Exhibit 99.1
AUTODESK REPORTS RECORD REVENUES OF $373 MILLION
RAISES GUIDANCE FOR FISCAL 2006
SAN RAFAEL, Calif., Aug. 18 /PRNewswire-FirstCall/ -- Autodesk, Inc.
(Nasdaq: ADSK) today announced financial results for its second fiscal quarter
ended July 31, 2005. For the second quarter, Autodesk reported record net
revenues of $373 million, a 33 percent increase over $280 million reported in
the second quarter of the prior year.
Second quarter net income was $75 million, or $0.30 per diluted share, on a
GAAP basis and $73 million, or $0.29 per diluted share on a non-GAAP basis.
Non-GAAP net income excludes a $2 million tax benefit which was the only
adjustment for non-GAAP purposes in the current quarter. Net income in the
second quarter of the prior year was $39 million, or $0.16 per diluted share, on
a GAAP basis, and $44 million, or $0.18 per diluted share on a non-GAAP basis.
"Autodesk had a remarkable quarter, and we are once again raising guidance
for fiscal 2006," said Carol Bartz, Autodesk chairman and CEO. "We saw strong
demand across all divisions and all markets. Our customers need real
improvements in productivity and efficiency. Autodesk is meeting those needs."
Autodesk's performance was driven by strong growth in revenues from new
seats, upgrades and subscriptions, increasing penetration of its vertical and 3D
products and continued improvement in profitability.
Second quarter revenues from new seats increased 24 percent over the prior
year. Revenues from new commercial seats of AutoCAD increased 32 percent over
the prior year.
The retirement of the AutoCAD 2002 based family of products contributed to
a 54 percent increase in upgrade revenues compared to the second quarter of
fiscal 2005. Subscription revenues, which are called maintenance in the
financial statements, increased 55 percent. Combined revenues from subscriptions
and upgrades continue to represent approximately one-third of total revenues.
The company's vertical and 3D products continue to increase their market
penetration. Revenues from Autodesk Architectural Desktop and Autodesk Map 3D
increased 39 percent and 25 percent respectively over the second quarter of the
prior year. Combined revenues from AutoCAD Mechanical and AutoCAD Electrical
software increased 46 percent over last year. Revenues from new commercial seats
of Autodesk's 3D products -- Autodesk Inventor Series, Autodesk Inventor
Professional, Autodesk Revit Building, Autodesk AutoCAD Revit Series, and
Autodesk Civil 3D -- increased 93 percent over the prior year.
During the quarter Autodesk continued to improve its profitability.
Operating margins increased to 24 percent on a GAAP and non-GAAP basis.
Operating margins in the second quarter of fiscal 2005 were 18 percent on a GAAP
basis and 19 percent on a non-GAAP basis.
In response to feedback from customers, resellers and the sales force, the
company also announced a change to the timing of annual product retirements to
synchronize more closely with annual product releases in March. The change is
being implemented with the retirement of AutoCAD 2002 based products. The
previously announced retirement date has been extended from January 15 to March
15, 2006. In addition to improving customer satisfaction, the company believes
this change will increase the total number of customers who take advantage of
the opportunity to move to new releases.
"Autodesk has never been better positioned for the future," said Bartz.
"Our refreshed product line provides the quick implementation, ease of use and
fast return on investment that our customers demand. Our continued focus on
improving our productivity and efficiency is yielding strong results. We feel
confident about growing revenues in double digits again next year. Our business
prospects have never been better."
A reconciliation of the above non-GAAP operating margin, net income and EPS
amounts to the corresponding GAAP amounts is provided at the end of this press
release.
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 2006
Net revenues for the third quarter of fiscal 2006 are currently expected to
be approximately flat with the second quarter. GAAP and non-GAAP earnings per
diluted share are currently expected to be approximately flat with non- GAAP
earnings per diluted share for the second quarter.
