-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Gl2LyzVNq4Jah7CudiM4RPo9D15qowfLvF4fQt5Z5b7szSGwiyEOlYl1e8WikfuN OqZCgnpflacYbFqw1ifqZg== 0001275287-05-000663.txt : 20050222 0001275287-05-000663.hdr.sgml : 20050222 20050222170623 ACCESSION NUMBER: 0001275287-05-000663 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20050222 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050222 DATE AS OF CHANGE: 20050222 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AUTODESK INC CENTRAL INDEX KEY: 0000769397 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-PREPACKAGED SOFTWARE [7372] IRS NUMBER: 942819853 STATE OF INCORPORATION: DE FISCAL YEAR END: 0131 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-14338 FILM NUMBER: 05631964 BUSINESS ADDRESS: STREET 1: 111 MCINNIS PKWY CITY: SAN RAFAEL STATE: CA ZIP: 94903 BUSINESS PHONE: 4155075000 MAIL ADDRESS: STREET 1: 111 MCINNIS PKWY CITY: SAN RAFAEL STATE: CA ZIP: 94903 8-K 1 ai2101.txt ================================================================================ UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 ---------- FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported) FEBRUARY 22, 2005 ---------- AUTODESK, INC. (Exact name of registrant as specified in its charter) Delaware 000-14338 94-2819853 ------------------------------- ------------ ------------------- (State or other jurisdiction of (Commission (IRS Employer incorporation) File Number) Identification No.) 111 McInnis Parkway San Rafael, California 94903 (Address of principal executive offices, including zip code) (415) 507-5000 (Registrant's telephone number, including area code) (Former name or former address, if changed since last report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) ================================================================================ ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION On February 22, 2005, Autodesk, Inc. issued a press release reporting its results for the three months and fiscal year ended January 31, 2005. The press release is filed herewith as Exhibit 99.1 and is incorporated herein by reference. ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS (c) EXHIBITS. EXHIBIT NO. DESCRIPTION - ----------- ----------------------------------------------------------------- 99.1 Press Release, dated as of February 22, 2005, entitled "Autodesk Fiscal 2005 Revenues Increase 30 Percent; GAAP EPS Increases 73 Percent." 2 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. AUTODESK, INC. By: /s/ Alfred J. Castino -------------------------------- Alfred J. Castino Senior Vice President and Chief Financial Officer Date: February 22, 2005 3 EXHIBIT INDEX EXHIBIT NO. DESCRIPTION - ----------- ----------------------------------------------------------------- 99.1 Press Release, dated as of February 22, 2005, entitled "Autodesk Fiscal 2005 Revenues Increase 30 Percent; GAAP EPS Increases 73 Percent." 4 EX-99.1 2 ai2101ex991.txt Exhibit 99.1 AUTODESK FISCAL 2005 REVENUES INCREASE 30 PERCENT GAAP EPS Increases 73 Percent SAN RAFAEL, Calif., Feb. 22 /PRNewswire-FirstCall/ -- Autodesk Inc. (Nasdaq: ADSK) today announced financial results for its fourth fiscal quarter ended January 31, 2005. For the fourth quarter, Autodesk reported net revenues of $356 million, a 21 percent increase over $295 million reported in the fourth quarter of the prior year. Fourth quarter net income increased to $66 million on a GAAP basis, compared to $58 million in the prior year. GAAP EPS was $0.26 per diluted share compared to $0.24 in the prior year. Fourth quarter GAAP net income included a $12 million pre-tax restructuring charge. In the fourth quarter of the prior year, GAAP net income included a tax benefit of $7 million and a $3 million pre-tax restructuring charge. Excluding these items, pro-forma net income for the fourth quarter was $75 million, compared to $53 million in the prior year. Pro-forma EPS per diluted share was $0.30 in the fourth quarter, and $0.22 