CIMdata PLM Industry Summary Online Archive
16 August 2007
Financial News
Autodesk Reports Record Revenues of $526 Million
Autodesk, Inc. reported record quarterly revenues of $526 million, an increase of 17 percent over the second quarter of the prior fiscal year. Second quarter net income was $92 million, or $0.38 per diluted share, on a GAAP basis and $108 million, or $0.44 per diluted share, on a non-GAAP basis. Net income in the second quarter of the prior year was $87 million, or $0.36 per diluted share on a GAAP basis, and $96 million, or $0.39 per diluted share on a non-GAAP basis.
"During the second quarter, we executed extremely well -- driving widespread adoption of our 3D and 2D tools, continuing to increase new seat revenue, and increasing sales and emerging economies," said Carl Bass, Autodesk president and CEO. "We have been able to grow significantly by addressing our customers' competitive challenges. Our numbers demonstrate that we continue to win market share as our revenues have increased significantly faster than our competitors. As a result, we are again raising our guidance for fiscal 2008, to reflect our confidence in our financial performance for the remainder of the fiscal year."
Operational Highlights
Autodesk's performance in the second quarter was driven by strong increases in revenue from model-based 3D and 2D vertical design products, revenue in the emerging economies, and revenue from new seats.
The Company's model-based 3D products and 2D vertical products continue to increase their market penetration. As expected, the changes in dealer incentives implemented in the first quarter of fiscal 2008 are increasing focus on selling model-based 3D and 2D vertical products.
Combined revenues from the Company's model-based 3D products, Inventor, Revit and Civil 3D software, increased 34 percent over the second quarter of fiscal 2007 to $122 million and comprised 23 percent of total revenues. In total, Autodesk shipped more than 39,000 commercial seats of 3D in the quarter including 21,000 seats of Revit, 11,000 seats of Inventor and 7,200 seats of Civil 3D. Revenues from 2D vertical products increased 22 percent compared to the second quarter of fiscal 2007.
Once again, emerging economies contributed robust growth in revenues. Revenues from the emerging economies in Asia Pacific, Eastern Europe, the Middle East and Latin America increased 37 percent over the second quarter of fiscal 2007 to $82 million and represented 15 percent of total revenues.
Revenues from new seats increased by 17 percent compared to the second quarter of last year. Revenues from new seats of Revit and AutoCAD Mechanical were particularly strong, increasing 56 percent and 54 percent, respectively, compared to the second quarter of last year.
Upgrade revenue and maintenance revenue from subscriptions combined increased 16 percent over the second quarter of fiscal 2007 to $178 million. Maintenance revenue from subscriptions increased 27 percent compared to the second quarter of fiscal 2007 to $132 million. Deferred maintenance revenue from subscription increased $12 million sequentially and $100 million compared to the second quarter of fiscal 2007. Total upgrade revenues decreased 7 percent compared to the second quarter of fiscal 2007, as expected. Crossgrade revenue, which is included in total upgrade revenue, increased 29 percent over the second quarter of last year.
Other Financial Highlights From the Quarter Ended JULY 31, 2007
• Cash, cash equivalents and marketable securities were $827 million.
• Total backlog increased $15 million sequentially to $433 million. Deferred maintenance revenues from subscription increased $12 million sequentially to $356 million. Unshipped product orders increased $2 million sequentially to $21 million.
• Channel inventory decreased slightly from April 30, 2007, and was below the normal range of three to four weeks.
• DSO was 48 days.
• Capital expenditures were $11 million.
• $84 million was received from employees for the issuance of 5.2 million shares under employee stock plans during the quarter
• 7.1 million shares were repurchased for $325 million under the Company's previously existing share repurchase plan. 9.2 million shares remain under the share repurchase authorization.
• There were approximately 229 million total shares outstanding and 243 million diluted GAAP basis shares outstanding and 244 million diluted non-GAAP basis shares outstanding in the second quarter.
• Revenues in the Americas increased 16 percent over the second quarter of fiscal 2007 to $195 million.
• Revenues in EMEA increased 17 percent over the second quarter of fiscal 2007 to $204 million.
• Revenues in Asia Pacific increased 18 percent over the second quarter of fiscal 2007 to $127 million. Revenues in Japan increased 5 percent compared to the same quarter of last year.
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.
Third Quarter Fiscal 2008
Net revenues for the third quarter of fiscal 2008 are expected to be in the range of $530 million to $540 million. GAAP earnings per diluted share are expected to be in the range of $0.34 and $0.36. Non-GAAP earnings per diluted share are expected to be in the range of $0.47 and $0.49 and exclude $0.11 related to stock based compensation expense as required by SFAS 123R and $0.02 for the amortization of acquisition related intangibles.
Fourth Quarter Fiscal 2008
Net revenues for the fourth quarter are expected to be between $575M and $585M. GAAP earnings per diluted share are expected to be in the range of $0.42 and $0.44. Non-GAAP earnings per diluted share are expected to be in the range of $0.52 and $0.54 and exclude $0.08 related to stock based compensation expense as required by SFAS 123R and $0.02 for the amortization of acquisition related intangibles.
Full Year Fiscal 2008
For fiscal year 2008, net revenues are expected to be between $2.14 billion and $2.16 billion. Full year GAAP earnings per diluted share are expected to be in the range of $1.48 and $1.52. Non-GAAP earnings per diluted share are expected to be in the range of $1.87 and $1.91 and exclude $0.29 related to stock based compensation expense as required by SFAS 123R, $0.04 reimbursement to employees for tax issues arising from the voluntary stock option review and $0.06 for the amortization of acquisition related intangibles.
Earnings Conference Call and Webcast
Autodesk will host its second quarter conference call today at 5:00 p.m. EDT. The live announcement may be accessed at http://www.autodesk.com/investors or by dialing 800-638-4817 or 617-614-3943 (passcode: 94897365). An audio webcast or podcast of the call will be available at 7:00 pm EDT at http://www.autodesk.com/investors . This replay will be maintained on our website for at least twelve months. An audio replay will also be available for one month beginning at 7:00 pm EDT by dialing 888-286-8010 or 617-801-6888 (passcode: 38088167).
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