For fiscal 2009, revenue was a record $2.315 billion, an increase of 7 percent compared to fiscal 2008. Fiscal 2009 net income was $184 million, or $0.80 per diluted share, on a GAAP basis and $448 million, or $1.95 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.
"We have much to be proud of in fiscal 2009, including achieving record annual revenue results, expanding our market presence into new territories, and adding several new and exciting technologies to our portfolio of world-class products," said Carl Bass, Autodesk president and CEO. "While the global economic conditions in the first and second half of fiscal 2009 were very divergent, we are taking actions to reduce our cost structure to better fit the realities of today's economic conditions. Our strong market position and best-in-class products give us confidence that Autodesk will emerge from this downturn better positioned and more operationally efficient."
Operational Overview
Combined revenue from Autodesk's model-based 3D design solutions decreased 1 percent over the fourth quarter of fiscal 2008 to $144 million and comprised 29 percent of total revenue for the quarter. Autodesk shipped approximately 30,000 new commercial seats of its model-based 3D design products including approximately 6,100 seats of 3D manufacturing products, and 24,000 seats of its 3D Architecture Engineering and Construction products.
EMEA revenue was $219 million, a decrease of 16 percent as reported over the fourth quarter of fiscal 2008, and a decrease of 8 percent on a constant currency basis. Revenue in Asia Pacific was $99 million, a decrease of 25 percent as reported year-over-year, and a 28 percent decrease on a constant currency basis. Revenue in the Americas decreased 17 percent to $172 million compared to the fourth quarter of fiscal 2008. Revenue from emerging economies decreased 31 percent, compared to the fourth quarter of fiscal 2008 to $80 million and represented 16 percent of total revenue.
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. Given the uncertainty of the current markets, Autodesk is only providing guidance for its fiscal first quarter of 2010 at this time.
First Quarter Fiscal 2010
Net revenue for the first quarter of fiscal 2010 is expected to be in the range of $400 million and $440 million. GAAP loss per diluted share is expected to be in the range of $0.20 and $0.08. Non-GAAP earnings per diluted share are expected to be in the range of $0.00 and $0.12 and excludes $0.07 related to restructuring charges, $0.08 related to stock-based compensation expense and $0.05 for the amortization of acquisition related intangibles. The GAAP EPS range assumes a tax rate of 31% and the non-GAAP EPS range assumes a tax rate of 27%.
In addition, operating cash flow for the first quarter is expected to be negative as a result of lower revenues combined with cash outlays in the quarter for payments of the annual employee incentive plan and payments relating to the restructuring plan.
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 investments, strategies, 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, the financial and business condition of our reseller and distribution channels, fluctuation in foreign currency exchange rates, failure to achieve planned cost reductions and productivity increases, difficulties encountered in integrating new or acquired businesses and technologies, the inability to identify and realize the anticipated benefits of acquisitions, unexpected fluctuations in our tax rate, the timing and degree of expected investments in growth opportunities, slowing momentum in maintenance revenues, failure to achieve sufficient sell-through in our channels for new or existing products, pricing pressure, 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, interruptions or terminations in the business of Autodesk consultants, and unanticipated impact of accounting for technology acquisitions.
Further information on potential factors that could affect the financial results of Autodesk are included in Autodesk reports on Form 10-K for the year ended January 31, 2008 and our Forms 10-Q for the quarters ended April 30, 2008, July 31, 2008, and October 31, 2008, 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 fourth quarter conference call today at 5:00 p.m. EST. The live broadcast can be accessed at http:// www.autodesk.com/investors. A replay of the broadcast 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.
About Autodesk
Autodesk, Inc. is a world leader in 2D and 3D design software for the manufacturing, 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 built. 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.
Autodesk and AutoCAD, are registered trademarks or trademarks of Autodesk, Inc., and/or its subsidiaries and/or affiliates in the USA and/or other countries. All other brand names, product names, or trademarks belong to their respective holders. Autodesk reserves the right to alter product offerings and specifications at any time without notice, and is not responsible for typographical or graphical errors that may appear in this document.