in the fourth quarter of the prior year. "Autodesk executed flawlessly again this quarter," said Carol Bartz, Autodesk chairman and CEO. "We had an outstanding year, exceeding all of our financial projections. Our results demonstrate that our strategies are working, our product portfolio is strong, and our customers are satisfied." Autodesk's performance was driven by strong growth in revenues from new seats and subscriptions, increasing penetration of its 3D products, and continued improvement in productivity and efficiency. Fourth quarter revenues from new commercial seats increased 46 percent over the prior year, as customers continued to respond to the innovation, quality, easy implementation, ease of use and quick ROI of Autodesk products. Revenues from new commercial seats of AutoCAD(R) increased 56 percent over the prior year. Full year combined revenues from subscriptions and upgrades increased 26 percent over fiscal 2004. Consistent with company strategy, subscription revenues, which are labeled as maintenance on the financial statements, grew faster than upgrades, increasing 54% over last year. Upgrade revenues increased 12 percent over fiscal 2004. Combined revenues from subscriptions and upgrades continue to represent approximately one-third of total annual revenues. The company's 3D products continue to increase their market share. In the fourth quarter of fiscal 2005, revenues from Autodesk Inventor(R)Series, Autodesk Inventor Professional, Autodesk Revit(R), Autodesk AutoCAD Revit Series, Autodesk Map(R) 3D and Autodesk Civil 3D(TM), increased 49 percent over the prior year. For the fourth consecutive year, the Inventor product line was the world's best selling mechanical design software. Autodesk continued to demonstrate progress in improving its profitability. Fourth quarter GAAP operating margins increased 2 percentage points over the prior year to 22 percent. Pro-forma operating margins increased 4 percentage points over the prior year to 25 percent. "We are very optimistic about the coming year and therefore are raising our guidance," said Bartz. "In March, we will launch the strongest product portfolio in the company's history, including significant new releases of all of our major products. Our 3D products continue to increase penetration and market awareness of our lifecycle management solutions is growing. We remain firmly committed to continuous improvements in productivity. I have never been more enthusiastic about Autodesk's opportunities." Full Year Fiscal Review Fiscal 2005 revenues increased 30 percent over last year to $1.234 billion. Net income for fiscal 2005 increased to $222 million on a GAAP basis, compared to $120 million last year. GAAP EPS was $0.90 per diluted share compared to $0.52 for fiscal 2004. GAAP net income includes tax benefits totaling $24 million, as well as pre-tax restructuring charges of $27 million. Fiscal 2004 GAAP net income included tax benefits totaling $27 million and a $3 million pre-tax restructuring charge. Excluding these items, pro-forma net income for fiscal 2005 was $218 million and $96 million in the prior year. Pro-forma EPS per diluted share was $0.88 in fiscal 2005 and $0.42 in the prior year. Once again, GAAP net income was higher than pro-forma. A reconciliation of the above non-GAAP net income and EPS amounts to the corresponding GAAP net income and EPS amounts is provided at the end of this press release. Business Outlook The following statements are forward looking statements which are based on current expectations and which involve risks and uncertainties some of which are set forth below. First Quarter Fiscal 2006 Net revenues for the first quarter of fiscal 2006 are currently expected to be in the range of $335 million to $345 million. GAAP earnings per diluted share are currently expected to be in the range of $0.26 to $0.28. Second Quarter Fiscal 2006 Net revenues for the second quarter of fiscal 2006 are currently expected to be in the range of $330 