Full Year Fiscal 2006
For fiscal year 2006, net revenues are currently expected to be in the
range of $1.49 billion to $1.51 billion. GAAP earnings per diluted share are
expected to be in the range of $1.20 to $1.25.
All fiscal 2006 EPS guidance ranges are based on the company's 20 percent
estimated tax rate. The company currently believes that its effective tax rate
will revert back to a 24 percent effective tax rate in fiscal year 2007.
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 our expected effective tax rate and other
statements regarding our anticipated performance. Factors that could cause
actual results to differ materially include the following: general market and
business conditions, the timing and degree of expected investments in growth
opportunities, the timing of product releases and retirements, failure to
successfully integrate new or acquired businesses and technologies, failure to
achieve sufficient sell-through in our channels for new or existing products,
failure of key new applications to achieve anticipated levels of customer
acceptance, pricing pressure, failure to achieve continued cost reductions and
productivity increases, failure to achieve continued migration from 2D products
to 3D products, unanticipated changes in tax rates and tax laws, failure to
achieve continued success in technology advancements, changes in foreign
currency exchange rates, the financial and business condition of our reseller
and distribution channels, renegotiation or termination of royalty or
intellectual property arrangements, interruptions or terminations in the
business of the company's third party developers, failure to achieve continued
migration from 2D products to 3D products, failure to grow lifecycle management
or collaboration products, 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 report on Form 10-K for the
year ended January 31, 2005 and Form 10-Q for the quarter ended April 30, 2005
which is on file with the Securities and Exchange Commission.
Autodesk will host its second quarter earnings announcement today at 5:00
p.m. EDT. The live announcement may be accessed at 866-271-0675 or 617-213-8892
(passcode: 81224196). A replay of the call will be available at 4:00 p.m. PDT on
our website at www.autodesk.com/investors or by dialing 888-286-8010 or
617-801-6888 and reference 24835985 as the pass code. An audio webcast will also
be available beginning at 5:00 p.m. EDT at www.autodesk.com/investors. A replay
of this webcast will be maintained on our website for at least twelve months.
About Autodesk
Autodesk, Inc. is wholly focused on ensuring that great ideas are turned
into reality. With six million users, Autodesk is the world's leading software
and services company for the building, manufacturing, infrastructure, digital
media, and wireless data services fields. Autodesk's solutions help customers
create, manage, and share their data and digital assets more effectively. As a
result, customers turn ideas into competitive advantage by becoming more
productive, streamlining project efficiency, and maximizing profits. Founded in
1982, Autodesk is headquartered in San Rafael, California. For additional
information about Autodesk, please visit www.autodesk.com.
NOTE: Autodesk, AutoCAD, Autodesk Inventor, Autodesk Map, Civil 3D and
Revit are either trademarks or registered trademarks of Autodesk, Inc., in the
United States and/or other countries. All other brand names, product names, or
trademarks belong to their respective holders.
Investors: Sue Pirri, sue.pirri@autodesk.com, 415-507-6467
John Clancy, john.clancy@autodesk.com 415-507-6373
Press: Nicole Pack, nicole.pack@autodesk.com, 415-507-6282
Autodesk, Inc.