(C) 2009 Autodesk, Inc. All rights reserved.
Investors: David Gennarelli, david.gennarelli@autodesk.com, 415-507-6033
Press: Pam Pollace, pam.pollace@autodesk.com, 415-547-2441
Colleen Rubart, colleen.rubart@autodesk.com, 415-547-2368
Autodesk, Inc.
Consolidated Statements of Operations
(In millions, except per share data)
Three Months Ended Fiscal Year Ended
January 31, January 31,
------------ --=-----------
2009 2008 2009 2008
---- ---- ---- ----
(Unaudited) (Unaudited)
Net revenue:
License and other $310.0 $446.0 $1,603.4 $1,618.6
Maintenance 179.8 153.0 711.8 553.3
----- ----- ----- -----
Total net revenue 489.8 599.0 2,315.2 2,171.9
----- ----- ------- -------
Cost of license and other revenue 46.0 48.7 210.2 199.1
Cost of maintenance revenue 2.5 2.2 8.9 8.6
--- --- --- ---
Total cost of revenue 48.5 50.9 219.1 207.7
Gross margin 441.3 548.1 2,096.1 1,964.2
Operating Expenses:
Marketing and sales 218.0 243.8 900.7 847.7
Research and development 138.7 134.3 576.1 490.5
General and administrative 49.3 45.9 205.7 180.4
Impairment of goodwill and
intangibles 128.9 - 128.9 -
Restructuring 40.2 - 40.2 -
---- --- ---- ---
Total operating expenses 575.1 424.0 1,851.6 1,518.6
----- ----- ------- -------
Income (loss) from operations (133.8) 124.1 244.5 445.6
Interest and other income (expense),
net (1.8) 6.8 8.0 24.4
---- --- --- ----
Income (loss) before income taxes (135.6) 130.9 252.5 470.0
Income tax (provision) benefit 30.3 (34.4) (68.9) (113.8)
---- ----- ----- ------
Net income (loss) $(105.3) $96.5 $183.6 $356.2
======= ===== ====== ======
Basic net income (loss) per share $(0.47) $0.42 $0.81 $1.55
====== ===== ===== =====
Diluted net income (loss) per share $(0.47) $0.40 $0.80 $1.47
====== ===== ===== =====
Shares used in computing basic
net income (loss) per share 226.3 230.2 225.5 230.3
===== ===== ===== =====
Shares used in computing diluted
net income (loss) per share 226.3 239.4 230.1 242.0
===== ===== ===== =====
Autodesk, Inc.
Condensed Consolidated Balance Sheets
(In millions)
January 31, January 31,
2009 2008
---- ----
(Unaudited)
ASSETS:
Current assets:
Cash and cash equivalents $917.6 $917.9
Marketable securities 63.5 31.4
Accounts receivable, net 316.5 386.5
Deferred income taxes 31.1 98.1
Prepaid expenses and other current assets 59.3 47.9
---- ----
Total current assets 1,388.0 1,481.8
------- -------
Marketable securities 7.6 8.4
Computer equipment, software, furniture and
leasehold improvements, net 120.6 80.2
Purchased technologies, net 113.3 64.4
Goodwill 542.5 443.4
Deferred income taxes, net 125.7 54.6
Other assets 123.0 79.4
----- ----
$2,420.7 $2,212.2
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities:
Accounts payable $62.4 $79.3
Accrued compensation 124.3 146.2
Accrued income taxes 16.7 14.4
Deferred revenue 438.8 400.7
Borrowings under line of credit 52.1 -
Other accrued liabilities 105.8 89.7
----- ----
Total current liabilities 800.1 730.3
----- -----
Deferred revenue 113.3 105.4
Long term income taxes payable 116.9 86.5
Long term deferred income taxes 22.7 3.3
Other liabilities 57.0 56.2
Commitments and contingencies
Stockholders' equity:
Preferred stock - -
Common stock and additional paid-in capital 1,080.4 998.3
Accumulated other comprehensive income (loss) (11.2) 13.8
Retained earnings 241.5 218.4
----- -----
Total stockholders' equity 1,310.7 1,230.5
------- -------
$2,420.7 $2,212.2
======== ========
Autodesk, Inc.
