CIMdata PLM Industry Summary Online Archive
November 15, 2007
Financial News
Autodesk Reports Record Revenues of $538 Million-Introduces 13 to 15 Percent Revenue Growth Guidance for Fiscal 2009
Autodesk, Inc. today reported record revenues of $538 million for the third quarter of fiscal 2008, an increase of 18 percent over the third quarter of fiscal 2007. Third quarter net income was $85 million, or $0.35 per diluted share, on a GAAP basis and $117 million, or $0.49 per diluted share, on a non-GAAP basis. Net income in the third quarter of the prior year was $58 million, or $0.24 per diluted share on a GAAP basis, and $86 million, or $0.35 per diluted share on a non-GAAP basis. A reconciliation between GAAP and non-GAAP results is provided at the end of this press release.
"Strong execution delivered yet another quarter of record revenue," said Carl Bass, Autodesk president and CEO. "Our success is ongoing because Autodesk solutions enable our customers to address important secular trends such as globalization, the need for new and improved infrastructure and the emergence of building information modeling as a new paradigm. These trends will continue to drive customers to rapidly adopt our industry leading solutions."
Operational Highlights
Autodesk's performance in the third quarter of fiscal 2008 was driven by strong increases in revenue from its model-based 3D and 2D vertical design products, revenue in the emerging economies, and revenue from new seats.
Design segment revenues increased 20 percent over the third quarter of fiscal 2007 to $467 million. Combined revenues from the Company's model-based 3D products, Inventor, Revit, Civil 3D and it's newly acquired NavisWorks software increased 32 percent over the third quarter of fiscal 2007 to $130 million and comprised 24 percent of total revenues. Autodesk shipped over 21,400 commercial seats of Revit, over 13,400 commercial seats of Inventor and nearly 8,200 commercial seats of Civil 3D. In addition, revenues from 2D vertical products increased 22 percent compared to the third 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 31 percent over the third quarter of fiscal 2007 to $92 million and represented 17 percent of total revenues.
Revenues from new seats increased by 20 percent compared to the third quarter of fiscal 2007. Revenues from new seats of Revit, AutoCAD Architecture and AutoCAD Mechanical were particularly strong, increasing 49 percent, 44 percent and 39 percent, respectively, compared to the third quarter of last year.
Upgrade revenue and maintenance revenue from subscriptions combined increased 15 percent over the third quarter of fiscal 2007 to $186 million. Maintenance revenue from subscriptions increased 29 percent compared to the third quarter of fiscal 2007 to $143 million, or 26 percent of revenue. Deferred maintenance revenue from subscriptions increased $10 million sequentially and $101 million compared to the third quarter of fiscal 2007. Total upgrade revenues decreased 16 percent compared to the third quarter of fiscal 2007, as expected.
OTHER FINANCIAL HIGHLIGHTS FROM THE QUARTER ENDED OCTOBER 31, 2007
• Cash, cash equivalents and marketable securities were $873 million.
• Total backlog increased $8 million sequentially to $441 million.Deferred maintenance revenues from subscription increased $10 million sequentially to $366 million. Unshipped product orders decreased $4 million sequentially to $17 million.
• Channel inventory remained below three weeks.
• Days sales outstanding, or DSO, was 51 days.
• Cash from operating activities was $161 million.
• $77 million was received from employees for the issuance of 4.1 million shares under employee stock plans during the quarter.
• $138 million was used to repurchase 3.0 million shares under the company's previously existing share repurchase plan. 6.2 million shares remain under the existing share repurchase authorization.
• There were approximately 230 million total shares outstanding, 240 million diluted GAAP basis shares outstanding and 241 million diluted non-GAAP basis shares outstanding in the third quarter. A reconciliation between GAAP and non-GAAP results is provided at the end of this press release.
• Revenues in the Americas increased 12 percent over the third quarter of fiscal 2007 to $218 million.
• Revenues in EMEA increased 27 percent over the third quarter of fiscal 2007 to $203 million.
• Revenues in Asia Pacific increased 14 percent over the third quarter of fiscal 2007 to $118 million.
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.
Fourth Quarter Fiscal 2008
Net revenues for the fourth quarter are expected to be between $575 million and $585 million. 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 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 $2.148 billion and $2.158 billion. Full year GAAP earnings per diluted share are expected to be in the range of $1.50 and $1.52. Non-GAAP earnings per diluted share are expected to be in the range of $1.89 and $1.91 and exclude $0.28 related to stock-based compensation expense, $0.06 for the amortization of acquisition related intangibles, $0.03 reimbursement to employees for tax issues arising from the voluntary stock option review, $0.01 for an investment impairment and $0.01 for in-process research and development.
First Quarter Fiscal 2009
Net revenues for the first quarter of fiscal 2009 are expected to be in the range of $575 million and $585 million. 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 $0.50 and $0.52 and exclude $0.06 related to stock-based compensation expense and $0.02 for the amortization of acquisition related intangibles.
Full Year Fiscal 2009
For fiscal year 2009, net revenues are expected to be between $2.425 billion and $2.475 billion. Full year GAAP earnings per diluted share are expected to be in the range of $1.84 and $1.90. Non-GAAP earnings per diluted share are expected to be in the range of $2.20 and $2.26 and exclude $0.28 related to stock-based compensation expense and $0.08 for the amortization of acquisition related intangibles.
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 anticipated market trends and other statements regarding our expected performance and results. Other factors that could cause actual results to differ materially include the following: general market and business conditions, our performance in particular geographies, including emerging economies, difficulties encountered in integrating new or acquired businesses and technologies, fluctuation in foreign currency exchange rates, unexpected fluctuations in our tax rate, the timing and degree of expected investments in growth opportunities, slowing momentum in maintenance or subscription revenues, failure to achieve sufficient sell-through in our channels for new or existing products, pricing pressure, failure to achieve continued cost reductions and productivity increases, failure to achieve continued migration from 2D products to 3D products, changes in the timing of product releases and retirements, failure of key new applications to achieve anticipated levels of customer acceptance, failure to achieve continued success in technology advancements, the financial and business condition of our reseller and distribution channels, interruptions or terminations in the business of the Company's consultants or third party developers, 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 reports on Form 10-K for the year ended January 31, 2007 and Form 10-Q for the quarter ended July 31, 2007 which are on file with the Securities and Exchange Commission. Autodesk does not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.
Earnings Conference Call and Webcast
Autodesk will host its third quarter conference call today at 5:00 p.m. EST. The live announcement may be accessed at http://www.autodesk.com/investors or by dialing 866-700-0133 or 617-213-8831 (passcode: 99767233). An audio webcast or podcast of the call will be available at 7:00 pm EST 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 EST by dialing 888-286-8010 or 617-801-6888 (passcode: 80971692).
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.