Consolidated Statements of Income
(In thousands, except per share data)
Three Months Ended Six Months Ended
July 31, July 31,
---------------------------- ----------------------------
2005 2004 2005 2004
------------ ------------ ------------ ------------
(Unaudited) (Unaudited)
Net revenues:
License and other $ 309,365 $ 238,445 $ 605,743 $ 498,954
Maintenance 63,619 41,133 122,360 78,500
Total net revenues 372,984 279,578 728,103 577,454
Costs and expenses:
Cost of license and other
revenues 39,847 36,116 78,540 73,701
Cost of maintenance revenues 4,625 4,100 9,439 8,387
Marketing and sales 134,019 105,013 261,416 214,292
Research and development 72,995 58,342 138,847 116,223
General and administrative 32,604 22,946 60,345 50,019
Restructuring -- 3,717 -- 11,967
Total costs and expenses 284,090 230,234 548,587 474,589
Income from operations 88,894 49,344 179,516 102,865
Interest and other income, net 2,832 2,179 5,844 4,595
Income before income taxes 91,726 51,523 185,360 107,460
Provision for income taxes (16,428) (12,358) (33,984) (25,790)
Net income $ 75,298 $ 39,165 $ 151,376 $ 81,670
Basic net income per share $ 0.33 $ 0.17 $ 0.66 $ 0.36
Diluted net income per share $ 0.30 $ 0.16 $ 0.61 $ 0.33
Shares used in computing basic
net income per share 228,654 228,004 228,212 226,187
Shares used in computing diluted
net income per share 250,310 250,607 249,261 246,737
Autodesk, Inc.
Non-GAAP Consolidated Statements of Income
(See non-GAAP adjustments listed in the tables below)
(In thousands, except per share data)
Three Months Ended Six Months Ended
July 31, July 31,
---------------------------- ----------------------------
2005 2004 2005 2004
------------ ------------ ------------ ------------
(Unaudited) (Unaudited)
Net revenues:
License and other $ 309,365 $ 238,445 $ 605,743 $ 498,954
Maintenance 63,619 41,133 122,360 78,500
Total net revenues 372,984 279,578 728,103 577,454
Costs and expenses:
Cost of license and other
revenues 39,847 36,116 78,540 73,701
Cost of maintenance revenues 4,625 4,100 9,439 8,387
Marketing and sales 134,019 105,013 261,416 214,292
Research and development 72,995 58,342 138,847 116,223
General and administrative 32,604 22,946 60,345 50,019
Total costs and expenses 284,090 226,517 548,587 462,622
Income from operations 88,894 53,061 179,516 114,832
Interest and other income, net 2,832 2,179 5,844 4,595
Income before income taxes 91,726 55,240 185,360 119,427
Provision for income taxes (18,345) (11,048) (37,072) (23,885)
Non-GAAP net income $ 73,381 $ 44,192 $ 148,288 $ 95,542
Basic non-GAAP net income per
share $ 0.32 $ 0.19 $ 0.65 $ 0.42
Diluted non-GAAP net income per
share $ 0.29 $ 0.18 $ 0.59 $ 0.39
Shares used in computing basic
non-GAAP net income per share 228,654 228,004 228,212 226,187
Shares used in computing diluted
non-GAAP net income per share 250,310 250,607 249,261 246,737
Three Months Ended Six Months Ended
July 31, July 31,
---------------------------- ----------------------------
2005 2004 2005 2004
------------ ------------ ------------ ------------
(Unaudited) (Unaudited)
A reconciliation between operating
expenses on a GAAP basis and
non-GAAP operating expenses is as
follows:
GAAP costs and expenses $ 284,090 $ 230,234 $ 548,587 $ 474,589
Restructuring -- (3,717) -- (11,967)
Non-GAAP costs and expenses $ 284,090 $ 226,517 $ 548,587 $ 462,622
A reconciliation between income
from operations on a GAAP basis
and non-GAAP income from operations
is as follows:
GAAP income from operations $ 88,894 $ 49,344 $ 179,516 $ 102,865
