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)
August
14, 2008
Autodesk,
Inc.
(Exact
name of registrant as specified in its charter)
|
Delaware
|
|
000-14338
|
|
94-2819853
|
|
(State
or other jurisdiction of incorporation)
|
|
(Commission
File Number)
|
|
(IRS
Employer
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):
| o |
Written
communications pursuant to Rule 425 under the Securities Act (17
CFR
230.425)
|
| o |
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
|
| o |
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17
CFR
240.14d-2(b))
|
| o |
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17
CFR
240.13e-4(c))
|
Item
2.02. Results of Operations and Financial Condition.
On
August
14, 2008, Autodesk, Inc. issued a press release reporting financial results
for
the quarter ended July 31, 2008. The press release is furnished herewith
as Exhibit 99.1 and is incorporated herein by reference.
This
information shall not be deemed “filed” for purposes of Section 18 of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”), or
incorporated by reference in any filing under the Securities Act of 1933, as
amended, or the Exchange Act, except as shall be expressly set forth by specific
reference in such a filing.
Non-GAAP
Financial Measures
To
supplement Autodesk’s consolidated financial statements presented on a GAAP
basis, the press release furnished herewith as Exhibit 99.1 provides
investors with certain non-GAAP measures, including historical non-GAAP net
earnings and historical and future non-GAAP net earnings per diluted share.
For
our internal budgeting and resource allocation process, Autodesk’s management
uses these non-GAAP measures that do not include: (a) the stock-based
compensation impact of SFAS 123R, (b) amortization of purchased intangibles
and
purchases of technology that result in in-process research and development
expense, (c) certain payments to employees for tax issues arising from
Autodesk’s voluntary stock option review, and (d) the income tax effects on the
difference between GAAP and non-GAAP costs and expenses. Autodesk’s management
uses these non-GAAP measures in making operating decisions because we believe
the measures provide meaningful supplemental information regarding Autodesk’s
earning potential. In addition, these non-GAAP financial measures facilitate
comparisons to competitors’ historical results and operating
guidance.
As
described above, Autodesk excludes the following items from its non-GAAP
measures:
A.
Stock
compensation impact of SFAS 123R. These expenses consist of expenses for
employee stock-based compensation under SFAS 123R. Autodesk excludes stock-based
compensation expenses from our non-GAAP measures primarily because they are
non-cash expenses and management finds it useful to exclude certain non-cash
charges to assess the appropriate level of various operating expenses to assist
in budgeting, planning and forecasting future periods. Further, as Autodesk
applies SFAS 123R, we believe that it is useful to investors to understand
the
impact of the application of SFAS 123R to our results of
operations.
B.
Amortization of purchased intangibles and in-process research and development
expenses. Autodesk incurs amortization of acquisition-related purchased
intangible assets and charges related to in-process research and development,
primarily in connection with its acquisition of certain businesses and
technologies. The amortization of purchased intangibles from business
combinations varies depending on the level of acquisition activity and
management finds it useful to exclude these variable charges to assess the
appropriate level of various operating expenses to assist in budgeting, planning
and forecasting future periods.
C.
Reimbursement to employees for tax issues arising from the voluntary stock
option review. This expense consists of payments made to our employees relating
to tax payments they may incur as a result of our voluntary stock option review.
Autodesk excludes these payments from our non-GAAP measures primarily
because they are non-recurring items and management finds it useful to
exclude these charges to assess the appropriate level of various operating
expenses to assist in budgeting, planning and forecasting future periods.
D.
Income
tax effects. The income tax effects that are excluded from the non-GAAP measures
relate to the tax impact on the difference between GAAP and non-GAAP costs
and
expenses, primarily due to differences in the timing of when income tax benefits
are recognized for stock compensation and purchased intangibles for GAAP and
non-GAAP measures.
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. In addition, 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. Management compensates for these limitations by
analyzing current and future results on a GAAP basis as well as a non-GAAP
basis
and also by providing GAAP measures in our earnings release. The presentation
of
non-GAAP financial 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.
The non-GAAP financial measures are meant to supplement, and be viewed in
conjunction with, GAAP financial measures. Investors should review the
information regarding non-GAAP financial measures provided in our press
release.
Item
9.01. Financial Statements and Exhibits.
(d)
Exhibits.
| Exhibit No. | Description |
| 99.1 |
Press
release dated as of August 14, 2008, entitled “Autodesk Reports Record
Revenue of $620 Million in its Second Quarter of Fiscal
2009.”
|
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/
Carl
Bass
|
|
Carl Bass Chief
Executive Officer and
President
|
||
Date:
August
14, 2008
EXHIBIT
INDEX
| Exhibit No. | Description |
| 99.1 |
Press
release dated as of August 14, 2008 entitled “Autodesk Reports Record
Revenue of $620 Million in its Second Quarter of Fiscal
2009.”
|
TO
BUSINESS AND TECHNOLOGY EDITORS:
Autodesk
Reports Record Revenue of $620 Million in its Second Quarter of Fiscal
2009
SAN
RAFAEL, Calif., Aug. 14 /PRNewswire-FirstCall/ -- Autodesk, Inc. (Nasdaq:
ADSK)
today reported revenue of $620 million for the second quarter of fiscal
2009, an
increase of 18 percent over the second quarter of fiscal 2008. GAAP diluted
earnings per share in the second quarter increased 3 percent to $0.39,
compared
to $0.38 per diluted share in the second quarter last year. Non-GAAP diluted
earnings per share in the second quarter increased 27 percent to $0.56,
compared
to $0.44 per diluted share in the second quarter last year. A reconciliation
between GAAP and non-GAAP results is provided at the end of this press
release.
