CIMdata PLM Industry Summary Online Archive
19 August 2004
Financial News
Autodesk Second Quarter Revenues Increase 32 Percent; Pro-Forma Net Income Increases 225 Percent
Autodesk, Inc. announced financial results for its second fiscal quarter ended July 31, 2004. For the second quarter, Autodesk reported net revenues of $280 million, a 32 percent increase over $212 million reported in the second quarter of the prior year.
Second quarter net income was $39 million, or $0.31 per diluted share on a GAAP basis, and $42 million, or $0.34 per diluted share on a pro-forma basis. Pro-forma net income excludes a $4 million pre-tax restructuring charge. Net income in the second quarter of the prior year was $33 million, or $0.29 per diluted share on a GAAP basis, and $12.9 million or $0.11 per diluted share on a pro-forma basis. Pro-forma net income in the second quarter of the prior year excluded a one-time tax benefit of $19.7 million related to the favorable resolution of an industry wide issue regarding foreign sales corporations.
"Autodesk had an outstanding quarter by all measures," said Carol Bartz, Autodesk chairman and CEO. "We are executing on all fronts. Our products are strong and the market is responding to their quick implementation, ease of use and fast return on investment."
Autodesk's strong performance was driven by increasing penetration of its 3D products, broad adoption of the AutoCAD 2005 family of products, continued success with the subscription and marketing programs and ongoing commitment to improved productivity and efficiency.
Revenue from the company's 3D products Autodesk Inventor Series, Autodesk Inventor Professional, Autodesk Revit and Autodesk Revit Series increased 64 percent over the prior year. During the quarter, the company shipped strong new releases of its Inventor product line. Inventor 9 allows users to better manage and communicate design data, deliver designs in less time, get their drawings production-ready in the fastest way possible, and learn and deploy the product quickly. Autodesk Revit, the company's 3D building information modeling solution, also saw strong adoption during the quarter, particularly in China.
In addition, the AutoCAD 2005 family of products, which launched in March, continues to gain momentum in the market. Customers increasingly recognize AutoCAD's ability to better manage and publish digital design data to communicate project information for mark up and review. Revenue from the AutoCAD family grew 30% over last year.
Customers are seeing the value in the Autodesk Subscription Program, called Maintenance on the financial statements. Subscription revenue increased 45 percent over the prior year to $41 million. In addition, deferred revenue from the Subscription program increased $10 million to $107 million.
Autodesk continued to demonstrate progress in improving productivity and profitability. Operating margins increased 11 percentage points over the prior year to 18 percent on a GAAP basis. Pro-forma operating margins, which exclude the $4 million restructuring charge, increased 12 percentage points to 19 percent in the quarter. These results demonstrate the significant leverage in the company's business model.
"Autodesk continued to execute flawlessly this quarter," said Bartz. "We have already introduced outstanding new releases of our most significant products, including the AutoCAD family and Inventor. We plan to release new versions of other important products later this year, including 3ds max and Revit. Our refreshed product line and focus on improving our productivity position the company for strong future growth."
The following statements are forward looking statements which are based on current expectations and which involve risks and uncertainties.
Q3 Fiscal 2005
Net revenues for the third quarter of fiscal 2005 are expected to be approximately flat with the second quarter of fiscal 2005. Pro-forma earnings per diluted share for the third quarter of fiscal year 2005 are also expected to be approximately flat with the second quarter. GAAP basis earnings per diluted share are expected to be $0.31.
Q4 Fiscal 2005
Net revenues for the fourth quarter of fiscal 2005 are expected to be in the range of $310 million to $320 million. Earnings per diluted share for the fourth quarter of fiscal year 2005 are expected to be in the range of $0.49 to $0.53 on a GAAP basis and $0.51 to $0.55 on a pro-forma basis.
Full Year Fiscal 2005
For 2005, annual revenue is expected to be in the range of $1.167 billion to $1.177 billion. Earnings per diluted share for the full year are expected to be in the range of $1.48 to $1.52 on a GAAP basis and $1.60 to $1.64 on a pro-forma basis.
This press release contains forward-looking statements that involve risks and uncertainties, including statements in the paragraphs under "Business Outlook" above and other statements regarding our anticipated product releases and performance. 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 April 30, 2004, which are on file with the Securities and Exchange Commission.
Autodesk will host its second quarter earnings announcement today at 5:00 p.m. Eastern Time. The live announcement may be accessed at 800-291-9234 (passcode: 51779734). An audio webcast will also be available beginning at 5:00 p.m. Eastern Time at http://www.autodesk.com/investor . A replay of the webcast will be maintained on the website for at least twelve months.
Become a member of the CIMdata PLM Community to receive your daily PLM news and much more.
Tell us what you think of the CIMdata Newsletter. Send your feedback.
CIMdata is committed to your privacy. Your personal information will never be sold or shared outside of CIMdata without your express permission.