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(1) |
Effective in the first quarter of fiscal 2014, Autodesk reclassified certain revenue and cost of revenue amounts associated with its cloud service offerings from "License and Other Revenue" to its new revenue line item "Subscription Revenue." Subscription Revenue consists of two components: maintenance revenue for our software products and revenue for our cloud service offerings including Autodesk 360. Prior period amounts have been revised to conform to the current period presentation. |
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| Autodesk, Inc. | ||||||||
| Condensed Consolidated Balance Sheets | ||||||||
| (In millions) | ||||||||
| January 31, 2014 | January 31, 2013 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 1,853.0 | $ | 1,612.2 | ||||
| Marketable securities | 414.1 | 342.1 | ||||||
| Accounts receivable, net | 423.7 | 495.1 | ||||||
| Deferred income taxes | 56.8 | 42.2 | ||||||
| Prepaid expenses and other current assets | 87.4 | 60.8 | ||||||
| Total current assets | 2,835.0 | 2,552.4 | ||||||
| Marketable securities | 277.3 | 411.1 | ||||||
| Computer equipment, software, furniture and leasehold improvements, net | 130.3 | 114.9 | ||||||
| Purchased technologies, net | 63.1 | 76.0 | ||||||
| Goodwill | 1,009.9 | 871.5 | ||||||
| Deferred income taxes, net | 131.1 | 122.8 | ||||||
| Other assets | 148.3 | 159.7 | ||||||
| $ | 4,595.0 | $ | 4,308.4 | |||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 84.5 | $ | 94.2 | ||||
| Accrued compensation | 181.2 | 189.6 | ||||||
| Accrued income taxes | 24.3 | 13.9 | ||||||
| Deferred revenue | 696.2 | 647.0 | ||||||
| Other accrued liabilities | 85.3 | 99.0 | ||||||
| Total current liabilities | 1,071.5 | 1,043.7 | ||||||
| Deferred revenue | 204.4 | 187.6 | ||||||
| Long term income taxes payable | 211.8 | 194.2 | ||||||
| Long term notes payable, net of discount | 746.4 | 745.6 | ||||||
| Other liabilities | 99.4 | 94.1 | ||||||
| Commitments and contingencies | — | — | ||||||
| Stockholders’ equity: | ||||||||
| Preferred stock | — | — | ||||||
| Common stock and additional paid-in capital | 1,637.3 | 1,449.8 | ||||||
| Accumulated other comprehensive loss | (0.6 | ) | (5.7 | ) | ||||
| Retained earnings | 624.8 | 599.1 | ||||||
| Total stockholders’ equity | 2,261.5 | 2,043.2 | ||||||
| $ | 4,595.0 | $ | 4,308.4 | |||||
| Autodesk, Inc. | ||||||||
| Condensed Consolidated Statements of Cash Flows | ||||||||
| (In millions) | ||||||||
| Fiscal Year Ended January 31, | ||||||||
| 2014 | 2013 | |||||||
| (Unaudited) | ||||||||
| Operating activities: | ||||||||
| Net income | $ | 228.8 | $ | 247.4 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation, amortization and accretion | 128.9 | 127.8 | ||||||
| Stock-based compensation expense | 132.2 | 156.3 | ||||||
| Excess tax benefits from stock-based compensation | (9.1 | ) | (12.9 | ) | ||||
| Restructuring charges, net | 12.8 | 43.9 | ||||||
| Other operating activities | (16.1 | ) | 6.7 | |||||