"We're
very pleased that Autodesk was able to achieve another quarter of record
revenue
results," said Carl Bass, Autodesk president and CEO. "Our ability to serve
diverse business segments globally with leading software design and engineering
solutions drove our strong performance. The combination of a strong market
position, industry and geographic diversification, a strong balance sheet,
and
excellent cash flow, positions Autodesk for continued success."
Operational
Highlights
In
addition to favorable currency exchange rates, Autodesk's performance in
the
second quarter of fiscal 2009 was driven by continued revenue growth of
model-based 3D design solutions, 2D vertical products, emerging economies,
as
well as total upgrade and maintenance revenue growth.
Combined
revenue from the Company's model-based 3D solutions, which includes Inventor,
Revit, Civil 3D, NavisWorks, Robobat, and Moldflow, increased 36 percent
over
the second quarter of fiscal 2008 to $166 million and comprised 27 percent
of
total revenue for the quarter. Excluding Moldflow, which was acquired during
the
quarter, model-based 3D solutions grew 31 percent to $159 million. Autodesk
shipped approximately 36,000 commercial seats of its model-based 3D design
products, including approximately 10,000 commercial seats of Inventor and
26,000
seats of its Architecture Engineering and Construction products -- Revit,
Civil
3D, NavisWorks, and Robobat. In addition, revenue from 2D vertical products
increased 16 percent compared to the second quarter of fiscal 2008.
Revenue
from the emerging economies increased 40 percent over the second quarter
of
fiscal 2008 to $114 million and represented 18 percent of total revenue.
EMEA
revenue was $267 million, an increase of 31 percent as reported over the
second
quarter of fiscal 2008, and 15 percent at constant currency. Revenue in
Asia
Pacific was $150 million, an increase of 18 percent as reported year-over-year,
and 11 percent at constant currency. Revenue in the Americas increased
4 percent
over the second quarter of fiscal 2008 to $203 million, despite continued
economic headwinds.
Upgrade
revenue and maintenance revenue combined increased 34 percent over the second
quarter of fiscal 2008 to $238 million. Maintenance revenue increased 36
percent
compared to the second quarter of fiscal 2008 to $180 million, or 29 percent
of
total revenue. Deferred maintenance revenue increased $14 million sequentially
and $132 million compared to the second quarter of fiscal 2008. Total upgrade
revenue increased 27 percent compared to the second quarter of fiscal 2008.
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.
Third
Quarter Fiscal 2009
Net
revenue for the third quarter of fiscal 2009 is expected to be in the range
of
$625 million and $635 million. GAAP earnings per diluted share are expected
to
be in the range of $0.40 and $0.42. Non-GAAP earnings per diluted share are
expected to be in the range of $0.54 and $0.56 and exclude $0.07 related
to
stock-based compensation expense and $0.07 for the amortization of acquisition
related intangibles.
Fourth
Quarter Fiscal 2009
Net
revenue for the fourth quarter of fiscal 2009 is expected to be in the range
of
$660 million and $680 million. GAAP earnings per diluted share are expected
to
be in the range of $0.52 and $0.56. Non-GAAP earnings per diluted share are
expected to be in the range of $0.64 and $0.68 and exclude $0.08 related
to
stock-based compensation expense and $0.04 for the amortization of acquisition
related intangibles.
Full
Year
Fiscal 2009
For
fiscal year 2009, net revenue is expected to be in the range of $2.50 billion
and $2.53 billion. Full year GAAP earnings per diluted share are now expected
to
be in the range of $1.72 and $1.78. Non-GAAP earnings per diluted share are
still expected to be in the range of $2.24 and $2.30 and exclude $0.29 related
to stock-based compensation expense and $0.23 for the amortization of
acquisition related intangibles and in-process research and development
expense.
