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 23,
2010
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):
[ ]
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))
Item 2.02.
Results of Operations and Financial Condition.
On
February 23, 2010, Autodesk, Inc. (“Autodesk” or the “Company”) issued a
press release and prepared remarks reporting financial results for the fourth
quarter and fiscal year ended January 31, 2010. The press
release and prepared remarks are furnished herewith as Exhibit 99.1 and
Exhibit 99.2, respectively, and are incorporated herein by
reference.
These
exhibits 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 and prepared remarks furnished herewith as
Exhibit 99.1 and Exhibit 99.2, respectively, provide investors with certain
non-GAAP measures, including but not limited to 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
non-GAAP measures that do not include: (a) stock-based compensation
expenses, (b) amortization of purchased intangibles and purchases of
technology, including in-process research and development expenses,
(c) goodwill and intangible assets impairment, (d) restructuring
charges, (e) establishment of a valuation allowance on certain net deferred
tax assets, and (f) the income tax effects on the difference between GAAP
and non-GAAP costs and expenses. Autodesk’s management uses 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 our and
our competitors’ historical results and operating guidance.
As
described above, Autodesk excludes the following items from its non-GAAP
measures:
A. Stock-based compensation
expenses. Autodesk excludes stock-based compensation expenses from its
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.
B. Amortization of purchased
intangibles and purchases of technology, including 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 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. Goodwill and intangible assets
impairment. This is a non-cash charge to write-down goodwill and
intangible assets to fair value when there was an indication that the asset was
impaired. As explained above, 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.
D. Restructuring charges. These
expenses are associated with realigning our business strategies based on current
economic conditions. In connection with these restructuring actions, we
recognize costs related to termination benefits for former employees whose
positions were eliminated, and the closure of facilities and cancelation of
certain contracts. We exclude these charges because these expenses are not
reflective of ongoing operating results in the current period.
E. Establishment of a valuation
allowance on certain net deferred tax assets. This is a non-cash charge
to record a valuation allowance on certain deferred tax assets. As explained
above, management finds it useful to exclude certain non-cash charges to assess
the appropriate level of various expenses to assist in budgeting, planning and
forecasting future periods.
F. Income tax effects on the difference
between GAAP and non-GAAP costs and expenses. 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 and prepared
remarks. 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 and prepared remarks.
Item
9.01. Financial Statements and Exhibits.
(d)
Exhibits.
|
Exhibit
No.
|
Description
|
|
|
99.1
|
Press
release dated as of February 23, 2010, entitled “Autodesk Posts
Sequential Revenue, Profitability and Cash Flow
Growth.”
|
|
|
99.2
|
Prepared
Remarks dated as of February 23,
2010.
|
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/ Mark J.
Hawkins
|
||
|
Mark
J. Hawkins
Executive
Vice President and Chief Financial
Officer
|
Date: February 23,
2010
EXHIBIT
INDEX
|
Exhibit
No.
|
Description
|
|
|
99.1
|
Press
release dated as of February 23, 2010, entitled “Autodesk Posts
Sequential Revenue, Profitability and Cash Flow
Growth.”
|
|
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99.2
|
Prepared
Remarks dated as of February 23,
2010.
|
Exhibit
99.1
Investors
David
Gennarelli, 415.507.6033, david.gennarelli@autodesk.com
Press :
Pam
Pollace, 415.547.2441, pam.pollace@autodesk.com
AUTODESK
POSTS SEQUENTIAL REVENUE, PROFITABILITY AND CASH FLOW GROWTH
Revenue of
$456 million up 9% sequentially
GAAP EPS
of $0.21 up 62% sequentially
Non-GAAP
EPS of $0.30 up 11% sequentially
SAN RAFAEL, Calif., February 23,
2010-- Autodesk, Inc. (NASDAQ: ADSK) today reported financial results for
the fourth quarter and full year fiscal 2010.
Fourth
Quarter Fiscal 2010
|
·
|
Revenue
was $456 million, an increase of 9 percent sequentially and a decrease of
7 percent compared to the fourth quarter of fiscal
2009.
|
|
·
|
On a
GAAP basis, diluted earnings per share were $0.21, compared to diluted
earnings per share of $0.13 in the third quarter of fiscal 2010, and
diluted loss per share of $0.47 in the fourth quarter of fiscal
2009.
|
|
·
|
On a
non-GAAP basis, diluted earnings per share were $0.30, compared to
non-GAAP diluted earnings per share of $0.27 in the third quarter of
fiscal 2010, and non-GAAP diluted earnings per share of $0.31 in the
fourth quarter of fiscal 2009. A reconciliation of GAAP and
non-GAAP results is provided in the accompanying
tables.
|
|
·
|
Cash
flow from operations was $126 million, an increase of 169 percent
sequentially and 45 percent compared to the fourth quarter of fiscal
2009.
|
|
“We
finished the year with better than anticipated revenue and profitability
in the fourth quarter,” said Carl Bass, Autodesk president and
CEO. “These results were driven by a sequentially improving
demand environment and continued competitive displacements. In
addition to our focus on growth, cost containment contributed to our
performance.”
Driving
the performance in revenue and profitability were sequential increases in
revenue from commercial new seat licenses, revenue from every Geography,
revenue from each product type, as well as revenue from our Manufacturing,
AEC, and Platform Solutions and Emerging Business
segments.
|
 |
1
Fourth
Quarter Operational Overview
EMEA
revenue increased 18 percent sequentially as reported and 15 percent on a
constant currency basis to $188 million. EMEA revenue decreased 14
percent compared to the fourth quarter of fiscal 2009 as reported and 22 percent
on a constant currency basis. Revenue in the Americas increased 3
percent sequentially to $168 million and decreased 2 percent compared to the
fourth quarter of fiscal 2009. Revenue in Asia Pacific was $100
million, an increase of 6 percent sequentially as reported and 4 percent on a
constant currency basis. Revenue in Asia Pacific increased 1 percent
compared to the fourth quarter of fiscal 2009 as reported and decreased 4
percent on a constant currency basis.
Revenue
from emerging economies was $73 million, an increase of 18 percent sequentially
as reported and 16 percent on a constant currency basis. Revenue from
emerging economies decreased 8 percent compared to the fourth quarter of fiscal
2009 as reported and 12 percent on a constant currency basis. Revenue
from emerging economies represented 16 percent of total revenue in the fourth
quarter.
Combined
revenue from Autodesk's 3D model-based design solutions was $134 million, an
increase of 10 percent sequentially and a decline of 7 percent compared to the
fourth quarter of fiscal 2009. Revenue from 2D horizontal and 2D
vertical products was $213 million, a 13 percent increase sequentially and 8
percent decrease compared to the fourth quarter of fiscal
2009. Combined revenue from our AutoCAD and AutoCAD LT products
increased 9 percent sequentially and decreased 9 percent compared to the fourth
quarter last year.
Cash flow
from operations was $126 million in the fourth quarter bringing our cash and
investments balance to over $1.1 billion, or cash and investments of
approximately $4.92 per share of common stock outstanding.
Full
Year Fiscal 2010
|
·
|
Revenue
was $1.7 billion, a decrease of 26 percent compared to fiscal
2009.
|
|
·
|
On a
GAAP basis, diluted earnings per share were $0.25, compared to diluted
earnings per share of $0.80 in fiscal
2009.
|
|
·
|
On a
non-GAAP basis, diluted earnings per share were $0.99, compared to
non-GAAP diluted earnings per share of $1.95 in fiscal
2009.
|
|
·
|
Cash
flow from operations was $247 million, a decrease of 58 percent compared
to fiscal 2009.
|
2
|
·
|
GAAP
total spend (GAAP cost of revenue plus GAAP operating expenses) decreased
by $423 million, or 20 percent compared to fiscal
2009.
|
|
·
|
Non-GAAP
total spend (non-GAAP cost
of revenue plus non-GAAP operating expenses) decreased by $312
million, or 18 percent compared to fiscal
2009.
|
“Fiscal
2010 was a challenging year by any measure,” continued Bass. “We took
action to significantly reduce our cost structure and increase our
efficiency. As a result, we greatly exceeded our initial goal of
pre-tax cost savings of $250 million. Those actions, and our
continued investments in essential parts of our business, helped strengthen
Autodesk and position the company for long-term growth and
success. Going forward, we will continue to build on our foundation
as a world leader in design, engineering, and entertainment
software.”
Business
Outlook
The
following are forward-looking statements that are based on current expectations
that involve risks and uncertainties, some of which are set forth
below.
First
Quarter Fiscal 2011
For the
first quarter of fiscal 2011, Autodesk expects revenue to be in the range of
$420 million to $440 million. On a GAAP basis, earnings per diluted share
are expected to be in the range of $0.02 and $0.07. On a non-GAAP basis,
earnings per diluted share are expected to be in the range of $0.18 and $0.23,
excluding $0.08 related to stock-based compensation expense, $0.05 for
amortization of acquisition related intangibles, and $0.03 related to
restructuring charges.
First
quarter outlook assumes an effective tax rate of 27 percent. The
increase in the tax rates from fiscal 2010 is primarily due to expiration of a
research and development tax credit.
Full
Year Fiscal 2011
Autodesk
is not providing specific revenue or EPS guidance for fiscal 2011 at this
time. However, operating margin on a GAAP basis for the full year
fiscal 2011 is expected to increase significantly compared to fiscal
2010. Autodesk continues to anticipate modest improvement in non-GAAP
operating margin for full year fiscal 2011 compared to fiscal
2010. For fiscal 2011, non-GAAP operating margin excludes stock-based
compensation expense, amortization of acquisition related intangibles, and
restructuring related charges.
3
Earnings
Conference Call and Webcast
Autodesk
will host its fourth quarter conference call today at 5:00 p.m. EST (2:00 p.m.
PST). The live broadcast can be accessed at http://www.autodesk.com/investors.
Supplemental financial information and prepared remarks for the conference call
will be posted to the investor relations section of our Website simultaneously
with this press release.
NOTE: The prepared remarks
will not be read on the conference call. The conference call will
include only brief remarks followed by questions and answers.
A replay
of the broadcast will be available at 7:00 pm EST at
http://www.autodesk.com/investors. This replay will be maintained on our Website
for at least twelve months.
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, economic and revenue trends,
cost savings, operational and efficiency investments, and other statements
regarding our expected strategies, market and products positions, performance
and results. Other factors that could cause actual results to differ
materially include the following: general market, economic and
business conditions, our performance in particular geographies, including
emerging economies, the financial and business condition of our reseller and
distribution channels, fluctuation in foreign currency exchange rates, failure
to achieve and maintain planned cost reductions and productivity increases,
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 migration from 2D products to 3D products,
difficulties encountered in integrating new or acquired businesses and
technologies, the inability to identify and realize the anticipated benefits of
acquisitions, unexpected fluctuations in our tax rate, the timing and degree of
expected investments in growth and efficiency opportunities, 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, interruptions or terminations in the
business of Autodesk consultants, and any unanticipated accounting
charges.
Further
information on potential factors that could affect the financial results of
Autodesk are included in Autodesk’s reports on Form 10-K for the year ended
January 31, 2009 and Forms 10-Q for the quarters ended April 30, 2009, July 31,
2009, and October 31, 2009, which are on file with the U.S. 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.