Restructuring -- 3,717 -- 11,967
Non-GAAP income from operations $ 88,894 $ 53,061 $ 179,516 $ 114,832
A reconciliation between provision
for income taxes on a GAAP basis
and non-GAAP provision for income
taxes is as follows:
GAAP provision for income taxes $ (16,428) $ (12,358) $ (33,984) $ (25,790)
Income tax effect on restructuring
at the normalized rate -- (744) -- (2,394)
Dividends received deduction
benefit (1,917) 2,054 (1,917) 4,299
Non-recurring tax benefit -- -- (1,171) --
Non-GAAP provision for income
taxes $ (18,345) $ (11,048) $ (37,072) $ (23,885)
A reconciliation between net
income on a GAAP basis and
non-GAAP net income is as follows:
GAAP net income $ 75,298 $ 39,165 $ 151,376 $ 81,670
Restructuring -- 3,717 -- 11,967
Income tax effect on restructuring
at the normalized rate -- (744) -- (2,394)
Dividends received deduction
benefit (1,917) 2,054 (1,917) 4,299
Non-recurring tax benefit -- -- (1,171) --
Non-GAAP net income $ 73,381 $ 44,192 $ 148,288 $ 95,542
A reconciliation between diluted
net income per share on a GAAP
basis and diluted non-GAAP net
income per share is as follows:
GAAP diluted net income per share $ 0.301 $ 0.156 $ 0.607 $ 0.331
Restructuring $ -- $ 0.015 $ -- $ 0.049
Income tax effect on restructuring
at the normalized rate $ -- $ (0.003) $ -- $ (0.010)
Dividends received deduction
benefit $ (0.008) $ 0.008 $ (0.008) $ 0.017
Non-recurring tax benefit $ -- $ -- $ (0.005) $ --
Non-GAAP diluted net income per
share $ 0.293 $ 0.176 $ 0.594 $ 0.387
To supplement our consolidated financial statements presented on a GAAP basis,
Autodesk uses non-GAAP measures of operating results, net income and net income
per share, which are adjusted to exclude certain costs, expenses, gains and
losses we believe appropriate to enhance an overall understanding of our past
financial performance and also our prospects for the future. These adjustments
to our GAAP results are made with the intent of providing both management and
investors a more complete understanding of Autodesk's underlying operational
results and trends and our marketplace performance. For example, the non-GAAP
results are an indication of our baseline performance before gains, losses or
other charges that are considered by management to be outside of our core
operating results. In addition, these adjusted non-GAAP results are among the
primary indicators management uses as a basis for our planning and forecasting
of future periods. The presentation of this additional information is not meant
to be considered in isolation or as a substitute for net income or diluted net
income per share prepared in accordance with generally accepted accounting
principles in the United States.
Autodesk, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
July 31, January 31,
2005 2005
-------------- --------------
(Unaudited) (Audited)
ASSETS:
Current assets:
Cash and cash equivalents $ 478,663 $ 517,654
Marketable securities 42,807 15,038
Accounts receivable, net 202,415 196,827
Inventories 14,301 12,545
Deferred income taxes 43,264 14,250
Prepaid expenses and other current assets 24,560 25,483
Total current assets 806,010 781,797
Computer equipment, software,
furniture and leasehold
improvements, net 61,076 69,566
Purchased technologies and
capitalized software, net 16,175 9,319
Goodwill 188,761 166,628
Deferred income taxes, net 92,993 105,061
Other assets 16,877 9,833
$ 1,181,892 $ 1,142,204
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities:
Accounts payable $ 62,658 $ 46,234
