EXHIBIT 99.1
AUTODESK REPORTS RECORD FOURTH QUARTER REVENUES OF $417 MILLION
RAISES REVENUE AND EARNINGS GUIDANCE FOR FISCAL 2007
SAN RAFAEL, Calif., Feb. 28 /PRNewswire-FirstCall/ -- Autodesk, Inc.
(Nasdaq: ADSK) today announced financial results for its fourth fiscal quarter
ended January 31, 2006. For the fourth quarter, Autodesk reported record net
revenues of $417 million, a 17 percent increase over $356 million reported in
the fourth quarter of the prior year. On a constant currency basis, revenues
increased 23 percent.
Fourth quarter net income was $83 million, or $0.33 per diluted share on a
GAAP basis and $91 million, or $0.37 per diluted share on a non-GAAP basis.
Fourth quarter non-GAAP net income excludes $8 million in-process R&D expenses
related to the acquisition of Alias and $1 million amortization of purchased
intangibles. Net income in the fourth quarter of the prior year was $66 million,
or $0.26 per diluted share on a GAAP basis, and $75 million, or $0.30 per
diluted share on a non-GAAP basis.
"Autodesk had an excellent finish to another outstanding year," said Carol
Bartz, Autodesk chairman and CEO. "Customer demand for our products continues to
be very strong. Through solid execution we significantly increased revenues and
profitability for the third year in a row."
Autodesk's performance was driven by strong growth in new seats and
subscriptions, increasing penetration of its vertical and 3D products and
continued strong profitability. In addition, during the quarter the company
completed the acquisition of Alias for $197 million.
Unlike trends at many major software companies, revenues from new seats and
emerging businesses continued to be strong, representing approximately
two-thirds of total revenues in the fourth quarter. Revenues from new commercial
seats increased 16 percent over the fourth quarter of the prior year and 23
percent on a constant currency basis.
Subscription revenues, which are called maintenance in the financial
statements, increased 53 percent over the fourth quarter of last year and
exceeded upgrade revenue for the quarter and the full year. Combined revenues
from subscription and upgrades continue to represent approximately one-third of
total revenues. Consistent with the growth in subscriptions and the company's
movement of the retirement of the AutoCAD 2002-based family of products to March
2006, upgrade revenues decreased compared to the fourth quarter of the prior
year.
The company's vertical and 3D products continue to increase their market
penetration. In the fourth quarter of fiscal 2006, combined revenues from new
commercial seats of the company's 3D products increased 73 percent over the
prior year.
During the quarter, Autodesk continued to show strong profitability.
Operating margins increased to 23 percent on a GAAP basis compared to 22 percent
in the prior year. Non-GAAP operating margins were flat compared to the prior
year at 25 percent. The acquisition of Alias decreased fourth quarter non-GAAP
operating margins by 1 percentage point.
"We are very confident about our future and are raising our guidance," said
Bartz. "In March, we will retire the AutoCAD 2002-based family of products.
Immediately after, we will launch our new product portfolio with significant new
releases of all of our major products and then begin the retirement of the
AutoCAD 2004-based family of products. Our 3D products are showing dramatic
growth and we continue to improve our productivity and profitability. I have
never been more optimistic about Autodesk's opportunities."
Fiscal 2006 Review
Fiscal 2006 revenues increased 23 percent over last year to $1.523 billion.
GAAP net income for fiscal 2006 was $329 million compared to $222 million in
fiscal 2005, an increase of 48 percent. Fiscal 2006 GAAP earnings per diluted
share were $1.33 compared to $0.90 in fiscal 2005, an increase of 48 percent.
Fiscal 2006 GAAP net income includes net tax benefits totaling $19 million,
pre-tax in-process R&D expenses of $8 million and $1 million of pre-tax
amortization of purchased intangibles, both related to the Alias acquisition.
Fiscal 2005 GAAP net income included tax benefits totaling $24 million and $27
million in pre-tax restructuring charges. Excluding these items, non-GAAP net
income for fiscal 2006 was $316 million and $218 million in the prior year.