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 anticipated market trends and other statements
regarding our expected performance and results. Other factors that could
cause
actual results to differ materially include the following: general market
and
business conditions, our performance in particular geographies, including
emerging economies, difficulties encountered in integrating new or acquired
businesses and technologies, the inability to identify and realize the
anticipated benefits of acquisitions, fluctuation in foreign currency exchange
rates, unexpected fluctuations in our tax rate, the timing and degree of
expected investments in growth opportunities, slowing momentum in maintenance
revenues, failure to achieve sufficient sell-through in our channels for
new or
existing products, pricing pressure, failure to achieve continued cost
reductions and productivity increases, failure to achieve continued migration
from 2D products to 3D products, changes in the timing of product releases
and
retirements, failure of key new applications to achieve anticipated levels
of
customer acceptance, failure to achieve continued success in technology
advancements, the financial and business condition of our reseller and
distribution channels, interruptions or terminations in the business of the
Company's consultants or third party developers, 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 reports on Form 10-K for the year
ended
January 31, 2008 and our Form 10-Q for the quarter ended April 30, 2008,
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.
Earnings
Conference Call and Webcast
Autodesk
will host its second quarter conference call today at 5:00 p.m. EDT. The
live
announcement may be accessed at http://www.autodesk.com/investors or by dialing
866-700-7477 or 617-213-8840 (passcode: 68223258). An audio webcast or podcast
of the call will be available at 7:00 pm EDT at
http://www.autodesk.com/investors. This replay will be maintained on our
website
for at least twelve months. An audio replay will also be available for one
month
beginning at 7:00 pm EDT by dialing
888-286-8010
or 617-801-6888 (passcode: 93009896).
About
Autodesk
Autodesk,
Inc. is the world leader in 2D and 3D design software for the manufacturing,
building and construction, and media and entertainment markets. Since its
introduction of AutoCAD software in 1982, Autodesk has developed the broadest
portfolio of state-of-the-art digital prototyping solutions to help customers
experience their ideas before they are real. Fortune 1000 companies rely
on
Autodesk for the tools to visualize, simulate and analyze real-world performance
early in the design process to save time and money, enhance quality and foster
innovation. For additional information about Autodesk, visit
http://www.autodesk.com.
Note:
AutoCAD, Autodesk, Civil 3D, Inventor, Revit, NavisWorks, and Robobat are
either
registered trademarks or trademarks of Autodesk, Inc., in the US and/or other
countries. All other brand names, product names or trademarks belong to their
respective holders.
| Investors: |
David
Gennarelli, david.gennarelli@autodesk.com,
415-507-6033
|
|
Katie
Blanchard, katherine.blanchard@autodesk.com,
415-507-6034
|
| Press: |
Pam Pollace, pam.pollace@autodesk.com,
415-547-2441
|
|
Colleen Rubart, colleen.rubart@autodesk.com,
415-547-2368
|
|
Autodesk,
Inc.
|
|||||||
|
Consolidated
Statements of Income
|
|||||||
|
(In
millions, except per share
data)
|
|
Three
Months Ended
|
Six
Months Ended
|
||||||||||||
|
July
31,
|
July
31,
|
||||||||||||
|
2008
|
|
2007
|
|
2008
|
|
2007
|
|||||||
|
(Unaudited)
|
(Unaudited)
|
||||||||||||
|
Net
revenue:
|
|||||||||||||
|
License
and other
|
$
|
440.2
|
$
|
393.6
|
$
|
872.4
|
$
|
776.7
|
|||||
|
Maintenance
|
179.3
|
132.3
|
345.9
|
257.7
|
|||||||||
|
Total
net revenue
|
619.5
|
525.9
|
1,218.3
|
1,034.4
|
|||||||||
|
Cost
of license and other revenue
|
57.4
|
49.6
|
113.2
|
100.1
|
|||||||||
|
Cost
of maintenance revenue
|
2.1
|
2.3
|
4.1
|
4.4
|
|||||||||
|
Total
cost of revenue
|
59.5
|
51.9
|
117.3
|
104.5
|
|||||||||
|
Gross
margin
|
560.0
|
474.0
|
1,101.0
|
929.9
|
|||||||||
|
Operating
Expenses:
|
|||||||||||||
|
Marketing
and sales
|
228.8
|
198.8
|
452.7
|
391.3
|
|||||||||
|
Research
and development
|
153.2
|
114.9
|
296.9
|
229.6
|
|||||||||
|
General
and administrative
|
59.2
|
45.8
|
112.7
|
93.1
|
|||||||||
|
Total
operating expenses
|
441.2
|
359.5
|
862.3
|
714.0
|
|||||||||
|
Income
from operations
|
118.8
|
114.5
|
238.7
|
215.9
|
|||||||||
|
Interest
and other income, net
|
6.3
|
3.4
|
13.2
|
13.2
|
|||||||||
|
Income
before income taxes
|
125.1
|
117.9
|
251.9
|
229.1
|
|||||||||
|
Provision
for income taxes
|
(35.3
|
)
|
(26.3
|
)
|
(67.5
|
)
|
(54.2
|
)
|
|||||
|
Net
income
|
$
|
89.8
|
$
|
91.6
|
$
|
184.4
|
$
|
174.9
|
|||||
|
Basic
net income per share
|
$
|
0.40
|
$
|
0.40
|
$
|
0.82
|
$
|
0.76
|
|||||
|
Diluted
net income per share
|
$
|
0.39
|
$
|
0.38
|
$
|
0.80
|
$
|
0.72
|
|||||
|
Shares
used in computing basic
net
income per share
|
224.2
|
230.3
|
225.2
|
230.8
|
|||||||||
|
Shares
used in computing diluted
net
income per share
|
231.1
|
243.0
|
232.1
|
243.7
|
|||||||||
|
Autodesk,
Inc.