Accrued compensation 89,146 140,622
Accrued income taxes 22,813 41,549
Deferred revenues 206,323 178,701
Other accrued liabilities 54,165 61,234
Total current liabilities 435,105 468,340
Deferred revenues 25,217 15,528
Other liabilities 9,290 10,258
Stockholders' equity:
Preferred stock -- --
Common stock and additional paid-in
capital 689,937 625,225
Accumulated other comprehensive loss (8,487) (2,843)
Deferred compensation (440) (269)
Retained earnings 31,270 25,965
Total stockholders' equity 712,280 648,078
$ 1,181,892 $ 1,142,204
Autodesk, Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
Six Months Ended
July 31,
--------------------------------
2005 2004
-------------- --------------
(Unaudited)
Operating Activities
Net income $ 151,376 $ 81,670
Adjustments to reconcile net income
to net cash provided by operating
activities:
Charge for acquired in-process
research & development 1,200 --
Depreciation and amortization 24,288 25,372
Stock compensation expense 259 377
Net loss on fixed asset disposals 27 282
Tax benefits from employee
stock plans 50,787 24,414
Restructuring related charges, net -- 5,648
Changes in operating assets
and liabilities (51,639) 884
Net cash provided by operating activities 176,298 138,647
Investing Activities
Net (purchases) sales and maturities of
available-for-sale marketable securities (27,767) 20,165
Capital and other expenditures (9,941) (15,775)
Business combinations, net of cash
acquired (43,265) (11,750)
Other investing activities 45 (1,490)
Net cash used in investing activities (80,928) (8,850)
Financing activities
Proceeds from issuance of common
stock, net of issuance costs 72,865 160,879
Repurchases of common stock (202,035) (216,410)
Dividends paid (3,406) (6,741)
Net cash used in financing activities (132,576) (62,272)
Effect of exchange rate changes on
cash and cash equivalents (1,785) (3,803)
Net (decrease) increase in cash and
cash equivalents (38,991) 63,722
Cash and cash equivalents at
beginning of year 517,654 282,249
Cash and cash equivalents at end of period $ 478,663 $ 345,971
Supplemental cash flow information:
Net cash paid during the period for
income taxes $ 18,289 $ 7,365
Supplemental non-cash investing activity:
Accounts receivable and other
receivable reductions as partial
consideration in business
combinations $ 2,371 $ --
Fiscal Year 2006 QTR 1 QTR 2 QTR 3 QTR 4 YTD2006
- ------------------------------ -------------- -------------- -------------- -------------- --------------
Financial Statistics
(in millions):
Total net revenues $ 355.1 $ 373.0 $ 728.1
License and other
revenues $ 296.4 $ 309.4 $ 605.7
Maintenance
revenues $ 58.7 $ 63.6 $ 122.4
Gross Margin 88% 88% 88%
GAAP Operating Expenses $ 221.0 $ 239.6 $ 460.6
GAAP Operating Margin 26% 24% 25%
GAAP Net Income $ 76.1 $ 75.3 $ 151.4
GAAP Net Income Per
Share (diluted) $ 0.31 $ 0.30 $ 0.61
Non-GAAP Operating
Expenses (1) (2) $ 221.0 $ 239.6 $ 460.6
Non-GAAP Operating
Margin (1) (3) 26% 24% 25%
Non-GAAP Net Income (1)
(4) $ 74.9 $ 73.4 $ 148.3
Non-GAAP Net Income Per
Share (diluted) (1)
(5) $ 0.30 $ 0.29 $ 0.59
Total Cash and
Marketable Securities $ 537.8 $ 521.5 $ 521.5
Days Sales Outstanding 48 49 49
Capital Expenditures $ 5.5 $ 4.4 $ 9.9
Cash from Operations $ 63.3 $ 113.0 $ 176.3
GAAP Depreciation and
Amortization $ 12.6 $ 11.7 $ 24.3
Revenue by Geography
(in millions):
Americas $ 130.5 $ 141.3 $ 271.9
Europe $ 134.1 $ 140.6 $ 274.7
Asia/Pacific $ 90.5 $ 91.1 $ 181.5
Revenue by Division (in
millions):
Design Solutions
Segment $ 313.2 $ 325.8 $ 639.0
