-----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, OivgDLNyvB9TJ0LL4hHQweMGK3BRbicRXyvhFb3fHGswdb4AY6RUdAkDCTBSMluH fujYpbKSMpoJj5LOD8yMuA== 0001275287-05-004741.txt : 20051117 0001275287-05-004741.hdr.sgml : 20051117 20051117165025 ACCESSION NUMBER: 0001275287-05-004741 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20051117 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20051117 DATE AS OF CHANGE: 20051117 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: 051213167 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 ai4187.txt FORM 8-K ================================================================================ 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) November 17, 2005 ---------- AUTODESK, INC. (Exact name of registrant as specified in its charter) Delaware 000-14338 94-2819853 ------------------------------ ------------ ------------------- (State or other (Commission (IRS Employer jurisdiction of 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 November 17, 2005, Autodesk, Inc. issued a press release reporting its results for the three and nine months ended October 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 November 17, 2005, entitled "Autodesk Reports Record Revenues of $378 Million; Raises Guidance." 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/ Andrew D. Miller ----------------------------------- Andrew D. Miller Vice President, Chief Accounting Officer and Corporate Controller (Principal Accounting Officer and Duly Authorized Officer) Date: November 17, 2005 3 EXHIBIT INDEX EXHIBIT NO. DESCRIPTION - ----------- ----------------------------------------------------------------- 99.1 Press Release, dated as of November 17, 2005, entitled "Autodesk Reports Record Revenues of $378 Million; Raises Guidance." 4 EX-99.1 2 ai4187ex991.txt EXHIBIT 99.1 Exhibit 99.1 AUTODESK REPORTS RECORD REVENUES OF $378 MILLION RAISES GUIDANCE SAN RAFAEL, Calif., Nov. 17 /PRNewswire-FirstCall/ -- Autodesk, Inc. (Nasdaq: ADSK) today announced financial results for its third fiscal quarter ended October 31, 2005. For the third quarter, Autodesk reported record net revenues of $378 million, a 26 percent increase over $300 million reported in the third quarter of the prior year. Third quarter net income was $95 million, or $0.38 per diluted share on a GAAP basis and $77 million, or $0.31 per diluted share on a non-GAAP basis. The only adjustment to non-GAAP net income in the current quarter was the exclusion of $18 million in tax benefits. Net income in the third quarter of the prior year was $74 million, or $0.30 per diluted share on a GAAP basis, and $48 million, or $0.19 per diluted share on a non-GAAP basis. "Solid execution drove another outstanding performance for Autodesk," said Carol Bartz, Autodesk chairman and CEO. "Revenues and profitability increased significantly over last year, driven by strong demand for our products across all divisions and all markets." Autodesk's performance was driven by strong growth in new seats and subscriptions, increasing penetration of its vertical and 3D products and continued improvement in profitability. Unlike trends at most major software companies, revenues from new seats and emerging businesses continued to be strong, representing approximately two-thirds of total revenues in the third quarter. Revenues from new commercial seats increased 23 percent over the third quarter of the prior year. Combined revenues from subscription and upgrades increased 34 percent over the third quarter of fiscal 2005. Consistent with company strategy, subscription revenues, which are called maintenance in the financial statements, increased 62 percent over last year. Combined