Autodesk Reports Third Quarter Earnings; Company Exceeds Earnings Expectations
Autodesk Reports Third Quarter Earnings; Company Exceeds Earnings Expectations
Nov 15, 2001
SAN RAFAEL, Calif., Nov 15, 2001 (BUSINESS WIRE) -- Autodesk, Inc.
(Nasdaq:ADSK), the world's leading design software and digital content company,
today announced financial results for its third quarter ended October 31, 2001.
Autodesk reported net revenues of $216.4 million for the third quarter of fiscal
year 2002 compared to $229.2 million for the third quarter of fiscal year 2001.
On a pro forma basis, as defined below, third quarter net income was $20.8 million, or $0.37 per diluted share, compared to $21.9 million, or $0.38 per diluted share, for the same quarter a year ago.
Third quarter net income was $21.5 million, or $0.38 per diluted share. This compares to net income for the same quarter a year ago of $18.5 million, or $0.32 per diluted share.
"Operational efficiency, focused product strategy, and solid sales execution anchored our third quarter performance," said Carol Bartz, Autodesk chairman and chief executive officer. "We're in the middle of a very strong product cycle. Despite macroeconomic softness affecting our business, our product and sales teams continue to create opportunity. The milestones we hit in Q3 tell us that our strategies are aligned with customer needs."
Third Quarter Highlights
-- In our manufacturing division, our flagship 3D modeling
software application, Autodesk Inventor, had a record
performance for the quarter. Quarterly revenue increased by
more than 64% sequentially, more than double the revenues of
last year. We added more than 5,300 commercial Autodesk
Inventor users during the quarter.
-- Across geographies, the company reported strong adoption of
the AutoCAD 2002-based vertical design applications for
building design, manufacturing design, civil engineering, and
mapping.
-- Strength in the company was enhanced by the acquisitions of
Buzzsaw, an online project collaboration and print management
applications company; the core development team of POINT
Gruppen, who we have been working with the past two years to
develop the building systems applications we started shipping
this quarter; and Media 100's streaming and non-linear editing
software business. These three acquisitions enhance our
diverse portfolio of assets and ultimately add to the
company's future growth strategy.
Business Outlook
The following statements are based on current expectations. These statements are
forward-looking and actual results may differ materially.
Revenue outlook:
-- For the fourth quarter of fiscal year 2002, the company
expects net revenue to range between $245 and $255 million.
This brings the company's net revenue expectations for fiscal
year 2002 to a range between $938 and $948 million.
These revenue expectations could be adversely impacted by a number of factors,
including further slowing in the worldwide economies especially in the United
States and developing countries in Asia Pacific, failure to achieve customer
acceptance of key new design and entertainment applications, failure to grow new
collaborative services, inability of customers to obtain external financing,
failure to achieve anticipated revenue results from newly acquired businesses,
and foreign currency fluctuations.
Earnings per share outlook:
-- Earnings per share on a pro forma basis, as defined below, is
expected to range between $0.51 and $0.61 per diluted share
for the fourth quarter of fiscal year 2002. This brings the
company's pro forma earnings per share expectations for fiscal
year 2002 to a range between $1.98 and $2.08.
Pro forma earnings per diluted share may vary due to our inability to control
and further reduce operating costs, failure to achieve customer acceptance of
key new design and entertainment applications, inability to successfully
integrate new or acquired businesses, and fluctuations in interest rates and
share count.
The statements above contained in the business outlook are forward-looking statements that involve risks and uncertainties. In addition to factors discussed above, other factors that could cause actual results to differ materially include the following: general market and business conditions, pricing pressure, failure to achieve continued success in technology advancements and timely release of new products and services, changes in customer ordering patterns, failure to grow internet-related businesses and operational results. Further information on potential factors that could affect the financial results of Autodesk are included in the company's Report on Form 10-K for the year ended January 31, 2001, and Form 10-Q for the quarter ended July 31, 2001, which are on file with the Securities and Exchange Commission.