4
About
Autodesk
Autodesk,
Inc. is a world leader in 2D and 3D design, engineering and entertainment
software for the manufacturing, building and construction, and media and
entertainment markets. Since its introduction of AutoCAD software in 1982,
Autodesk continues to develop the broadest portfolio of state-of-the-art
software to help customers experience their ideas digitally before they are
built. Fortune 100 companies - as well as the last 14 Academy Award winners for
Best Visual Effects - use Autodesk software tools to design, visualize and
simulate their ideas to save time and money, enhance quality, and foster
innovation for competitive advantage.
Autodesk
and AutoCAD are registered trademarks or trademarks of Autodesk, Inc., and/or
its subsidiaries and/or affiliates in the USA and/or other countries. Academy
Award is a registered trademark of the Academy of Motion Picture Arts and
Sciences. All other brand names, product names, or trademarks belong to their
respective holders. Autodesk reserves the right to alter product and service
offerings, and specifications and pricing at any time without notice, and is not
responsible for typographical or graphical errors that may appear in this
document. © 2010 Autodesk, Inc. All rights reserved.
©
2010 Autodesk, Inc. All rights reserved.
5
|
Autodesk,
Inc.
|
||||||||||||||||
|
Consolidated
Statements of Operations
|
||||||||||||||||
|
(In
millions, except per share data)
|
||||||||||||||||
|
Three
Months Ended
|
Fiscal
Year Ended
|
|||||||||||||||
|
January
31,
|
January
31,
|
|||||||||||||||
|
2010
|
2009
|
2010
|
2009
|
|||||||||||||
|
(Unaudited)
|
(Unaudited) | |||||||||||||||
|
Net
revenue:
|
||||||||||||||||
|
License
and other
|
$ | 270.0 | $ | 310.0 | $ | 980.7 | $ | 1,603.4 | ||||||||
|
Maintenance
|
186.1 | 179.8 | 733.0 | 711.8 | ||||||||||||
|
Total
net revenue
|
456.1 | 489.8 | 1,713.7 | 2,315.2 | ||||||||||||
|
Cost
of revenue:
|
||||||||||||||||
|
Cost
of license and other revenue
|
41.3 | 46.0 | 179.9 | 210.2 | ||||||||||||
|
Cost
of maintenance revenue
|
3.1 | 2.5 | 11.9 | 8.9 | ||||||||||||
|
Total
cost of revenue
|
44.4 | 48.5 | 191.8 | 219.1 | ||||||||||||
|
Gross
profit
|
411.7 | 441.3 | 1,521.9 | 2,096.1 | ||||||||||||
|
Operating
Expenses:
|
||||||||||||||||
|
Marketing
and sales
|
191.3 | 218.0 | 731.9 | 900.7 | ||||||||||||
|
Research
and development
|
116.8 | 138.7 | 457.5 | 576.1 | ||||||||||||
|
General
and administrative
|
47.1 | 49.3 | 197.7 | 205.7 | ||||||||||||
|
Impairment
of goodwill and intangibles
|
- | 128.9 | 21.0 | 128.9 | ||||||||||||
|
Restructuring
charges
|
0.4 | 40.2 | 48.2 | 40.2 | ||||||||||||
|
Total
operating expenses
|
355.6 | 575.1 | 1,456.3 | 1,851.6 | ||||||||||||
|
Income
(loss) from operations
|
56.1 | (133.8 | ) | 65.6 | 244.5 | |||||||||||
|
Interest
and other income (expense), net
|
2.6 | (1.8 | ) | 19.1 | 8.0 | |||||||||||
|
Income
(loss) before income taxes
|
58.7 | (135.6 | ) | 84.7 | 252.5 | |||||||||||
|
(Provision)
benefit for income taxes
|
(8.6 | ) | 30.3 | (26.7 | ) | (68.9 | ) | |||||||||
|
Net
income (loss)
|
$ | 50.1 | $ | (105.3 | ) | $ | 58.0 | $ | 183.6 | |||||||
|
Basic
net income (loss) per share
|
$ | 0.22 | $ | (0.47 | ) | $ | 0.25 | $ | 0.81 | |||||||
|
Diluted
net income (loss) per share
|
$ | 0.21 | $ | (0.47 | ) | $ | 0.25 | $ | 0.80 | |||||||
|
Shares
used in computing basic
|
||||||||||||||||
|
net
income (loss) per share
|
229.0 | 226.3 | 228.7 | 225.5 | ||||||||||||
|
Shares
used in computing diluted
|
||||||||||||||||
|
net
income (loss) per share
|
233.2 | 226.3 | 232.1 | 230.1 | ||||||||||||
6
|
Autodesk,
Inc.
|
||||||||
|
Condensed
Consolidated Balance Sheets
|
||||||||
|
(In
millions)
|
||||||||
|
January
31,
|
January
31,
|
|||||||
|
2010
|
2009
|
|||||||
|
(Unaudited)
|
||||||||
|
ASSETS:
|
||||||||
|
Current
assets:
|
||||||||
|
Cash
and cash equivalents
|
$ | 838.7 | $ | 917.6 | ||||
|
Marketable
securities
|
161.9 | 63.5 | ||||||
|
Accounts
receivable, net
|
277.4 | 316.5 | ||||||
|
Deferred
income taxes
|
44.2 | 31.1 | ||||||
|
Prepaid
expenses and other current assets
|
57.4 | 59.3 | ||||||
|
Total
current assets
|
1,379.6 | 1,388.0 | ||||||
|
Marketable
securities
|
125.6 | 7.6 | ||||||
|
Computer
equipment, software, furniture and leasehold improvements,
net
|
101.6 | 120.6 | ||||||
|
Purchased
technologies, net
|
88.0 | 113.3 | ||||||
|
Goodwill
|
542.9 | 542.5 | ||||||
|
Long
term deferred income taxes, net
|
101.9 | 125.7 | ||||||
|
Other
assets
|
107.6 | 123.0 | ||||||
| $ | 2,447.2 | $ | 2,420.7 | |||||
|
LIABILITIES
AND STOCKHOLDERS' EQUITY:
|
||||||||
|
Current
liabilities:
|
||||||||
|
Accounts
payable
|
$ | 67.8 | $ | 62.4 | ||||
|
Accrued
compensation
|
115.6 | 124.3 | ||||||
|
Accrued
income taxes
|
8.4 | 16.7 | ||||||
|
Deferred
revenue
|
444.6 | 438.8 | ||||||
|
Borrowings
under line of credit
|
- | 52.1 | ||||||
|
Other
accrued liabilities
|
67.6 | 105.8 | ||||||
|
Total
current liabilities
|
704.0 | 800.1 | ||||||
|
Deferred
revenue
|
71.9 | 113.3 | ||||||
|
Long
term income taxes payable
|
127.2 | 116.9 | ||||||
|
Long
term deferred income taxes
|
- | 22.7 | ||||||
|
Other
liabilities
|
70.6 | 57.0 | ||||||
|
Commitments
and contingencies
|
||||||||
|
Stockholders'
equity:
|
||||||||
|
Preferred
stock
|
- | - | ||||||
|
Common
stock and additional paid-in capital
|
1,204.3 | 1,080.4 | ||||||
|
Accumulated
other comprehensive income (loss)
|
(3.5 | ) | (11.2 | ) | ||||
|
Retained
earnings
|
272.7 | 241.5 | ||||||
|
Total
stockholders' equity
|
1,473.5 | 1,310.7 | ||||||
| $ | 2,447.2 | $ | 2,420.7 | |||||
7
|
Autodesk,
Inc.
|
||||||||
|
Condensed
Consolidated Statements of Cash Flows
|
||||||||
|
(In
millions)
|
||||||||
|
Fiscal
Year Ended
|
||||||||
|
January
31,
|
||||||||
|
2010
|
2009
|
|||||||
|
(Unaudited)
|
||||||||
|
Operating
Activities
|
||||||||
|
Net
income
|
$ | 58.0 | $ | 183.6 | ||||
|
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
||||||||
|
Depreciation
and amortization
|
111.5 | 91.8 | ||||||
|
Stock-based
compensation expense
|
93.6 | 89.5 | ||||||
|
Impairment
of goodwill and intangibles
|
21.0 | 128.9 | ||||||
|
Restructuring
charges, net
|
48.2 | 38.9 | ||||||
|
Gain
on disposition of assets
|
(2.3 | ) | - | |||||
|
Charge
for acquired in-process research and development
|
- | 26.9 | ||||||
|
Changes
in operating assets and liabilities,
net
of business combinations
|
(83.2 | ) | 34.3 | |||||
|
Net
cash provided by operating activities
|
246.8 | 593.9 | ||||||
|
Investing
Activities:
|
||||||||
|
Purchases
of marketable securities
|
(568.9 | ) | (118.6 | ) | ||||
|
Sales
of marketable securities
|
26.4 | 75.0 | ||||||
|
Maturities
of marketable securities
|
328.7 | 8.4 | ||||||
|
Capital
expenditures
|
(39.0 | ) | (78.4 | ) | ||||
|
Purchases
of equity investments
|
(11.4 | ) | - | |||||
|
Business
combinations, net of cash acquired
|
(18.8 | ) | (364.5 | ) | ||||
|
Net
cash used in investing activities
|
(283.0 | ) | (478.1 | ) | ||||
|
Financing
activities:
|
||||||||
|
Draws
on line of credit
|
2.2 | 912.4 | ||||||
|
Repayments
of line of credit
|
(54.3 | ) | (860.3 | ) | ||||
|
Proceeds
from issuance of common stock, net of issuance costs
|
70.0 | 90.1 | ||||||
|
Repurchases
of common stock
|
(63.2 | ) | (256.6 | ) | ||||
|
Net
cash used in financing activities
|
(45.3 | ) | (114.4 | ) | ||||
|
Effect
of exchange rate changes on cash and cash equivalents
|
2.6 | (1.7 | ) | |||||
|
Net
decrease in cash and cash equivalents
|
(78.9 | ) | (0.3 | ) | ||||
|
Cash
and cash equivalents at beginning of fiscal year
|
917.6 | 917.9 | ||||||
|
Cash
and cash equivalents at end of period
|
$ | 838.7 | $ | 917.6 | ||||
8
|
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 profit, non-GAAP
operating expenses, non-GAAP income from operations, non-GAAP interest and
other income, net, non-GAAP provision for income taxes and non-GAAP total
spend savings. These non-GAAP financial measures are adjusted
to exclude certain costs, expenses, gains and losses, including
stock-based compensation expense, amortization of purchased
intangibles, in-process research and development expenses, restructuring
charges, goodwill and intangibles impairment, establishment of a valuation
allowance on certain deferred tax assets and related 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.
|
|
The
following table shows Autodesk's non-GAAP results reconciled to GAAP
results included in this release.