revenues from subscription and upgrades continue to represent approximately one-third of total revenues. The company's vertical and 3D products continue to increase their market penetration. In the third quarter, combined revenues from new commercial seats of the Autodesk Inventor Series, Autodesk Inventor Professional, Autodesk Revit Building, Autodesk AutoCAD Revit Series, Autodesk Revit Structure and Autodesk Civil 3D software increased more than 100 percent over the prior year. During the quarter, Autodesk improved profitability. Operating margins increased to 25 percent on a GAAP and non-GAAP basis. Operating margins were 18 percent on a GAAP basis and 19 percent on a non-GAAP basis in the third quarter of last year. "I am very confident about the future," said Bartz. "We are investing in the business to drive strong growth in the future. Despite the significant negative impact of foreign currency rates, we are raising our guidance for the fourth quarter and for fiscal 2007." 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. Alias Acquisition Update On October 4, 2005, Autodesk announced that it had signed a definitive agreement to acquire Alias. The company currently estimates that the transaction will close late in the fourth fiscal quarter ending January 31, 2006 or early in the first quarter of fiscal 2007, subject to satisfaction of normal regulatory and other closing conditions. In the first six months after closing, this acquisition is expected to be dilutive to earnings on a non-GAAP basis. In determining the impact of the acquisition on non-GAAP earnings per share, we excluded in-process R&D expenses, acquisition-related restructuring costs, equity-based compensation expenses, and the reduction of deferred revenues assumed by Autodesk as required by US GAAP. In the first twelve months after closing, this acquisition is expected to be slightly accretive to earnings per share on a non-GAAP basis. Autodesk is currently unable to provide estimates of the future impact of this transaction on GAAP earnings per share. All forward looking statements are for the Autodesk business on a standalone basis, not taking into account the potential impact of the Alias acquisition, unless specifically stated otherwise. Fourth Quarter Fiscal 2006 Net revenues for the fourth quarter of fiscal 2006 are expected to be between $405 and $415 million. GAAP earnings per diluted share are expected to be between $0.34 and $0.36. Full Year Fiscal 2006 For fiscal year 2006, net revenues are expected to be between $1.511 and $1.521 billion. GAAP earnings per diluted share are expected to be between $1.32 and $1.34. Non-GAAP earnings per diluted share are expected to be between $1.24 and $1.26. Non-GAAP earnings per share exclude non-recurring tax benefits. First Quarter Fiscal 2007 Net revenues for the first quarter of fiscal 2007 are expected to be between $400 and $410 million. GAAP earnings per diluted share are expected to be between $0.25 and $0.27. Non-GAAP earnings per diluted share are expected to be between $0.31 and $0.33 excluding the impact of stock based compensation expenses. Full Year Fiscal 2007 For fiscal year 2007, net revenues are expected to increase in the range of 10 to 12 percent as compared to current guidance for fiscal 2006. On a constant currency basis, projected net revenue growth would have been approximately three percentage points higher or 13 to 15 percent. GAAP earnings per diluted share are expected to be between $1.16 and $1.20. Non-GAAP earnings per diluted share are expected to be between $1.41 and $1.45. Non-GAAP earnings per share exclude the impact of stock based compensation expenses. Fiscal 2006 EPS guidance is based on Autodesk's 20 percent estimated tax rate excluding non-recurring tax benefits. As previously indicated, Autodesk believes that its effective tax rate will increase in fiscal 2007. Autodesk now believes the effective tax rate will be 23 percent in fiscal year 2007. A reconciliation of the above non-GAAP operating margin, net income and EPS amounts to the corresponding GAAP amounts is provided at the end of this press release. 