Autodesk will host a toll-free conference call at 800/633-8540 and an audio webcast on the third quarter results beginning at 5:00 p.m. Eastern Time at www.Autodesk.com/investor. An audio webcast replay will be available until December 1, 2001.
A summary of Autodesk's financial results is as follows:
Three months ended October 31 2001 2000
Net revenues $216,357,000 $229,177,000
Net income(1) $ 21,471,000 $ 18,511,000
Pro forma net income(2) $ 20,751,000 $ 21,857,000
Diluted net income
per share(1) $0.38 $0.32
Pro forma diluted net
income per share(2) $0.37 $0.38
(1) Net income for the quarter ended October 31, 2001, includes
nonrecurring charges of $7.3 million or $0.13 per diluted share
and a one-time gain on disposal of affiliate of $9.5 million or
$0.17 per diluted share.
(2) Pro forma results for the quarter ended October 31, 2001, exclude
amortization of goodwill and purchased intangibles of $5.2 million
or $0.09 per diluted share, nonrecurring charges of $7.3 million
or $0.13 per diluted share, and a one-time gain on disposal of
affiliate of $9.5 million or $0.17 per diluted share. Pro forma
results for the quarter ended October 31, 2000, exclude
amortization of goodwill and purchased intangibles of $5.9 million
or $0.10 per diluted share and nonrecurring credits of $0.4
million or $0.01 per diluted share.
Nine months ended October 31 2001 2000
Net revenues $693,457,000 $693,277,000
Net income(3) $ 68,544,000 $ 64,870,000
Pro forma net income(4) $ 81,954,000 $ 77,346,000
Diluted net income
per share(3) $1.23 $1.09
Pro forma diluted net
income per share(4) $1.47 $1.30
(3) Net income for the nine months ended October 31, 2001, includes
nonrecurring charges of $17.1 million or $0.31 per diluted share
and a one-time gain on disposal of affiliate of $9.5 million or
$0.17 per diluted share.
(4) Pro forma results for the nine months ended October 31, 2001,
exclude amortization of goodwill and purchased intangibles,
nonrecurring charges and a one-time gain on disposal of affiliate
that netted to $23.3 million or $0.42 per diluted share. Pro forma
results for the nine months ended October 31, 2000, exclude
amortization of goodwill and purchased intangibles and
nonrecurring credits that netted to $19.7 million or $0.33 per
diluted share.
About AutodeskAutodesk is the world's leading design software and digital content company. Founded in 1982, Autodesk provides design software, Internet portal services, wireless development platforms, and point-of-location applications that empower more than four million customers in over 150 countries to drive business and remain competitive. For more information, contact any Authorized Autodesk Reseller, call Autodesk at 800/964-6432, or visit www.autodesk.com. Discreet(TM) product information is available at 800/869-3504 or via the Web at www.discreet.com.
Note to Editors: Autodesk and the Autodesk logo are registered trademarks, and Discreet is a trademark, of Autodesk, Inc., in the United States and/or other countries. All other brand names, product names, or trademarks belong to their respective holders.
Autodesk, Inc.