|
|
Three
Months Ended
|
Fiscal
Year Ended
|
|||||||||||||||
|
January
31,
|
January
31,
|
|||||||||||||||
|
2010
|
2009
|
2010
|
2009
|
|||||||||||||
|
(Unaudited)
|
(Unaudited)
|
|||||||||||||||
|
GAAP
cost of license and other revenue
|
$ | 41.3 | $ | 46.0 | $ | 179.9 | $ | 210.2 | ||||||||
|
Stock-based
compensation expense
|
(0.7 | ) | (0.5 | ) | (3.1 | ) | (3.6 | ) | ||||||||
|
Amortization
of developed technology
|
(7.6 | ) | (7.9 | ) | (32.9 | ) | (23.2 | ) | ||||||||
|
Non-GAAP
cost of license and other revenue
|
$ | 33.0 | $ | 37.6 | $ | 143.9 | $ | 183.4 | ||||||||
|
GAAP
gross profit
|
$ | 411.7 | $ | 441.3 | $ | 1,521.9 | $ | 2,096.1 | ||||||||
|
Stock-based
compensation expense
|
0.7 | 0.5 | 3.1 | 3.6 | ||||||||||||
|
Amortization
of developed technology
|
7.6 | 7.9 | 32.9 | 23.2 | ||||||||||||
|
Non-GAAP
gross profit
|
$ | 420.0 | $ | 449.7 | $ | 1,557.9 | $ | 2,122.9 | ||||||||
|
GAAP
marketing and sales
|
$ | 191.3 | $ | 218.0 | $ | 731.9 | $ | 900.7 | ||||||||
|
Stock-based
compensation expense
|
(8.6 | ) | (8.6 | ) | (41.1 | ) | (39.2 | ) | ||||||||
|
Non-GAAP
marketing and sales
|
$ | 182.7 | $ | 209.4 | $ | 690.8 | $ | 861.5 | ||||||||
|
GAAP
research and development
|
$ | 116.8 | $ | 138.7 | $ | 457.5 | $ | 576.1 | ||||||||
|
Stock-based
compensation expense
|
(6.3 | ) | (6.0 | ) | (30.0 | ) | (29.3 | ) | ||||||||
|
In-process
research and development
|
- | (8.9 | ) | - | (26.9 | ) | ||||||||||
|
Non-GAAP
research and development
|
$ | 110.5 | $ | 123.8 | $ | 427.5 | $ | 519.9 | ||||||||
|
GAAP
general and administrative
|
$ | 47.1 | $ | 49.3 | $ | 197.7 | $ | 205.7 | ||||||||
|
Stock-based
compensation expense
|
(3.3 | ) | (3.6 | ) | (19.4 | ) | (17.5 | ) | ||||||||
|
Amortization
of customer relationships and trademarks
|
(6.0 | ) | (6.9 | ) | (25.5 | ) | (23.4 | ) | ||||||||
|
Non-GAAP
general and administrative
|
$ | 37.8 | $ | 38.8 | $ | 152.8 | $ | 164.8 | ||||||||
|
GAAP
impairment of goodwill and intangibles
|
$ | - | $ | 128.9 | $ | 21.0 | $ | 128.9 | ||||||||
|
Impairment
of goodwill and intangibles
|
- | (128.9 | ) | (21.0 | ) | (128.9 | ) | |||||||||
|
Non-GAAP
impairment of goodwill and intangibles
|
$ | - | $ | - | $ | - | $ | - | ||||||||
|
GAAP
restructuring charges
|
$ | 0.4 | $ | 40.2 | $ | 48.2 | $ | 40.2 | ||||||||
|
Restructuring
charges
|
(0.4 | ) | (40.2 | ) | (48.2 | ) | (40.2 | ) | ||||||||
|
Non-GAAP
restructuring charges
|
$ | - | $ | - | $ | - | $ | - | ||||||||
|
GAAP
operating expenses
|
$ | 355.6 | $ | 575.1 | $ | 1,456.3 | $ | 1,851.6 | ||||||||
|
Stock-based
compensation expense
|
(18.2 | ) | (18.2 | ) | (90.5 | ) | (86.0 | ) | ||||||||
|
Amortization
of customer relationships and trademarks
|
(6.0 | ) | (6.9 | ) | (25.5 | ) | (23.4 | ) | ||||||||
|
In-process
reasearch and development
|
- | (8.9 | ) | - | (26.9 | ) | ||||||||||
|
Impairment
of goodwill and intangibles
|
- | (128.9 | ) | (21.0 | ) | (128.9 | ) | |||||||||
|
Restructuring
charges
|
(0.4 | ) | (40.2 | ) | (48.2 | ) | (40.2 | ) | ||||||||
|
Non-GAAP
operating expenses
|
$ | 331.0 | $ | 372.0 | $ | 1,271.1 | $ | 1,546.2 | ||||||||
|
GAAP
income (loss) from operations
|
$ | 56.1 | $ | (133.8 | ) | $ | 65.6 | $ | 244.5 | |||||||
|
Stock-based
compensation expense
|
18.9 | 18.7 | 93.6 | 89.6 | ||||||||||||
|
Amortization
of developed technology
|
7.6 | 7.9 | 32.9 | 23.2 | ||||||||||||
|
Amortization
of customer relationships and trademarks
|
6.0 | 6.9 | 25.5 | 23.4 | ||||||||||||
|
In-process
reasearch and development
|
- | 8.9 | - | 26.9 | ||||||||||||
|
Impairment
of goodwill and intangibles
|
- | 128.9 | 21.0 | 128.9 | ||||||||||||
|
Restructuring
charges
|
0.4 | 40.2 | 48.2 | 40.2 | ||||||||||||
|
Non-GAAP
income from operations
|
$ | 89.0 | $ | 77.7 | $ | 286.8 | $ | 576.7 | ||||||||
|
GAAP
(provision) benefit for income taxes
|
$ | (8.6 | ) | $ | 30.3 | $ | (26.7 | ) | $ | (68.9 | ) | |||||
|
Establishment
of valuation allowance on deferred
tax assets
|
- | - | 21.0 | - | ||||||||||||
|
Income
tax effect on difference between GAAP and non-
GAAP
total costs and expenses at a normalized rate
|
(13.1 | ) | (35.9 | ) | (68.5 | ) | (68.0 | ) | ||||||||
|
Non-GAAP
(provision) for income tax
|
$ | (21.7 | ) | $ | (5.6 | ) | $ | (74.2 | ) | $ | (136.9 | ) | ||||
|
GAAP
net income (loss)
|
$ | 50.1 | $ | (105.3 | ) | $ | 58.0 | $ | 183.6 | |||||||
|
Stock-based
compensation expense
|
18.9 | 18.7 | 93.6 | 89.6 | ||||||||||||
|
Amortization
of developed technology
|
7.6 | 7.9 | 32.9 | 23.2 | ||||||||||||
|
Amortization
of customer relationships and trademarks
|
6.0 | 6.9 | 25.5 | 23.4 | ||||||||||||
|
In-process
research and development
|
- | 8.9 | - | 26.9 | ||||||||||||
|
Impairment
of goodwill and intangibles
|
- | 128.9 | 21.0 | 128.9 | ||||||||||||
|
Restructuring
charges
|
0.4 | 40.2 | 48.2 | 40.2 | ||||||||||||
|
Establishment
of valuation allowance on deferred
tax assets
|
- | - | 21.0 | - | ||||||||||||
|
Income
tax effect on difference between GAAP and non-
GAAP
total costs and expenses at a normalized rate
|
(13.1 | ) | (35.9 | ) | (68.5 | ) | (68.0 | ) | ||||||||
|
Non-GAAP
net income
|
$ | 69.9 | $ | 70.3 | $ | 231.7 | $ | 447.8 | ||||||||
|
GAAP
diluted net income (loss) per share
|
$ | 0.21 | $ | (0.47 | ) | $ | 0.25 | $ | 0.80 | |||||||
|
Stock-based
compensation expense
|
0.08 | 0.08 | 0.40 | 0.39 | ||||||||||||
|
Amortization
of developed technology
|
0.03 | 0.04 | 0.14 | 0.10 | ||||||||||||
|
Amortization
of customer relationships and trademarks
|
0.03 | 0.03 | 0.11 | 0.10 | ||||||||||||
|
In-process
research and development
|
- | 0.04 | - | 0.12 | ||||||||||||
|
Impairment
of goodwill and intangibles
|
- | 0.56 | 0.09 | 0.56 | ||||||||||||
|
Restructuring
charges
|
- | 0.18 | 0.21 | 0.18 | ||||||||||||
|
Establishment
of valuation allowance on deferred
tax assets
|
- | - | 0.09 | - | ||||||||||||
|
Income
tax effect on difference between GAAP and non-
GAAP
total costs and expenses at a normalized rate
|
(0.05 | ) | (0.15 | ) | (0.30 | ) | (0.30 | ) | ||||||||
|
Non-GAAP
diluted net income per share
|
$ | 0.30 | $ | 0.31 | $ | 0.99 | $ | 1.95 | ||||||||
|
GAAP
diluted shares used in per share calculation
|
233.2 | 226.3 | 232.1 | 230.1 | ||||||||||||
|
Impact
of stock-based compensation on diluted shares
|
0.7 | (0.2 | ) | 0.9 | (0.4 | ) | ||||||||||
|
Shares
included in non-GAAP net income per share, but
excluded
from GAAP net loss per share as they would
have
been anti-dilutive
|
- | 3.0 | - | - | ||||||||||||
|
Non-GAAP
diluted shares used in per share calculation
|
233.9 | 229.1 | 233.0 | 229.7 | ||||||||||||
|
GAAP
total spend savings +
|
$ | 423 | ||||||||||||||
|
Stock-based
compensation expense
|
3 | |||||||||||||||
|
Amortization
of developed technology
|
10 | |||||||||||||||
|
Amortization
of customer relationships and trademarks
|
3 | |||||||||||||||
|
In-process
research and development
|
(27 | ) | ||||||||||||||
|
Impairment
of goodwill and intangibles
|
(108 | ) | ||||||||||||||
|
Restructuring
charges
|
8 | |||||||||||||||
|
Non-GAAP
total spend savings +
|
$ | 312 | ||||||||||||||
|
+
FY 2010 operating expenses and cost of revenue, less FY 2009 operating
expenses and cost of revenue
|
||||||||||||||||
9
|
Other
Supplemental Financial Information*
|
||||||||||||||||||||
|
Fiscal
Year 2010
|
QTR
1
|
QTR
2
|
QTR
3
|
QTR
4
|
YTD
2010
|
|||||||||||||||
|
Financial
Statistics ($ in millions, except per share data):
|
||||||||||||||||||||
|
Total
net revenue
|
$ | 426 | $ | 415 | $ | 417 | $ | 456 | $ | 1,714 | ||||||||||
|
License
and other revenue
|
$ | 244 | $ | 231 | $ | 236 | $ | 270 | $ | 981 | ||||||||||
|
Maintenance
revenue
|
$ | 182 | $ | 184 | $ | 181 | $ | 186 | $ | 733 | ||||||||||
|
GAAP
Gross Margin
|
88 | % | 88 | % | 89 | % | 90 | % | 89 | % | ||||||||||
|
Non-GAAP
Gross Margin (1)(2)
|
90 | % | 90 | % | 92 | % | 92 | % | 91 | % | ||||||||||
|
GAAP
Operating Expenses
|
$ | 393 | $ | 362 | $ | 346 | $ | 356 | $ | 1,456 | ||||||||||
|
GAAP
Operating Margin
|
-5 | % | 1 | % | 6 | % | 12 | % | 4 | % | ||||||||||
|
GAAP
Net Income (Loss)
|
$ | (32 | ) | $ | 10 | $ | 30 | $ | 50 | $ | 58 | |||||||||
|
GAAP
Diluted Net Income (Loss) Per Share
|
$ | (0.14 | ) | $ | 0.05 | $ | 0.13 | $ | 0.21 | $ | 0.25 | |||||||||
|
Non-GAAP
Operating Expenses (1)(3)
|
$ | 327 | $ | 308 | $ | 305 | $ | 331 | $ | 1,271 | ||||||||||
|
Non-GAAP
Operating Margin (1)(4)
|
13 | % | 16 | % | 18 | % | 20 | % | 17 | % | ||||||||||
|
Non-GAAP
Net Income (1)(5)
|
$ | 42 | $ | 57 | $ | 63 | $ | 70 | $ | 232 | ||||||||||
|
Non-GAAP
Diluted Net Income Per Share (1)(6)
|
$ | 0.18 | $ | 0.24 | $ | 0.27 | $ | 0.30 | $ | 0.99 | ||||||||||