| Changes in operating assets and liabilities, net of business combinations | 86.0 | (10.1 | ) | |||||
| Net cash provided by operating activities | 563.5 | 559.1 | ||||||
| Investing activities: | ||||||||
| Purchases of marketable securities | (1,214.2 | ) | (1,397.7 | ) | ||||
| Sales of marketable securities | 537.0 | 332.9 | ||||||
| Maturities of marketable securities | 742.1 | 764.8 | ||||||
| Capital expenditures | (64.2 | ) | (56.4 | ) | ||||
| Acquisitions, net of cash acquired | (176.1 | ) | (263.7 | ) | ||||
| Other investing activities | (18.6 | ) | (27.1 | ) | ||||
| Net cash (used in) investing activities | (194.0 | ) | (647.2 | ) | ||||
| Financing activities: | ||||||||
| Proceeds from issuance of common stock, net of issuance costs | 288.2 | 220.2 | ||||||
| Repurchases of common stock | (423.8 | ) | (431.2 | ) | ||||
| Draws on line of credit | — | 110.0 | ||||||
| Proceeds from debt | — | 745.6 | ||||||
| Repayments on line of credit | — | (110.0 | ) | |||||
| Excess tax benefits from stock-based compensation | 9.1 | 12.9 | ||||||
| Other financing activities | — | (6.1 | ) | |||||
| Net cash (used in) provided by financing activities | (126.5 | ) | 541.4 | |||||
| Effect of exchange rate changes on cash and cash equivalents | (2.2 | ) | 2.0 | |||||
| Net increase in cash and cash equivalents | 240.8 | 455.3 | ||||||
| Cash and cash equivalents at beginning of fiscal year | 1,612.2 | 1,156.9 | ||||||
| Cash and cash equivalents at end of period | $ | 1,853.0 | $ | 1,612.2 | ||||
| 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 cost of license and other revenue, non-GAAP cost of subscription revenue, non-GAAP gross profit, non-GAAP operating expenses, non-GAAP restructuring charges (benefits), non-GAAP income from operations, non-GAAP operating margin, non-GAAP interest and other income (expense), non-GAAP provision for income taxes, non-GAAP net income, and non-GAAP net income per share. These non-GAAP financial measures are adjusted to exclude certain costs, expenses, gains and losses, including stock-based compensation expense, restructuring charges, amortization of purchased intangibles, gain and loss on strategic investments, 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 GAAP 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, | |||||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||
| GAAP cost of license and other revenue (1) | $ | 48.1 | $ | 41.4 | $ | 178.7 | $ | 166.0 | ||||||||
| Stock-based compensation expense (1) | (1.1 | ) | (1.0 | ) | (3.8 | ) | (3.7 | ) | ||||||||
| Amortization of developed technology (1) | (10.6 | ) | (9.5 | ) | (40.1 | ) | (37.2 | ) | ||||||||
| Non-GAAP cost of license and other revenue (1) | $ | 36.4 | $ | 30.9 | $ | 134.8 | $ | 125.1 | ||||||||
| GAAP cost of subscription revenue (1) | $ | 23.8 | $ | 20.6 | $ | 95.6 | $ | 72.5 | ||||||||
| Stock-based compensation expense (1) | (0.6 | ) | (0.4 | ) | (2.2 | ) | (1.5 | ) | ||||||||
