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.
Autodesk, Inc.
Consolidated Statements of Operations
(In millions, except per share data)
Three Months Ended
April 30,
---------
2009 2008
---- ----
(Unaudited)
Net revenue:
License and other $243.6 $432.2
Maintenance 182.2 166.6
----- -----
Total net revenue 425.8 598.8
----- -----
Cost of license and other revenue 49.5 56.0
Cost of maintenance revenue 2.8 2.0
--- ---
Total cost of revenue 52.3 58.0
Gross margin 373.5 540.8
Operating Expenses:
Marketing and sales 185.8 225.5
Research and development 124.1 145.6
General and administrative 45.5 49.8
Impairment of goodwill 21.0 -
Restructuring charges 16.5 -
---- ---
Total operating expenses 392.9 420.9
----- -----
Income (loss) from operations (19.4) 119.9
Interest and other income (expense), net - 6.9
--- ---
Income (loss) before income taxes (19.4) 126.8
Income tax (provision) benefit (12.7) (32.2)
----- -----
Net income (loss) $(32.1) $94.6
====== =====
Basic net income (loss) per share $(0.14) $0.42
====== =====
Diluted net income (loss) per share $(0.14) $0.41
====== =====
Shares used in computing basic
net income (loss) per share 227.1 226.2
===== =====
Shares used in computing diluted
net income (loss) per share 227.1 232.6
===== =====
Autodesk, Inc.
Condensed Consolidated Balance Sheets
(In millions)
April 30, January 31,
2009 2009
---- ----
(Unaudited)
ASSETS:
Current assets:
Cash and cash equivalents $880.5 $917.6
Marketable securities 78.4 63.5
Accounts receivable, net 228.6 316.5
Deferred income taxes 47.0 31.1
Prepaid expenses and other current assets 67.7 59.3
---- ----
Total current assets 1,302.2 1,388.0
------- -------
Marketable securities 7.6 7.6
Computer equipment, software, furniture and
leasehold improvements, net 120.7 120.6
Purchased technologies, net 105.0 113.3
Goodwill 520.7 542.5
Deferred income taxes, net 88.3 125.7
Other assets 125.0 123.0
----- -----
$2,269.5 $2,420.7
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities:
Accounts payable $65.0 $62.4
Accrued compensation 83.9 124.3
Accrued income taxes 19.1 16.7
Deferred revenue 453.1 438.8
Borrowings under line of credit 2.1 52.1
Other accrued liabilities 58.6 105.8
---- -----
Total current liabilities 681.8 800.1
----- -----
Deferred revenue 80.9 113.3
Long term income taxes payable 120.5 116.9
Long term deferred income taxes - 22.7
Other liabilities 57.8 57.0
Commitments and contingencies
Stockholders' equity:
Preferred stock - -
Common stock and additional paid-in capital 1,128.8 1,080.4
Accumulated other comprehensive income (loss) (9.7) (11.2)
Retained earnings 209.4 241.5
----- -----
Total stockholders' equity 1,328.5 1,310.7
------- -------
$2,269.5 $2,420.7
======== ========
Autodesk, Inc.
Condensed Consolidated Statements of Cash Flows
(In millions)
Three Months Ended
April 30,
---------
2009 2008
---- ----
(Unaudited)
Operating Activities
Net income (loss) $(32.1) $94.6
Adjustments to reconcile net income to
net cash provided by operating
activities:
Depreciation and amortization 27.0 16.9
Stock-based compensation expense 23.0 25.2
Impairment of goodwill 21.0 -
Loss on disposition of assets 1.1 -
Restructuring related charges, net 16.5 -
Changes in operating assets and
liabilities, net of business
combinations (29.3) 48.6
----- ----
Net cash provided by operating activities 27.2 185.3
---- -----
Investing Activities
Purchases of marketable securities (26.6) (2.1)
Sales of marketable securities 11.7 0.8
Acquisition of equity investment (10.0) 0.2
Business combinations, net of cash
acquired - (1.0)
Capital and other expenditures (13.6) (13.4)
----- -----
Net cash used in investing activities (38.5) (15.5)
----- -----
Financing activities
Proceeds from borrowings on line of
credit 2.2 40.0
Repayments of borrowings on line of
credit (52.2) -
Proceeds from issuance of common stock,
net of issuance costs 25.4 35.3
Repurchases of common stock - (256.6)
--- ------
Net cash used in financing activities (24.6) (181.3)