|
Total
Cash and Marketable Securities
|
$ | 966 | $ | 1,029 | $ | 1,054 | $ | 1,126 | $ | 1,126 | ||||||||||
|
Days
Sales Outstanding
|
49 | 49 | 47 | 55 | 55 | |||||||||||||||
|
Capital
Expenditures
|
$ | 14 | $ | 11 | $ | 6 | $ | 9 | $ | 39 | ||||||||||
|
Cash
from Operations
|
$ | 27 | $ | 47 | $ | 47 | $ | 126 | $ | 247 | ||||||||||
|
GAAP
Depreciation and Amortization
|
$ | 27 | $ | 28 | $ | 29 | $ | 27 | $ | 111 | ||||||||||
|
Deferred
Maintenance Revenue Balance
|
$ | 469 | $ | 444 | $ | 420 | $ | 464 | $ | 464 | ||||||||||
|
Revenue
by Geography (in millions):
|
||||||||||||||||||||
|
Americas
|
$ | 163 | $ | 159 | $ | 164 | $ | 168 | $ | 655 | ||||||||||
|
Europe
|
$ | 167 | $ | 157 | $ | 159 | $ | 188 | $ | 671 | ||||||||||
|
Asia/Pacific
|
$ | 96 | $ | 99 | $ | 94 | $ | 100 | $ | 388 | ||||||||||
|
Revenue
by Segment (in millions):***
|
||||||||||||||||||||
|
Platform
Solutions and Emerging Business
|
$ | 156 | $ | 150 | $ | 154 | $ | 165 | $ | 624 | ||||||||||
|
Architecture,
Engineering and Construction
|
$ | 128 | $ | 123 | $ | 125 | $ | 137 | $ | 514 | ||||||||||
|
Manufacturing
|
$ | 94 | $ | 95 | $ | 90 | $ | 108 | $ | 387 | ||||||||||
|
Media
and Entertainment
|
$ | 48 | $ | 47 | $ | 48 | $ | 46 | $ | 189 | ||||||||||
|
Other
|
$ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||
|
Other
Revenue Statistics:
|
||||||||||||||||||||
|
% of
Total Rev from AutoCAD and AutoCAD LT***
|
33 | % | 31 | % | 32 | % | 31 | % | 32 | % | ||||||||||
|
% of
Total Rev from 3D design products
|
29 | % | 29 | % | 29 | % | 29 | % | 29 | % | ||||||||||
|
% of
Total Rev from Emerging Economies
|
14 | % | 15 | % | 15 | % | 16 | % | 15 | % | ||||||||||
|
Upgrade
Revenue (in millions)
|
$ | 43 | $ | 26 | $ | 26 | $ | 37 | $ | 133 | ||||||||||
|
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
|
$ | (31 | ) | $ | (24 | ) | $ | (4 | ) | $ | 22 | $ | (36 | ) | ||||||
|
FX
Impact on Total Operating Expenses
|
$ | 22 | $ | 14 | $ | 2 | $ | (10 | ) | $ | 28 | |||||||||
|
FX
Impact on Total Net Income (Loss)
|
$ | (9 | ) | $ | (10 | ) | $ | (2 | ) | $ | 12 | $ | (8 | ) | ||||||
|
Gross
Margin by Segment (in millions):***
|
||||||||||||||||||||
|
Platform
Solutions and Emerging Business
|
$ | 146 | $ | 140 | $ | 147 | $ | 157 | $ | 590 | ||||||||||
|
Architecture,
Engineering and Construction
|
$ | 116 | $ | 110 | $ | 113 | $ | 125 | $ | 465 | ||||||||||
|
Manufacturing
|
$ | 86 | $ | 88 | $ | 84 | $ | 101 | $ | 359 | ||||||||||
|
Media
and Entertainment
|
$ | 34 | $ | 36 | $ | 38 | $ | 37 | $ | 144 | ||||||||||
|
Unallocated
amounts
|
$ | (9 | ) | $ | (9 | ) | $ | (10 | ) | $ | (8 | ) | $ | (36 | ) | |||||
|
Common
Stock Statistics:
|
||||||||||||||||||||
|
GAAP
Shares Outstanding
|
228,219,000 | 229,666,000 | 229,665,000 | 228,881,000 | 228,881,000 | |||||||||||||||
|
GAAP
Fully Diluted Weighted Average Shares Outstanding
|
227,080,000 | 232,286,000 | 232,947,000 | 233,324,000 | 232,314,000 | |||||||||||||||
|
Shares
Repurchased
|
- | - | 1,673,000 | 1,002,000 | 2,675,000 | |||||||||||||||
|
Installed
Base Statistics:
|
||||||||||||||||||||
|
Maintenance
Installed Base **
|
1,719,000 | 2,299,000 | 2,236,000 | 2,250,000 | 2,250,000 | |||||||||||||||
|
*
Totals may not agree with the sum of the components due to
rounding.
|
||||||||||||||||||||
|
**
The second quarter of fiscal 2010 maintenance installed base includes a
one-time adjustment of 581,000 educational seats for users migrated to a
standard educational maintenance plan. These users were not
previously captured in our maintenance installed base.
|
||||||||||||||||||||
|
***
In the third quarter of fiscal 2010, Autodesk changed its methodology for
allocating certain revenue transactions, including gains and losses from
foreign currency. The second quarter of fiscal 2010 amounts have been
reclassified to conform to the current presentation. The change in
methodology did not have a material effect on any other
period.
|
||||||||||||||||||||
|
(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 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,
restructuring charges, amortization of purchased intangibles, goodwill
impairment, establishment of a valuation allowance on certain deferred tax
assets and related 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 Autodesk's press
release.
|
||||||||||||||||||||
|
(2)
GAAP Gross Margin
|
88 | % | 88 | % | 89 | % | 90 | % | 89 | % | ||||||||||
|
Stock-based
compensation expense
|
0 | % | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||||
|
Amortization
of developed technology
|
2 | % | 2 | % | 3 | % | 2 | % | 2 | % | ||||||||||
|
Non-GAAP
Gross Margin
|
90 | % | 90 | % | 92 | % | 92 | % | 91 | % | ||||||||||
|
(3)
GAAP Operating Expenses
|
$ | 393 | $ | 362 | $ | 346 | $ | 356 | $ | 1,457 | ||||||||||
|
Stock-based
compensation expense
|
(22 | ) | (21 | ) | (30 | ) | (19 | ) | (91 | ) | ||||||||||
|
Amortization
of customer relationships and trademarks
|
(6 | ) | (7 | ) | (6 | ) | (6 | ) | (26 | ) | ||||||||||
|
Restructuring
charges
|
(17 | ) | (26 | ) | (5 | ) | - | (48 | ) | |||||||||||
|
Impairment
of goodwill
|
(21 | ) | - | - | - | (21 | ) | |||||||||||||
|
Non-GAAP
Operating Expenses
|
$ | 327 | $ | 308 | $ | 305 | $ | 331 | $ | 1,271 | ||||||||||
|
(4)
GAAP Operating Margin
|
-5 | % | 1 | % | 6 | % | 12 | % | 4 | % | ||||||||||
|
Stock-based
compensation expense
|
5 | % | 5 | % | 7 | % | 4 | % | 5 | % | ||||||||||
|
Amortization
of developed technology
|
2 | % | 2 | % | 2 | % | 2 | % | 2 | % | ||||||||||
|
Amortization
of customer relationships and trademarks
|
2 | % | 2 | % | 2 | % | 2 | % | 2 | % | ||||||||||
|
Restructuring
charges
|
4 | % | 6 | % | 1 | % | 0 | % | 3 | % | ||||||||||
|
Impairment
of goodwill
|
5 | % | 0 | % | 0 | % | 0 | % | 1 | % | ||||||||||
|
Non-GAAP
Operating Margin
|
13 | % | 16 | % | 18 | % | 20 | % | 17 | % | ||||||||||
|
(5)
GAAP Net Income (Loss)
|
$ | (32 | ) | $ | 10 | $ | 30 | $ | 50 | $ | 58 | |||||||||
|
Stock-based
compensation expense
|
23 | 21 | 30 | 19 | 93 | |||||||||||||||
|
Amortization
of developed technology
|
8 | 8 | 9 | 8 | 33 | |||||||||||||||
|
Amortization
of customer relationships and trademarks
|
6 | 7 | 6 | 6 | 26 | |||||||||||||||
|
Establishment
of valuation allowance on deferred tax assets
|
21 | - | - | - | 21 | |||||||||||||||
|
Impairment
of goodwill
|
21 | - | - | - | 21 | |||||||||||||||
|
Restructuring
charges
|
17 | 26 | 5 | - | 48 | |||||||||||||||
|
Income
tax effect on difference between GAAP and non-GAAP
total
costs and expenses at a normalized rate
|
(22 | ) | (16 | ) | (17 | ) | (13 | ) | (68 | ) | ||||||||||
|
Non-GAAP
Net Income
|
$ | 42 | $ | 56 | $ | 63 | $ | 70 | $ | 232 | ||||||||||
|
(6)
GAAP Diluted Net Income (Loss) Per Share
|
$ | (0.14 | ) | $ | 0.05 | $ | 0.13 | $ | 0.21 | $ | 0.25 | |||||||||
|
Stock-based
compensation expense
|
0.10 | 0.09 | 0.13 | 0.08 | 0.40 | |||||||||||||||
|
Amortization
of developed technology
|
0.04 | 0.03 | 0.04 | 0.03 | 0.14 | |||||||||||||||
|
Amortization
of customer relationships and trademarks
|
0.03 | 0.03 | 0.02 | 0.03 | 0.11 | |||||||||||||||
|
Establishment
of valuation allowance on deferred tax assets
|
0.09 | - | - | - | 0.09 | |||||||||||||||
|
Impairment
of goodwill
|
0.09 | - | - | - | 0.09 | |||||||||||||||
|
Restructuring
charges
|
0.07 | 0.11 | 0.02 | - | 0.21 | |||||||||||||||
|
Income
tax effect on difference between GAAP and non-GAAP
total
costs and expenses at a normalized rate
|
(0.10 | ) | (0.07 | ) | (0.07 | ) | (0.05 | ) | (0.30 | ) | ||||||||||
|
Non-GAAP
Diluted Net Income Per Share
|
$ | 0.18 | $ | 0.24 | $ | 0.27 | $ | 0.30 | $ | 0.99 |
10
Exhibit 99.2
AUTODESK,
INC. (ADSK)
FISCAL
FOURTH QUARTER 2010 EARNINGS ANNOUNCEMENT
February
23, 2010
PREPARED
REMARKS
Autodesk
is posting a copy of these prepared remarks in combination with its press
release to its investor Website. These prepared remarks are offered
to provide shareholders and analysts with additional time and detail for
analyzing our results in advance of our quarterly conference call. As previously
scheduled, the conference call will begin today, February 23, 2010 at 2:00 pm
PST (5:00 pm EST) and will include only brief comments followed by questions and
answers. These prepared remarks will not be read on the call.
To access
the live broadcast of the question and answer session, please visit the Investor
Relations section of Autodesk’s Website at
www.autodesk.com/investor. A complete reconciliation between GAAP and
non-GAAP results is provided in the tables following these prepared
remarks.