|
||||
|
Condensed
Consolidated Balance Sheets
|
||||
|
(In
millions)
|
|
July
31,
|
January
31,
|
|
|||||
|
|
|
2008
|
|
2008
|
|
||
|
(Unaudited)
|
|||||||
|
ASSETS:
|
|||||||
|
Current
assets:
|
|||||||
|
Cash
and cash equivalents
|
$
|
929.6
|
$
|
917.9
|
|||
|
Marketable
securities
|
32.6
|
31.4
|
|||||
|
Accounts
receivable, net
|
325.2
|
386.5
|
|||||
|
Deferred
income taxes
|
58.2
|
98.1
|
|||||
|
Prepaid
expenses and other current assets
|
56.9
|
47.9
|
|||||
|
Total
current assets
|
1,402.5
|
1,481.8
|
|||||
|
Marketable
securities
|
8.3
|
8.4
|
|||||
|
Computer
equipment, software, furniture and leasehold improvements,
net
|
109.2
|
80.2
|
|||||
|
Purchased
technologies, net
|
106.2
|
64.4
|
|||||
|
Goodwill
|
626.9
|
443.4
|
|||||
|
Deferred
income taxes, net
|
67.5
|
54.6
|
|||||
|
Other
assets
|
122.9
|
79.4
|
|||||
|
$
|
2,443.5
|
$
|
2,212.2
|
||||
|
LIABILITIES
AND STOCKHOLDERS' EQUITY:
|
|||||||
|
Current
liabilities:
|
|||||||
|
Accounts
payable
|
$
|
78.1
|
$
|
79.3
|
|||
|
Accrued
compensation
|
108.0
|
146.2
|
|||||
|
Accrued
income taxes
|
21.2
|
14.4
|
|||||
|
Deferred
revenue
|
440.7
|
400.7
|
|||||
|
Borrowings
under line of credit
|
120.0
|
-
|
|||||
|
Other
accrued liabilities
|
101.0
|
89.7
|
|||||
|
Total
current liabilities
|
869.0
|
730.3
|
|||||
|
Deferred
revenue
|
121.9
|
105.4
|
|||||
|
Long
term income taxes payable
|
101.4
|
86.5
|
|||||
|
Long
term deferred income taxes
|
29.2
|
3.3
|
|||||
|
Other
liabilities
|
62.1
|
56.2
|
|||||
|
Commitments
and contingencies
|
|||||||
|
Stockholders'
equity:
|
|||||||
|
Preferred
stock
|
-
|
-
|
|||||
|
Common
stock and additional paid-in capital
|
997.6
|
998.3
|
|||||
|
Accumulated
other comprehensive income
|
19.9
|
13.8
|
|||||
|
Retained
earnings
|
242.4
|
218.4
|
|||||
|
Total
stockholders' equity
|
1,259.9
|
1,230.5
|
|||||
|
$
|
2,443.5
|
$
|
2,212.2
|
||||
|
Autodesk,
Inc.
|
||||
|
Condensed
Consolidated Statements of Cash Flows
|
||||
|
(In
millions)
|
|
Six
Months Ended
|
|||||||
|
|
July
31,
|
||||||
|
|
2008
|
2007
|
|||||
|
(Unaudited)
|
|||||||
|
Operating
Activities
|
|||||||
|
Net
income
|
$
|
184.4
|
$
|
174.9
|
|||
|
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
|||||||
|
Depreciation
and amortization
|
39.1
|
28.6
|
|||||
|
Stock-based
compensation expense
|
48.4
|
35.9
|
|||||
|
Charge
for acquired in-process research and development
|
16.8
|
1.0
|
|||||
|
Changes
in operating assets and liabilities,
net of business combinations |
105.1
|
87.8
|
|||||
|
Net
cash provided by operating activities
|
393.8
|
328.2
|
|||||
|
Investing
Activities
|
|||||||
|
Purchases
of available-for-sale marketable securities
|
(5.6
|
)
|
(705.7
|
)
|
|||
|
Sales
of available-for-sale marketable securities
|
4.7
|
765.7
|
|||||
|
Business
combinations, net of cash acquired
|
(257.5
|
)
|
(21.3
|
)
|
|||
|
Capital
and other expenditures
|
(39.9
|
)
|
(18.2
|
)
|
|||
|
Net
cash provided by (used in) investing activities
|
(298.3
|
)
|
20.5
|
||||
|
Financing
activities
|
|||||||
|
Proceeds
from issuance of common stock, net of issuance costs
|
50.1
|
83.8
|
|||||
|
Draws
on line of credit
|
690.0
|
-
|
|||||
|
Repayments of
line of credit
|
(570.0
|
)
|
-
|
||||
|
Repurchases
of common stock
|
(256.5
|
)
|
(325.1
|
)
|
|||
|
Net
cash used in financing activities
|
(86.4
|
)
|
(241.3
|
)
|
|||
|
Effect
of exchange rate changes on cash and cash equivalents
|
2.6
|
1.6
|
|||||
|
Net
increase in cash and cash equivalents
|
11.7
|
109.0
|
|||||
|
Cash
and cash equivalents at beginning of fiscal year
|
917.9
|
665.9
|
|||||
|
Cash
and cash equivalents at end of period
|
$
|
929.6
|
$
|
774.9
|
|||
|
Autodesk,
Inc.