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, the timing and degree of expected investments in growth opportunities, the timing of product releases and retirements, difficulties encountered in integrating the Alias business or in achieving expected earnings accretion, uncertainties as to the timing of the close of the Alias acquisition, failure to successfully integrate new or acquired businesses and technologies, 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 continued cost reductions and productivity increases, failure to achieve continued migration from 2D products to 3D products, unanticipated changes in tax rates, mix of geographic earnings, and tax laws, failure to achieve continued success in technology advancements, changes in foreign currency exchange rates, the financial and business condition of our reseller and distribution channels, renegotiation or termination of royalty or intellectual property arrangements, interruptions or terminations in the business of the company's third party developers, 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, 2005 and Form 10-Q for the quarter ended July 31, 2005, which are on file with the Securities and Exchange Commission. Autodesk will host its third quarter earnings announcement today at 5:00 p.m. EDT. The live announcement may be accessed at 866-510-0707 or 617-597-5376 (passcode: 19818852). A replay of the call will be available at 4:00 p.m. PDT on our website at www.autodesk.com/investors or by dialing 888-286-8010 or 617-801-6888 (passcode: 40320593). An audio webcast will also be available beginning at 5:00 p.m. EDT at www.autodesk.com/investors. A replay of this webcast will be maintained on our website for at least twelve months. About Autodesk Autodesk, Inc. (Nasdaq: ADSK) is wholly focused on ensuring that great ideas are turned into reality. With 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. Autodesk, AutoCAD, Autodesk Inventor, 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: Charles Bellfield, charles.bellfield@autodesk.com, 415-547-2498 Nicole Pack, nicole.pack@autodesk.com, 415-507-6282 Autodesk, Inc. Reconciliation of diluted net income per share on a GAAP basis to diluted net income per share on a non-GAAP basis Unaudited Three months ended Fiscal year ended January 31, 2006 January 31, 2006 --------------------- --------------------- Low end High end Low end High end of range of range of range of range --------- --------- --------- --------- Diluted net income per share on a GAAP basis $ 0.34 $ 0.36 $ 1.32 $ 1.34 Dividends received deduction benefit for the prior fiscal year -- -- (0.05) (0.05) Non-recurring tax benefits -- -- (0.03) (0.03) Non-GAAP diluted net income per share $ 0.34 $ 0.36 $ 1.24 $ 1.26 Autodesk, Inc. Reconciliation of diluted net income per share on a GAAP basis to diluted net income per share on a non-GAAP basis Unaudited Three months ended Fiscal year ended April 30, 2006 January 31, 2007 --------------------- --------------------- Low end High end Low end High end of range of range of range of range --------- --------- --------- --------- Diluted net income per share on a GAAP basis $ 0.25 $ 0.27 $ 1.16 $ 1.20 Stock based compensation expenses, net of taxes 0.06 0.06 0.25 0.25 Non-GAAP diluted net income per share $ 0.31 $ 0.33 $ 1.41 $ 1.45 Autodesk, Inc. Consolidated Statements of Income (In thousands, except per share data)