Fourth
Quarter Fiscal 2010 Overview
Fiscal
2010 was a challenging year by all accounts. Nevertheless, we
finished the year with better than anticipated revenue and profitability in the
fourth quarter. Our results were driven by a sequentially improving
demand environment, continued competitive displacements, and cost
containment.
|
·
|
Revenue
was $456 million, an increase of 9 percent sequentially, and a decrease of
7 percent as compared to the fourth quarter of fiscal
2009.
|
|
·
|
GAAP
operating expenses in the fourth quarter increased 3 percent sequentially,
consistent with normal seasonality, and decreased 38 percent compared to
the fourth quarter last year.
|
|
·
|
Non-GAAP
operating expenses in the fourth quarter increased by 8 percent
sequentially, consistent with normal seasonality, and decreased 11 percent
compared to the fourth quarter last
year.
|
|
·
|
GAAP
diluted earnings per share were $0.21, compared to GAAP diluted earnings
per share of $0.13 in the third quarter of fiscal 2010, and a GAAP diluted
loss per share of $0.47 in the fourth quarter of fiscal
2009.
|
|
·
|
Non-GAAP
diluted earnings per share were $0.30, compared to non-GAAP diluted
earnings per share of $0.27 in the third quarter of fiscal 2010, and
non-GAAP diluted earnings per share of $0.31 in the fourth quarter of
fiscal 2009.
|
1
Solid
sequential growth from most of our top products helped drive revenue in the
fourth quarter. Large deals greater than one million dollars also had
strong performance in the quarter. These large transactions were driven in part
by pent-up demand and end of year budget spending. In addition to
broadening our customer base, our channel partners and sales teams are focused
on deeper account penetration of our significant global installed
base. In the fourth quarter we had notable success stories including
the growth of our data management product, Autodesk Vault
Manufacturing.
In
addition to better than anticipated revenue and profitability there were other
positive data points in the fourth quarter. Revenue from commercial
new seat licenses increased for the second consecutive quarter, growing 14
percent sequentially, with the strongest increases in AutoCAD and our Inventor
family of products. Growth in revenue from commercial new seat
licenses is a key element to the long-term growth of Autodesk.
We grew
revenue sequentially in all product types: 2D horizontal, 2D vertical, and 3D
model-based design solutions. Our 2D vertical products were key
contributors to the sequential growth with strong increases in all products in
this category.
Revenue
from our 3D model-based design solutions grew in double digits
sequentially. We believe that continued adoption of 3D model-based
design solutions will also be a key long-term growth driver for
Autodesk.
Revenue
from emerging economies also posted solid sequential growth. We view
emerging economies as another key long-term growth driver as our
design, engineering and manufacturing solutions are ideally suited to help these
countries build out their infrastructure to meet growing population,
urbanization, and industrial demands.
For more
than a year, Autodesk has been keenly focused on reducing operating expenses and
increasing overall efficiency. Fourth quarter GAAP operating expenses
increased 3 percent sequentially and decreased 38 percent compared to the fourth
quarter last year. Non-GAAP operating expenses in the fourth quarter
increased by 8 percent sequentially, consistent with normal seasonality, and
decreased 11 percent compared to the fourth quarter last year.
2
GAAP total spend (GAAP cost of revenue plus GAAP operating expenses) decreased by $423 million, or 20 percent in fiscal 2010 compared to fiscal 2009. We achieved a $312 million reduction in non-GAAP total spend (non-GAAP cost of revenue plus non-GAAP operating expenses) in fiscal 2010 compared to fiscal 2009, significantly exceeding our initial goal of $250 million and slightly exceeding our final goal. While the magnitude of the savings is significant, we also continued to invest throughout the year in areas important to the future success of Autodesk.
Going
forward, we will continue to make the essential investments in Autodesk to
ensure long term growth. At the same time, in the spirit of
continuous improvement, we will continue to seek to optimally align our
investments to improve our growth, productivity, cost structure and operational
excellence. These actions are focused on increasing productivity
across the organization and optimizing our investments.
Cash flow
was another positive data point for the quarter. Cash flow from
operations in the fourth quarter was $126 million, an increase of 169 percent
sequentially and 45 percent compared to the fourth quarter last
year. Sequentially, cash flow was positively impacted by higher net
income and an increase in deferred revenue. At the end of the fourth
quarter, the company’s cash and investments balance exceeded $1.1 billion with
no outstanding debt.
Autodesk’s
commitment to research and development has resulted in an unmatched portfolio of
design, engineering, and entertainment software solutions. This
combined with a strong balance sheet, outstanding employees, and an unparalleled
channel, positions Autodesk for strong future growth.
Revenue
Analysis
|
(in
millions)
|
4Q 2009 | 1Q 2010 | 2Q 2010 | 3Q 2010 | 4Q 2010 |
FY
2010
|
||||||||||||||||||
|
Total
net revenue
|
$ | 490 | $ | 426 | $ | 415 | $ | 417 | $ | 456 | $ | 1,714 | ||||||||||||
|
License
and other revenue
|
$ | 310 | $ | 244 | $ | 231 | $ | 236 | $ | 270 | $ | 981 | ||||||||||||
|
Maintenance
revenue
|
$ | 180 | $ | 182 | $ | 184 | $ | 181 | $ | 186 | $ | 733 | ||||||||||||
Total net
revenue for the fourth quarter was $456 million, a 9 percent increase
sequentially and a decrease of 7 percent as compared to the fourth quarter of
fiscal 2009. At constant currency, revenue for the fourth quarter
increased 8 percent sequentially and decreased 11 percent as compared to the
fourth quarter of fiscal 2009.
3
License
and other revenue was $270 million, an increase of 14 percent sequentially, and
a decrease of 13 percent compared to the fourth quarter last year.
Maintenance
revenue was $186 million, an increase of 3 percent sequentially and 4 percent
compared to the fourth quarter last year.
Maintenance
billings hit a record high in the fourth quarter, increasing 47 percent
sequentially and 4 percent year-over-year. The significant sequential
increase reflects normal seasonality as well as an increase in maintenance
renewal rates.
Revenue
by Geography
| 4Q 2009 | 1Q 2010 | 2Q 2010 | 3Q 2010 | 4Q 2010 |
FY
2010
|
||||||||||||||||||||
|
EMEA
|
$ | 219 | $ | 167 | $ | 157 | $ | 159 | $ | 188 | $ | 671 | |||||||||||||
|
Americas
|
$ | 172 | $ | 163 | $ | 159 | $ | 164 | $ | 168 | $ | 655 | |||||||||||||
|
Asia
Pacific
|
$ | 99 | $ | 96 | $ | 99 | $ | 94 | $ | 100 | $ | 388 | |||||||||||||
|
Emerging
Economies
|
$ | 80 | $ | 59 | $ | 63 | $ | 62 | $ | 73 | $ | 257 | |||||||||||||
|
Emerging
as a percentage of Total Revenue
|
16 | % | 14 | % | 15 | % | 15 | % | 16 | % | 15 | % | |||||||||||||
EMEA
revenue increased sequentially for the second consecutive quarter growing 18
percent as reported, and 15 percent at constant currency. EMEA
revenue grew sequentially in all major countries. EMEA revenue
declined 14 percent year-over-year as reported and 22 percent at constant
currency.
Revenue in
the Americas increased 3 percent sequentially and declined 2 percent compared to
the fourth quarter last year. Revenue in the U.S., Canada, and Mexico
grew sequentially. In addition, transactions greater than $1 million
were strong in the Americas, particularly in the AEC segment.
4
Revenue
from Asia Pacific increased 6 percent sequentially as reported and 4 percent at
constant currency. Compared to the fourth quarter of last year,
revenue from Asia Pacific increased 1 percent as reported and decreased 4
percent at constant currency.
Revenue
from emerging economies increased 18 percent sequentially as reported and
decreased 8 percent compared to the fourth quarter of fiscal 2009. At
constant currency, revenue from emerging economies increased 16 percent
sequentially and decreased 12 percent compared to the fourth quarter of fiscal
2009. Performance of emerging economies was driven by significant
sequential increases in China, Russia, and Mexico. Revenue from
emerging economies represented 16 percent of total revenue in the
quarter.
Revenue
by Product Type
|
3D
Products as a % of Total Revenue
|
4Q 2009 | 1Q 2010 | 2Q 2010 | 3Q 2010 | 4Q 2010 |
FY
2010
|
|||||||||||||||||
|
3D
Model-Based Design Solutions Revenue %
|
29 | % | 29 | % | 29 | % | 29 | % | 29 | % | 29 | % | |||||||||||
Revenue
from our 3D model-based design solutions was $134 million, an increase of 10
percent sequentially and a decline of 7 percent compared to fourth quarter last
year. We experienced sequential growth in almost all of our 3D
products led by Inventor and Revit.
Our 2D
horizontal products grew 9 percent sequentially, and decreased 9 percent
compared to the fourth quarter last year. 2D vertical products grew
the strongest sequentially with an increase of 23 percent. 2D
vertical products decreased 7 percent compared to the fourth quarter last
year. Combined revenue from 2D horizontal and 2D vertical products
was $213 million, an increase of 13 percent sequentially and a decrease of 8
percent compared to the fourth quarter of fiscal 2009.
Revenue
by Business Segment
|
Revenue
by Segment (in millions)
|
4Q 2009 | 1Q 2010 | 2Q 2010 | 3Q 2010 | 4Q 2010 |
FY
2010
|
|||||||||||||||||||
|
Platform
Solutons and
Emerging
Business
|
$ | 172 | $ | 156 | $ | 150 | $ | 154 | $ | 165 | $ | 624 | |||||||||||||
|
Architecture,
Engineering
and
Construction
|
$ | 146 | $ | 128 | $ | 123 | $ | 125 | $ | 137 | $ | 514 | |||||||||||||
|
Manufacturing
|
$ | 115 | $ | 94 | $ | 95 | $ | 90 | $ | 108 | $ | 387 | |||||||||||||
|
Media
and Entertainment
|
$ | 53 | $ | 48 | $ | 47 | $ | 48 | $ | 46 | $ | 189 | |||||||||||||
|
Other
|
$ | 4 | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||
Revenue
from our Platform Solutions and Emerging Business segment increased 7 percent
sequentially to $165 million. Platform Solutions decreased 4 percent
compared to the fourth quarter last year.
5
Revenue
from our AEC segment increased 10 percent sequentially to $137 million and
decreased 6 percent compared to the fourth quarter last
year. Sequential growth was led by AutoCAD
Architecture. Revenue from our Revit family of products increased 11
percent sequentially and decreased 8 percent compared to the fourth quarter last
year.
Revenue
from our Manufacturing segment was $108 million, an increase of 20 percent
sequentially and a decline of 6 percent compared to the fourth quarter last
year. Revenue from the Inventor family of products increased 15
percent sequentially and decreased 6 percent compared to the fourth quarter last
year.
Revenue
from our Media and Entertainment segment was $46 million, a 4 percent decrease
sequentially and 12 percent decrease compared to the fourth quarter last
year. Revenue from animation products decreased 6 percent
sequentially and was flat compared to the fourth quarter last
year. Revenue from Advanced Systems increased 3 percent sequentially
and declined 31 percent compared to the fourth quarter last year.
