"The global market is changing at an unprecedented rate," said Carl Bass, Autodesk president and chief executive officer. "Now more than ever, our customers need design solutions that provide the capability to address the key challenges facing their businesses including globalization and the rising cost of energy. For 25 years, Autodesk has provided solutions that help our customers create smarter, richer and more innovative designs. From the introduction of the first version of AutoCAD in 1982, to the recent release of our most sophisticated digital prototyping solutions, Autodesk has continued to innovate for the benefit of our customers who are changing the world through design."
In the past four years, Autodesk revenues have more than doubled, reaching $1.84 billion in fiscal 2007. Key drivers of the company's strong growth include revenue from new seats, growth in emerging economies and rapid adoption of the company's subscription program. In addition, penetration of the company's model-based 3D software solutions continues to increase.
"Last month, we launched our entire 2008 family of products including AutoCAD, the Inventor family of products and the Revit family of products. Customer feedback indicates that these versions are the best yet. I am confident that our products, our strategy, our competitive position and our ability to execute will sustain Autodesk's strong financial performance in fiscal 2008 and into the future."
First Quarter Fiscal 2008
With less than one week remaining in the first quarter, net revenues are expected to be near the high end, or slightly above, the previously issued range of $490 million to $500 million. In addition, non-GAAP operating margins are expected to be 25.5 percent to 26.3 percent for the first quarter of fiscal 2008. Non-GAAP operating margins do not include SFAS 123R stock- based compensation expenses, which the company is currently unable to determine but believes will be significant, amortization of acquisition related intangibles of approximately $4 million, and reimbursement to employees for tax issues arising from the stock option review, which the company is currently unable to estimate but believes to be significant. Company estimates also include approximately $4 million in the first quarter of fiscal 2008 for legal, tax and accounting fees related to the voluntary stock option review. As previously announced, because accounting related to the restatement of the company's financial statements is being finalized as a result of the voluntary stock option review, the company is not able to provide GAAP operating margins for the first quarter of fiscal 2008 or fiscal year 2008 at this time.
Fiscal Year 2008
For fiscal year 2008, net revenues are expected to be between $2.075 billion and $2.125 billion. Not taking into account SFAS 123R stock-based compensation expenses, which the Company is currently unable to determine but believes will be significant, amortization of acquisition related intangibles of approximately $16 million, and reimbursement to employees for tax issues arising from stock option review which we are unable to estimate but believe to be significant, non-GAAP operating margins for fiscal year 2008 are expected to be in the range of 27 to 27.5 percent.
Long Term Revenue Growth Target
Based upon the strength of its business strategy, the company reiterated its 15 percent compound annual revenue growth rate estimate for fiscal years 2008 through 2012.
Autodesk's management team plans to discuss its business strategy at its Annual Investor Meeting being held today in New York City. A webcast of today's Annual Investor Meeting will be available beginning at 8.30 a.m. eastern time at www.autodesk.com/investors. A webcast and podcast replay of the event will be available beginning at 2.30 pm eastern time on our website at www.autodesk.com/investors. This replay will be maintained on our website for at least twelve months.
Safe Harbor Statement
This press release contains forward-looking statements that involve risks and uncertainties, including statements in the paragraph under "First Quarter Fiscal 2008, "Fiscal Year 2008" and above, statements in the paragraph under ""Long Term Revenue Growth Target", statements regarding anticipated market trends and other statements regarding our expected performance. Factors that could cause actual results to differ materially include the following: factors related to the impact of the company's voluntary stock option review, general market and business conditions, expenses, resulting from the voluntary stock option review, our performance in particular geographies, slowing momentum in maintenance or subscription revenues, changes in the timing of product releases and retirements, failure to achieve continued migration from 2D products to 3D products, failure of key new applications to achieve anticipated levels of customer acceptance, difficulties encountered in integrating new or acquired businesses and technologies, failure to achieve sufficient sell-through in our channels for new or existing products, pricing pressure, fluctuation in our tax rate, the timing and degree of expected investments in growth opportunities, fluctuation in foreign currency exchange rates, failure to achieve continued cost reductions and productivity increases, 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, 2006 and Form 10-Q for the quarter ended April 30, 2006 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.
About Autodesk
Autodesk, Inc. is the world leader in 2D and 3D design software for the manufacturing, building and construction, and media and entertainment markets. Since its introduction of AutoCAD software in 1982, Autodesk has developed the broadest portfolio of state-of-the-art digital prototyping solutions to help customers experience their ideas before they are real. Fortune 1000 companies rely on Autodesk for the tools to visualize, simulate and analyze real-world performance early in the design process to save time and money, enhance quality and foster innovation. For additional information about Autodesk, visit www.autodesk.com.
AutoCAD, Autodesk, Inventor and Revit are either registered trademarks or trademarks of Autodesk, Inc., in the USA and/or other countries. All other brand names, product names, or trademarks belong to their respective holders.
(C) Copyright 2007 Autodesk, Inc. All rights reserved.
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