Condensed Consolidated Statements of Cash Flows
(In millions)
Fiscal Year Ended
January 31,
---------------
2009 2008
---- ----
(Unaudited)
Operating Activities
Net income $183.6 $356.2
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 91.8 61.3
Stock-based compensation expense 89.5 99.3
Charge for acquired in-process
research and development 26.9 5.5
Impairment of goodwill and intangibles 128.9 -
Restructuring related charges, net 38.9 -
Changes in operating assets and liabilities,
net of business combinations 34.2 186.2
---- -----
Net cash provided by operating activities 593.9 708.5
----- -----
Investing Activities
Purchases of marketable securities (118.6) (727.0)
Sales of marketable securities 83.4 799.1
Business combinations, net of cash acquired (364.5) (114.5)
Capital and other expenditures (78.4) (43.3)
----- -----
Net cash used in investing activities (478.1) (85.7)
------ -----
Financing activities
Proceeds from borrowings on line of credit 912.4 -
Repayments of borrowings on line of credit (860.3) -
Proceeds from issuance of common stock,
net of issuance costs 90.1 187.3
Repurchases of common stock (256.6) (563.0)
------ ------
Net cash used in financing activities (114.4) (375.7)
------ ------
Effect of exchange rate changes on cash and cash
equivalents (1.7) 4.9
---- ---
Net increase (decrease) in cash and cash equivalents (0.3) 252.0
Cash and cash equivalents at beginning of fiscal year 917.9 665.9
----- -----
Cash and cash equivalents at end of period $917.6 $917.9
====== ======
Autodesk, Inc.
Reconciliation of GAAP financial measures to non-GAAP financial measures
(In millions, except per share data)
To supplement our consolidated financial statements presented on a GAAP
basis, Autodesk provides investors with certain non-GAAP measures
including non-GAAP net income, non-GAAP net income per share, non-GAAP
cost of license and other revenue, non-GAAP gross margin, non-GAAP
operating expenses, non-GAAP income from operations, non-GAAP interest
and other income, net and non-GAAP provision for income taxes. These
non-GAAP financial measures are adjusted to exclude certain costs,
expenses, gains and losses, including stock-based compensation expense,
employee tax reimbursements related to our stock option review,
in-process research and development expenses, restructuring expenses,
amortization of purchased intangibles, asset impairment and related
income tax expenses. See our reconciliation of GAAP financial measures
to non-GAAP financial measures herein. We believe these exclusions are
appropriate to enhance an overall understanding of our past financial
performance and also our prospects for the future, as well as to
facilitate comparisons with our historical operating results. 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 our core operating results. In
addition, these non-GAAP financial measures are among the primary
indicators management uses as a basis for our planning and forecasting
of future periods.
There are limitations in using non-GAAP financial measures because the
non-GAAP financial measures are not prepared in accordance with generally
accepted accounting principles and may be different from non-GAAP
financial measures used by other companies. The non-GAAP financial
measures are limited in value because they exclude certain items that may
have a material impact upon our reported financial results. The
presentation of this additional information is not meant to be considered
in isolation or as a substitute for the directly comparable financial
measures prepared in accordance with generally accepted accounting
principles in the United States. Investors should review the
reconciliation of the non-GAAP financial measures to their most directly
comparable GAAP financial measures as provided in the tables accompanying
this press release.
The following table shows Autodesk's non-GAAP results reconciled to GAAP
results included in this release.