Margins
and EPS Review
|
Gross
Margin
|
4Q 2009 | 1Q 2010 | 2Q 2010 | 3Q 2010 | 4Q 2010 |
FY
2010
|
||||||||||||||||||
|
Gross
Margin - GAAP
|
90 | % | 88 | % | 88 | % | 89 | % | 90 | % | 89 | % | ||||||||||||
|
Gross
Margin - Non-GAAP
|
92 | % | 90 | % | 90 | % | 92 | % | 92 | % | 91 | % | ||||||||||||
|
Operating
Expenses (in millions)
|
4Q 2009 | 1Q 2010 | 2Q 2010 | 3Q 2010 | 4Q 2010 |
FY
2010
|
||||||||||||||||||
|
Operating
Expenses - GAAP
|
$ | 575 | $ | 393 | $ | 362 | $ | 346 | $ | 356 | $ | 1,456 | ||||||||||||
|
Operating
Expenses - Non-GAAP
|
$ | 372 | $ | 327 | $ | 308 | $ | 305 | $ | 331 | $ | 1,271 | ||||||||||||
|
Earnings
Per Share
|
4Q 2009 | 1Q 2010 | 2Q 2010 | 3Q 2010 | 4Q 2010 |
FY
2010
|
||||||||||||||||||
|
Diluted
Net Income (Loss) Per Share - GAAP
|
$ | (0.47 | ) | $ | (0.14 | ) | $ | 0.05 | $ | 0.13 | $ | 0.21 | $ | 0.25 | ||||||||||
|
Diluted
Net Income Per Share - Non-GAAP
|
$ | 0.31 | $ | 0.18 | $ | 0.24 | $ | 0.27 | $ | 0.30 | $ | 0.99 | ||||||||||||
GAAP gross
margin in the fourth quarter was 90 percent. Non-GAAP gross margin in
the fourth quarter was 92 percent.
GAAP
operating margin was 12 percent, an increase of 6 percentage points on a
sequential basis and 39 percentage points compared to the fourth quarter last
year, driven primarily by sequentially lower stock-based compensation expenses
and reduced impairment and restructuring costs compared to the fourth quarter
last year. Non-GAAP operating margin was 20 percent, an increase of 2
percentage points sequentially and 4 percentage points compared to the fourth
quarter last year.
6
The fourth
quarter effective tax rate was 15 percent for our GAAP results and 24 percent
for our non-GAAP results. The effective tax rate includes a one-time
tax benefit of $3.7 million for our GAAP results.
Earnings
per diluted share for the fourth quarter were $0.21 GAAP and $0.30
non-GAAP.
A complete
reconciliation between GAAP and non-GAAP results is provided in the tables
following these prepared remarks.
Foreign
Exchange Impact
|
Favorable
(Unfavorable) Impact of U.S. Dollar Translation Relative to Foreign
Currencies
Compared
to Comparable Prior Year Period (in millions)
|
4Q 2009 | 1Q 2010 | 2Q 2010 | 3Q 2010 | 4Q 2010 |
FY
2010
|
||||||||||||||||||
|
FX
Impact on Total Net Revenue
|
$ | (19 | ) | $ | (31 | ) | $ | (24 | ) | $ | (4 | ) | $ | 22 | $ | (36 | ) | |||||||
|
FX
Impact on Operating Expenses
|
$ | 17 | $ | 22 | $ | 14 | $ | 2 | $ | (10 | ) | $ | 28 | |||||||||||
|
FX
Impact on Operating Income (Loss)
|
$ | (2 | ) | $ | (9 | ) | $ | (10 | ) | $ | (2 | ) | $ | 12 | $ | (8 | ) | |||||||
Compared
to the third quarter, the foreign currency impact was $7 million favorable on
revenue and $2 million unfavorable on expenses.
Compared
to the fourth quarter of last year, the impact of foreign currency exchange
rates in the fourth quarter was $22 million favorable on revenue and $10 million
unfavorable on expenses.
7
Balance
Sheet Items and Cash Review
|
Financial
Statistics (in millions)
|
4Q 2009 | 1Q 2010 | 2Q 2010 | 3Q 2010 | 4Q 2010 | ||||||||||||||||
|
Total
Cash and Marketable Securities
|
$ | 989 | $ | 966 | $ | 1,029 | $ | 1,054 | $ | 1,126 | |||||||||||
|
Days
Sales Outstanding
|
59 | 49 | 49 | 47 | 55 | ||||||||||||||||
|
Capital
Expenditures
|
$ | 19 | $ | 14 | $ | 11 | $ | 6 | $ | 9 | |||||||||||
|
Cash
Flow from Operating Activities
|
$ | 86 | $ | 27 | $ | 47 | $ | 47 | $ | 126 | |||||||||||
|
Depreciation
and Amortization
|
$ | 27 | $ | 27 | $ | 28 | $ | 29 | $ | 27 | |||||||||||
|
Deferred
Revenue
|
$ | 552 | $ | 534 | $ | 502 | $ | 470 | $ | 517 |
Total cash
and investments at the end of the fourth quarter was over $1.1 billion, or
approximately $4.92 in cash per share of common stock outstanding.
During the
fourth quarter Autodesk used $24 million to repurchase approximately 1.0 million
shares of common stock at an average price of $23.75 per share. In
fiscal 2010 Autodesk used $63 million to repurchase approximately 2.7 million
shares of common stock at an average price of $23.63 per share.
Cash flow
from operating activities during the fourth quarter was $126 million, an
increase of 169 percent sequentially and 45 percent compared to the fourth
quarter last year.
Shippable
backlog at the end of the fourth quarter increased by $14 million sequentially
to $26 million.
Deferred
revenue was $517 million, a 10 percent increase sequentially and a decline of 6
percent compared to the fourth quarter last year. The sequential
increase is primarily due to the significant increase in maintenance
billings.
Total
backlog at the end of the fourth quarter, including deferred revenue and
shippable backlog orders was $543 million, a decrease of $27 million compared to
the fourth quarter of last year.
Channel
inventory at the end of the fourth quarter declined sequentially in weeks and in
dollars. At the end of the fourth quarter, channel inventory was less
than three weeks.
DSO was 55
days in the fourth quarter, an increase sequentially due to seasonality of
maintenance billings, however lower than the fourth quarter last
year.
8
Business
Outlook
Our
guidance is based on our current expectations and the information we have
available today, including currency exchange rates.
First
Quarter Fiscal 2011
|
1Q
FY11 Guidance Metrics
|
1Q
FY11 (ending April 30, 2010)
|
||
|
Revenue
(in millions)
|
$420 to $440 | ||
|
EPS
- GAAP
|
$0.02 to $0.07 | ||
|
EPS
- Non-GAAP
|
$0.18 to $0.23 |
First
quarter outlook assumes an effective tax rate of 27 percent. The
increase in the tax rate from fiscal 2010 is primarily due to expiration of the
research and development tax credit. Non-GAAP earnings per diluted share
exclude $0.08 related to stock-based compensation expense, $0.05 for
amortization of acquisition related intangibles, and $0.03 for restructuring
related charges.
Autodesk
is not providing specific revenue or EPS guidance for fiscal 2011 at this
time. However, GAAP operating margin for the full year fiscal 2011 is
expected to increase significantly compared to fiscal 2010. Autodesk
continues to anticipate modest improvement in non-GAAP operating margin for full
year fiscal 2011 compared to fiscal 2010.
For fiscal
2011, non-GAAP operating margin excludes stock-based compensation expense,
amortization of acquisition related intangibles, and restructuring related
charges.
Safe
Harbor Statement
These
prepared remarks contain forward-looking statements that involve risks and
uncertainties, including statements in the paragraphs under “Business Outlook”,
statements regarding anticipated market, economic, maintenance billings, and
revenue trends, cost savings, operational and efficiency investments,
revenue performance (including by geography and product), market and product
positions and other statements regarding our expected strategies, performance
and results. Other factors that could cause actual results to differ
materially include the following: general market, economic and
business conditions, our performance in particular geographies, including
emerging economies, the financial and business condition of our reseller and
distribution channels, fluctuation in foreign currency exchange rates, failure
to achieve and maintain planned cost reductions and productivity increases,
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 migration from 2D products to 3D products,
difficulties encountered in integrating new or acquired businesses and
technologies, the inability to identify and realize the anticipated benefits of
acquisitions, unexpected fluctuations in our tax rate, the timing and degree of
expected investments in growth and efficiency opportunities, 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, interruptions or terminations in the
business of Autodesk consultants, and any unanticipated accounting
charges.
9
Further information on potential factors that could affect the financial results of Autodesk are included in Autodesk’s reports on Form 10-K for the year ended January 31, 2009 and Forms 10-Q for the quarters ended April 30, 2009, July 31, 2009 and October 31, 2009, which are on file with the U.S. 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.
