CIMdata PLM Industry Summary Online Archive
22 February 2005
Financial News
Autodesk Fiscal 2005 Revenues Increase 30 Percent
Autodesk Inc. 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® 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®Series, Autodesk Inventor Professional, Autodesk Revit®, Autodesk AutoCAD Revit Series, Autodesk Map® 3D and Autodesk Civil 3DT, 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.
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.
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 http://www.autodesk.com/investor . A replay of this webcast will be maintained on our website for at least twelve months.
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