million to $340 million. Operating expenses are expected to increase in the second quarter due to increasing investments in growth initiatives. GAAP earnings per diluted share are currently expected to be in the range of $0.21 to $0.23. Full Year Fiscal 2006 For fiscal year 2006, net revenues are currently expected to be in the range of $1,360 million to $1,410 million. GAAP earnings per diluted share are currently expected to be in the range of $1.05 to $1.10. Guidance for fiscal year 2006 does not take into account the impact of expected required stock option expensing. All fiscal 2006 EPS guidance ranges are based on the new 20 percent estimated effective tax rate. The company believes its effective tax rate will revert back to the historical effective tax rate of approximately 24 percent in fiscal year 2007. Safe Harbor Statement This press release contains forward-looking statements that involve risks and uncertainties, including statements in the paragraphs under "Business Outlook" above, statements regarding our expected effective tax rate and other statements regarding our anticipated performance. Factors that could cause actual results to differ materially include the following: general market and business conditions, changes in accounting rules, particularly related to stock option expensing, failure to achieve sufficient sell-through in our channels for new or existing products, failure of key new applications to achieve anticipated levels of customer acceptance, pricing pressure, failure to achieve anticipated cost reductions and productivity increases, delays in the release of new products and services, failure to achieve continued success in technology advancements, changes in foreign currency exchange rates, failure to successfully integrate new or acquired businesses, the financial and business condition of our reseller and distribution channels, renegotiation or termination of royalty or intellectual property arrangements, failure to achieve continued migration from 2D products to 3D products, failure to grow lifecycle management or collaboration products, and unanticipated impact of accounting for technology acquisitions. Further information on potential factors that could affect the financial results of Autodesk are included in the company's report on Form 10-K for the year ended January 31, 2004, and Form 10-Q for the quarter ended October 31, 2004, which are on file with the Securities and Exchange Commission. Autodesk will host its fourth quarter earnings announcement today at 5:00 p.m. Eastern Time. The live announcement may be accessed at 800-291-9234 (passcode: 25553104). An audio webcast will also be available beginning at 5:00 p.m. Eastern Time at www.autodesk.com/investor. A replay of this webcast will be maintained on our website for at least twelve months. About Autodesk Autodesk, Inc. is wholly focused on ensuring that great ideas are turned into reality. With more than six million users, Autodesk is the world's leading software and services company for the building, manufacturing, infrastructure, digital media, and wireless data services fields. Autodesk's solutions help customers create, manage, and share their data and digital assets more effectively. As a result, customers turn ideas into competitive advantage by becoming more productive, streamlining project efficiency, and maximizing profits. Founded in 1982, Autodesk is headquartered in San Rafael, California. For additional information about Autodesk, please visit www.autodesk.com. NOTE: Autodesk, AutoCAD, Autodesk Inventor, Autodesk Map, Civil 3D and Revit are either trademarks or registered trademarks of Autodesk, Inc., in the United States and/or other countries. All other brand names, product names, or trademarks belong to their respective holders. Investors: Sue Pirri, sue.pirri@autodesk.com, 415-507-6467 John Clancy, john.clancy@autodesk.com 415-507-6373 Press: Nicole Pack, nicole.pack@autodesk.com, 415-507-6282 Autodesk, Inc. Consolidated Statements of Income (In thousands, except per share data)