Three Months Ended Fiscal Year Ended
January 31, January 31,
------------ --------------
2009 2008 2009 2008
---- ---- ---- ----
(Unaudited) (Unaudited)
GAAP cost of license and other
revenue $46.0 $48.7 $210.2 $199.1
SFAS 123R stock-based compensation
expense (0.5) (1.2) (3.6) (5.0)
Amortization of developed technology (7.9) (3.4) (23.2) (10.7)
Employee tax reimbursements
related to stock option review - (0.1) - (1.2)
--- ---- --- ----
Non-GAAP cost of license and other
revenue $37.6 $44.0 $183.4 $182.2
===== ===== ====== ======
GAAP gross margin $441.3 $548.1 $2,096.1 $1,964.2
SFAS 123R stock-based compensation
expense 0.5 1.2 3.6 5.0
Amortization of developed technology 7.9 3.4 23.2 10.7
Employee tax reimbursements
related to stock option review - 0.1 - 1.2
--- --- --- ---
Non-GAAP gross margin $449.7 $552.8 $2,122.9 $1,981.1
====== ====== ======== ========
GAAP marketing and sales $218.0 $243.8 $900.7 $847.7
SFAS 123R stock-based compensation
expense (8.6) (11.8) (39.2) (43.1)
Employee tax reimbursements
related to stock option review - (0.6) - (5.4)
--- ---- --- ----
Non-GAAP marketing and sales $209.4 $231.4 $861.5 $799.2
====== ====== ====== ======
GAAP research and development $138.7 $134.3 $576.1 $490.5
SFAS 123R stock-based compensation
expense (6.0) (8.5) (29.3) (32.4)
In-process research and development (8.9) (1.9) (26.9) (5.5)
Employee tax reimbursements
related to stock option review - (0.8) - (5.2)
--- ---- --- ----
Non-GAAP research and development $123.8 $123.1 $519.9 $447.4
====== ====== ====== ======
GAAP general and administrative $49.3 $45.9 $205.7 $180.4
SFAS 123R stock-based compensation
expense (3.6) (4.7) (17.5) (18.8)
Amortization of customer
relationships and trademarks (6.9) (3.2) (23.4) (9.4)
Employee tax reimbursements
related to stock option review - (0.3) - (2.0)
--- ---- --- ----
Non-GAAP general and administrative $38.8 $37.7 $164.8 $150.2
===== ===== ====== ======
GAAP Impairment of goodwill and
intangibles $128.9 $- $128.9 $-
Impairment of goodwill and
intangibles (128.9) - (128.9) -
------ - ------ -
Non-GAAP Impairment of goodwill
and intangibles $- $- $- $-
=== === === ===
GAAP Restructuring $40.2 $- $40.2 $-
Restructuring (40.2) - (40.2) -
----- - ----- -
Non-GAAP Restructuring $- $- $- $-
=== === === ===
GAAP operating expenses $575.1 $424.0 $1,851.6 $1,518.6
SFAS 123R stock-based compensation
expense (18.2) (25.0) (86.0) (94.3)
Employee tax reimbursements
related to stock option review - (1.7) - (12.6)
Amortization of customer
relationships and trademarks (6.9) (3.2) (23.4) (9.4)
In-process research and development (8.9) (1.9) (26.9) (5.5)
Impairment of goodwill and
intangibles (128.9) - (128.9) -
Restructuring (40.2) - (40.2) -
----- --- ----- ---
Non-GAAP operating expenses $372.0 $392.2 $1,546.2 $1,396.8
====== ====== ======== ========
GAAP income (loss) from operations $(133.8) $124.1 $244.5 $445.6
SFAS 123R stock-based compensation
expense 18.7 26.2 89.6 99.3
Employee tax reimbursements