Three Months Ended Nine Months Ended October 31, October 31, ----------------------------- ----------------------------- 2005 2004 2005 2004 ------------- ------------- ------------- ------------- (Unaudited) (Unaudited) Net revenues: License and other $ 304,402 $ 254,450 $ 910,145 $ 753,404 Maintenance 73,860 45,708 196,220 124,208 Total net revenues 378,262 300,158 1,106,365 877,612 Costs and expenses: Cost of license and other revenues 40,762 39,184 119,302 112,885 Cost of maintenance revenues 1,636 4,210 11,075 12,597 Marketing and sales 136,349 113,205 397,765 327,497 Research and development 74,034 59,942 212,881 176,165 General and administrative 32,444 26,837 92,789 76,856 Restructuring -- 2,922 -- 14,889 Total costs and expenses 285,225 246,300 833,812 720,889 Income from operations 93,037 53,858 272,553 156,723 Interest and other income, net 3,167 2,801 9,011 7,396 Income before income taxes 96,204 56,659 281,564 164,119 Income tax (provision) benefit (1,667) 17,411 (35,651) (8,379) Net income $ 94,537 $ 74,070 $ 245,913 $ 155,740 Basic net income per share $ 0.41 $ 0.33 $ 1.08 $ 0.69 Diluted net income per share $ 0.38 $ 0.30 $ 0.99 $ 0.63 Shares used in computing basic net income per share 229,577 227,823 228,687 227,344 Shares used in computing diluted net income per share 249,462 248,045 247,979 245,492
Autodesk, Inc. Non-GAAP Consolidated Statements of Income (See non-GAAP adjustments listed in the tables below) (In thousands, except per share data)
Three Months Ended Nine Months Ended October 31, October 31, ----------------------------- ----------------------------- 2005 2004 2005 2004 ------------- ------------- ------------- ------------- (Unaudited) (Unaudited) Net revenues: License and other $ 304,402 $ 254,450 $ 910,145 $ 753,404 Maintenance 73,860 45,708 196,220 124,208 Total net revenues 378,262 300,158 1,106,365 877,612 Costs and expenses: Cost of license and other revenues 40,762 39,184 119,302 112,885 Cost of maintenance revenues 1,636 4,210 11,075 12,597 Marketing and sales 136,349 113,205 397,765 327,497 Research and development 74,034 59,942 212,881 176,165 General and administrative 32,444 26,837 92,789 76,856 Total costs and expenses 285,225 243,378 833,812 706,000 Income from operations 93,037 56,780 272,553 171,612 Interest and other income, net 3,167 2,801 9,011 7,396 Income before income taxes 96,204 59,581 281,564 179,008 Provision for income taxes (19,241) (11,916) (56,313) (35,802) Non-GAAP net income $ 76,963 $ 47,665 $ 225,251 $ 143,206 Basic non-GAAP net income per share $ 0.34 $ 0.21 $ 0.98 $ 0.63 Diluted non-GAAP net income per share $ 0.31 $ 0.19 $ 0.91 $ 0.58 Shares used in computing basic non-GAAP net income per share 229,577 227,823 228,687 227,344 Shares used in computing diluted non-GAAP net income per share 249,462 248,045 247,979 245,492
Three Months Ended Nine Months Ended October 31, October 31, ----------------------------- ----------------------------- 2005 2004 2005 2004 ------------- ------------- ------------- ------------- (Unaudited) (Unaudited) A reconciliation between operating expenses on a GAAP basis and non-GAAP operating expenses is as follows: GAAP costs and expenses $ 285,225 $ 246,300 $ 833,812 $ 720,889 Restructuring -- (2,922) -- (14,889) Non-GAAP costs and expenses $ 285,225 $ 243,378 $ 833,812 $ 706,000 A reconciliation between income from operations on a GAAP basis and non-GAAP income from operations is as follows: GAAP income from operations $ 93,037 $ 53,858 $ 272,553 $ 156,723 Restructuring -- 2,922 -- 14,889 Non-GAAP income from operations $ 93,037 $ 56,780 $ 272,553 $ 171,612 A reconciliation between (provision) benefit for income taxes on a GAAP basis and non-GAAP provision for income taxes is as follows: GAAP (provision) benefit for income taxes $ (1,667) $ 17,411 $ (35,651) $ (8,379) Income tax effect on restructuring at the normalized rate -- (584) -- (2,978) Dividends received deduction benefit for the current fiscal year -- (4,298) -- -- Dividends received deduction benefit for the prior fiscal year (10,613) (15,540) (12,530) (15,540) Non-recurring tax benefit (6,961) (8,905) (8,132) (8,905) Non-GAAP provision for income taxes $ (19,241) $ (11,916) $ (56,313) $ (35,802) A reconciliation between net income on a GAAP basis and non-GAAP net income is as follows: GAAP net income $ 94,537 $ 74,070 $ 245,913 $ 155,740 Restructuring -- 2,922 -- 14,889 Income tax effect on restructuring at the normalized rate -- (584) -- (2,978) Dividends received deduction benefit for the current fiscal year -- (4,298) -- -- Dividends received deduction benefit for the prior fiscal year (10,613) (15,540) (12,530) (15,540) Non-recurring tax benefit (6,961) (8,905) (8,132) (8,905) Non-GAAP net income $ 76,963 $ 47,665 $ 225,251 $ 143,206 A reconciliation between diluted net income per share on a GAAP basis and diluted non-GAAP net income per share is as follows: GAAP diluted net income per share $ 0.38 $ 0.30 $ 0.99 $ 0.63 Restructuring $ -- $ 0.01 $ -- $ 0.06 Income tax effect on restructuring at the normalized rate $ -- $ (0.00) $ -- $ (0.01) Dividends received deduction benefit for the current fiscal year $ -- $ (0.02) $ -- $ -- Dividends received deduction benefit for the prior fiscal year $ (0.04) $ (0.06) $ (0.05) $ (0.06) Non-recurring tax benefit $ (0.03) $ (0.04) $ (0.03) $ (0.04) Non-GAAP diluted net income per share $ 0.31 $ 0.19 $ 0.91 $ 0.58
To supplement our consolidated financial statements presented on a GAAP basis, Autodesk uses non-GAAP 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 non-GAAP 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 non-GAAP 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. Condensed Consolidated Balance Sheets (In thousands)
October 31, January 31, 2005 2005 ------------- ------------- (Unaudited) (Audited) ASSETS: Current assets: Cash and cash equivalents $ 390,878 $ 517,654 Marketable securities 157,062 15,038 Accounts receivable, net 201,769 196,827 Inventories 15,112 12,545 Deferred income taxes 68,896 14,250 Prepaid expenses and other current assets 26,069 25,483 Total current assets 859,786 781,797 Computer equipment, software, furniture and leasehold improvements, net 60,132 69,566 Purchased technologies and capitalized software, net 16,253 9,319 Goodwill 194,680 166,628 Deferred income taxes, net 141,425 105,061 Other assets 18,353 9,833 $ 1,290,629 $ 1,142,204 LIABILITIES AND STOCKHOLDERS' EQUITY: Current liabilities: Accounts payable $ 62,483 $ 46,234 Accrued compensation 101,980 140,622 Accrued income taxes 40,257 41,549 Deferred revenues 210,684 178,701 Other accrued liabilities 48,019 61,234 Total current liabilities 463,423 468,340 Deferred revenues 32,440 15,528 Other liabilities 17,665 10,258 Stockholders' equity: Preferred stock -- -- Common stock and additional paid-in capital 752,748 625,225 Accumulated other comprehensive loss (7,661) (2,843) Deferred compensation (307) (269) Retained earnings 32,321 25,965 Total stockholders' equity 777,101 648,078 $ 1,290,629 $ 1,142,204
Autodesk, Inc. Condensed Consolidated Statements of Cash Flows (In thousands)