| Amortization of developed technology (1) | (1.0 | ) | (0.9 | ) | (4.1 | ) | (2.5 | ) | ||||||||
| Non-GAAP cost of subscription revenue (1) | $ | 22.2 | $ | 19.3 | $ | 89.3 | $ | 68.5 | ||||||||
| GAAP gross profit | $ | 514.7 | $ | 544.9 | $ | 1,999.6 | $ | 2,073.7 | ||||||||
| Stock-based compensation expense | 1.7 | 1.4 | 6.0 | 5.2 | ||||||||||||
| Amortization of developed technology | 11.6 | 10.4 | 44.2 | 39.7 | ||||||||||||
| Non-GAAP gross profit | $ | 528.0 | $ | 556.7 | $ | 2,049.8 | $ | 2,118.6 | ||||||||
| GAAP marketing and sales | $ | 232.3 | $ | 236.0 | $ | 842.6 | $ | 875.5 | ||||||||
| Stock-based compensation expense | (16.1 | ) | (16.9 | ) | (58.6 | ) | (64.3 | ) | ||||||||
| Non-GAAP marketing and sales | $ | 216.2 | $ | 219.1 | $ | 784.0 | $ | 811.2 | ||||||||
| GAAP research and development | $ | 162.4 | $ | 149.4 | $ | 611.1 | $ | 600.0 | ||||||||
| Stock-based compensation expense | (12.4 | ) | (12.2 | ) | (43.7 | ) | (61.8 | ) | ||||||||
| Non-GAAP research and development | $ | 150.0 | $ | 137.2 | $ | 567.4 | $ | 538.2 | ||||||||
| GAAP general and administrative | $ | 62.0 | $ | 67.7 | $ | 248.3 | $ | 248.4 | ||||||||
| Stock-based compensation expense | (5.9 | ) | (7.0 | ) | (23.9 | ) | (25.0 | ) | ||||||||
| Amortization of customer relationships and trade names | (9.0 | ) | (12.6 | ) | (36.5 | ) | (42.1 | ) | ||||||||
| Non-GAAP general and administrative | $ | 47.1 | $ | 48.1 | $ | 187.9 | $ | 181.3 | ||||||||
| GAAP restructuring charges (benefits), net | $ | 6.3 | $ | 7.2 | $ | 12.8 | $ | 43.9 | ||||||||
| Restructuring (charges) benefits | (6.3 | ) | (7.2 | ) | (12.8 | ) | (43.9 | ) | ||||||||
| Non-GAAP restructuring charges (benefits), net | $ | — | $ | — | $ | — | $ | — | ||||||||
| GAAP operating expenses | $ | 463.0 | $ | 460.3 | $ | 1,714.8 | $ | 1,767.8 | ||||||||
| Stock-based compensation expense | (34.4 | ) | (36.1 | ) | (126.2 | ) | (151.1 | ) | ||||||||
| Amortization of customer relationships and trade names | (9.0 | ) | (12.6 | ) | (36.5 | ) | (42.1 | ) | ||||||||
| Restructuring (charges) benefits | (6.3 | ) | (7.2 | ) | (12.8 | ) | (43.9 | ) | ||||||||
| Non-GAAP operating expenses | $ | 413.3 | $ | 404.4 | $ | 1,539.3 | $ | 1,530.7 | ||||||||
| GAAP income from operations | $ | 51.7 | $ | 84.6 | $ | 284.8 | $ | 305.9 | ||||||||
| Stock-based compensation expense | 36.1 | 37.5 | 132.2 | 156.3 | ||||||||||||
| Amortization of developed technology | 11.6 | 10.4 | 44.2 | 39.7 | ||||||||||||
| Amortization of customer relationships and trade names | 9.0 | 12.6 | 36.5 | 42.1 | ||||||||||||
| Restructuring charges (benefits) | 6.3 | 7.2 | 12.8 | 43.9 | ||||||||||||
| Non-GAAP income from operations | $ | 114.7 | $ | 152.3 | $ | 510.5 | $ | 587.9 | ||||||||
| GAAP interest and other (expense) income, net | $ | 4.6 | $ | 1.5 | $ | (4.9 | ) | $ | 4.1 | |||||||
| Loss (gain) on strategic investments | 0.8 | 0.2 | 1.8 | 4.0 | ||||||||||||
| Non-GAAP interest and other (expense) income, net | $ | 5.4 | $ | 1.7 | $ | (3.1 | ) | $ | 8.1 | |||||||