related to stock option review - 1.8 - 13.8
Amortization of developed technology 7.9 3.4 23.2 10.7
Amortization of customer
relationships and trademarks 6.9 3.2 23.4 9.4
In-process research and development 8.9 1.9 26.9 5.5
Impairment of goodwill and
intangibles 128.9 - 128.9 -
Restructuring 40.2 - 40.2 -
---- --- ---- ---
Non-GAAP income from operations $77.7 $160.6 $576.7 $584.3
===== ====== ====== ======
GAAP interest and other income
(expense), net $(1.8) $6.8 $8.0 $24.4
Investment impairment - - - 4.0
--- --- --- ---
Non-GAAP interest and other income
(expense), net $(1.8) $6.8 $8.0 $28.4
===== ==== ==== =====
GAAP income tax (provision) benefit $30.3 $(34.4) $(68.9) $(113.8)
Income tax effect on difference
between GAAP and non-GAAP total
costs and expenses at a normalized
rate (35.9) (8.8) (68.0) (42.4)
----- ---- ----- -----
Non-GAAP income tax provision $(5.6) $(43.2) $(136.9) $(156.2)
===== ====== ======= =======
GAAP net income (loss) $(105.3) $96.5 $183.6 $356.2
SFAS 123R stock-based compensation
expense 18.7 26.2 89.6 99.3
Employee tax reimbursements
related to stock option review - 1.8 - 13.8
Investment impairment - - - 4.0
Amortization of developed technology 7.9 3.4 23.2 10.7
In-process research and development 8.9 1.9 26.9 5.5
Amortization of customer
relationships and trademarks 6.9 3.2 23.4 9.4
Impairment of goodwill and
intangibles 128.9 - 128.9 -
Restructuring 40.2 - 40.2 -
Income tax effect on difference
between GAAP and non-GAAP total
costs and expenses at a normalized
rate (35.9) (8.8) (68.0) (42.4)
----- ---- ----- -----
Non-GAAP net income $70.3 $124.2 $447.8 $456.5
===== ====== ====== ======
GAAP diluted net income (loss)
per share $(0.47) $0.40 $0.80 $1.47
SFAS 123R stock-based compensation
expense 0.08 0.11 0.39 0.41
Employee tax reimbursements
related to stock option review - 0.01 - 0.06
Investment impairment - - - 0.02
Amortization of developed technology 0.04 0.01 0.10 0.04
In-process research and development 0.04 0.01 0.12 0.02
Amortization of customer
relationships and trademarks 0.03 0.02 0.10 0.04
Impairment of goodwill and
intangibles 0.56 - 0.56 -
Restructuring 0.18 - 0.18 -
Income tax effect on difference
between GAAP and non-GAAP total
costs and expenses at a normalized
rate (0.15) (0.04) (0.30) (0.18)
----- ----- ----- -----
Non-GAAP diluted net income per share $0.31 $0.52 $1.95 $1.88
===== ===== ===== =====
GAAP diluted shares used in
per share calculation 226.3 239.4 230.1 242.0
Impact of SFAS 123R on diluted shares (0.2) 1.0 (0.4) 1.2
Shares included in non-GAAP net
income per share, but excluded
from GAAP net loss per share as
they would have been anti-dilutive 3.0 - - -
---- --- ---- ---
Non-GAAP diluted shares used in
per share calculation 229.1 240.4 229.7 243.2
===== ===== ===== =====
Other Supplemental Financial Information (1)
Fiscal Year
2009 QTR 1 QTR 2 QTR 3 QTR 4 YTD 2009
Financial
Statistics
(in millions,
except per
share data):
Total net
revenue $599 $620 $607 $490 $2,315
License
and other
revenue $432 $440 $421 $310 $1,603