Manufacturing
Solutions
Division $ 59.1 $ 60.2 $ 119.2
Infrastructure
Solutions
Division $ 39.3 $ 42.4 $ 81.7
Building
Solutions
Division $ 37.1 $ 43.0 $ 80.2
Platform
Technology
Division and
other $ 177.7 $ 180.2 $ 357.9
Media and Entertainment
Segment $ 41.2 $ 45.1 $ 86.4
Upgrade Revenue (in
millions):
Upgrade Revenue $ 64.6 $ 71.0 $ 135.6
Deferred Maintenance
Revenue (in millions):
Deferred Maintenance
Revenue Balance $ 166.1 $ 179.2 $ 179.2
Operating Income (Loss)
by Segment (in
millions):
Design Solutions $ 151.5 $ 155.0 $ 306.5
Media and Entertainment $ 8.4 $ 9.5 $ 17.9
Unallocated amounts $ (69.3) $ (75.6) $ (144.9)
Common Stock
Statistics:
Stock Outstanding 228,612,000 228,412,000 228,412,000
Fully Diluted Shares
Outstanding 249,272,000 250,310,000 249,261,000
Stock Repurchased 2,497,700 3,503,896 6,001,596
Installed Base
Statistics:
Total AutoCAD-based
Installed Base 3,700,800 3,747,000 3,747,000
Total Inventor
Installed Base 445,800 470,800 470,800
(1) To supplement our consolidated financial statements presented on a GAAP
basis, Autodesk uses non-GAAP measures of operating results, net income and net
income per share, which are adjusted to exclude certain costs, expenses, gains
and losses we believe appropriate to enhance an overall understanding of our
past financial performance and also our prospects for the future. These
adjustments to our GAAP results are made with the intent of providing both
management and investors a more complete understanding of Autodesk's underlying
operational results and trends and our marketplace performance. For example, the
non-GAAP results are an indication of our baseline performance before gains,
losses or other charges that are considered by management to be outside of our
core operating results. In addition, these adjusted non-GAAP results are among
the primary indicators management uses as a basis for our planning and
forecasting of future periods. The presentation of this additional information
is not meant to be considered in isolation or as a substitute for net income or
diluted net income per share prepared in accordance with generally accepted
accounting principles in the United States.
(2) GAAP Operating
Expenses $ 221.0 $ 239.6 $ -- $ -- $ 460.6
Non-GAAP
Adjustment $ -- $ -- $ -- $ -- $ --
Non-GAAP Operating
Expenses $ 221.0 $ 239.6 $ -- $ -- $ 460.6
(3) GAAP Operating
Margin 26% 24% -- -- 25%
Non-GAAP
Adjustment 0% 0% -- -- 0%
Non-GAAP Operating
Margin 26% 24% -- -- 25%
(4) GAAP Net Income $ 76.1 $ 75.3 $ -- $ -- $ 151.4
Non-recurring tax
benefit $ (1.2) $ (1.9) $ -- $ -- $ (3.1)
Non-GAAP Net
Income $ 74.9 $ 73.4 $ -- $ -- $ 148.3
(5) GAAP Net Income Per
Share (diluted) $ 0.305 $ 0.301 $ -- $ -- $ 0.607
Non-recurring tax
benefit $ (0.005) $ (0.008) $ -- $ -- $ (0.013)
Non-GAAP Net
Income Per Share
(diluted) $ 0.300 $ 0.293 $ -- $ -- $ 0.594
Fiscal Year 2005 QTR 1 QTR 2 QTR 3 QTR 4 YTD2005
- ------------------------------ -------------- -------------- -------------- -------------- --------------
Financial
Statistics
(in millions):
Total
net
revenues $ 297.9 $ 279.6 $ 300.2 $ 356.2 $ 1,233.8
License
and
other
revenues $ 260.5 $ 238.5 $ 254.5 $ 303.7 $ 1,057.1
Maintenance
revenues $ 37.4 $ 41.1 $ 45.7 $ 52.5 $ 176.7
Gross Margin 86% 86% 86% 88% 86%
GAAP
Operating
Expenses $ 202.5 $ 190.0 $ 202.9 $ 234.0 $ 829.5
GAAP
Operating
Margin 18% 18% 18% 22% 19%
GAAP
Net
Income $ 42.5 $ 39.2 $ 74.1 $ 65.8 $ 221.5
GAAP Net
Income
Per Share
(diluted) (6) $ 0.18 $ 0.16 $ 0.30 $ 0.26 $ 0.90
Non-GAAP
Operating