| GAAP provision for income taxes | $ | (2.4 | ) | $ | (11.6 | ) | $ | (51.1 | ) | $ | (62.6 | ) | ||||
| Discrete GAAP tax provision items | (7.9 | ) | (7.7 | ) | (10.2 | ) | (26.7 | ) | ||||||||
| Income tax effect of non-GAAP adjustments | (16.6 | ) | (13.9 | ) | (60.5 | ) | (56.7 | ) | ||||||||
| Non-GAAP provision for income tax | $ | (26.9 | ) | $ | (33.2 | ) | $ | (121.8 | ) | $ | (146.0 | ) | ||||
| GAAP net income | $ | 53.9 | $ | 74.5 | $ | 228.8 | $ | 247.4 | ||||||||
| Stock-based compensation expense | 36.1 | 37.5 | 132.2 | 156.3 | ||||||||||||
| Amortization of developed technology | 11.6 | 10.4 | 44.2 | 39.7 | ||||||||||||
| Amortization of customer relationships and trade names | 9.0 | 12.6 | 36.5 | 42.1 | ||||||||||||
| Restructuring charges (benefits) | 6.3 | 7.2 | 12.8 | 43.9 | ||||||||||||
| Loss (gain) on strategic investments | 0.8 | 0.2 | 1.8 | 4.0 | ||||||||||||
| Discrete GAAP tax provision items | (7.9 | ) | (7.7 | ) | (10.2 | ) | (26.7 | ) | ||||||||
| Income tax effect of non-GAAP adjustments | (16.6 | ) | (13.9 | ) | (60.5 | ) | (56.7 | ) | ||||||||
| Non-GAAP net income | $ | 93.2 | $ | 120.8 | $ | 385.6 | $ | 450.0 | ||||||||
| GAAP diluted net income per share | $ | 0.23 | $ | 0.32 | $ | 1.00 | $ | 1.07 | ||||||||
| Stock-based compensation expense | 0.15 | 0.16 | 0.57 | 0.67 | ||||||||||||
| Amortization of developed technology | 0.05 | 0.05 | 0.19 | 0.18 | ||||||||||||
| Amortization of customer relationships and trade names | 0.04 | 0.05 | 0.16 | 0.18 | ||||||||||||
| Restructuring charges (benefits) | 0.03 | 0.03 | 0.06 | 0.18 | ||||||||||||
| Loss (gain) on strategic investments | — | — | — | 0.02 | ||||||||||||
| Discrete GAAP tax provision items | (0.03 | ) | (0.02 | ) | (0.04 | ) | (0.12 | ) | ||||||||
| Income tax effect of non-GAAP adjustments | (0.07 | ) | (0.06 | ) | (0.26 | ) | (0.24 | ) | ||||||||
| Non-GAAP diluted net income per share | $ | 0.40 | $ | 0.53 | $ | 1.68 | $ | 1.94 | ||||||||
| (1) Effective in the first quarter of fiscal 2014, Autodesk reclassified certain costs associated cloud service offerings from "Cost of License and Other Revenue" to "Cost of Subscription Revenue." Prior period amounts have been revised to conform to the current period presentation. | ||||||||||||||||
|
Autodesk, Inc. |
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| Other Supplemental Financial Information (a) | ||||||||||||||||||||||
| Fiscal Year 2014 | QTR 1 | QTR 2 | QTR 3 | QTR 4 | YTD 2014 | |||||||||||||||||
| Financial Statistics ($ in millions, except per share data): | ||||||||||||||||||||||
| Total Net Revenue: | $ | 570 | $ | 562 | $ | 555 | $ | 587 | $ | 2,274 | ||||||||||||
| License and Other Revenue | $ | 324 | $ | 313 | $ | 298 | $ | 321 | $ | 1,255 | ||||||||||||
| Subscription Revenue | $ | 247 | $ | 249 | $ | 258 | $ | 266 | $ | 1,019 | ||||||||||||
| GAAP Gross Margin | 88 | % | 88 | % | 88 | % | 88 | % | 88 | % | ||||||||||||
| Non-GAAP Gross Margin (1)(2) | 90 | % | 90 | % | 90 | % | 90 | % | 90 | % | ||||||||||||