©
2010 Autodesk, Inc. All rights reserved.
#
# #
10
|
Other
Supplemental Financial Information*
|
||||||||||||||||||||
|
Fiscal
Year 2010
|
QTR
1
|
QTR
2
|
QTR
3
|
QTR
4
|
YTD
2010
|
|||||||||||||||
|
Financial
Statistics ($ in millions, except per share data):
|
||||||||||||||||||||
|
Total
net revenue
|
$ | 426 | $ | 415 | $ | 417 | $ | 456 | $ | 1,714 | ||||||||||
|
License
and other revenue
|
$ | 244 | $ | 231 | $ | 236 | $ | 270 | $ | 981 | ||||||||||
|
Maintenance
revenue
|
$ | 182 | $ | 184 | $ | 181 | $ | 186 | $ | 733 | ||||||||||
|
GAAP
Gross Margin
|
88 | % | 88 | % | 89 | % | 90 | % | 89 | % | ||||||||||
|
Non-GAAP
Gross Margin (1)(2)
|
90 | % | 90 | % | 92 | % | 92 | % | 91 | % | ||||||||||
|
GAAP
Operating Expenses
|
$ | 393 | $ | 362 | $ | 346 | $ | 356 | $ | 1,456 | ||||||||||
|
GAAP
Operating Margin
|
-5 | % | 1 | % | 6 | % | 12 | % | 4 | % | ||||||||||
|
GAAP
Net Income (Loss)
|
$ | (32 | ) | $ | 10 | $ | 30 | $ | 50 | $ | 58 | |||||||||
|
GAAP
Diluted Net Income (Loss) Per Share
|
$ | (0.14 | ) | $ | 0.05 | $ | 0.13 | $ | 0.21 | $ | 0.25 | |||||||||
|
Non-GAAP
Operating Expenses (1)(3)
|
$ | 327 | $ | 308 | $ | 305 | $ | 331 | $ | 1,271 | ||||||||||
|
Non-GAAP
Operating Margin (1)(4)
|
13 | % | 16 | % | 18 | % | 20 | % | 17 | % | ||||||||||
|
Non-GAAP
Net Income (1)(5)
|
$ | 42 | $ | 57 | $ | 63 | $ | 70 | $ | 232 | ||||||||||
|
Non-GAAP
Diluted Net Income Per Share (1)(6)
|
$ | 0.18 | $ | 0.24 | $ | 0.27 | $ | 0.30 | $ | 0.99 | ||||||||||
|
Total
Cash and Marketable Securities
|
$ | 966 | $ | 1,029 | $ | 1,054 | $ | 1,126 | $ | 1,126 | ||||||||||
|
Days
Sales Outstanding
|
49 | 49 | 47 | 55 | 55 | |||||||||||||||
|
Capital
Expenditures
|
$ | 14 | $ | 11 | $ | 6 | $ | 9 | $ | 39 | ||||||||||
|
Cash
from Operations
|
$ | 27 | $ | 47 | $ | 47 | $ | 126 | $ | 247 | ||||||||||
|
GAAP
Depreciation and Amortization
|
$ | 27 | $ | 28 | $ | 29 | $ | 27 | $ | 111 | ||||||||||
|
Deferred
Maintenance Revenue Balance
|
$ | 469 | $ | 444 | $ | 420 | $ | 464 | $ | 464 | ||||||||||
|
Revenue
by Geography (in millions):
|
||||||||||||||||||||
|
Americas
|
$ | 163 | $ | 159 | $ | 164 | $ | 168 | $ | 655 | ||||||||||
|
Europe
|
$ | 167 | $ | 157 | $ | 159 | $ | 188 | $ | 671 | ||||||||||
|
Asia/Pacific
|
$ | 96 | $ | 99 | $ | 94 | $ | 100 | $ | 388 | ||||||||||
|
Revenue
by Segment (in millions):***
|
||||||||||||||||||||
|
Platform
Solutions and Emerging Business
|
$ | 156 | $ | 150 | $ | 154 | $ | 165 | $ | 624 | ||||||||||
|
Architecture,
Engineering and Construction
|
$ | 128 | $ | 123 | $ | 125 | $ | 137 | $ | 514 | ||||||||||
|
Manufacturing
|
$ | 94 | $ | 95 | $ | 90 | $ | 108 | $ | 387 | ||||||||||
|
Media
and Entertainment
|
$ | 48 | $ | 47 | $ | 48 | $ | 46 | $ | 189 | ||||||||||
|
Other
|
$ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||
|
Other
Revenue Statistics:
|
||||||||||||||||||||
|
% of
Total Rev from AutoCAD and AutoCAD LT***
|
33 | % | 31 | % | 32 | % | 31 | % | 32 | % | ||||||||||
|
% of
Total Rev from 3D design products
|
29 | % | 29 | % | 29 | % | 29 | % | 29 | % | ||||||||||
|
% of
Total Rev from Emerging Economies
|
14 | % | 15 | % | 15 | % | 16 | % | 15 | % | ||||||||||
|
Upgrade
Revenue (in millions)
|
$ | 43 | $ | 26 | $ | 26 | $ | 37 | $ | 133 | ||||||||||
|
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
|
$ | (31 | ) | $ | (24 | ) | $ | (4 | ) | $ | 22 | $ | (36 | ) | ||||||
|
FX
Impact on Total Operating Expenses
|
$ | 22 | $ | 14 | $ | 2 | $ | (10 | ) | $ | 28 | |||||||||
|
FX
Impact on Total Net Income (Loss)
|
$ | (9 | ) | $ | (10 | ) | $ | (2 | ) | $ | 12 | $ | (8 | ) | ||||||
|
Gross
Margin by Segment (in millions):***
|
||||||||||||||||||||
|
Platform
Solutions and Emerging Business
|
$ | 146 | $ | 140 | $ | 147 | $ | 157 | $ | 590 | ||||||||||
|
Architecture,
Engineering and Construction
|
$ | 116 | $ | 110 | $ | 113 | $ | 125 | $ | 465 | ||||||||||
|
Manufacturing
|
$ | 86 | $ | 88 | $ | 84 | $ | 101 | $ | 359 | ||||||||||
|
Media
and Entertainment
|
$ | 34 | $ | 36 | $ | 38 | $ | 37 | $ | 144 | ||||||||||
|
Unallocated
amounts
|
$ | (9 | ) | $ | (9 | ) | $ | (10 | ) | $ | (8 | ) | $ | (36 | ) | |||||
|
Common
Stock Statistics:
|
||||||||||||||||||||
|
GAAP
Shares Outstanding
|
228,219,000 | 229,666,000 | 229,665,000 | 228,881,000 | 228,881,000 | |||||||||||||||
|
GAAP
Fully Diluted Weighted Average Shares Outstanding
|
227,080,000 | 232,286,000 | 232,947,000 | 233,324,000 | 232,314,000 | |||||||||||||||
|
Shares
Repurchased
|
- | - | 1,673,000 | 1,002,000 | 2,675,000 | |||||||||||||||
|
Installed
Base Statistics:
|
||||||||||||||||||||
|
Maintenance
Installed Base **
|
1,719,000 | 2,299,000 | 2,236,000 | 2,250,000 | 2,250,000 | |||||||||||||||
|
*
Totals may not agree with the sum of the components due to
rounding.
|
||||||||||||||||||||
|
**
The second quarter of fiscal 2010 maintenance installed base includes a
one-time adjustment of 581,000 educational seats for users migrated to a
standard educational maintenance plan. These users were not
previously captured in our maintenance installed base.
|
||||||||||||||||||||
|
***
In the third quarter of fiscal 2010, Autodesk changed its methodology for
allocating certain revenue transactions, including gains and losses from
foreign currency. The second quarter of fiscal 2010 amounts have been
reclassified to conform to the current presentation. The change in
methodology did not have a material effect on any other
period.
|
||||||||||||||||||||
|
(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 revenue, non-GAAP gross margin, non-GAAP
operating expenses, non-GAAP income from operations, non-GAAP interest and
other income, net, non-GAAP provision for income taxes and non-GAAP total
spend savings. These non-GAAP financial measures are adjusted
to exclude certain costs, expenses, gains and losses, including
stock-based compensation expense, restructuring charges, amortization of
purchased intangibles, goodwill impairment, establishment of a valuation
allowance on certain deferred tax assets and related 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
Autodesk's press release.
|
|
(2)
GAAP Gross Margin
|
88 | % | 88 | % | 89 | % | 90 | % | 89 | % | ||||||||||
|
Stock-based
compensation expense
|
0 | % | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||||
|
Amortization
of developed technology
|
2 | % | 2 | % | 3 | % | 2 | % | 2 | % | ||||||||||
|
Non-GAAP
Gross Margin
|
90 | % | 90 | % | 92 | % | 92 | % | 91 | % | ||||||||||
|
(3)
GAAP Operating Expenses
|
$ | 393 | $ | 362 | $ | 346 | $ | 356 | $ | 1,457 | ||||||||||
|
Stock-based
compensation expense
|
(22 | ) | (21 | ) | (30 | ) | (19 | ) | (91 | ) | ||||||||||
|
Amortization
of customer relationships and trademarks
|
(6 | ) | (7 | ) | (6 | ) | (6 | ) | (26 | ) | ||||||||||
|
Restructuring
charges
|
(17 | ) | (26 | ) | (5 | ) | - | (48 | ) | |||||||||||
|
Impairment
of goodwill
|
(21 | ) | - | - | - | (21 | ) | |||||||||||||
|
Non-GAAP
Operating Expenses
|
$ | 327 | $ | 308 | $ | 305 | $ | 331 | $ | 1,271 | ||||||||||
|
(4)
GAAP Operating Margin
|
-5 | % | 1 | % | 6 | % | 12 | % | 4 | % | ||||||||||
|
Stock-based
compensation expense
|
5 | % | 5 | % | 7 | % | 4 | % | 5 | % | ||||||||||
|
Amortization
of developed technology
|
2 | % | 2 | % | 2 | % | 2 | % | 2 | % | ||||||||||
|
Amortization
of customer relationships and trademarks
|
2 | % | 2 | % | 2 | % | 2 | % | 2 | % | ||||||||||
|
Restructuring
charges
|
4 | % | 6 | % | 1 | % | 0 | % | 3 | % | ||||||||||
|
Impairment
of goodwill
|
5 | % | 0 | % | 0 | % | 0 | % | 1 | % | ||||||||||
|
Non-GAAP
Operating Margin
|
13 | % | 16 | % | 18 | % | 20 | % | 17 | % | ||||||||||
|
(5)
GAAP Net Income (Loss)
|
$ | (32 | ) | $ | 10 | $ | 30 | $ | 50 | $ | 58 | |||||||||
|
Stock-based
compensation expense
|
23 | 21 | 30 | 19 | 93 | |||||||||||||||
|
Amortization
of developed technology
|
8 | 8 | 9 | 8 | 33 | |||||||||||||||
|
Amortization
of customer relationships and trademarks
|
6 | 7 | 6 | 6 | 26 | |||||||||||||||
|
Establishment
of valuation allowance on deferred tax assets
|
21 | - | - | - | 21 | |||||||||||||||
|
Impairment
of goodwill
|
21 | - | - | - | 21 | |||||||||||||||
|
Restructuring
charges
|
17 | 26 | 5 | - | 48 | |||||||||||||||
|
Income
tax effect on difference between GAAP and non-GAAP
total
costs and expenses at a normalized rate
|
(22 | ) | (16 | ) | (17 | ) | (13 | ) | (68 | ) | ||||||||||
|
Non-GAAP
Net Income
|
$ | 42 | $ | 56 | $ | 63 | $ | 70 | $ | 232 | ||||||||||
|
(6)
GAAP Diluted Net Income (Loss) Per Share
|
$ | (0.14 | ) | $ | 0.05 | $ | 0.13 | $ | 0.21 | $ | 0.25 | |||||||||
|
Stock-based
compensation expense
|
0.10 | 0.09 | 0.13 | 0.08 | 0.40 | |||||||||||||||
|
Amortization
of developed technology
|
0.04 | 0.03 | 0.04 | 0.03 | 0.14 | |||||||||||||||
|
Amortization
of customer relationships and trademarks
|
0.03 | 0.03 | 0.02 | 0.03 | 0.11 | |||||||||||||||
|
Establishment
of valuation allowance on deferred tax assets
|
0.09 | - | - | - | 0.09 | |||||||||||||||
|
Impairment
of goodwill
|
0.09 | - | - | - | 0.09 | |||||||||||||||
|
Restructuring
charges
|
0.07 | 0.11 | 0.02 | - | 0.21 | |||||||||||||||
|
Income
tax effect on difference between GAAP and non-GAAP