Non-GAAP earnings per diluted share were $1.28 in fiscal 2006 and $0.88 in
fiscal 2005. Once again, full year GAAP net income was higher than non-GAAP.
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.
Full Year Fiscal 2007
For fiscal year 2007, net revenues are expected to increase in the range of
18 to 20 percent compared to fiscal 2006. On a constant currency basis, fiscal
2007 net revenue growth rate guidance would have been approximately 3 percentage
points higher or 21 to 23 percent. The acquisitions of Alias and Constructware
account for approximately 6 percentage points of the fiscal 2007 revenue growth.
GAAP earnings per diluted share are expected to be between $1.12 and $1.17.
Non-GAAP earnings per diluted share are expected to be between $1.45 and $1.50.
Non-GAAP earnings per diluted share exclude $0.05 for the amortization of
acquisition related intangibles and $0.28 related to stock based compensation
expenses as required by SFAS No. 123R, which becomes effective to Autodesk
commencing in the first quarter of fiscal 2007.
First Quarter Fiscal 2007
Net revenues for the first quarter of fiscal 2007 are expected to be between
$425 and $435 million. GAAP earnings per diluted share are expected to be
between $0.22 and $0.24. Non-GAAP earnings per diluted share are expected to be
between $0.30 and $0.32 and exclude $0.07 related to stock based compensation
expenses, and $0.01 for the amortization of acquisition related intangibles.
Second Quarter Fiscal 2007
Net revenues for the second quarter of fiscal 2007 are expected to be
between $440 and $450 million. GAAP earnings per diluted share are expected to
be between $0.26 and $0.28. Non-GAAP earnings per diluted share are expected to
be between $0.34 and $0.36 and exclude $0.07 related to stock based compensation
expenses, and $0.01 for the amortization of acquisition related intangibles.
As previously indicated, Autodesk currently believes that its effective tax
rate will increase to 23 percent in fiscal year 2007.
A reconciliation of the above non-GAAP measures to the corresponding GAAP
amounts is provided at the end of this press release.
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, our new
product portfolio 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, changes in the timing of product
releases and retirements, difficulties encountered in integrating the Alias
business or in achieving expected earnings accretion, 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, mix of geographic
earnings, unexpected outcomes of matters relating to litigation, failure to
achieve continued success in technology advancements, continued fluctuation 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 consultants or third party developers, 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 October 31,
2005, which are each on file with the Securities and Exchange Commission.
Autodesk will host its fourth quarter earnings announcement today at 5:00
p.m. EST. The live announcement may be accessed at 866-831-6234 or 617-213-8854
(passcode: 60400110). A replay of the call will be available at 4:00pm PST on
our website at www.autodesk.com/investors or by dialing 888-286-8010 or
617-801-6888 (passcode: 95234203). An audio webcast and podcast will also be
available beginning at 5:00 p.m. EST at www.autodesk.com/investors. This replay
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 seven 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.
Investors: Sue Pirri, sue.pirri@autodesk.com, 415-507-6467
John Clancy, john.clancy@autodesk.com 415-507-6373
Press: Caroline Kawashima, caroline.kawashima@autodesk.com, 415-547-2498
Nicole Pack, nicole.pack@autodesk.com, 415-507-6282
Autodesk, Inc.
Reconciliation of Diluted Net Income Per Share on a GAAP basis to Diluted
Net Income Per Share on a Non-GAAP Basis
Fiscal Year Ended January 31, 2007
Unaudited
Three Months Three Months Fiscal Year
Ended Ended Ended
April 30, 2006 July 31, 2006 January 31, 2007
------------------- ------------------- -------------------
Low High Low High Low High
end end end end end end
of range of range of range of range of range of range
-------- -------- -------- -------- -------- --------
Diluted net
income per
share on a
GAAP basis $ 0.22 $ 0.24 $ 0.26 $ 0.28 $ 1.12 $ 1.17
Stock based
compensation
expense in
accordance
with SFAS
No. 123R 0.07 0.07 0.07 0.07 0.28 0.28
Amortization
of acquisition-
related
intangibles 0.01 0.01 0.01 0.01 0.05 0.05
Diluted net
income per
share on a
non-GAAP basis $ 0.30 $ 0.32 $ 0.34 $ 0.36 $ 1.45 $ 1.50
Autodesk, Inc.