|
|||||||
|
Reconciliation
of GAAP financial measures to non-GAAP financial
measures
|
|||||||
|
(In
millions, except per share data)
|
|||||||
|
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 revenue, 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
areamong
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.
|
|
The
following table shows Autodesk's non-GAAP results reconciled to
GAAP
results included in this release.
|
|
Three
Months Ended
|
|
Six
Months Ended
|
|
||||||||||
|
|
|
July
31,
|
|
July
31,
|
|
||||||||
|
|
|
2008
|
|
2007
|
|
2008
|
|
2007
|
|
||||
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|||||||||
|
GAAP
cost of license and other revenue
|
$
|
57.4
|
$
|
49.6
|
$
|
113.2
|
$
|
100.1
|
|||||
|
SFAS
123R stock-based compensation expense
|
(1.1
|
)
|
(1.1
|
)
|
(2.1
|
)
|
(1.7
|
)
|
|||||
|
Amortization
of developed technology
|
(5.3
|
)
|
(2.1
|
)
|
(8.8
|
)
|
(4.2
|
)
|
|||||
|
Employee
tax reimbursements related to stock
option review
|
-
|
-
|
-
|
(1.1
|
)
|
||||||||
|
Non-GAAP
cost of license and other revenue
|
$
|
51.0
|
$
|
46.4
|
$
|
102.3
|
$
|
93.1
|
|||||
|
GAAP
gross margin
|
$
|
560.0
|
$
|
474.0
|
$
|
1,101.0
|
$
|
929.9
|
|||||
|
SFAS
123R stock-based compensation expense
|
1.1
|
1.1
|
2.1
|
1.7
|
|||||||||
|
Amortization
of developed technology
|
5.3
|
2.1
|
8.8
|
4.2
|
|||||||||
|
Employee
tax reimbursements related to stock
option review
|
-
|
-
|
-
|
1.1
|
|||||||||
|
Non-GAAP
gross margin
|
$
|
566.4
|
$
|
477.2
|
$
|
1,111.9
|
$
|
936.9
|
|||||
|
GAAP
marketing and sales
|
$
|
228.8
|
$
|
198.8
|
$
|
452.7
|
$
|
391.3
|
|||||
|
SFAS
123R stock-based compensation expense
|
(10.0
|
)
|
(9.0
|
)
|
(20.5
|
)
|
(15.2
|
)
|
|||||
|
Employee
tax reimbursements related to stock
option review
|
-
|
-
|
-
|
(4.8
|
)
|
||||||||
|
Non-GAAP
marketing and sales
|
$
|
218.8
|
$
|
189.8
|
$
|
432.2
|
$
|
371.3
|
|||||
|
GAAP
research and development
|
$
|
153.2
|
$
|
114.9
|
$
|
296.9
|
$
|
229.6
|
|||||
|
SFAS
123R stock-based compensation expense
|
(7.7
|
)
|
(6.5
|
)
|
(16.1
|
)
|
(11.3
|
)
|
|||||
|
In-process
research and development
|
(16.8
|
)
|
(1.0
|
)
|
(16.8
|
)
|
(1.0
|
)
|
|||||
|
Employee
tax reimbursements related to stock
option review
|
-
|
-
|
-
|
(4.4
|
)
|
||||||||
|
Non-GAAP
research and development
|
$
|
128.7
|
$
|
107.4
|
$
|
264.0
|
$
|
212.9
|
|||||
|
GAAP
general and administrative
|
$
|
59.2
|
$
|
45.8
|
$
|
112.7
|
$
|
93.1
|
|||||
|
SFAS
123R stock-based compensation expense
|
(4.4
|
)
|
(4.5
|
)
|
(9.7
|
)
|
(7.7
|
)
|
|||||
|
Amortization
of customer relationships and trademarks
|
(6.4
|
)
|
(2.0
|
)
|
(9.3
|
)
|
(3.9
|
)
|
|||||
|
Employee
tax reimbursements related to stock
option review
|
-
|
-
|
-
|
(1.7
|
)
|
||||||||
|
Non-GAAP
general and administrative
|
$
|
48.4
|
$
|
39.3
|
$
|
93.7
|
$
|
79.8
|
|||||
|
GAAP
operating expenses
|
$
|
441.2
|
$
|
359.5
|
$
|
862.3
|
$
|
714.0
|
|||||
|
SFAS
123R stock-based compensation expense
|
(22.1
|
)
|
(20.0
|
)
|
(46.3
|
)
|
(34.2
|
)
|
|||||
|
Employee
tax reimbursements related to stock
option review
|
-
|
-
|
-
|
(10.9
|
)
|
||||||||
|
Amortization