| GAAP Operating Expenses | $ | 422 | $ | 410 | $ | 420 | $ | 463 | $ | 1,715 | ||||||||||||
| GAAP Operating Margin | 14 | % | 15 | % | 12 | % | 9 | % | 13 | % | ||||||||||||
| GAAP Net Income | $ | 56 | $ | 62 | $ | 58 | $ | 54 | $ | 229 | ||||||||||||
| GAAP Diluted Net Income Per Share (b) | $ | 0.24 | $ | 0.27 | $ | 0.25 | $ | 0.23 | $ | 1.00 | ||||||||||||
| Non-GAAP Operating Expenses (1)(3) | $ | 378 | $ | 370 | $ | 378 | $ | 413 | $ | 1,539 | ||||||||||||
| Non-GAAP Operating Margin (1)(4) | 24 | % | 24 | % | 22 | % | 20 | % | 22 | % | ||||||||||||
| Non-GAAP Net Income (1)(5)(c) | $ | 96 | $ | 102 | $ | 94 | $ | 93 | $ | 386 | ||||||||||||
| Non-GAAP Diluted Net Income Per Share (1)(6)(b)(c) | $ | 0.42 | $ | 0.45 | $ | 0.41 | $ | 0.40 | $ | 1.68 | ||||||||||||
| Total Cash and Marketable Securities | $ | 2,480 | $ | 2,408 | $ | 2,479 | $ | 2,544 | $ | 2,544 | ||||||||||||
| Days Sales Outstanding | 46 | 49 | 50 | 66 | 66 | |||||||||||||||||
| Capital Expenditures | $ | 26 | $ | 17 | $ | 12 | $ | 9 | $ | 64 | ||||||||||||
| Cash Flow from Operating Activities | $ | 224 | $ | 65 | $ | 91 | $ | 184 | $ | 564 | ||||||||||||
| GAAP Depreciation, Amortization and Accretion | $ | 33 | $ | 32 | $ | 31 | $ | 33 | $ | 129 | ||||||||||||
| Deferred Subscription Revenue Balance (c) | $ | 775 | $ | 736 | $ | 699 | $ | 789 | $ | 789 | ||||||||||||
| Revenue by Geography: | ||||||||||||||||||||||
| Americas | $ | 202 | $ | 202 | $ | 208 | $ | 207 | $ | 819 | ||||||||||||
| Europe, Middle East and Africa | $ | 216 | $ | 202 | $ | 204 | $ | 229 | $ | 852 | ||||||||||||
| Asia Pacific | $ | 152 | $ | 158 | $ | 143 | 150 | $ | 603 | |||||||||||||
| % of Total Rev from Emerging Economies | 13 | % | 15 | % | 15 | % | 15 | % | 15 | % | ||||||||||||
| Revenue by Segment: | ||||||||||||||||||||||
| Platform Solutions and Emerging Business | $ | 213 | $ | 197 | $ | 183 | $ | 196 | $ | 789 | ||||||||||||
| Architecture, Engineering and Construction | $ | 172 | $ | 177 | $ | 186 | $ | 196 | $ | 731 | ||||||||||||
| Manufacturing | $ | 139 | $ | 144 | $ | 142 | $ | 154 | $ | 579 | ||||||||||||
| Media and Entertainment | $ | 47 | $ | 43 | $ | 44 | $ | 41 | $ | 175 | ||||||||||||
| Other Revenue Statistics: | ||||||||||||||||||||||
| % of Total Rev from Flagship | 55 | % | 51 | % | 50 | % | 49 | % | 51 | % | ||||||||||||
| % of Total Rev from Suites | 31 | % | 34 | % | 36 | % | 37 | % | 34 | % | ||||||||||||
| % of Total Rev from New and Adjacent | 14 | % | 14 | % | 15 | % | 14 | % | 14 | % | ||||||||||||
| % of Total Rev from AutoCAD and AutoCAD LT | 34 | % | 31 | % | 29 | % | 29 | % | 30 | % | ||||||||||||
| Favorable (Unfavorable) Impact of U.S. Dollar Translation Relative to | ||||||||||||||||||||||
| Foreign Currencies Compared to Comparable Prior Year Period: | ||||||||||||||||||||||
| FX Impact on Total Net Revenue | $ | (17 | ) | $ | (17 | ) | $ | (13 | ) | $ | (8 | ) | $ | (54 | ) | |||||||
| FX Impact on Cost of Revenue and Total Operating Expenses | $ | 5 | $ | 4 | $ | 3 | $ | 3 | $ | 16 | ||||||||||||