Pro Forma Consolidated Statements of Operations
(In thousands, except per share data)
Three Months Ended Nine Months Ended
October 31, October 31,
----------- -----------
2001 2000 2001 2000
-----------------------------------------
(Unaudited) (Unaudited)
Net revenues $216,357 $229,177 $693,457 $693,277
Costs and expenses:
Cost of revenues 37,799 37,956 109,717 113,891
Marketing and sales 81,109 81,234 254,666 235,701
Research and development 39,637 42,658 129,379 125,185
General and administrative 32,492 32,387 98,131 97,315
------------------- -------------------
Total costs & expenses,
excluding amortization of
goodwill and purchased
intangibles and nonrecurring
charges and credits 191,037 194,235 591,893 572,092
------------------- -------------------
Income from operations 25,320 34,942 101,564 121,185
Interest and other
income, net 4,325 6,372 17,313 13,646
------------------- -------------------
Income before income taxes,
excluding gain on disposal
of affiliate 29,645 41,314 118,877 134,831
Provision for income taxes (8,894) (13,561) (35,712) (44,030)
Equity in net loss
of affiliate -- (5,896) (1,211) (13,455)
------------------- -------------------
Net income $ 20,751 $ 21,857 $ 81,954 $ 77,346
=================== ===================
Basic net income per share $ 0.38 $ 0.39 $ 1.52 $ 1.34
=================== ===================
Diluted net income
per share $ 0.37 $ 0.38 $ 1.47 $ 1.30
=================== ===================
Shares used in computing
basic net income per share 54,370 56,681 54,093 57,825
=================== ===================
Shares used in computing
diluted net income
per share 56,010 57,073 55,751 59,319
=================== ===================
Autodesk, Inc.
Consolidated Statements of Operations
(In thousands, except per share data)
Three Months Ended Nine Months Ended
October 31, October 31,
----------- -----------
2001 2000 2001 2000
-----------------------------------------
(Unaudited) (Unaudited)
Net revenues $216,357 $229,177 $693,457 $693,277
Costs and expenses:
Cost of revenues 37,799 37,956 109,717 113,891
Marketing and sales 81,109 81,234 254,666 235,701
Research and development 39,637 42,658 129,379 125,185
General and administrative 32,492 32,387 98,131 97,315
Amortization of goodwill
and purchased intangibles 5,198 5,856 15,679 20,916
Nonrecurring charges
(credits) 7,290 (434) 17,064 (1,234)
------------------- -------------------
203,525 199,657 624,636 591,774
------------------- -------------------
Income from operations 12,832 29,520 68,821 101,503
Interest and other
income, net 4,325 6,372 17,313 13,646
Gain on disposal of affiliate 9,461 0 9,461 0
------------------- -------------------
Income before income taxes 26,618 35,892 95,595 115,149
Provision for income taxes (5,147) (11,485) (25,840) (36,824)
Equity in net loss of
affiliate -- (5,896) (1,211) (13,455)
------------------- -------------------
Net income $ 21,471 $ 18,511 $ 68,544 $ 64,870
=================== ===================
Basic net income per share $ 0.39 $ 0.33 $ 1.27 $ 1.12
=================== ===================
Diluted net income
per share $ 0.38 $ 0.32 $ 1.23 $ 1.09
=================== ===================
Shares used in computing
basic net income per share 54,370 56,681 54,093 57,825
=================== ===================
Shares used in computing
diluted net income
per share 56,010 57,073 55,751 59,319
=================== ===================
Autodesk, Inc.