Three Months Ended Year Ended January 31, January 31, -------------------------- -------------------------- 2005 2004 2005 2004 ----------- ----------- ----------- ----------- (Unaudited) (Unaudited) (Audited) Net revenues: License and other $ 303,704 $ 262,119 $ 1,057,108 $ 836,737 Maintenance 52,451 33,191 176,659 114,906 Total net revenues 356,155 295,310 1,233,767 951,643 Costs and expenses: Cost of license and other revenues 39,561 32,535 152,446 132,727 Cost of maintenance revenues 4,400 4,696 16,997 15,401 Marketing and sales 134,435 115,652 461,932 393,234 Research and development 63,239 55,102 239,404 209,349 General and administrative 24,559 26,393 101,415 91,512 Restructuring 11,811 3,183 26,700 3,183 Total costs and expenses 278,005 237,561 998,894 845,406 Income from operations 78,150 57,749 234,873 106,237 Interest and other income, net 4,059 8,812 11,455 16,959 Income before income taxes 82,209 66,561 246,328 123,196 Provision for income taxes (16,441) (8,961) (24,820) (2,880) Net income $ 65,768 $ 57,600 $ 221,508 $ 120,316 Basic net income per share $ 0.29 $ 0.26 $ 0.98 $ 0.54 Diluted net income per share $ 0.26 $ 0.24 $ 0.90 $ 0.52 Shares used in computing basic net income per share 227,821 222,929 227,036 222,993 Shares used in computing diluted net income per share 252,674 239,674 246,977 231,304
Autodesk, Inc. Pro Forma Consolidated Statements of Income (See pro forma adjustments listed in the tables below) (In thousands, except per share data)
Three Months Ended Year Ended January 31, January 31, -------------------------- -------------------------- 2005 2004 2005 2004 ----------- ----------- ----------- ----------- (Unaudited) (Unaudited) Net revenues: License and other $ 303,704 $ 262,119 $ 1,057,108 $ 836,737 Maintenance 52,451 33,191 176,659 114,906 Total net revenues 356,155 295,310 1,233,767 951,643 Costs and expenses: Cost of license and other revenues 39,561 32,535 152,446 132,727 Cost of maintenance revenues 4,400 4,696 16,997 15,401 Marketing and sales 134,435 115,652 461,932 393,234 Research and development 63,239 55,102 239,404 209,349 General and administrative 24,559 26,393 101,415 91,512 Total costs and expenses 266,194 234,378 972,194 842,223 Income from operations 89,961 60,932 261,573 109,420 Interest and other income, net 4,059 8,812 11,455 16,959 Income before income taxes 94,020 69,744 273,028 126,379 Provision for income taxes (18,804) (16,739) (54,606) (30,332) Pro forma net income $ 75,216 $ 53,005 $ 218,422 $ 96,047 Basic pro forma net income per share $ 0.33 $ 0.24 $ 0.96 $ 0.43 Diluted pro forma net income per share $ 0.30 $ 0.22 $ 0.88 $ 0.42 Shares used in computing basic pro forma net income per share 227,821 222,929 227,036 222,993 Shares used in computing diluted pro forma net income per share 252,674 239,674 246,977 231,304
THREE MONTHS ENDED YEAR ENDED JANUARY 31, JANUARY 31, ----------------------- ----------------------- 2005 2004 2005 2004 (Unaudited) (Unaudited) ---------- ---------- ---------- ---------- A reconciliation between operating expenses on a GAAP basis and pro forma operating expenses is as follows: GAAP costs and expenses $ 278,005 $ 237,561 $ 998,894 $ 845,406 Restructuring (11,811) (3,183) (26,700) (3,183) Pro forma costs and expenses $ 266,194 $ 234,378 $ 972,194 $ 842,223 A reconciliation between income from operations on a GAAP basis and pro forma income from operations is as follows: GAAP income from operations $ 78,150 $ 57,749 $ 234,873 $ 106,237 Restructuring 11,811 3,183 26,700 3,183 Pro forma income from operations $ 89,961 $ 60,932 $ 261,573 $ 109,420 A reconciliation between provision for income taxes on a GAAP basis and pro forma provision for income taxes is as follows: GAAP provision for income taxes $ (16,441) $ (8,961) $ (24,820) $ (2,880) Income tax effect on restructuring at the normalized rate (2,363) (765) (5,341) (765) Dividends received deduction benefit for prior fiscal years -- -- (15,540) -- Non-recurring tax benefit -- (7,013) (8,905) (26,687) Pro forma provision for income taxes $ (18,804) $ (16,739) $ (54,606) $ (30,332) A reconciliation between net income on a GAAP basis and pro forma net income is as follows: GAAP net income $ 65,768 $ 57,600 $ 221,508 $ 120,316 Restructuring 11,811 3,183 26,700 3,183 Income tax effect on restructuring at the normalized rate (2,363) (765) (5,341) (765) Dividends received deduction benefit for prior fiscal years -- -- (15,540) -- Non-recurring tax benefit -- (7,013) (8,905) (26,687) Pro forma net income $ 75,216 $ 53,005 $ 218,422 $ 96,047 A reconciliation between diluted net income per share on a GAAP basis and diluted pro forma net income per share is as follows: GAAP diluted net income per share $ 0.26 $ 0.24 $ 0.90 $ 0.52 Restructuring $ 0.05 $ 0.01 $ 0.11 $ 0.02 Income tax effect on restructuring at the normalized rate $ (0.01) $ -- $ (0.02) $ -- Dividends received deduction benefit for prior fiscal years $ -- $ -- $ (0.07) $ -- Non-recurring tax benefit $ -- $ (0.03) $ (0.04) (0.12) Pro forma diluted net income per share $ 0.30 $ 0.22 $ 0.88 $ 0.42
To supplement our consolidated financial statements presented on a GAAP basis, Autodesk uses pro forma measures of operating results, net income and net income per share, which are adjusted to exclude certain costs, expenses, gains and losses we believe appropriate to enhance an overall understanding of our past financial performance and also our prospects for the future. These adjustments to our GAAP results are made with the intent of providing both management and investors a more complete understanding of Autodesk's underlying operational results and trends and our marketplace performance. For example, the pro forma results are an indication of our baseline performance before gains, losses or other charges that are considered by management to be outside of our core operating results. In addition, these adjusted pro forma results are among the primary indicators management uses as a basis for our planning and forecasting of future periods. The presentation of this additional information is not meant to be considered in isolation or as a substitute for net income or diluted net income per share prepared in accordance with generally accepted accounting principles in the United States. Autodesk, Inc. Consolidated Balance Sheets (In thousands) JANUARY 31, JANUARY 31, 2005 2004 ----------- ----------- (Unaudited) (Audited) ASSETS: Current assets: Cash and cash equivalents $ 517,654 $ 282,249 Marketable securities 15,038 81,275 Accounts receivable, net 196,827 166,816 Inventories 12,545 17,365 Deferred income taxes 14,250 25,410 Prepaid expenses and other current assets 25,483 24,137 Total current assets 781,797 597,252 Marketable securities -- 165,976 Computer equipment, software, furniture and leasehold improvements, at cost: Computer equipment, software and furniture 191,656 206,319 Leasehold improvements 32,586 34,526 Less accumulated depreciation (154,676) (174,371) Net 69,566 66,474 Purchased technologies and capitalized software, net 9,319 19,378 Goodwill 166,628 160,094 Deferred income taxes, net 105,061 -- Other assets 9,833 7,986 $ 1,142,204 $ 1,017,160 LIABILITIES AND STOCKHOLDERS' EQUITY: Current liabilities: Accounts payable $ 46,234 $ 52,307 Accrued compensation 144,145 92,830 Accrued income taxes 41,549 50,695 Deferred revenues 178,701 127,276 Other accrued liabilities 66,839 61,814 Total current liabilities 477,468 384,922 Deferred income taxes, net -- 7,849 Deferred revenues 15,528 -- Other liabilities 1,130 2,746 Stockholders' equity: Preferred stock -- -- Common stock and additional paid-in capital 625,225 473,673 Accumulated other comprehensive loss (2,843) (4,754) Deferred compensation (269) (451) Retained earnings 25,965 153,175 Total stockholders' equity 648,078 621,643 $ 1,142,204 $ 1,017,160 Autodesk, Inc. Condensed Consolidated Statements of Cash Flows (In thousands) January 31, January 31, 2005 