| FX Impact on Operating Income | $ | (12 | ) | $ | (13 | ) | $ | (10 | ) | $ | (5 | ) | $ | (38 | ) | |||||||
| Gross Margin by Segment: | ||||||||||||||||||||||
| Platform Solutions and Emerging Business | $ | 195 | $ | 180 | $ | 166 | $ | 176 | $ | 717 | ||||||||||||
| Architecture, Engineering and Construction | $ | 156 | $ | 161 | $ | 169 | $ | 178 | $ | 664 | ||||||||||||
| Manufacturing | $ | 128 | $ | 132 | $ | 130 | $ | 142 | $ | 532 | ||||||||||||
| Media and Entertainment | $ | 37 | $ | 34 | $ | 35 | $ | 32 | $ | 138 | ||||||||||||
| Unallocated amounts | $ | (12 | ) | $ | (12 | ) | $ | (12 | ) | $ | (14 | ) | $ | (50 | ) | |||||||
| Common Stock Statistics (in millions): | ||||||||||||||||||||||
| Common Shares Outstanding | 224.4 | 222.5 | 224.6 | 226.7 | 226.7 | |||||||||||||||||
| Fully Diluted Weighted Average Shares Outstanding | 229.3 | 228.3 | 227.7 | 231.1 | 229.6 | |||||||||||||||||
| Shares Repurchased | 3.2 | 3.1 | 2.0 | 2.2 | 10.5 | |||||||||||||||||
| (a) Totals may not agree with the sum of the components due to rounding. | ||||||||||||||||||||||
| (b) Earnings per share were computed independently for each of the periods presented; therefore the sum of the earnings per share amounts for the quarters may not equal the total for the year. | ||||||||||||||||||||||
| (c) Prior amounts have been conformed to align with the current period presentation. | ||||||||||||||||||||||
| (1) To supplement our consolidated financial statements presented on a GAAP basis, Autodesk provides investors with certain non-GAAP measures including non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating margin, non-GAAP net income, and non-GAAP net income per share. These non-GAAP financial measures are adjusted to exclude certain costs, expenses, gains and losses, including stock-based compensation expense, restructuring charges, amortization of purchased intangibles, gain and loss on strategic investments, 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, 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 GAAP 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 Autodesk's press release. | ||||||||||||||||||||||
| QTR 1 | QTR 2 | QTR 3 | QTR 4 | YTD 2014 | ||||||||||||||||||
| (2) GAAP Gross Margin | 88 | % | 88 | % | 88 | % | 88 | % | 88 | % | ||||||||||||
| Stock-based compensation expense | — | % | — | % | — | % | — | % | — | % | ||||||||||||
| Amortization of developed technology | 2 | % | 2 | % | 2 | % | 2 | % | 2 | % | ||||||||||||
| Non-GAAP Gross Margin | 90 | % | 90 | % | 90 | % | 90 | % | 90 | % | ||||||||||||
| (3) GAAP Operating Expenses | $ | 422 | $ | 410 | $ | 420 | $ | 463 | $ | 1,715 | ||||||||||||
| Stock-based compensation expense | (32 | ) | (30 | ) | (30 | ) | (34 | ) | (126 | ) | ||||||||||||
| Amortization of customer relationships and trade names | (11 | ) | (9 | ) | (7 | ) | (9 | ) | (37 | ) | ||||||||||||
| Restructuring (charges) benefits, net | — | (2 | ) | (4 | ) | (6 | ) | (13 | ) | |||||||||||||