Consolidated Balance Sheets
(In thousands)
October 31, January 31,
2001 2001
------------------------
(Unaudited) (Audited)
ASSETS:
Current assets:
Cash and cash equivalents $110,594 $116,391
Marketable securities 141,936 142,961
Accounts receivable, net 141,438 157,422
Inventories 20,788 17,255
Deferred income taxes 29,694 26,696
Prepaid expenses and
other current assets 39,151 30,596
-----------------------
Total current assets 483,601 491,321
-----------------------
Marketable securities 175,113 163,148
Computer equipment, furniture and
leasehold improvements, at cost:
Computer equipment and furniture 198,242 171,176
Leasehold improvements 29,942 27,145
Less accumulated depreciation (158,509) (144,325)
-----------------------
Net computer equipment, furniture,
and leasehold improvements 69,675 53,996
Purchased technologies and
capitalized software, net 18,739 16,403
Goodwill, net 47,580 54,273
Deferred income taxes 47,136 18,242
Other assets 11,329 10,376
-----------------------
$853,173 $807,759
=======================
LIABILITIES, MINORITY INTEREST & STOCKHOLDERS' EQUITY:
Current liabilities:
Accounts payable $ 48,732 $ 47,962
Accrued compensation 51,662 55,907
Accrued income taxes 103,805 97,109
Deferred revenues 59,900 50,993
Other accrued liabilities 96,810 81,942
-----------------------
Total current liabilities 360,909 333,913
-----------------------
Other liabilities 713 1,208
Minority interest 0 12,964
Stockholders' equity:
Common stock and additional
paid-in capital 433,777 424,652
Accumulated other comprehensive loss (17,856) (16,104)
Deferred compensation (920) (1,172)
Retained earnings 76,550 52,298
-----------------------
Total stockholders' equity 491,551 459,674
-----------------------
$853,173 $807,759
=======================
Fiscal Year 2002 QTR 1 QTR 2 QTR 3 QTR 4 YTD2002
----------------------------------------------------------------------
Financial Statistics (in millions):
Net Revenues $ 245.7 $ 231.4 $ 216.4 $ 693.5
Gross Margin 85% 85% 83% 84%
Pro Forma Operating
Expenses $ 167.2 $ 161.8 $ 153.2 $ 482.2
Pro Forma Operating
Margin 17% 15% 12% 15%
Pro Forma Net Income(1) $ 31.6 $ 29.6 $ 20.8 $ 82.0
Pro Forma Earnings Per
Share (diluted) $ 0.57 $ 0.53 $ 0.37 $ 1.47
Total Cash and
Marketable Securities $ 394.8 $ 432.7 $ 427.6 $ 427.6
Days Sales Outstanding 55 52 50
Revenue by Geography
(in millions):
Americas $ 99.9 $ 116.2 $ 99.7 $ 315.8
Europe $ 78.1 $ 59.5 $ 66.4 $ 204.0
Asia/Pacific $ 67.7 $ 55.7 $ 50.3 $ 173.7
Revenue by Division
(in millions):
Design Solutions $ 196.6 $ 191.7 $ 179.6 $ 567.9
Manufacturing $ 34.3 $ 27.5 $ 28.1 $ 89.9
GIS $ 21.4 $ 27.0 $ 28.5 $ 76.9
Building Industry (AEC) $ 17.7 $ 18.4 $ 18.6 $ 54.7
Platform Group & Other $ 123.2 $ 118.8 $ 104.4 $ 346.4
Discreet $ 49.1 $ 39.7 $ 36.8 $ 125.6
AutoCAD Statistics:
AutoCAD Units Sold 77,000 67,000 65,000 209,000
AutoCAD Upgrade Revenue
(in millions) $ 17.0 $ 54.7 $ 36.6 $ 108.3
Installed Base 2,852,000 2,919,000 2,984,000 2,984,000
Headcount:
Headcount 3,539 3,554 3,654 3,654
Common Stock Statistics:
Stock Outstanding
(Pro Forma EPS
Calculation-diluted) 55,687,000 55,710,000 56,010,000 55,751,000
Stock Repurchased 1,825,000 195,000 349,000 2,369,000
(1) Pro forma net income excludes amortization of goodwill and
purchased intangibles, nonrecurring charges and credits, and the
gain on disposal of affiliate that was recognized during the third
quarter of fiscal 2002.
CONTACT: Autodesk
Steve Cakebread, 415/507-6587 (Investor)
steve.cakebread@autodesk.com
Misty Ohmart, 415/507-6208 (Investor)
misty.ohmart@autodesk.com
Sheryl Seapy, 415/507-6271 (Media)
sheryl.seapy@autodesk.com
URL: http://www.businesswire.com
Today's News On The Net - Business Wire's full file on the Internet
with Hyperlinks to your home page.
Copyright (C) 2001 Business Wire. All rights reserved.
Click here for pdf version of this release.
Click here for pdf version of the Balance Sheet.
Click here for pdf version of the Consolidated Operations.
Click here for pdf version of the Pro Forma.