Autodesk, Inc. reported financial results for the third quarter of fiscal 2014.
Third Quarter Fiscal 2014
- Revenue was $555 million, an increase of 1 percent, compared to the third quarter of fiscal 2013 as reported, and increased 4 percent on a constant currency basis.
- GAAP operating margin was 12 percent, compared to 6 percent in the third quarter of fiscal 2013.
- Non-GAAP operating margin was 22 percent, compared with 27 percent in the third quarter of fiscal 2013. A reconciliation of GAAP to non-GAAP results is provided in the accompanying tables.
- GAAP diluted earnings per share were $0.25, compared to $0.13 in the third quarter of fiscal 2013.
- Non-GAAP diluted earnings per share were $0.41, compared to $0.47 in the third quarter of fiscal 2013.
- Deferred revenue increased 7 percent to $766 million, compared to the third quarter of fiscal 2013.
- Cash flow from operating activities was $91 million, compared to $157 million in the third quarter of fiscal 2013.
“Our third quarter was marked by strong growth in suites and solid execution across Architecture, Engineering and Construction (AEC) and Manufacturing,” said Carl Bass, Autodesk president and CEO. “Continued global adoption of building information modeling (BIM) drove double-digit growth within our AEC business. Our Manufacturing segment benefited from greater demand for our design and digital manufacturing tools, as well as continued momentum within the automotive industry. We continue to see steady adoption of our new cloud and mobile-based services, which complement our Design and Creation suites.”
Third Quarter Operational Overview
Revenue in the Americas decreased 1 percent to $208 million compared to the third quarter last year as reported, and was flat on a constant currency basis. EMEA revenue increased 4 percent to $204 million compared to the third quarter last year as reported, and increased 5 percent on a constant currency basis. Revenue in Asia Pacific was flat at $143 million compared to the third quarter last year as reported, and increased 7 percent on a constant currency basis. Revenue from emerging economies increased 6 percent to $84 million compared to the third quarter last year as reported and on a constant currency basis. Revenue from emerging economies represented 15 percent of total revenue in the third quarter.
Revenue from the Platform Solutions and Emerging Business (PSEB) segment decreased 10 percent to $183 million compared to the third quarter last year. Revenue from the AEC business segment increased 13 percent to $186 million compared to the third quarter last year. Revenue from the Manufacturing business segment increased 8 percent to $142 million compared to the third quarter last year. Revenue from the Media and Entertainment business (M&E) segment decreased 9 percent to $44 million compared to the third quarter last year.
Revenue from Flagship products decreased 9 percent to $275 million compared to the third quarter last year. Revenue from Suites increased 21 percent to $199 million compared to the third quarter last year. Revenue from New and Adjacent products was $82 million, and was flat compared to the third quarter last year.
“While challenges remain in parts of our markets, we continue to be diligent about managing our spend while making essential investments to drive growth,” said Mark Hawkins, Autodesk executive vice president and CFO. “We are seeing some modest improvements around the world and are cautiously optimistic about the current macro environment.”
“We are transforming our business to better serve the growing number of people that rely on Autodesk tools every day and position the company for its next stage of growth,” Bass continued. “With the recent introduction of more flexible license and service offerings, Autodesk will evolve to an even more recurring and ratable revenue business model. Our outlook for the fourth quarter includes a business model transition impact of approximately $50 million in revenue. We anticipate a larger impact in fiscal year 2015 and plan to provide more details when we release our fourth quarter financial results.”
To view an unabridged version of this press release, visit: http://news.autodesk.com/press-release/corporate-sustainability/autodesk-reports-third-quarter-results