of customer relationships and trademarks
|
(6.4
|
)
|
(2.0
|
)
|
(9.3
|
)
|
(3.9
|
)
|
|||||
|
In-process
research and development
|
(16.8
|
)
|
(1.0
|
)
|
(16.8
|
)
|
(1.0
|
)
|
|||||
|
Non-GAAP
operating expenses
|
$
|
395.9
|
$
|
336.5
|
$
|
789.9
|
$
|
664.0
|
|||||
|
GAAP
income from operations
|
$
|
118.8
|
$
|
114.5
|
$
|
238.7
|
$
|
215.9
|
|||||
|
SFAS
123R stock-based compensation expense
|
23.2
|
21.1
|
48.4
|
35.9
|
|||||||||
|
Employee
tax reimbursements related to stock
option review
|
-
|
-
|
-
|
12.0
|
|||||||||
|
Amortization
of developed technology
|
5.3
|
2.1
|
8.8
|
4.2
|
|||||||||
|
Amortization
of customer relationships and trademarks
|
6.4
|
2.0
|
9.3
|
3.9
|
|||||||||
|
In-process
research and development
|
16.8
|
1.0
|
16.8
|
1.0
|
|||||||||
|
Non-GAAP
income from operations
|
$
|
170.5
|
$
|
140.7
|
$
|
322.0
|
$
|
272.9
|
|||||
|
GAAP
provision for income taxes
|
$
|
(35.3
|
)
|
$
|
(26.3
|
)
|
$
|
(67.5
|
)
|
$
|
(54.2
|
)
|
|
|
Income
tax effect on difference between GAAP and non-GAAP total costs
and
expenses at a normalized rate
|
(11.2
|
)
|
(9.4
|
)
|
(20.3
|
)
|
(16.7
|
)
|
|||||
|
Non-GAAP
provision for income taxes
|
$
|
(46.5
|
)
|
$
|
(35.7
|
)
|
$
|
(87.8
|
)
|
$
|
(70.9
|
)
|
|
|
GAAP
net income
|
$
|
89.8
|
$
|
91.6
|
$
|
184.4
|
$
|
174.9
|
|||||
|
SFAS
123R stock-based compensation expense
|
23.2
|
21.1
|
48.4
|
35.9
|
|||||||||
|
Employee
tax reimbursements related to stock
option review
|
-
|
-
|
-
|
12.0
|
|||||||||
|
Amortization
of developed technology
|
5.3
|
2.1
|
8.8
|
4.2
|
|||||||||
|
Amortization
of customer relationships and
trademarks
|
6.4
|
2.0
|
9.3
|
3.9
|
|||||||||
|
In-process
research and development
|
16.8
|
1.0
|
16.8
|
1.0
|
|||||||||
|
Income
tax effect on difference between GAAP and non-GAAP total costs
and
expenses at a normalized rate
|
(11.2
|
)
|
(9.4
|
)
|
(20.3
|
)
|
(16.7
|
)
|
|||||
|
Non-GAAP
net income
|
$
|
130.3
|
$
|
108.4
|
$
|
247.4
|
$
|
215.2
|
|||||
|
GAAP
diluted net income per share
|
$
|
0.39
|
$
|
0.38
|
$
|
0.80
|
$
|
0.72
|
|||||
|
SFAS
123R stock-based compensation expense
|
0.10
|
0.09
|
0.21
|
0.15
|
|||||||||
|
In-process
research and development
|
0.07
|
-
|
0.07
|
-
|
|||||||||
|
Employee
tax reimbursements related to stock
option review
|
-
|
-
|
-
|
0.05
|
|||||||||
|
Amortization
of developed technology
|
0.02
|
0.01
|
0.03
|
0.02
|
|||||||||
|
Amortization
of customer relationships and
trademarks
|
0.03
|
-
|
0.04
|
0.01
|
|||||||||
|
Income
tax effect on difference between GAAP and non-GAAP total costs
and
expenses at a normalized rate
|
(0.05
|
)
|
(0.04
|
)
|
(0.09
|
)
|
(0.07
|
)
|
|||||
|
Non-GAAP
diluted net income per share
|
$
|
0.56
|
$
|
0.44
|
$
|
1.06
|
$
|
0.88
|
|||||
|
GAAP
diluted shares used in per share calculation
|
231.1
|
243.0
|
232.1
|
243.7
|
|||||||||
|
Impact
of SFAS 123R on diluted shares
|
0.8
|
1.3
|
0.5
|
1.3
|
|||||||||
|
Non-GAAP
diluted shares used in per share calculation
|
231.9
|
244.3
|
232.6
|
245.0
|
 |
|||||
|
Other
Supplemental Financial Information(1)
|
|
Fiscal
Year 2009
|
QTR
1
|
|
QTR
2
|
|
QTR
3
|
|
QTR
4
|
|
YTD
2009
|
|||||||
|
Financial