Expenses
(1) (2) $ 194.2 $ 186.3 $ 200.0 $ 222.2 $ 802.7
Non-GAAP
Operating
Margin
(1) (3) 21% 19% 19% 25% 21%
Non-GAAP
Net
Income
(1) (4) $ 51.3 $ 44.2 $ 47.7 $ 75.2 $ 218.4
Non-GAAP
Net Income
Per Share
(diluted)
(1) (5) (6) $ 0.22 $ 0.18 $ 0.19 $ 0.30 $ 0.88
Total Cash
and
Marketable
Securities $ 519.4 $ 571.7 $ 518.0 $ 532.7 $ 532.7
Days Sales
Outstanding 43 51 50 50 50
Capital
Expenditures $ 5.9 $ 9.9 $ 13.5 $ 11.5 $ 40.8
Cash from
Operations $ 55.2 $ 83.5 $ 90.8 $ 143.7 $ 373.1
GAAP
Depreciation
and
Amortization $ 12.5 $ 12.9 $ 13.2 $ 13.4 $ 52.0
Revenue by
Geography
(in millions):
Americas $ 121.5 $ 115.1 $ 137.0 $ 137.3 $ 510.9
Europe $ 108.8 $ 98.9 $ 95.8 $ 140.2 $ 443.7
Asia/Pacific $ 67.6 $ 65.6 $ 67.4 $ 78.7 $ 279.2
Revenue by
Division
(in millions):
Design
Solutions
Segment $ 260.2 $ 242.4 $ 256.4 $ 312.3 $ 1,071.3
Manufacturing
Solutions
Division $ 44.8 $ 44.2 $ 50.4 $ 60.3 $ 199.7
Infrastructure
Solutions
Division $ 35.5 $ 33.6 $ 35.8 $ 42.9 $ 147.8
Building
Solutions
Division $ 27.2 $ 28.8 $ 29.1 $ 39.2 $ 124.3
Platform
Technology
Division
and other $ 152.7 $ 135.8 $ 141.1 $ 169.9 $ 599.5
Media and
Entertainment
Segment $ 37.6 $ 36.7 $ 43.1 $ 42.6 $ 160.0
Upgrade
Revenue
(in millions):
Upgrade
Revenue $ 66.7 $ 46.1 $ 57.1 $ 92.9 $ 262.8
Deferred
Maintenance
Revenue
(in millions):
Deferred
Maintenance
Revenue
Balance $ 96.7 $ 107.1 $ 113.0 $ 140.8 $ 140.8
Operating
Income
(Loss)
by Segment
(in millions):
Design
Solutions $ 123.0 $ 105.5 $ 114.9 $ 147.6 $ 491.0
Media
and
Entertainment $ 3.4 $ 6.7 $ 7.0 $ 10.8 $ 27.9
Unallocated
amounts $ (72.9) $ (62.8) $ (68.1) $ (80.2) $ (284.0)
Common
Stock
Statistics
(6):
Stock
Outstanding 226,048,000 229,031,000 228,101,000 227,611,000 227,611,000
Fully
Diluted
Shares
Outstanding 238,565,000 250,607,000 248,045,000 252,674,000 246,977,000
Stock
Repurchased 10,365,200 3,319,600 8,032,200 4,199,800 25,916,800
Installed
Base
Statistics:
AutoCAD
Total
AutoCAD-
based
Installed
Base* 3,469,400 3,514,600 3,571,800 3,618,000 3,618,000
Stand-
alone
AutoCAD 2,490,000
AutoCAD
Mechanical 149,400
AutoCAD
Map 203,700
Architectural
Desktop 383,900
Land
Desktop 109,900
* Includes
prior
period
adjustment
of
approximately
28,000 seats
AutoCAD LT
Installed
Base 2,677,900
Total
Inventor
Installed
Base 306,600 349,500 388,800 422,900 422,900
(1) To supplement our consolidated financial statements presented on a GAAP
basis, Autodesk uses non-GAAP measures of operating results, net income and net
income per share, which are adjusted to exclude certain costs, expenses, gains
and losses we believe appropriate to enhance an overall understanding of our
past financial performance and also our prospects for the future. These
adjustments to our GAAP results are made with the intent of providing both
management and investors a more complete understanding of Autodesk's underlying
operational results and trends and our marketplace performance. For example, the
non-GAAP results are an indication of our baseline performance before gains,
losses or other charges that are considered by management to be outside of our
core operating results. In addition, these adjusted non-GAAP results are among
the primary indicators management uses as a basis for our planning and
forecasting of future periods. The presentation of this additional information
is not meant to be considered in isolation or as a substitute for net income or
diluted net income per share prepared in accordance with generally accepted
accounting principles in the United States.