2004 ----------- ----------- (Unaudited) (Audited) Operating Activities Net income $ 221,508 $ 120,316 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 51,949 50,292 Stock compensation expense 3,909 1,775 Net loss on fixed asset disposals 556 -- Write-downs of cost method investments -- 596 Tax benefits from employee stock plans 116,856 -- Restructuring related charges, net 9,212 3,183 Changes in operating assets and liabilities (30,858) 43,921 Net cash provided by operating activities 373,132 220,083 Investing Activities Net (purchases) sales and maturities of available-for-sale marketable securities 230,674 (24,039) Capital and other expenditures (40,835) (25,852) Business combinations, net of cash acquired (11,750) (5,150) Other investing activities (2,449) (3,951) Net cash provided by (used in) investing activities 175,640 (58,992) Financing activities Proceeds from issuance of common stock, net of issuance costs 242,225 115,401 Repurchases of common stock (546,408) (178,463) Dividends paid (13,566) (13,408) Net cash used in financing activities (317,749) (76,470) Effect of exchange rate changes on cash and cash equivalents 4,382 11,251 Net increase in cash and cash equivalents 235,405 95,872 Cash and cash equivalents at beginning of year 282,249 186,377 Cash and cash equivalents at end of year $ 517,654 $ 282,249 Supplemental cash flow information: Net cash paid (received) during the year for income taxes $ 16,517 $ (19,329)
Fiscal Year 2005 QTR 1 QTR 2 QTR 3 QTR 4 YTD2005 - ---------------------------- ------------ ------------ ------------ ------------ ------------ Financial Statistics (in millions): Total net revenues $ 297.9 $ 279.6 $ 300.2 $ 356.2 $ 1,233.8 License and other revenues $ 260.5 $ 238.5 $ 254.5 $ 303.7 $ 1,057.1 Maintenance revenues $ 37.4 $ 41.1 $ 45.7 $ 52.5 $ 176.7 Gross Margin 86% 86% 86% 88% 86% GAAP Operating Expenses $ 202.5 $ 190.0 $ 202.9 $ 234.0 $ 829.5 GAAP Operating Margin 18% 18% 18% 22% 19% GAAP Net Income $ 42.5 $ 39.2 $ 74.1 $ 65.8 $ 221.5 GAAP Net Income Per Share (diluted) (6) $ 0.18 $ 0.16 $ 0.30 $ 0.26 $ 0.90 Pro Forma Operating Expenses (1) (2) $ 194.2 $ 186.3 $ 200.0 $ 222.2 $ 802.7 Pro Forma Operating Margin (1) (3) 21% 19% 19% 25% 21% Pro Forma Net Income (1) (4) $ 51.3 $ 44.2 $ 47.7 $ 75.2 $ 218.4 Pro Forma Net Income Per Share (diluted) (1) (5) (6) $ 0.22 $ 0.18 $ 0.19 $ 0.30 $ 0.88 Total Cash and Marketable Securities $ 519.4 $ 571.7 $ 518.0 $ 532.7 $ 532.7 Days Sales Outstanding 43 51 50 50 50 Capital Expenditures $ 5.9 $ 9.9 $ 13.5 $ 11.5 $ 40.8 Cash from Operations $ 55.2 $ 83.5 $ 90.8 $ 143.7 $ 373.1 GAAP Depreciation and Amortization $ 12.5 $ 12.9 $ 13.2 $ 13.4 $ 52.0 Revenue by Geography (in millions): Americas $ 121.5 $ 115.1 $ 137.0 $ 137.3 $ 510.9 Europe $ 108.8 $ 98.9 $ 95.8 $ 140.2 $ 443.7 Asia/Pacific $ 67.6 $ 65.6 $ 67.4 $ 78.7 $ 279.2 Revenue by Division (in millions): Design Solutions Segment $ 261.6 $ 243.8 $ 257.9 $ 314.0 $ 1,077.3 Manufacturing Solutions Division $ 44.8 $ 44.2 $ 50.4 $ 60.1 $ 199.5 Infrastructure Solutions Division $ 33.5 $ 31.4 $ 33.0 $ 40.3 $ 138.3 Building Solutions Group $ 27.2 $ 28.8 $ 29.1 $ 39.3 $ 124.3 Platform Technology Group and other $ 156.1 $ 139.4 $ 145.4 $ 174.3 $ 615.2 Discreet Segment $ 36.1 $ 35.3 $ 41.6 $ 41.0 $ 154.1 Upgrade Revenue (in millions): Upgrade Revenue $ 66.2 $ 46.4 $ 55.8 $ 92.9 $ 261.3 Deferred Maintenance Revenue (in millions): Deferred Maintenance Revenue Balance $ 96.7 $ 107.1 $ 113.0 $ 140.8 $ 140.8 Operating Income (Loss) by Segment (in millions): Design Solutions $ 124.2 $ 106.5 $ 115.8 $ 148.6 $ 495.2 Discreet $ 1.8 $ 5.2 $ 5.4 $ 9.0 $ 21.4 Unallocated amounts $ (72.5) $ (62.3) $ (67.4) $ (79.5) $ (281.7) Headcount: Headcount 3,409 3,443 3,437 3,477 3,477 Common Stock Statistics (6): Stock Outstanding Pro Forma EPS Calcula- tion - diluted 238,565,000 250,607,000 248,045,000 252,674,000 246,977,000 Stock Repur- chased 10,365,200 3,319,600 8,032,200 4,199,800 25,916,800 Installed Base Statistics: AutoCAD Total AutoCAD- based Installed Base* 3,469,400 3,514,600 3,571,800 3,618,000 3,618,000 Stand-alone AutoCAD 2,490,000 AutoCAD Mechanical 149,400 AutoCAD Map 203,700 Architectural Desktop 383,900 Land Desktop 109,900 *Includes prior period adjustment of approximately 28,000 seats AutoCAD LT Installed Base 2,677,900 Total Inventor Installed Base 306,600 349,500 388,800 422,900 422,900