Statistics (in millions, except per share data):
|
||||||||||||||||
|
Total
net revenue
|
$
|
599
|
$
|
620
|
$
|
1,218
|
||||||||||
|
License
and other revenue
|
$
|
432
|
$
|
440
|
$
|
872
|
||||||||||
|
Maintenance
revenue
|
$
|
167
|
$
|
180
|
$
|
346
|
||||||||||
|
Gross
Margin - GAAP
|
90
|
%
|
90
|
%
|
90
|
%
|
||||||||||
|
Gross
Margin - Non-GAAP
|
91
|
%
|
91
|
%
|
91
|
%
|
||||||||||
|
GAAP
Operating Expenses
|
$
|
421
|
$
|
441
|
$
|
862
|
||||||||||
|
GAAP
Operating Margin
|
20
|
%
|
19
|
%
|
20
|
%
|
||||||||||
|
GAAP
Net Income
|
$
|
95
|
$
|
90
|
$
|
184
|
||||||||||
|
GAAP
Diluted Net Income Per Share
|
$
|
0.41
|
$
|
0.39
|
$
|
0.80
|
||||||||||
|
Non-GAAP
Operating Expenses (2)(3)
|
$
|
394
|
$
|
396
|
$
|
790
|
||||||||||
|
Non-GAAP
Operating Margin (2)(4)
|
25
|
%
|
28
|
%
|
26
|
%
|
||||||||||
|
Non-GAAP
Net Income (2)(5)
|
$
|
117
|
$
|
130
|
$
|
247
|
||||||||||
|
Non-GAAP
Diluted Net Income Per Share (2)(6)
|
$
|
0.50
|
$
|
0.56
|
$
|
1.06
|
||||||||||
|
Total
Cash and Marketable Securities
|
$
|
950
|
$
|
970
|
$
|
970
|
||||||||||
|
Days
Sales Outstanding
|
51
|
48
|
48
|
|||||||||||||
|
Capital
Expenditures
|
$
|
14
|
$
|
26
|
$
|
40
|
||||||||||
|
Cash
from Operations
|
$
|
185
|
$
|
209
|
$
|
394
|
||||||||||
|
GAAP
Depreciation and Amortization
|
$
|
17
|
$
|
22
|
$
|
39
|
||||||||||
|
Deferred
Maintenance Revenue Balance
|
$
|
474
|
$
|
488
|
$
|
488
|
||||||||||
|
Revenue
by Geography (in millions):
|
||||||||||||||||
|
Americas
|
$
|
191
|
$
|
203
|
$
|
394
|
||||||||||
|
Europe
|
$
|
259
|
$
|
267
|
$
|
526
|
||||||||||
|
Asia/Pacific
|
$
|
149
|
$
|
150
|
$
|
298
|
||||||||||
|
Revenue
by Segment (in millions):
|
||||||||||||||||
|
Platform
Solutions and Emerging Business and Other
|
$
|
278
|
$
|
270
|
$
|
548
|
||||||||||
|
Architecture,
Engineering and Construction
|
$
|
129
|
$
|
144
|
$
|
273
|
||||||||||
|
Manufacturing
Solutions
|
$
|
119
|
$
|
131
|
$
|
250
|
||||||||||
|
Media
and Entertainment
|
$
|
67
|
$
|
69
|
$
|
136
|
||||||||||
|
Other
|
$
|
6
|
$
|
6
|
$
|
11
|
||||||||||
|
Other
Revenue Statistics:
|
||||||||||||||||
|
%
of Total Rev from AutoCAD and AutoCAD LT
|
41
|
%
|
35
|
%
|
38
|
%
|
||||||||||
|
%
of Total Rev from 3D design products
|
24
|
%
|
26
|
%
|
25
|
%
|
||||||||||
|
%
of Total Rev from Emerging Economies
|
17
|
%
|
18
|
%
|
18
|
%
|
||||||||||
|
Upgrade
Revenue (in millions)
|
$
|
61
|
$
|
58
|
$
|
119
|
||||||||||
|
Favorable
(Unfavorable) Impact of U.S. Dollar Translation Relative to Foreign
Currencies Compared to Comparable Prior Year Period (in
millions):
|
||||||||||||||||
|
FX
Impact on Total Net Revenue
|
$
|
41
|
$
|
42
|
$
|
83
|
||||||||||
|
FX
Impact on Total Operating Expenses
|
$
|
(14
|
)
|
$
|
(11
|
)
|
$
|
(25
|
)
|
|||||||
|
FX
Impact on Total Net Income
|
$
|
27
|
$
|
31
|
$
|
58
|
||||||||||
|
Gross
Margin by Segment (in millions):
|
||||||||||||||||
|
Platform
Solutions and Emerging Business and Other
|
$
|
263
|
$
|
255
|
$
|
518
|
||||||||||
|
Architecture,
Engineering and Construction
|
$
|
119
|
$
|
133
|
$
|
252
|
||||||||||
|
Manufacturing
Solutions
|
$
|
110
|
$
|
122
|
$
|
232
|
||||||||||
|
Media