(2) GAAP
Operating
Expenses $ 202.5 $ 190.0 $ 202.9 $ 234.0 $ 829.5
Restruct-
uring $ (8.3) $ (3.7) $ (2.9) $ (11.8) $ (26.7)
Non-GAAP
Operating
Expenses $ 194.2 $ 186.3 $ 200.0 $ 222.2 $ 802.7
(3) GAAP
Operating
Margin 18% 18% 18% 22% 19%
Restructuring 3% 1% 1% 3% 2%
Non-GAAP
Operating
Margin 21% 19% 19% 25% 21%
(4) GAAP Net
Income $ 42.505 $ 39.165 $ 74.070 $ 65.768 $ 221.508
Restruct-
uring $ 8.250 $ 3.717 $ 2.922 $ 11.811 $ 26.700
Income
tax
effect on
restruct-
uring
(7) $ (1.650) $ (0.744) $ (0.584) $ (2.363) $ (5.341)
Dividends
Received
Deduction
benefit
for
current
fiscal
year
(7) $ 2.244 $ 2.054 $ (4.298) $ -- $ --
Dividends
Received
Deduction
benefit
for
prior
fiscal
years
(7) $ -- $ -- $ (15.540) $ -- $ (15.540)
Non-
recurring
tax
benefit $ -- $ -- $ (8.905) $ -- $ (8.905)
Non-GAAP
Net
Income $ 51.349 $ 44.192 $ 47.665 $ 75.216 $ 218.422
(5) GAAP Net
Income
Per
Share
(diluted)
(6) $ 0.178 $ 0.156 $ 0.299 $ 0.260 $ 0.897
Restruct-
uring $ 0.035 $ 0.015 $ 0.012 $ 0.047 $ 0.108
Income
tax
effect on
restruct-
uring
(7) $ (0.007) $ (0.003) $ (0.002) $ (0.009) $ (0.022)
Dividends
Received
Deduction
benefit
for
current
fiscal
year
(7) $ 0.009 $ 0.008 $ (0.017) $ -- $ --
Dividends
Received
Deduction
benefit
for
prior
fiscal
years
(7) $ -- $ -- $ (0.064) $ -- $ (0.063)
Non-
recurring
tax
benefit $ -- $ -- $ (0.036) $ -- $ (0.036)
Non-
GAAP Net
Income
Per
Share
(diluted)
(6) $ 0.215 $ 0.176 $ 0.192 $ 0.298 $ 0.884
(6) On November 16, 2004 the Board of Directors authorized a two-for-one stock
split in the form of a stock dividend to stockholders of record as of
December 6, 2004. Historical common stock statistics and per share amounts
have been restated to reflect the effect of the stock split.
(7) In the third quarter of fiscal 2005, Autodesk determined that its
consolidated fiscal year effective income tax rate declined from 24% to
20%. For purposes of comparison, we have assumed the new estimated
effective income tax rate of 20% in calculating our non-GAAP net income and
non-GAAP earnings per share for each individual quarter of fiscal 2005.