Consolidated Statements of Income
(In millions, except per share data)
Three Months
Ended Year Ended
January 31, January 31,
------------------------- -------------------------
2006 2005 2006 2005
----------- ----------- ----------- -----------
(Unaudited) (Unaudited) (Audited)
Net revenues:
License and other $ 336.5 $ 303.7 $ 1,246.7 $ 1,057.1
Maintenance 80.3 52.5 276.5 176.7
Total net revenues 416.8 356.2 1,523.2 1,233.8
Costs and expenses:
Cost of license and other revenues 38.5 39.6 157.8 152.5
Cost of maintenance revenues 2.0 4.4 13.1 17.0
Marketing and sales 156.0 134.4 553.8 461.9
Research and development 88.7 63.2 301.6 239.4
General and administrative 34.3 24.6 127.1 101.4
Restructuring -- 11.8 -- 26.7
Total costs and expenses 319.5 278.0 1,153.4 998.9
Income from operations 97.3 78.2 369.8 234.9
Interest and other income, net 4.1 4.0 13.2 11.4
Income before income taxes 101.4 82.2 383.0 246.3
Provision for income taxes (18.4) (16.4) (54.1) (24.8)
Net income $ 83.0 $ 65.8 $ 328.9 $ 221.5
Basic net income per share $ 0.36 $ 0.29 $ 1.44 $ 0.98
Diluted net income per share $ 0.33 $ 0.26 $ 1.33 $ 0.90
Shares used in computing basic
net income per share 229.7 227.8 229.0 227.0
Shares used in computing diluted
net income per share 248.9 252.7 247.5 247.0
Autodesk, Inc.
Non-GAAP Consolidated Statements of Income
(See non-GAAP adjustments listed in the tables below)
(In millions, except per share data)
Three Months
Ended Year Ended
January 31, January 31,
------------------------- -------------------------
2006 2005 2006 2005
----------- ----------- ----------- -----------
(Unaudited) (Unaudited)
Net revenues:
License and other $ 336.5 $ 303.7 $ 1,246.7 $ 1,057.1
Maintenance 80.3 52.5 276.5 176.7
Total net revenues 416.8 356.2 1,523.2 1,233.8
Costs and expenses:
Cost of license and other revenues 38.2 39.6 157.5 152.5
Cost of maintenance revenues 2.0 4.4 13.1 17.0
Marketing and sales 156.0 134.4 553.8 461.9
Research and development 80.8 63.2 293.7 239.4
General and administrative 33.9 24.6 126.7 101.4
Total costs and expenses 310.9 266.2 1,144.8 972.2
Income from operations 105.9 90.0 378.4 261.6
Interest and other income, net 4.1 4.0 13.2 11.4
Income before income taxes 110.0 94.0 391.6 273.0
Provision for income taxes (18.8) (18.8) (75.2) (54.6)
Non-GAAP net income $ 91.2 $ 75.2 $ 316.4 $ 218.4
Basic non-GAAP net income per share $ 0.40 $ 0.33 $ 1.38 $ 0.96
Diluted non-GAAP net income per share $ 0.37 $ 0.30 $ 1.28 $ 0.88
Shares used in computing basic
non-GAAP net income per share 229.7 227.8 229.0 227.0
Shares used in computing diluted
non-GAAP net income per share 248.9 252.7 247.5 247.0
Three Months
Ended Year Ended
January 31, January 31,
----------------------- -----------------------
2006 2005 2006 2005
---------- ---------- ---------- ----------
(Unaudited) (Unaudited)
A reconciliation between costs of
license revenues on a GAAP
basis and non-GAAP costs of license
revenues is as follows:
GAAP cost of license revenues $ 38.5 $ 39.6 $ 157.8 $ 152.5
Amortization of developed technology
(Alias) (0.3) -- (0.3) --
Non-GAAP cost of license revenues $ 38.2 $ 39.6 $ 157.5 $ 152.5
A reconciliation between research and
development on a GAAP basis and
non-GAAP research and development
is as follows:
GAAP research and development $ 88.7 $ 63.2 $ 301.6 $ 239.4
In-process research and development
(Alias) (7.9) -- (7.9) --
Non-GAAP research and development $ 80.8 $ 63.2 $ 293.7 $ 239.4
A reconciliation between general and
administrative on a GAAP basis and
non-GAAP general and administrative
is as follows:
GAAP general and administrative $ 34.3 $ 24.6 $ 127.1 $ 101.4
Amortization of customer relationships,
trademarks and deferred compensation
(Alias) (0.4) -- (0.4) --
Non-GAAP general and administrative $ 33.9 $ 24.6 $ 126.7 $ 101.4
A reconciliation between costs and
expenses on a GAAP basis and
non-GAAP costs and expenses is as
follows:
GAAP costs and expenses $ 319.5 $ 278.0 $ 1,153.4 $ 998.9
Amortization of developed technology
(Alias) (0.3) -- (0.3) --
In-process research and development
(Alias) (7.9) -- (7.9) --
Amortization of customer relationships,
trademarks and deferred compensation
(Alias) (0.4) -- (0.4) --
Restructuring -- (11.8) -- (26.7)
Non-GAAP costs and expenses $ 310.9 $ 266.2 $ 1,144.8 $ 972.2
A reconciliation between income from
operations on a GAAP basis and
non-GAAP income from operations
is as follows:
GAAP income from operations $ 97.3 $ 78.2 $ 369.8 $ 234.9
Amortization of developed technology
(Alias) 0.3 -- 0.3 --
In-process research and development
(Alias) 7.9 -- 7.9 --
Amortization of customer relationships,
trademarks and deferred compensation
(Alias) 0.4 -- 0.4 --
Restructuring -- 11.8 -- 26.7
Non-GAAP income from operations $ 105.9 $ 90.0 $ 378.4 $ 261.6
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 $ (18.4) $ (16.4) $ (54.1) $ (24.8)
Income tax effect on difference between
GAAP and non-GAAP total costs and expenses
at the normalized rate (1.7) (2.4) (1.7) (5.3)
Dividends received deduction benefit
for prior fiscal years -- -- (12.5) (15.6)
Non-recurring tax benefits 1.3 -- (6.9) (8.9)
Non-GAAP provision for income taxes $ (18.8) $ (18.8) $ (75.2) $ (54.6)
A reconciliation between net income
on a GAAP basis and non-GAAP net
income is as follows:
GAAP net income $ 83.0 $ 65.8 $ 328.9 $ 221.5
Amortization of developed technology
(Alias) 0.3 -- 0.3 --
In-process research and development
(Alias) 7.9 -- 7.9 --
Amortization of customer relationships,
trademarks and deferred compensation
(Alias) 0.4 -- 0.4 --
Restructuring -- 11.8 -- 26.7
Income tax effect on difference
between GAAP and non-GAAP total
costs and expenses at the
normalized rate (1.7) (2.4) (1.7) (5.3)
Dividends received deduction benefit
for prior fiscal years -- -- (12.5) (15.6)
Non-recurring tax benefits 1.3 -- (6.9) (8.9)
Non-GAAP net income $ 91.2 $ 75.2 $ 316.4 $ 218.4