----- ------
Effect of exchange rate changes on cash
and cash equivalents (1.2) 2.7
---- ---
Net decrease in cash and cash equivalents (37.1) (8.8)
Cash and cash equivalents at beginning of
fiscal year 917.6 917.9
----- -----
Cash and cash equivalents at end of period $880.5 $909.1
====== ======
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,
amortization of purchased intangibles, restructuring charges,
goodwill impairment, establishment of a valuation allowance on certain
deferred tax assets 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
April 30,
---------
2009 2008
---- ----
(Unaudited)
GAAP cost of license and other revenue $49.5 $56.1
SFAS 123R stock-based compensation expense (0.6) (1.0)
Amortization of developed technology (8.3) (3.6)
---- ----
Non-GAAP cost of license and other revenue $40.6 $51.5
===== =====
GAAP gross margin $373.5 $540.7
SFAS 123R stock-based compensation expense 0.6 1.0
Amortization of developed technology 8.3 3.6
--- ---
Non-GAAP gross margin $382.4 $545.3
====== ======
GAAP marketing and sales $185.8 $225.4
SFAS 123R stock-based compensation expense (9.5) (10.5)
---- -----
Non-GAAP marketing and sales $176.3 $214.9
====== ======
GAAP research and development $124.1 $145.6
SFAS 123R stock-based compensation expense (7.0) (8.4)
---- ----
Non-GAAP research and development $117.1 $137.2
====== ======
GAAP general and administrative $45.5 $49.8
SFAS 123R stock-based compensation expense (5.9) (5.3)
Amortization of customer relationships and
trademarks (6.4) (2.9)
---- ----
Non-GAAP general and administrative $33.2 $41.6
===== =====
GAAP Impairment of goodwill $21.0 $-
Impairment of goodwill (21.0) -
----- ---
Non-GAAP Impairment of goodwill $- $-
== ==
GAAP Restructuring charges $16.5 $-
Restructuring charges (16.5) -
----- ---
Non-GAAP Restructuring charges $- $-
== ==
GAAP operating expenses $392.9 $420.8
SFAS 123R stock-based compensation expense (22.4) (24.2)
Amortization of customer relationships and
trademarks (6.4) (2.9)
Impairment of goodwill (21.0) -
Restructuring charges (16.5) -
----- -
Non-GAAP operating expenses $326.6 $393.7
====== ======
GAAP income (loss) from operations $(19.4) $119.9
SFAS 123R stock-based compensation expense 23.0 25.2
Amortization of developed technology 8.3 3.6
Amortization of customer relationships and
trademarks 6.4 2.9
Impairment of goodwill 21.0 -
Restructuring charges 16.5 -
---- ---
Non-GAAP income from operations $55.8 $151.6
===== ======
GAAP income tax (provision) benefit $(12.7) $(32.2)
Establishment of valuation allowance on
deferred tax assets 21.0 -
Income tax effect on difference between GAAP and non-
GAAP total costs and expenses at a normalized rate (22.2) (9.1)
----- ----
Non-GAAP income tax provision $(13.9) $(41.3)
====== ======
GAAP net income (loss) $(32.1) $94.6
SFAS 123R stock-based compensation expense 23.0 25.2
Amortization of developed technology 8.3 3.6
Amortization of customer relationships and
trademarks 6.4 2.9
Impairment of goodwill 21.0 -
Restructuring charges 16.5 -
Establishment of valuation allowance on
deferred tax assets 21.0 -
Income tax effect on difference between GAAP and non-
GAAP total costs and expenses at a normalized rate (22.2) (9.1)
----- ----
Non-GAAP net income $41.9 $117.2
===== ======
GAAP diluted net income (loss) per share $(0.14) $0.41
SFAS 123R stock-based compensation expense 0.10 0.11
Amortization of developed technology 0.04 0.01
Amortization of customer relationships and
trademarks 0.03 0.01
Impairment of goodwill 0.09 -
Restructuring charges 0.07 -
Establishment of valuation allowance on
deferred tax assets 0.09 -
Income tax effect on difference between GAAP and non-
GAAP total costs and expenses at a normalized rate (0.10) (0.04)
----- -----
Non-GAAP diluted net income per share $0.18 $0.50
===== =====
GAAP diluted shares used in per share
calculation 227.1 232.6
Impact of SFAS 123R on diluted shares (0.1) 0.3
Shares included in non-GAAP net income per share, but
