
Cash and cash equivalents $ 517,654 $ 282,249
Marketable securities 15,038 81,275
Accounts receivable, net 196,827 166,816
Inventories 12,545 17,365
Deferred income taxes 14,250 25,410
Prepaid expenses and other current assets 25,483 24,137
Total current assets 781,797 597,252
Marketable securities -- 165,976
Computer equipment, software, furniture
and leasehold improvements, at cost:
Computer equipment, software and furniture 191,656 206,319
Leasehold improvements 32,586 34,526
Less accumulated depreciation (154,676) (174,371)
Net 69,566 66,474
Purchased technologies and
capitalized software, net 9,319 19,378
Goodwill 166,628 160,094
Deferred income taxes, net 105,061 --
Other assets 9,833 7,986
$ 1,142,204 $ 1,017,160
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities:
Accounts payable $ 46,234 $ 52,307
Accrued compensation 144,145 92,830
Accrued income taxes 41,549 50,695
Deferred revenues 178,701 127,276
Other accrued liabilities 66,839 61,814
Total current liabilities 477,468 384,922
Deferred income taxes, net -- 7,849
Deferred revenues 15,528 --
Other liabilities 1,130 2,746
Stockholders' equity:
Preferred stock -- --
Common stock and additional paid-in capital 625,225 473,673
Accumulated other comprehensive loss (2,843) (4,754)
Deferred compensation (269) (451)
Retained earnings 25,965 153,175
Total stockholders' equity 648,078 621,643
$ 1,142,204 $ 1,017,160
Autodesk, Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
January 31, January 31,
2005 2004
----------- -----------
(Unaudited) (Audited)
Operating Activities
Net income $ 221,508 $ 120,316
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization 51,949 50,292
Stock compensation expense 3,909 1,775
Net loss on fixed asset disposals 556 --
Write-downs of cost method investments -- 596
Tax benefits from employee stock plans 116,856 --
Restructuring related charges, net 9,212 3,183
Changes in operating assets
and liabilities (30,858) 43,921
Net cash provided by operating activities 373,132 220,083
Investing Activities
Net (purchases) sales and
maturities of available-for-sale
marketable securities 230,674 (24,039)
Capital and other expenditures (40,835) (25,852)
Business combinations, net of cash acquired (11,750) (5,150)
Other investing activities (2,449) (3,951)
Net cash provided by (used in)
investing activities 175,640 (58,992)
Financing activities
Proceeds from issuance of common
stock, net of issuance costs 242,225 115,401
Repurchases of common stock (546,408) (178,463)
Dividends paid (13,566) (13,408)
Net cash used in financing activities (317,749) (76,470)
Effect of exchange rate changes on
cash and cash equivalents 4,382 11,251
Net increase in cash and cash
equivalents 235,405 95,872
Cash and cash equivalents at
beginning of year 282,249 186,377
Cash and cash equivalents at end of year $ 517,654 $ 282,249
Supplemental cash flow information:
Net cash paid (received) during the
year for income taxes $ 16,517 $ (19,329)
Fiscal Year 2005 QTR 1 QTR 2 QTR 3 QTR 4 YTD2005
- ---------------------------- ------------ ------------ ------------ ------------ ------------
Financial Statistics
(in millions):
