(1)

To supplement our consolidated financial statements presented on a GAAP basis, Autodesk provides investors with certain non-GAAP measures including non-GAAP net income, non-GAAP net income per share, non-GAAP cost of license and other revenues, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP income from operations, non-GAAP interest and other income, net and non-GAAP provision for income taxes. These non-GAAP financial measures are adjusted to exclude certain costs, expenses, gains and losses, including stock-based compensation expense, employee tax reimbursements related to our stock option review, litigation expenses, in-process research and development expenses, restructuring expenses, amortization of purchased intangibles, investment impairment and income tax expenses. See our reconciliation of GAAP financial measures to non-GAAP financial measures herein. We believe these exclusions are appropriate to enhance an overall understanding of our past financial performance and also our prospects for the future, as well as to facilitate comparisons with our historical operating results. 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 non-GAAP results are an indication of our baseline performance before gains, losses or other charges that are considered by management to be outside our core operating results. In addition, these non-GAAP financial measures are among the primary indicators management uses as a basis for our planning and forecasting of future periods.   There are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with generally accepted accounting principles and may be different from non-GAAP financial measures used by other companies. The non-GAAP financial measures are limited in value because they exclude certain items that may have a material impact upon our reported financial results. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with generally accepted accounting principles in the United States. Investors should review the reconciliation of the non-GAAP financial measures to their most directly comparable GAAP financial measures as provided in the tables accompanying this press release.

 

(2)	GAAP Operating Expenses		$	355		$	359		$	381					$	1,095
	Stock-based compensation expense			(14	)		(20	)		(35	)					(69	)
	Tax impact of stock option review			(11	)		-			-						(11	)
	Amortization of customer relationships and trademarks			(2	)		(2	)		(2	)					(6	)
	In-process research and development			-			(1	)		(3	)					(4	)
	Non-GAAP Operating Expenses		$	328		$	336		$	341					$	1,005

 

(3)	GAAP Operating Margin			20	%		22	%		20	%					20	%
	Stock-based compensation expense			3	%		4	%		7	%					5	%
	Tax impact of stock option review			2	%		0	%		0	%					1	%
	Amortization of developed technology			1	%		0	%		1	%					1	%
	Amortization of customer relationships and trademarks			0	%		1	%		0	%					0	%
	In-process research and development			0	%		0	%		1	%					0	%
	Non-GAAP Operating Margin			26	%		27	%		28	%					27	%

 

(4)	GAAP Net Income		$	83		$	92		$	85					$	260
	Stock-based compensation expense			15			21			37						73
	Tax impact of stock option review			12			-			-						12
	Investment impairment			-			-			4						4
	Amortization of developed technology			2			2			3						7
	Amortization of customer relationships and trademarks			2			2			2						6
	In-process research and development			-			1			3						4
	Income tax effect on difference between GAAP and non-GAAP total costs and expenses at the normalized rate			(7	)		(10	)		(17	)					(34	)
	Non-GAAP Net Income		$	107		$	108		$	117					$	332

 

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(5)	GAAP Diluted Net Income Per Share		$	0.34		$	0.38		$	0.35					$	1.07
	Stock-based compensation expense			0.06			0.09			0.16						0.30
	Tax impact of stock option review			0.05			-			-						0.05
	Investment impairment			-			-			0.02						0.02
	Amortization of developed technology			0.01			0.01			0.01						0.03
	Amortization of customer relationships and trademarks			0.01			-			0.01						0.02
	In-process research and development			-			-			0.01						0.01
	Income tax effect on difference between GAAP and non-GAAP total costs and expenses at the normalized rate			(0.03	)		(0.04	)		(0.07	)					(0.14	)
	Non-GAAP Diluted Net Income Per Share		$	0.44		$	0.44		$	0.49					$	1.36

 

SOURCE     Autodesk, Inc.

-0-                                                                                                      11/15/2007

/CONTACT: Investors, Sue Pirri, +1-415-507-6467, sue.pirri@autodesk.com, or Katie Blanchard, +1-415-507-6034, katherine.blanchard@autodesk.com, or John Clancy, +1-415-507-6373, john.clancy@autodesk.com, or Press, Pam Pollace,

+1-415-547-2441, pam.pollace@autodesk.com, or Caroline Kawashima,

+1-415-547-2498, caroline.kawashima@autodesk.com, all of Autodesk, Inc./

 

/First Call Analyst: /

/FCMN Contact: /

/Web site: http://www.autodesk.com/

(ADSK)

 

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