Maintenance
revenue $167 $180 $186 $180 $712
Gross Margin -
GAAP 90% 90% 91% 90% 91%
Gross Margin -
Non-GAAP 91% 91% 93% 92% 92%
GAAP Operating
Expenses $421 $441 $415 $575 $1,852
GAAP Operating
Margin 20% 19% 23% -27% 11%
GAAP Net
Income (Loss) $95 $90 $104 $(105) $184
GAAP Diluted
Net Income
(Loss) Per
Share $0.41 $0.39 $0.45 $(0.47) $0.80
Non-GAAP
Operating
Expenses
(2)(3) $394 $396 $385 $372 $1,546
Non-GAAP
Operating
Margin
(2)(4) 25% 28% 29% 16% 25%
Non-GAAP
Net Income
(2)(5) $117 $131 $130 $70 $448
Non-GAAP
Diluted Net
Income
Per Share
(2)(6) $0.50 $0.56 $0.56 $0.31 $1.95
Total Cash and
Marketable
Securities $950 $970 $941 $989 $989
Days Sales
Outstanding 51 48 44 59 59
Capital
Expenditures $14 $26 $19 $19 $78
Cash from
Operations $185 $215 $107 $86 $594
GAAP Depreciation
and Amortization $17 $22 $25 $27 $92
Deferred
Maintenance
Revenue Balance $474 $488 $433 $475 $475
Revenue by
Geography (in
millions):
Americas $191 $203 $216 $172 $782
Europe $259 $267 $258 $219 $1,003
Asia/Pacific $149 $150 $133 $99 $530
Revenue by
Segment (in
millions):
Platform
Solutions and
Emerging
Business and
Other $278 $270 $269 $201 $1,018
Architecture,
Engineering and
Construction $129 $144 $134 $118 $525
Manufacturing
Solutions $119 $131 $124 $114 $488
Media and
Entertainment $67 $69 $73 $53 $262
Other $6 $6 $7 $4 $22
Other Revenue
Statistics:
% of Total Rev
from AutoCAD
and AutoCAD LT 41% 35% 35% 32% 36%
% of Total Rev
from 3D design
products 24% 26% 27% 29% 27%
% of Total Rev
from Emerging
Economies 17% 18% 19% 16% 18%
Upgrade Revenue
(in millions) $61 $58 $41 $34 $194
Favorable
(Unfavorable)
Impact of U.S.
Dollar
Translation
Relative to
Foreign
Currencies
Compared to
Comparable
Prior Year
Period (in
millions):
FX Impact
on Total
Net Revenue $41 $42 $18 $(19) $82
FX Impact on
Total Operating
Expenses $(14) $(11) $(3) $17 $(11)
FX Impact on
Total Net
Income (Loss) $27 $31 $15 $(2) $71
Gross Margin by
Segment (in
millions):
Platform
Solutions and
Emerging
Business and
Other $263 $255 $257 $190 $965
Architecture,
Engineering and
Construction $119 $133 $126 $109 $487
Manufacturing
Solutions $110 $122 $117 $107 $456
Media and
Entertainment $50 $52 $57 $41 $200
Unallocated
amounts $(1) $(2) $(3) $(6) $(12)
Common Stock
Statistics:
GAAP Shares
Out-
standing 223,616,000 224,528,000 226,248,000 226,354,000 226,354,000
GAAP Fully
Diluted
Weighted
Average
Shares
Out-
standing 232,607,000 231,078,000 230,364,000 226,299,000 230,068,000
Shares
Repurch-
ased 8,001,000 - - - 8,001,000
Installed
Base
Statistics:
Total
AutoCAD-
based
Installed
Base 4,377,000 4,431,000 4,491,000 4,551,000 4,551,000
Stand-alone
AutoCAD 2,980,000
AutoCAD
Mechanical 266,000
AutoCAD
Map 3D 281,000
AutoCAD
Architecture 577,000
AutoCAD LT
Installed
Base 3,949,000
Total Inventor
Installed
Base 794,000 817,000 841,000 869,000 869,000
Total
Maintenance
Installed
Base 1,587,000 1,644,000 1,696,000 1,704,000 1,704,000
(1) Totals may not agree with the sum of the components due to rounding.