Total net revenues $ 297.9 $ 279.6 $ 300.2 $ 356.2 $ 1,233.8
License and other
revenues $ 260.5 $ 238.5 $ 254.5 $ 303.7 $ 1,057.1
Maintenance revenues $ 37.4 $ 41.1 $ 45.7 $ 52.5 $ 176.7
Gross Margin 86% 86% 86% 88% 86%
GAAP Operating Expenses $ 202.5 $ 190.0 $ 202.9 $ 234.0 $ 829.5
GAAP Operating Margin 18% 18% 18% 22% 19%
GAAP Net Income $ 42.5 $ 39.2 $ 74.1 $ 65.8 $ 221.5
GAAP Net Income
Per Share (diluted) (6) $ 0.18 $ 0.16 $ 0.30 $ 0.26 $ 0.90
Pro Forma Operating
Expenses (1) (2) $ 194.2 $ 186.3 $ 200.0 $ 222.2 $ 802.7
Pro Forma Operating
Margin (1) (3) 21% 19% 19% 25% 21%
Pro Forma Net
Income (1) (4) $ 51.3 $ 44.2 $ 47.7 $ 75.2 $ 218.4
Pro Forma Net
Income Per Share
(diluted) (1) (5) (6) $ 0.22 $ 0.18 $ 0.19 $ 0.30 $ 0.88
Total Cash and Marketable
Securities $ 519.4 $ 571.7 $ 518.0 $ 532.7 $ 532.7
Days Sales Outstanding 43 51 50 50 50
Capital Expenditures $ 5.9 $ 9.9 $ 13.5 $ 11.5 $ 40.8
Cash from Operations $ 55.2 $ 83.5 $ 90.8 $ 143.7 $ 373.1
GAAP Depreciation and
Amortization $ 12.5 $ 12.9 $ 13.2 $ 13.4 $ 52.0
Revenue by Geography
(in millions):
Americas $ 121.5 $ 115.1 $ 137.0 $ 137.3 $ 510.9
Europe $ 108.8 $ 98.9 $ 95.8 $ 140.2 $ 443.7
Asia/Pacific $ 67.6 $ 65.6 $ 67.4 $ 78.7 $ 279.2
Revenue by Division
(in millions):
Design Solutions Segment $ 261.6 $ 243.8 $ 257.9 $ 314.0 $ 1,077.3
Manufacturing
Solutions Division $ 44.8 $ 44.2 $ 50.4 $ 60.1 $ 199.5
Infrastructure
Solutions Division $ 33.5 $ 31.4 $ 33.0 $ 40.3 $ 138.3
Building Solutions
Group $ 27.2 $ 28.8 $ 29.1 $ 39.3 $ 124.3
Platform Technology
Group and other $ 156.1 $ 139.4 $ 145.4 $ 174.3 $ 615.2
Discreet Segment $ 36.1 $ 35.3 $ 41.6 $ 41.0 $ 154.1
Upgrade Revenue
(in millions):
Upgrade Revenue $ 66.2 $ 46.4 $ 55.8 $ 92.9 $ 261.3
Deferred Maintenance
Revenue (in millions):
Deferred Maintenance
Revenue Balance $ 96.7 $ 107.1 $ 113.0 $ 140.8 $ 140.8
Operating Income (Loss)
by Segment (in millions):
Design Solutions $ 124.2 $ 106.5 $ 115.8 $ 148.6 $ 495.2
Discreet $ 1.8 $ 5.2 $ 5.4 $ 9.0 $ 21.4
Unallocated amounts $ (72.5) $ (62.3) $ (67.4) $ (79.5) $ (281.7)
Headcount:
Headcount 3,409 3,443 3,437 3,477 3,477
Common Stock Statistics (6):
Stock Outstanding
Pro Forma EPS
Calcula-
tion -
diluted 238,565,000 250,607,000 248,045,000 252,674,000 246,977,000
Stock
Repur-
chased 10,365,200 3,319,600 8,032,200 4,199,800 25,916,800
Installed
Base
Statistics:
AutoCAD
Total AutoCAD-
based
Installed
Base* 3,469,400 3,514,600 3,571,800 3,618,000 3,618,000
Stand-alone
AutoCAD 2,490,000
AutoCAD Mechanical 149,400
AutoCAD Map 203,700
Architectural Desktop 383,900
Land Desktop 109,900
*Includes
prior period
adjustment of
approximately
28,000 seats
AutoCAD LT
Installed Base 2,677,900
Total
Inventor
Installed
Base 306,600 349,500 388,800 422,900 422,900
(1) To supplement our consolidated financial statements presented on a GAAP
basis, Autodesk uses pro forma measures of operating results, net income and
net income per share, which are adjusted to exclude certain costs, expenses,
gains and losses we believe appropriate to enhance an overall understanding
of our past financial performance and also our prospects for the future.