excluded from GAAP net loss per share as they would
have been anti-dilutive 2.2 -
--- ---
Non-GAAP diluted shares used in per share
calculation 229.2 232.9
===== =====
Other Supplemental Financial Information (1)
Fiscal Year 2010 QTR 1 QTR 2 QTR 3 QTR 4 YTD 2010
Financial Statistics
($ in millions, except per
share data):
Total net revenue $426 $426
License and other
revenue $244 $244
Maintenance revenue $182 $182
Gross Margin - GAAP 88% 88%
Gross Margin - Non-GAAP 90% 90%
GAAP Operating Expenses $393 $393
GAAP Operating Margin -5% -5%
GAAP Net Income (Loss) $(32) $(32)
GAAP Diluted Net Income
(Loss) Per Share $(0.14) $(0.14)
Non-GAAP Operating
Expenses (2)(3) $327 $327
Non-GAAP Operating
Margin (2)(4) 13% 13%
Non-GAAP Net Income
(2)(5) $42 $42
Non-GAAP Diluted Net
Income Per Share (2)(6) $0.18 $0.18
Total Cash and
Marketable Securities $966 $966
Days Sales Outstanding 49 49
Capital Expenditures $14 $14
Cash from Operations $27 $27
GAAP Depreciation and
Amortization $27 $27
Deferred Maintenance
Revenue Balance $458 $458
Revenue by Geography
(in millions):
Americas $164 $164
Europe $167 $167
Asia/Pacific $95 $95
Revenue by Segment (in millions):
Platform Solutions and
Emerging Business $156 $156
Architecture,
Engineering and
Construction $128 $128
Manufacturing $94 $94
Media and Entertainment $48 $48
Other $- $-
Other Revenue Statistics:
% of Total Rev from
AutoCAD and AutoCAD LT 34% 34%
% of Total Rev from 3D
design products 29% 29%
% of Total Rev from
Emerging Economies 14% 14%
Upgrade Revenue (in
millions) $43 $43
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 $(31) $(31)
FX Impact on Total
Operating Expenses $22 $22
FX Impact on Total Net
Income (Loss) $(9) $(9)
Gross Margin by Segment
(in millions):
Platform Solutions and
Emerging Business $142 $142
Architecture, Engineering and
Construction $119 $119
Manufacturing $86 $86
Media and Entertainment $35 $35
Unallocated amounts $(9) $(9)
Common Stock Statistics:
GAAP Shares Outstanding 228,219,000 228,219,000
GAAP Diluted Weighted
Average Shares
Outstanding 227,080,000 227,080,000
Shares Repurchased - -
Maintenance Installed
Base 1,719,000 1,719,000
(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, amortization of
purchased intangibles, goodwill impairment, restructuring charges,
establishment of a valuation allowance on certain deferred tax assets 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 2010 QTR 1 QTR 2 QTR 3 QTR 4 YTD 2010
(3) GAAP Operating Expenses $393 $393
Stock-based compensation
expense (22) (22)
Amortization of customer
relationships and
trademarks (6) (6)
Restructuring charges (17) (17)
Impairment of
goodwill (21) (21)
--- ---
Non-GAAP Operating
Expenses $327 $327
(4) GAAP Operating Margin -5% -5%
Stock-based compensation
expense 5% 5%
Amortization of
developed
technology 2% 2%
Amortization of customer
relationships and
trademarks 2% 2%
Restructuring charges 4% 4%
Impairment of
goodwill 5% 5%
--- ---
Non-GAAP Operating
Margin 13% 13%
(5) GAAP Net Income (Loss) $(32) $(32)
Stock-based compensation
expense 23 23
Amortization of
developed
technology 8 8
Amortization of customer
relationships and
trademarks 6 6
Impairment of goodwill 21 21
Restructuring charges 17 17
Establishment of valuation
allowance on
deferred tax assets 21 21
Income tax effect on
difference between GAAP
and non-GAAP total costs
and expenses at a
normalized rate (22) (22)
--- ---
Non-GAAP Net Income $42 $42
(6) GAAP Diluted Net Income
(Loss) Per Share $(0.14) $(0.14)
Stock-based compensation
expense 0.10 0.10
Amortization of
developed
technology 0.04 0.04
Amortization of customer
relationships and
trademarks 0.03 0.03
Impairment of
goodwill 0.09 0.09
Restructuring charges 0.07 0.07
Establishment of
valuation allowance on
deferred
tax assets 0.09 0.09
Income tax effect on
difference between GAAP
and non-GAAP total costs
and expenses at a
normalized rate (0.10) (0.10)
----- -----
Non-GAAP Diluted Net
Income Per Share $0.18 $0.18