(2) To supplement our consolidated financial statements presented on a
GAAP basis, Autodesk provides investors with certain non-GAAP measures
including non-GAAP net income, non-GAAP net income per share, non-GAAP
cost of license and other revenue, non-GAAP gross margin, non-GAAP
operating expenses, non-GAAP income from operations, non-GAAP interest
and other income, net and non-GAAP provision for income taxes. These
non-GAAP financial measures are adjusted to exclude certain costs,
expenses, gains and losses, including stock-based compensation expense,
employee tax reimbursements related to our stock option review,
in-process research and development expenses, restructuring expenses,
amortization of purchased intangibles, investment impairment and
related income tax expenses. See our reconciliation of GAAP financial
measures to non-GAAP financial measures herein. We believe these
exclusions are appropriate to enhance an overall understanding of
our past financial performance and also our prospects for the future, as
well as to facilitate comparisons with our historical operating results.
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 our core operating results. In
addition, these non-GAAP financial measures are among the primary
indicators management uses as a basis for our planning and forecasting
of future periods.
There are limitations in using non-GAAP financial measures because the
non-GAAP financial measures are not prepared in accordance with
generally accepted accounting principles and may be different from
non-GAAP financial measures used by other companies. The non-GAAP
financial measures are limited in value because they exclude certain
items that may have a material impact upon our reported financial
results. The presentation of this additional information is not meant to
be considered in isolation or as a substitute for the directly comparable
financial measures prepared in accordance with generally accepted
accounting principles in the United States. Investors should review the
reconciliation of the non-GAAP financial measures to their most directly
comparable GAAP financial measures as provided in the tables accompanying
this press release.
Fiscal Year 2009 QTR 1 QTR 2 QTR 3 QTR 4 YTD 2009
(3) GAAP Operating Expenses $421 $441 $415 $575 $1,852
Stock-based compensation
expense (24) (22) (21) (18) (87)
Amortization of customer
relationships and
trademarks (3) (6) (7) (7) (24)
In-process research
and development - (17) (1) (9) (27)
Restructuring - - - (40) (40)
Impairment of goodwill
and intangibles - - - (129) (129)
--- --- --- ---- ----
Non-GAAP Operating
Expenses $394 $396 $385 $372 $1,546
(4) GAAP Operating Margin 20% 19% 23% -27% 11%
Stock-based compensation
expense 4% 4% 4% 4% 4%
Amortization of
developed technology 1% 1% 1% 2% 1%
Amortization of customer
relationships and
trademarks 1% 1% 1% 1% 1%
In-process research
and development 0% 3% 0% 2% 1%
Restructuring 0% 0% 0% 8% 2%
Impairment of goodwill
and intangibles 0% 0% 0% 26% 6%
--- --- --- --- ---
Non-GAAP Operating Margin 25% 28% 29% 16% 25%
(5) GAAP Net Income (Loss) $95 $90 $104 $(105) $184
Stock-based compensation
expense 25 23 $23 19 90
Amortization of
developed technology 4 5 $6 8 23
Amortization of customer
relationships and
trademarks 3 6 $7 7 24
In-process research
and development - 17 $1 9 27
Impairment of goodwill
and intangibles - - - 129 129
Restructuring - - - 40 40
Income tax effect on
difference between GAAP
and non-GAAP total costs
and expenses at a
normalized rate (9) (11) (12) (36) (68)
--- --- --- --- ---
Non-GAAP Net Income $117 $131 $130 $70 $448
(6) GAAP Diluted Net
Income (Loss) Per Share $0.41 $0.39 $0.45 $(0.47) $0.80
Stock-based compensation
expense 0.11 0.10 0.10 0.08 0.39
Amortization of
developed technology 0.01 0.02 0.03 0.04 0.10
Amortization of customer
relationships and
trademarks 0.01 0.03 0.03 0.03 0.10
In-process research
and development - 0.07 - 0.04 0.12
Impairment of goodwill
and intangibles - - - 0.56 0.56
Restructuring - - - 0.18 0.18
Income tax effect on
difference between GAAP
and non-GAAP total costs
and expenses at a
normalized rate (0.04) (0.05) (0.05) (0.15) (0.30)
----- ----- ----- ----- -----
Non-GAAP Diluted Net
Income Per Share $0.50 $0.56 $0.56 $0.31 $1.95
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