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 $ 0.33 $ 0.26 $ 1.33 $ 0.90
Amortization of developed technology
(Alias) 0.00 -- 0.00 --
In-process research and development
(Alias) 0.04 -- 0.04 --
Amortization of customer relationships,
trademarks and deferred compensation
(Alias) 0.00 -- 0.00 --
Restructuring -- 0.05 -- 0.11
Income tax effect on difference
between GAAP and non-GAAP total
costs and expenses at the
normalized rate (0.01) (0.01) (0.01) (0.02)
Dividends received deduction benefit
for prior fiscal years -- -- (0.05) (0.07)
Non-recurring tax benefits 0.01 -- (0.03) (0.04)
Non-GAAP diluted net income per share $ 0.37 $ 0.30 $ 1.28 $ 0.88
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 millions)
January 31, January 31,
2006 2005
------------ ------------
(Unaudited) (Audited)
ASSETS:
Current assets:
Cash and cash equivalents $ 287.2 $ 517.7
Marketable securities 90.3 15.0
Accounts receivable, net 261.4 196.8
Inventories 14.2 12.5
Deferred income taxes 64.4 14.3
Prepaid expenses and other current assets 29.3 25.5
Total current assets 746.8 781.8
Computer equipment, software, furniture and
leasehold improvements, net 61.4 69.6
Purchased technologies and capitalized
software, net 49.8 9.3
Goodwill 318.2 166.6
Deferred income taxes, net 129.2 105.1
Other assets 55.4 9.8
$ 1,360.8 $ 1,142.2
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities:
Accounts payable $ 56.4 $ 46.2
Accrued compensation 121.3 140.6
Accrued income taxes 10.8 41.6
Deferred revenues 249.8 178.7
Other accrued liabilities 68.6 61.2
Total current liabilities 506.9 468.3
Deferred revenues 35.8 15.5
Other liabilities 26.8 10.3
Stockholders' equity:
Preferred stock -- --
Common stock and additional paid-in capital 773.7 625.2
Accumulated other comprehensive loss (7.4) (2.8)
Deferred compensation (6.1) (0.3)
Retained earnings 31.1 26.0
Total stockholders' equity 791.3 648.1
$ 1,360.8 $ 1,142.2
Autodesk, Inc.
Condensed Consolidated Statements of Cash Flows
(In millions)
January 31, January 31,
2006 2005
------------ ------------
(Unaudited) (Audited)
Operating Activities
Net income $ 328.9 $ 221.5
Adjustments to reconcile net income to net
cash provided by operating activities:
Charge for acquired in-process
research & development 9.1 --
Depreciation and amortization 43.7 51.9
Stock compensation expense 0.6 3.9
Net loss on fixed asset disposals 0.1 0.6
Tax benefits from employee stock plans 124.0 116.9
Restructuring related charges, net -- 9.2
Changes in operating assets and
liabilities (91.2) (30.9)
Net cash provided by operating activities 415.2 373.1
Investing Activities
Net (purchases) sales and maturities of
available-for-sale marketable securities (67.3) 233.7
Purchases of restricted financial instruments (8.1) (3.0)
Capital and other expenditures (20.5) (40.8)
Business combinations, net of cash acquired (242.1) (11.8)
Other investing activities -- (2.4)
Net cash (used in) provided by investing
activities (338.0) 175.7
Financing activities