and Entertainment
|
$
|
50
|
$
|
52
|
$
|
102
|
||||||||||
|
Unallocated
amounts
|
$
|
(1
|
)
|
$
|
(2
|
)
|
$
|
(3
|
)
|
|||||||
|
Common
Stock Statistics:
|
||||||||||||||||
|
GAAP
Shares Outstanding
|
223,616,000
|
224,528,000
|
224,528,000
|
|||||||||||||
|
GAAP
Fully Diluted Weighted Average Shares Outstanding
|
232,607,000
|
231,078,000
|
232,097,000
|
|||||||||||||
|
Shares
Repurchased
|
8,001,000
|
-
|
8,001,000
|
|||||||||||||
|
Installed
Base Statistics:
|
||||||||||||||||
|
Total
AutoCAD-based Installed Base
|
4,377,000
|
4,436,000
|
4,436,000
|
|||||||||||||
|
Total
Inventor Installed Base
|
794,000
|
819,000
|
819,000
|
|||||||||||||
|
Total
Maintenance Installed Base
|
1,587,000
|
1,644,000
|
1,644,000
|
|||||||||||||
|
|
|||||
|
|
|
(1)
Totals may not agree with the sum of the components due to
rounding.
|
||||||||||||||||
|
(2)
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 revenue, 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.
|
|
|
|||||
|
|
| Fiscal Year 2009 |
QTR
1
|
|
|
QTR
2
|
|
|
QTR
3
|
|
|
QTR
4
|
|
|
YTD
2009
|
||||
| (3) |
GAAP
Operating Expenses
|
$
|
421
|
$
|
441
|
$
|
862
|
||||||||||
|
Stock-based
compensation expense
|
(24
|
)
|
(22
|
)
|
(46
|
)
|
|||||||||||
|
Amortization
of customer relationships and trademarks
|
(3
|
)
|
(6
|
)
|
(9
|
)
|
|||||||||||
|
In-process
research and development
|
-
|
(17
|
)
|
(17
|
)
|
||||||||||||
|
Non-GAAP
Operating Expenses
|
$
|
394
|
$
|
396
|
$
|
790
|
|||||||||||
| (4) |
GAAP
Operating Margin
|
20
|
%
|
19
|
%
|
20
|
%
|
||||||||||
|
Stock-based
compensation expense
|
4
|
%
|
4
|
%
|
4
|
%
|
|||||||||||
|
Amortization
of developed technology
|
1
|
%
|
1
|
%
|
0
|
%
|
|||||||||||
|
Amortization
of customer relationships and trademarks
|
1
|
%
|
1
|
%
|
1
|
%
|
|||||||||||
|
In-process
research and development
|
0
|
%
|
3
|
%
|
1
|
%
|
|||||||||||
|
Non-GAAP
Operating Margin
|
25
|
%
|
28
|
%
|
26
|
%
|
|||||||||||
| (5) |
GAAP
Net Income
|
$
|
95
|
$
|
90
|
$
|
184
|
||||||||||
|
Stock-based
compensation expense
|
25
|
23
|
48
|
||||||||||||||
|
Amortization
of developed technology
|
4
|
5
|
9
|
||||||||||||||
|
Amortization
of customer relationships and trademarks
|
3
|
6
|
9
|
||||||||||||||
|
In-process
research and development
|
-
|
17
|
17
|
||||||||||||||
|
Income
tax effect on difference between GAAP and non-GAAP
total
costs and expenses at a normalized rate
|
(9
|
)
|
(11
|
)
|
(20
|
)
|
|||||||||||
|
Non-GAAP
Net Income
|
$
|
117
|
$
|
130
|
$
|
247
|
|||||||||||
| (6) |
GAAP
Diluted Net Income Per Share
|
$
|
0.41
|
$
|
0.39
|
$
|
0.80
|
||||||||||
|
Stock-based
compensation expense
|
0.11
|
0.10
|
0.21
|
||||||||||||||
|
Amortization
of developed technology
|
0.01
|
0.02
|
0.03
|
||||||||||||||
|
Amortization
of customer relationships and trademarks
|
0.01
|
0.03
|
0.04
|
||||||||||||||
|
In-process
research and development
|
-
|
0.07
|
0.07
|
||||||||||||||
|
Income
tax effect on difference between GAAP and non-GAAP
total costs and expenses at a normalized rate |
(0.04
|
)
|
(0.05
|
)
|
(0.09
|
)
|
|||||||||||
|
Non-GAAP
Diluted Net Income Per Share
|
$
|
0.50
|
$
|
0.56
|
$
|
1.06
|
|||||||||||