These adjustments to our GAAP results are made with the intent of providing
both management and investors a more complete understanding of Autodesk's
underlying operational results and trends and our marketplace performance.
For example, the pro forma results are an indication of our baseline
performance before gains, losses or other charges that are considered by
management to be outside of our core operating results.
In addition, these adjusted pro forma results are among the primary
indicators management uses as a basis for our planning and forecasting of
future periods. The presentation of this additional information is not meant
to be considered in isolation or as a substitute for net income or diluted
net income per share prepared in accordance with generally accepted
accounting principles in the United States.
(2) GAAP Operating
Expenses $ 202.5 $ 190.0 $ 202.9 $ 234.0 $ 829.5
Restructuring $ (8.3) $ (3.7) $ (2.9) $ (11.8) $ (26.7)
Pro Forma Operating
Expenses $ 194.2 $ 186.3 $ 200.0 $ 222.2 $ 802.7
(3) GAAP Operating
Margin 18% 18% 18% 22% 19%
Restructuring 3% 1% 1% 3% 2%
Pro Forma
Operating Margin 21% 19% 19% 25% 21%
(4) GAAP Net
Income $ 42.505 $ 39.165 $ 74.070 $ 65.768 $ 221.508
Restructuring $ 8.250 $ 3.717 $ 2.922 $ 11.811 $ 26.700
Income tax effect
on restructuring (7) $ (1.650) $ (0.744) $ (0.584) $ (2.363) $ (5.341)
Dividends Received
Deduction benefit
for current
fiscal year (7) $ 2.244 $ 2.054 $ (4.298) $ -- $ --
Dividends Received
Deduction benefit
for prior
fiscal years (7) $ -- $ -- $ (15.540) $ -- $ (15.540)
Non-recurring
tax benefit $ -- $ -- $ (8.905) $ -- $ (8.905)
Pro Forma
Net Income $ 51.349 $ 44.192 $ 47.665 $ 75.216 $ 218.422
(5) GAAP Net Income
Per Share (diluted) (6) $ 0.178 $ 0.156 $ 0.299 $ 0.260 $ 0.897
Restructuring $ 0.035 $ 0.015 $ 0.012 $ 0.047 $ 0.108
Income tax effect
on
restructuring (7) $ (0.007) $ (0.003) $ (0.002) $ (0.009) $ (0.022)
Dividends Received
Deduction benefit
for current
fiscal year (7) $ 0.009 $ 0.008 $ (0.017) $ -- $ --
Dividends Received
Deduction benefit
for prior
fiscal years (7) $ -- $ -- $ (0.064) $ -- $ (0.063)
Non-recurring
tax benefit $ -- $ -- $ (0.036) $ -- $ (0.036)
Pro Forma Net Income
Per Share
(diluted) (6) $ 0.215 $ 0.176 $ 0.192 $ 0.298 $ 0.884
(6) On November 16, 2004 the Board of Directors authorized a two-for-one stock
split in the form of a stock dividend to stockholders of record as of
December 6, 2004. Historical common stock statistics and per share amounts
have been restated to reflect the effect of the stock split.
(7) In the third quarter of fiscal 2005, Autodesk determined that its
consolidated fiscal year effective income tax rate declined from 24% to 20%.
For purposes of comparison, we have assumed the new estimated effective
income tax rate of 20% in calculating our pro forma net income and pro forma
earnings per share for each individual quarter of fiscal 2005.
SOURCE Autodesk Inc.
-0- 02/22/2005
/CONTACT: investors, Sue Pirri, sue.pirri@autodesk.com, or
+1-415-507-6467, or John Clancy, john.clancy@autodesk.com, or +1-415-507-6373,
or press, Nicole Pack, nicole.pack@autodesk.com, or +1-415-507-6282, all of
Autodesk Inc./
/Web site: http://www.autodesk.com /_