Proceeds from issuance of common stock,
net of issuance costs 144.6 242.2
Repurchases of common stock (446.8) (546.4)
Dividends paid (3.4) (13.5)
Net cash used in financing activities (305.6) (317.7)
Effect of exchange rate changes on cash and
cash equivalents (2.1) 4.4
Net (decrease) increase in cash and cash
equivalents (230.5) 235.5
Cash and cash equivalents at beginning of year 517.7 282.2
Cash and cash equivalents at end of year $ 287.2 $ 517.7
Supplemental cash flow information:
Net cash paid during the period for
income taxes $ 44.2 $ 16.5
Supplemental non-cash investing activity:
Accounts receivable and other receivable
reductions as partial consideration in
business combinations $ 2.4 $ --
Fiscal Year
2006 QTR 1 QTR 2 QTR 3 QTR 4 YTD2006
- ------------------------- ---------------- ---------------- ---------------- ---------------- ----------------
Financial
Statistics
(in millions):
Total net
revenues $ 355.1 $ 373.0 $ 378.3 $ 416.8 $ 1,523.2
License and
other
revenues $ 296.4 $ 309.4 $ 304.4 $ 336.5 $ 1,246.7
Maintenance
revenues $ 58.7 $ 63.6 $ 73.9 $ 80.3 $ 276.5
Gross Margin -
GAAP and Non-GAAP 88% 88% 89% 90% 89%
GAAP Operating
Expenses $ 221.0 $ 239.6 $ 242.8 $ 279.0 $ 982.5
GAAP Operating
Margin 26% 24% 25% 23% 24%
GAAP Net Income $ 76.1 $ 75.3 $ 94.5 $ 83.0 $ 328.9
GAAP Net
Income Per Share
(diluted) $ 0.31 $ 0.30 $ 0.38 $ 0.33 $ 1.33
Non-GAAP
Operating
Expenses
(1)(2) $ 221.0 $ 239.6 $ 242.8 $ 270.7 $ 974.2
Non-GAAP
Operating
Margin (1)(3) 26% 24% 25% 25% 25%
Non-GAAP Net
Income (1)(4) $ 74.9 $ 73.4 $ 77.0 $ 91.2 $ 316.4
Non-GAAP Net
Income Per
Share (diluted)
(1)(5) $ 0.30 $ 0.29 $ 0.31 $ 0.37 $ 1.28
Total Cash and
Marketable
Securities $ 537.8 $ 521.5 $ 547.9 $ 377.5 $ 377.5
Days Sales
Outstanding 48 49 48 56 56
Capital
Expenditures $ 5.5 $ 4.4 $ 5.4 $ 5.2 $ 20.5
Cash from
Operations $ 63.3 $ 113.0 $ 124.9 $ 114.0 $ 415.2
GAAP Depreciation
and Amortization $ 12.6 $ 11.7 $ 9.5 $ 9.9 $ 43.7
Revenue by
Geography
(in millions):
Americas $ 130.5 $ 141.3 $ 160.3 $ 177.1 $ 609.2
Europe $ 134.1 $ 140.6 $ 133.4 $ 150.1 $ 558.2
Asia/Pacific $ 90.5 $ 91.1 $ 84.6 $ 89.6 $ 355.8
Revenue by
Division (in
millions):
Design
Solutions
Segment $ 313.2 $ 325.8 $ 333.8 $ 371.7 $ 1,344.5
Manufacturing
Solutions
Division $ 59.1 $ 60.2 $ 63.3 $ 74.4 $ 256.9
Infrastructure
Solutions
Division $ 39.3 $ 42.4 $ 44.1 $ 52.5 $ 178.4
Building
Solutions
Division $ 37.1 $ 43.0 $ 45.1 $ 52.4 $ 177.6
Platform
Technology
Division
and other $ 177.7 $ 180.2 $ 181.3 $ 192.4 $ 731.6
Media and
Entertainment
Segment $ 41.2 $ 45.1 $ 42.9 $ 43.0 $ 172.3
Other Revenue
Statistics:
Upgrade Revenue
(in millions) $ 64.6 $ 71.0 $ 63.6 $ 76.1 $ 275.3
% of Revenue
from AutoCAD,
AutoCAD upgrades
and AutoCAD LT 47% 44% 43% 43% 44%
% of Revenue
from 3D design
products 16% 18% 19% 21% 19%
Deferred
Maintenance
Revenue (in
millions):
Deferred
Maintenance
Revenue
Balance $ 166.1 $ 179.2 $ 185.0 $ 213.4 $ 213.4
Favorable
(Unfavorable)
Impact of U.S.