(1) To supplement our consolidated financial statements presented on a GAAP basis, Autodesk uses pro forma measures of operating results, net income and net income per share, which are adjusted to exclude certain costs, expenses, gains and losses we believe appropriate to enhance an overall understanding of our past financial performance and also our prospects for the future. These adjustments to our GAAP results are made with the intent of providing both management and investors a more complete understanding of Autodesk's underlying operational results and trends and our marketplace performance. For example, the pro forma results are an indication of our baseline performance before gains, losses or other charges that are considered by management to be outside of our core operating results. In addition, these adjusted pro forma results are among the primary indicators management uses as a basis for our planning and forecasting of future periods. The presentation of this additional information is not meant to be considered in isolation or as a substitute for net income or diluted net income per share prepared in accordance with generally accepted accounting principles in the United States. (2) GAAP Operating Expenses $ 202.5 $ 190.0 $ 202.9 $ 234.0 $ 829.5 Restructuring $ (8.3) $ (3.7) $ (2.9) $ (11.8) $ (26.7) Pro Forma Operating Expenses $ 194.2 $ 186.3 $ 200.0 $ 222.2 $ 802.7 (3) GAAP Operating Margin 18% 18% 18% 22% 19% Restructuring 3% 1% 1% 3% 2% Pro Forma Operating Margin 21% 19% 19% 25% 21% (4) GAAP Net Income $ 42.505 $ 39.165 $ 74.070 $ 65.768 $ 221.508 Restructuring $ 8.250 $ 3.717 $ 2.922 $ 11.811 $ 26.700 Income tax effect on restructuring (7) $ (1.650) $ (0.744) $ (0.584) $ (2.363) $ (5.341) Dividends Received Deduction benefit for current fiscal year (7) $ 2.244 $ 2.054 $ (4.298) $ -- $ -- Dividends Received Deduction benefit for prior fiscal years (7) $ -- $ -- $ (15.540) $ -- $ (15.540) Non-recurring tax benefit $ -- $ -- $ (8.905) $ -- $ (8.905) Pro Forma Net Income $ 51.349 $ 44.192 $ 47.665 $ 75.216 $ 218.422 (5) GAAP Net Income Per Share (diluted) (6) $ 0.178 $ 0.156 $ 0.299 $ 0.260 $ 0.897 Restructuring $ 0.035 $ 0.015 $ 0.012 $ 0.047 $ 0.108 Income tax effect on restructuring (7) $ (0.007) $ (0.003) $ (0.002) $ (0.009) $ (0.022) Dividends Received Deduction benefit for current fiscal year (7) $ 0.009 $ 0.008 $ (0.017) $ -- $ -- Dividends Received Deduction benefit for prior fiscal years (7) $ -- $ -- $ (0.064) $ -- $ (0.063) Non-recurring tax benefit $ -- $ -- $ (0.036) $ -- $ (0.036) Pro Forma Net Income Per Share (diluted) (6) $ 0.215 $ 0.176 $ 0.192 $ 0.298 $ 0.884
(6) On November 16, 2004 the Board of Directors authorized a two-for-one stock split in the form of a stock dividend to stockholders of record as of December 6, 2004. Historical common stock statistics and per share amounts have been restated to reflect the effect of the stock split. (7) In the third quarter of fiscal 2005, Autodesk determined that its consolidated fiscal year effective income tax rate declined from 24% to 20%. For purposes of comparison, we have assumed the new estimated effective income tax rate of 20% in calculating our pro forma net income and pro forma earnings per share for each individual quarter of fiscal 2005. SOURCE Autodesk Inc. -0- 02/22/2005 /CONTACT: investors, Sue Pirri, sue.pirri@autodesk.com, or +1-415-507-6467, or John Clancy, john.clancy@autodesk.com, or +1-415-507-6373, or press, Nicole Pack, nicole.pack@autodesk.com, or +1-415-507-6282, all of Autodesk Inc./ /Web site: http://www.autodesk.com /_ -----END PRIVACY-ENHANCED MESSAGE-----