total
costs and expenses at a normalized rate
|
(0.10 | ) | (0.07 | ) | (0.07 | ) | (0.05 | ) | (0.30 | ) | ||||||||||
|
Non-GAAP
Diluted Net Income Per Share
|
$ | 0.18 | $ | 0.24 | $ | 0.27 | $ | 0.30 | $ | 0.99 | ||||||||||
|
GAAP
total spend savings +
|
$ | 423 | ||||||||||||||||||
|
Stock-based
compensation expense
|
3 | |||||||||||||||||||
|
Amortization
of developed technology
|
10 | |||||||||||||||||||
|
Amortization
of customer relationships and trademarks
|
3 | |||||||||||||||||||
|
In-process
research and development
|
(27 | ) | ||||||||||||||||||
|
Impairment
of goodwill and intangibles
|
(108 | ) | ||||||||||||||||||
|
Restructuring
charges
|
8 | |||||||||||||||||||
|
Non-GAAP
total spend savings +
|
$ | 312 | ||||||||||||||||||
|
+
FY 2010 operating expenses and cost of revenue, less FY 2009 operating
expenses and cost of revenue
|
||||||||||||||||||||
|
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 | $ | 607 | $ | 490 | $ | 2,315 | ||||||||||
|
License
and other revenue
|
$ | 432 | $ | 440 | $ | 421 | $ | 310 | $ | 1,603 | ||||||||||
|
Maintenance
revenue
|
$ | 167 | $ | 180 | $ | 186 | $ | 180 | $ | 712 | ||||||||||
|
GAAP
Gross Margin
|
90 | % | 90 | % | 91 | % | 90 | % | 91 | % | ||||||||||
|
Non-GAAP
Gross Margin (1)(2)
|
91 | % | 91 | % | 93 | % | 92 | % | 92 | % | ||||||||||
|
GAAP
Operating Expenses
|
$ | 421 | $ | 441 | $ | 415 | $ | 575 | $ | 1,852 | ||||||||||
|
GAAP
Operating Margin
|
20 | % | 19 | % | 23 | % | -27 | % | 11 | % | ||||||||||
|
GAAP
Net Income (Loss)
|
$ | 95 | $ | 90 | $ | 104 | $ | (105 | ) | $ | 184 | |||||||||
|
GAAP
Diluted Net Income (Loss) Per Share
|
$ | 0.41 | $ | 0.39 | $ | 0.45 | $ | (0.47 | ) | $ | 0.80 | |||||||||
|
Non-GAAP
Operating Expenses (1)(3)
|
$ | 394 | $ | 396 | $ | 385 | $ | 372 | $ | 1,546 | ||||||||||
|
Non-GAAP
Operating Margin (1)(4)
|
25 | % | 28 | % | 29 | % | 16 | % | 25 | % | ||||||||||
|
Non-GAAP
Net Income (1)(5)
|
$ | 117 | $ | 130 | $ | 130 | $ | 70 | $ | 448 | ||||||||||
|
Non-GAAP
Diluted Net Income Per Share (1)(6)
|
$ | 0.50 | $ | 0.56 | $ | 0.56 | $ | 0.31 | $ | 1.95 | ||||||||||
|
Total
Cash and Marketable Securities
|
$ | 950 | $ | 970 | $ | 941 | $ | 989 | $ | 989 | ||||||||||
|
Days
Sales Outstanding
|
51 | 48 | 44 | 59 | 59 | |||||||||||||||
|
Capital
Expenditures
|
$ | 14 | $ | 26 | $ | 19 | $ | 19 | $ | 78 | ||||||||||
|
Cash
from Operations
|
$ | 185 | $ | 215 | $ | 107 | $ | 86 | $ | 594 | ||||||||||
|
GAAP
Depreciation and Amortization
|
$ | 17 | $ | 22 | $ | 25 | $ | 27 | $ | 92 | ||||||||||
|
Deferred
Maintenance Revenue Balance
|
$ | 474 | $ | 488 | $ | 433 | $ | 475 | $ | 475 | ||||||||||
|
Revenue
by Geography (in millions):
|
||||||||||||||||||||
|
Americas
|
$ | 191 | $ | 203 | $ | 216 | $ | 172 | $ | 782 | ||||||||||
|
Europe
|
$ | 259 | $ | 267 | $ | 258 | $ | 219 | $ | 1,003 | ||||||||||
|
Asia/Pacific
|
$ | 149 | $ | 150 | $ | 133 | $ | 99 | $ | 530 | ||||||||||
|
Revenue
by Segment (in millions):
|
||||||||||||||||||||
|
Platform
Solutions and Emerging Business
|
$ | 253 | $ | 237 | $ | 239 | $ | 172 | $ | 901 | ||||||||||
|
Architecture,
Engineering and Construction
|
$ | 155 | $ | 176 | $ | 164 | $ | 146 | $ | 641 | ||||||||||
|
Manufacturing
|
$ | 119 | $ | 131 | $ | 124 | $ | 115 | $ | 489 | ||||||||||
|
Media
and Entertainment
|
$ | 67 | $ | 69 | $ | 73 | $ | 53 | $ | 262 | ||||||||||
|
Other
|
$ | 5 | $ | 6 | $ | 7 | $ | 4 | $ | 22 | ||||||||||
|
Other
Revenue Statistics:
|
||||||||||||||||||||
|
% of
Total Rev from AutoCAD and AutoCAD LT
|
41 | % | 35 | % | 35 | % | 32 | % | 36 | % | ||||||||||
|
% of
Total Rev from 3D design products
|
24 | % | 26 | % | 27 | % | 29 | % | 27 | % | ||||||||||
|
% of
Total Rev from Emerging Economies
|
17 | % | 18 | % | 19 | % | 16 | % | 18 | % | ||||||||||
|
Upgrade
Revenue (in millions)
|
$ | 61 | $ | 58 | $ | 41 | $ | 34 | $ | 194 | ||||||||||
|
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 | $ | 18 | $ | (19 | ) | $ | 82 | |||||||||
|
FX
Impact on Total Operating Expenses
|
$ | (14 | ) | $ | (11 | ) | $ | (3 | ) | $ | 17 | $ | (11 | ) | ||||||
|
FX
Impact on Total Net Income (Loss)
|
$ | 27 | $ | 31 | $ | 15 | $ | (2 | ) | $ | 71 | |||||||||
|
Gross
Margin by Segment (in millions):
|
||||||||||||||||||||
|
Platform
Solutions and Emerging Business
|
$ | 240 | $ | 226 | $ | 231 | $ | 164 | $ | 861 | ||||||||||
|
Architecture,
Engineering and Construction
|
$ | 143 | $ | 162 | $ | 152 | $ | 135 | $ | 592 | ||||||||||
|
Manufacturing
|
$ | 110 | $ | 122 | $ | 117 | $ | 108 | $ | 457 | ||||||||||
|
Media
and Entertainment
|
$ | 49 | $ | 52 | $ | 57 | $ | 40 | $ | 198 | ||||||||||
|
Unallocated
amounts
|
$ | (1 | ) | $ | (2 | ) | $ | (3 | ) | $ | (6 | ) | $ | (12 | ) | |||||
|
Common
Stock Statistics:
|
||||||||||||||||||||
|
GAAP
Shares Outstanding
|
223,616,000 | 224,528,000 | 226,248,000 | 226,354,000 | 226,354,000 | |||||||||||||||
|
GAAP
Fully Diluted Weighted Average Shares Outstanding
|
232,607,000 | 231,078,000 | 230,364,000 | 226,299,000 | 230,068,000 | |||||||||||||||
|
Shares
Repurchased
|
8,001,000 | - | - | - | 8,001,000 | |||||||||||||||
|
Installed
Base Statistics:
|
||||||||||||||||||||
|
Maintenance
Installed Base
|
1,587,000 | 1,644,000 | 1,696,000 | 1,704,000 | 1,704,000 | |||||||||||||||
Note: Totals
may not agree with the sum of the components due to
rounding.
|
(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 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, in-process
research and development expenses, restructuring charges, amortization of
purchased intangibles, asset impairment and related 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 Autodesk's press
release.
|
||||||||||||||||||||
|
(2)
GAAP Gross Margin
|
90 | % | 90 | % | 91 | % | 90 | % | 91 | % | ||||||||||
|
Stock-based
compensation expense
|
0 | % | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||||
|
Amortization
of developed technology
|
1 | % | 1 | % | 2 | % | 2 | % | 1 | % | ||||||||||
|
Non-GAAP
Gross Margin
|
91 | % | 91 | % | 93 | % | 92 | % | 92 | % | ||||||||||
|
(3)
GAAP Operating Expenses
|
$ | 421 | $ | 441 | $ | 415 | $ | 575 | $ | 1,852 | ||||||||||
|
Stock-based
compensation expense
|
(24 | ) | (22 | ) | (21 | ) | (18 | ) | (87 | ) | ||||||||||
|
Amortization
of customer relationships and trademarks
|
(3 | ) | (6 | ) | (7 | ) | (7 | ) | (24 | ) | ||||||||||
|
In-process
research and development
|
- | (17 | ) | (1 | ) | (9 | ) | (27 | ) | |||||||||||
|
Restructuring
charges
|
- | - | - | (40 | ) | (40 | ) | |||||||||||||
|
Impairment
of goodwill and intangibles
|
- | - | - | (129 | ) | (129 | ) | |||||||||||||
|
Non-GAAP
Operating Expenses
|
$ | 394 | $ | 396 | $ | 385 | $ | 372 | $ | 1,546 | ||||||||||
|
(4)
GAAP Operating Margin
|
20 | % | 19 | % | 23 | % | -27 | % | 11 | % | ||||||||||
|
Stock-based
compensation expense
|
4 | % | 4 | % | 4 | % | 4 | % | 4 | % | ||||||||||
|
Amortization
of developed technology
|
1 | % | 1 | % | 1 | % | 2 | % | 1 | % | ||||||||||
|
Amortization
of customer relationships and trademarks
|
0 | % | 1 | % | 1 | % | 1 | % | 1 | % | ||||||||||
|
In-process
research and development
|
0 | % | 3 | % | 0 | % | 2 | % | 1 | % | ||||||||||
|
Restructuring
charges
|
0 | % | 0 | % | 0 | % | 8 | % | 2 | % | ||||||||||
|
Impairment
of goodwill and intangibles
|
0 | % | 0 | % | 0 | % | 26 | % | 6 | % | ||||||||||
|
Non-GAAP
Operating Margin
|
25 | % | 28 | % | 29 | % | 16 | % | 25 | % | ||||||||||
|
(5)
GAAP Net Income (Loss)
|
$ | 95 | $ | 90 | $ | 104 | $ | (105 | ) | $ | 184 | |||||||||
|
Stock-based
compensation expense
|
25 | 23 | 23 | 19 | 90 | |||||||||||||||
|
Amortization
of developed technology
|
4 | 5 | 6 | 8 | 23 | |||||||||||||||
|
Amortization
of customer relationships and trademarks
|
3 | 6 | 7 | 7 | 24 | |||||||||||||||
|
In-process
research and development
|
- | 17 | 1 | 9 | 27 | |||||||||||||||
|
Impairment
of goodwill and intangibles
|
- | - | - | 129 | 129 | |||||||||||||||
|
Restructuring
charges
|
- | - | - | 40 | 40 | |||||||||||||||
|
Income
tax effect on difference between GAAP and non-GAAP
total
costs and expenses at a normalized rate
|
(9 | ) | (11 | ) | (12 | ) | (36 | ) | (68 | ) | ||||||||||
|
Non-GAAP
Net Income
|
$ | 117 | $ | 130 | $ | 130 | $ | 70 | $ | 448 | ||||||||||
|
(6)
GAAP Diluted Net Income (Loss) Per Share
|
$ | 0.41 | $ | 0.39 | $ | 0.45 | $ | (0.47 | ) | $ | 0.80 | |||||||||
|
Stock-based
compensation expense
|
0.11 | 0.10 | 0.10 | 0.08 | 0.39 | |||||||||||||||
|
Amortization
of developed technology
|
0.01 | 0.02 | 0.03 | 0.04 | 0.10 | |||||||||||||||
|
Amortization
of customer relationships and trademarks
|
0.01 | 0.03 | 0.03 | 0.03 | 0.10 | |||||||||||||||
|
In-process
research and development
|
- | 0.07 | - | 0.04 | 0.12 | |||||||||||||||
|
Impairment
of goodwill and intangibles
|
- | - | - | 0.56 | 0.56 | |||||||||||||||
|
Restructuring
charges
|
- | - | - | 0.18 | 0.18 | |||||||||||||||
|
Income
tax effect on difference between GAAP and non-GAAP
total
costs and expenses at a normalized rate
|
(0.04 | ) | (0.05 | ) | (0.05 | ) | (0.15 | ) | (0.30 | ) | ||||||||||
|
Non-GAAP
Diluted Net Income Per Share
|
$ | 0.50 | $ | 0.56 | $ | 0.56 | $ | 0.31 | $ | 1.95 |