Nine Months Ended October 31, ----------------------------- 2005 2004 ------------- ------------- (Unaudited) Operating Activities Net income $ 245,913 $ 155,740 Adjustments to reconcile net income to net cash provided by operating activities: Charge for acquired in-process research & development 1,200 -- Depreciation and amortization 33,812 38,581 Stock compensation expense 392 2,915 Net loss on fixed asset disposals 52 321 Tax benefits from employee stock plans 103,545 91,414 Restructuring related charges, net -- 4,773 Changes in operating assets and liabilities (83,748) (64,318) Net cash provided by operating activities 301,166 229,426 Investing Activities Net (purchases) sales and maturities of available-for-sale marketable securities (142,010) 105,238 Capital and other expenditures (15,318) (29,291) Business combinations, net of cash acquired (52,677) (11,750) Other investing activities 79 (1,487) Net cash (used in) provided by investing activities (209,926) 62,710 Financing activities Proceeds from issuance of common stock, net of issuance costs 127,110 211,456 Repurchases of common stock (339,714) (400,066) Dividends paid (3,406) (10,146) Net cash used in financing activities (216,010) (198,756) Effect of exchange rate changes on cash and cash equivalents (2,006) 1,519 Net (decrease) increase in cash and cash equivalents (126,776) 94,899 Cash and cash equivalents at beginning of year 517,654 282,249 Cash and cash equivalents at end of period $ 390,878 $ 377,148 Supplemental cash flow information: Net cash paid during the period for income taxes $ 23,522 $ 12,123 Supplemental non-cash investing activity: Accounts receivable and other receivable reductions as partial consideration in business combinations $ 2,371 $ --
Fiscal Year 2006 QTR 1 QTR 2 QTR 3 QTR 4 YTD2006 - ---------------------------------------- ------------- ------------- ------------- ------------- ------------- Financial Statistics (in millions): Total net revenues $ 355.1 $ 373.0 $ 378.3 $ 1,106.4 License and other revenues $ 296.4 $ 309.4 $ 304.4 $ 910.2 Maintenance revenues $ 58.7 $ 63.6 $ 73.9 $ 196.2 Gross Margin 88% 88% 89% 88% GAAP Operating Expenses $ 221.0 $ 239.6 $ 242.8 $ 703.4 GAAP Operating Margin 26% 24% 25% 25% GAAP Net Income $ 76.1 $ 75.3 $ 94.5 $ 245.9 GAAP Net Income Per Share (diluted) $ 0.31 $ 0.30 $ 0.38 $ 0.99 Non-GAAP Operating Expenses (1) (2) $ 221.0 $ 239.6 $ 242.8 $ 703.4 Non-GAAP Operating Margin (1) (3) 26% 24% 25% 25% Non-GAAP Net Income (1) (4) $ 74.9 $ 73.4 $ 77.0 $ 225.3 Non-GAAP Net Income Per Share (diluted) (1) (5) $ 0.30 $ 0.29 $ 0.31 $ 0.91 Total Cash and Marketable Securities $ 537.8 $ 521.5 $ 547.9 $ 547.9 Days Sales Outstanding 48 49 48 48 Capital Expenditures $ 5.5 $ 4.4 $ 5.4 $ 15.3 Cash from Operations $ 63.3 $ 113.0 $ 124.9 $ 301.2 GAAP Depreciation and Amortization $ 12.6 $ 11.7 $ 9.5 $ 33.8 Revenue by Geography (in millions): Americas $ 130.5 $ 141.3 $ 160.3 $ 432.1 Europe $ 134.1 $ 140.6 $ 133.4 $ 408.1 Asia/Pacific $ 90.5 $ 91.1 $ 84.6 $ 266.2 Revenue by Division (in millions): Design Solutions Segment $ 313.2 $ 325.8 $ 333.8 $ 972.8 Manufacturing Solutions Division $ 59.1 $ 60.2 $ 63.3 $ 182.6 Infrastructure Solutions Division $ 39.3 $ 42.4 $ 44.1 $ 125.8 Building Solutions Division $ 37.1 $ 43.0 $ 45.1 $ 125.3 Platform Technology Division and other $ 177.7 $ 180.2 $ 181.3 $ 539.1 Media and Entertainment Segment $ 41.2 $ 45.1 $ 42.9 $ 129.3 Upgrade Revenue (in millions): Upgrade Revenue $ 64.6 $ 71.0 $ 63.6 $ 199.2 Deferred Maintenance Revenue (in millions): Deferred Maintenance Revenue Balance $ 166.1 $ 179.2 $ 185.0 $ 185.0 Operating Income (Loss) by Segment (in millions): Design Solutions $ 151.5 $ 155.0 $ 161.4 $ 467.9 Media and Entertainment $ 8.4 $ 9.5 $ 5.5 $ 23.4 Unallocated amounts $ (69.3) $ (75.6) $ (73.8) $ (218.7) Common Stock Statistics: Stock Outstanding 228,612,000 228,412,000 230,179,000 230,179,000 Fully Diluted Shares Outstanding 249,272,000 250,310,000 249,462,000 247,979,000 Stock Repurchased 2,497,700 3,503,896 3,223,775 9,225,371 Installed Base Statistics: Total AutoCAD-based Installed Base 3,700,800 3,747,000 3,803,000 3,803,000 Total Inventor Installed Base 445,800 470,800 511,300 511,300