Dollar
Translation
Relative to
Foreign
Currencies
Compared to
Comparable
Prior Year
Period (in
millions):
Total Net
Revenues $ 6.6 $ 5.6 $ (0.2) $ (21.1) $ (9.1)
Total Operating
Expenses $ (2.4) $ (1.7) $ (0.7) $ 3.8 $ (1.0)
Net Income $ 4.2 $ 3.9 $ (0.9) $ (17.3) $ (10.1)
Operating Income
(Loss) by Segment
(in millions):
Design
Solutions $ 151.5 $ 155.0 $ 161.4 $ 178.7 $ 646.6
Media and
Entertainment $ 8.4 $ 9.5 $ 5.5 $ 9.6 $ 33.0
Unallocated
amounts $ (69.3) $ (75.6) $ (73.8) $ (91.1) $ (309.8)
Common Stock
Statistics:
Stock Out-
standing 228,612,000 228,412,000 230,179,000 229,614,000 229,614,000
Fully
Diluted
Shares Out-
standing 249,272,000 250,310,000 249,462,000 248,921,000 247,546,000
Stock Re-
purchased 2,497,700 3,503,896 3,223,775 2,500,000 11,725,371
Fiscal Year
2006 QTR 1 QTR 2 QTR 3 QTR 4 YTD2006
- ------------------------- ---------------- ---------------- ---------------- ---------------- ----------------
Installed
Base
Statistics:
AutoCAD
Total
AutoCAD-
based
Installed
Base 3,700,800 3,747,000 3,803,000 3,871,300 3,871,300
Stand-alone
AutoCAD 2,646,800
AutoCAD
Mechanical 171,200
AutoCAD Map 222,900
Architectural
Desktop 441,700
Land Desktop 82,800
AutoCAD LT
Installed
Base 3,009,000
Total Inventor
Installed
Base 445,800 470,800 511,300 548,600 548,600
Customers on
Subscription 795,800
(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 $ 242.8 $ 279.0 $ 982.5
In-process
research and
development
(Alias) -- -- -- (7.9) (7.9)
Amortization of
customer
relationships,
trademarks and
deferred
compensation
(Alias) -- -- -- (0.4) (0.4)
Non-GAAP
Operating
Expenses $ 221.0 $ 239.6 $ 242.8 $ 270.7 $ 974.2
(3) GAAP
Operating
Margin 26% 24% 25% 23% 24%
Amortization of
developed
technology
(Alias) -- -- -- 0% 0%
In-process
research and
development
(Alias) -- -- -- 2% 1%
Amortization of
customer
relationships,
trademarks and
deferred
compensation
(Alias) -- -- -- 0% 0%
Non-GAAP
Operating
Margin 26% 24% 25% 25% 25%
(4) GAAP Net
Income $ 76.1 $ 75.3 $ 94.5 $ 83.0 $ 328.9
Amortization of
developed
technology
(Alias) -- -- -- 0.3 0.3
In-process
research and
development
(Alias) -- -- -- 7.9 7.9
Amortization of
customer
relationships,
trademarks and
deferred
compensation
(Alias) -- -- -- 0.4 0.4
Income tax effect
on difference
between GAAP
and non-GAAP
total costs and
expenses at the
normalized
rate -- -- -- (1.7) (1.7)
Dividends
received
deduction
benefit for
prior fiscal
years -- (1.9) (10.6) -- (12.5)
Non-recurring
tax benefits (1.2) -- (6.9) 1.3 (6.9)
Non-GAAP Net
Income $ 74.9 $ 73.4 $ 77.0 $ 91.2 $ 316.4
(5) GAAP Net
Income Per
Share
(diluted) $ 0.31 $ 0.30 $ 0.38 $ 0.33 $ 1.33
Amortization of
developed
technology
(Alias) -- -- -- 0.00 0.00
In-process
research and
development
(Alias) -- -- -- 0.04 0.04
Amortization of
customer
relationships,
trademarks and
deferred
compensation
(Alias) -- -- -- 0.00 0.00
Income tax effect
on difference
between GAAP
and non-GAAP
total costs and
expenses at the
normalized
rate -- -- -- (0.01) (0.01)
Dividends
received
deduction
benefit for
prior fiscal
years -- (0.01) (0.04) -- (0.05)
Non-recurring
tax benefits (0.00) -- (0.03) 0.01 (0.03)
Non-GAAP Net
Income Per
Share
(diluted) $ 0.30 $ 0.29 $ 0.31 $ 0.37 $ 1.28
SOURCE Autodesk
-0- 02/28/2006
/CONTACT: investors, Sue Pirri, +1-415-507-6467, or
sue.pirri@autodesk.com, or John Clancy, +1-415-507-6373, or
john.clancy@autodesk.com, or media, Caroline Kawashima, +1-415-547-2498, or
caroline.kawashima@autodesk.com, or Nicole Pack, +1-415-507-6282, or
nicole.pack@autodesk.com/
/Web site: http://www.autodesk.com /
(ADSK)