(1) To supplement our consolidated financial statements presented on a GAAP basis, Autodesk uses non-GAAP 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 non-GAAP 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 non-GAAP 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 $ 221.0 $ 239.6 $ 242.8 $ -- $ 703.4 Non-GAAP Adjustment $ -- $ -- $ -- $ -- $ -- Non-GAAP Operating Expenses $ 221.0 $ 239.6 $ 242.8 $ -- $ 703.4 (3) GAAP Operating Margin 26% 24% 25% 0% 25% Non-GAAP Adjustment 0% 0% 0% 0% 0% Non-GAAP Operating Margin 26% 24% 25% 0% 25% (4) GAAP Net Income $ 76.1 $ 75.3 $ 94.5 $ -- $ 245.9 Dividends received deduction benefit for prior fiscal years $ -- $ (1.9) $ (10.6) $ -- $ (12.5) Non-recurring tax benefit $ (1.2) $ -- $ (6.9) $ -- $ (8.1) Non-GAAP Net Income $ 74.9 $ 73.4 $ 77.0 $ -- $ 225.3 (5) GAAP Net Income Per Share (diluted) $ 0.305 $ 0.301 $ 0.379 $ -- $ 0.992 Dividends received deduction benefit for prior fiscal years $ -- $ (0.008) $ (0.042) $ -- $ (0.050) Non-recurring tax benefit $ (0.005) $ -- $ (0.028) $ -- $ (0.033) Non-GAAP Net Income Per Share (diluted) $ 0.300 $ 0.293 $ 0.309 $ -- $ 0.908
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 Non-GAAP Operating Expenses (1) (2) $ 194.2 $ 186.3 $ 200.0 $ 222.2 $ 802.7 Non-GAAP Operating Margin (1) (3) 21% 19% 19% 25% 21% Non-GAAP Net Income (1) (4) $ 51.3 $ 44.2 $ 47.7 $ 75.2 $ 218.4 Non-GAAP 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 $ 260.2 $ 242.4 $ 256.4 $ 312.3 $ 1,071.3 Manufacturing Solutions Division $ 44.8 $ 44.2 $ 50.4 $ 60.3 $ 199.7 Infrastructure Solutions Division $ 35.5 $ 33.6 $ 35.8 $ 42.9 $ 147.8 Building Solutions Division $ 27.2 $ 28.8 $ 29.1 $ 39.2 $ 124.3 Platform Technology Division and other $ 152.7 $ 135.8 $ 141.1 $ 169.9 $ 599.5 Media and Entertainment Segment $ 37.6 $ 36.7 $ 43.1 $ 42.6 $ 160.0 Upgrade Revenue (in millions): Upgrade Revenue $ 66.7 $ 46.1 $ 57.1 $ 92.9 $ 262.8 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 $ 123.0 $ 105.5 $ 114.9 $ 147.6 $ 491.0 Media and Entertainment $ 3.4 $ 6.7 $ 7.0 $ 10.8 $ 27.9 Unallocated amounts $ (72.9) $ (62.8) $ (68.1) $ (80.2) $ (284.0) Common Stock Statistics (6): Stock Out-standing 226,048,000 229,031,000 228,101,000 227,611,000 227,611,000 Fully Diluted Shares Out-standing 238,565,000 250,607,000 248,045,000 252,674,000 246,977,000 Stock Re-purchased 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 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 non-GAAP 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 non-GAAP 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 non-GAAP 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) Non-GAAP 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% Non-GAAP 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) Non-GAAP 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) Non-GAAP 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 non-GAAP net income and non-GAAP earnings per share for each individual quarter of fiscal 2005. SOURCE Autodesk, Inc. -0- 11/17/2005 /CONTACT: Investors - Sue Pirri, +1-415-507-6467, or sue.pirri@autodesk.com, or John Clancy, +1-415-507-6373, or john.clancy@autodesk.com, or Press - Charles Bellfield, +1-415-547-2498, or charles.bellfield@autodesk.com, or Nicole Pack, +1-415-507-6282, or nicole.pack@autodesk.com/ /Web site: http://www.autodesk.com / (ADSK) -----END PRIVACY-ENHANCED MESSAGE-----