| Non-GAAP Operating Expenses | $ | 378 | $ | 370 | $ | 378 | $ | 413 | $ | 1,539 | ||||||||||||
| (4) GAAP Operating Margin | 14 | % | 15 | % | 12 | % | 9 | % | 13 | % | ||||||||||||
| Stock-based compensation expense | 6 | % | 6 | % | 6 | % | 6 | % | 6 | % | ||||||||||||
| Amortization of developed technology | 2 | % | 2 | % | 2 | % | 2 | % | 2 | % | ||||||||||||
| Amortization of customer relationships and trade names | 2 | % | 1 | % | 1 | % | 2 | % | 1 | % | ||||||||||||
| Restructuring charges (benefits), net | — | % | — | % | 1 | % | 1 | % | — | % | ||||||||||||
| Non-GAAP Operating Margin | 24 | % | 24 | % | 22 | % | 20 | % | 22 | % | ||||||||||||
| (5) GAAP Net Income | $ | 56 | $ | 62 | $ | 58 | $ | 54 | $ | 229 | ||||||||||||
| Stock-based compensation expense | 34 | 31 | 32 | 36 | 132 | |||||||||||||||||
| Amortization of developed technology | 11 | 11 | 11 | 12 | 44 | |||||||||||||||||
| Amortization of customer relationships and trade names | 11 | 9 | 7 | 9 | 37 | |||||||||||||||||
| Restructuring charges (benefits), net | — | 2 | 4 | 6 | 13 | |||||||||||||||||
| (Gain) loss on strategic investments | 1 | — | — | 1 | 2 | |||||||||||||||||
| Discrete GAAP tax provision items | (1 | ) | 1 | (3 | ) | (8 | ) | (10 | ) | |||||||||||||
| Income tax effect of non-GAAP adjustments | (15 | ) | (14 | ) | (14 | ) | (17 | ) | (61 | ) | ||||||||||||
| Non-GAAP Net Income | $ | 96 | $ | 102 | $ | 94 | $ | 93 | $ | 386 | ||||||||||||
| (6) GAAP Diluted Net Income Per Share | $ | 0.24 | $ | 0.27 | $ | 0.25 | $ | 0.23 | $ | 1.00 | ||||||||||||
| Stock-based compensation expense | 0.15 | 0.14 | 0.14 | 0.15 | 0.57 | |||||||||||||||||
| Amortization of developed technology | 0.05 | 0.05 | 0.04 | 0.05 | 0.19 | |||||||||||||||||
| Amortization of customer relationships and trade names | 0.05 | 0.04 | 0.03 | 0.04 | 0.16 | |||||||||||||||||
| Restructuring charges (benefits), net | — | 0.01 | 0.02 | 0.03 | 0.06 | |||||||||||||||||
| (Gain) loss on strategic investments | — | — | — | — | — | |||||||||||||||||
| Discrete GAAP tax provision items | — | — | (0.01 | ) | (0.03 | ) | (0.04 | ) | ||||||||||||||
| Income tax effect of non-GAAP adjustments | (0.07 | ) | (0.06 | ) | (0.06 | ) | (0.07 | ) | (0.26 | ) | ||||||||||||
| Non-GAAP Diluted Net Income Per Share | $ | 0.42 | $ | 0.45 | $ | 0.41 | $ | 0.40 | $ | 1.68 | ||||||||||||
| Reconciliation for Business Model Transition: | ||||||||||||||||||||||
|
The following is a reconciliation of the year-over-year rates discussed within: |
||||||||||||||||||||||
| Impacted revenue line: | Total Revenue | License and other revenue | Flagship | AEC | Deferred Revenue | |||||||||||||||||
| Stated year-over-year percent increase/(decrease) | (3 | )% | (12 | )% | (13 | )% | (6 | )% | 8 | % | ||||||||||||
| Business Model Transition impact | 5 | % | 9 | % | 10 | % | 14 | % | (4 | )% | ||||||||||||
| Normalized year-over-year percent increase/(decrease) | 2 | % | (3 | )% | (3 | )% | 8 | % | 4 | % | ||||||||||||
| Impacted revenue by geography: | Americas | EMEA | APAC | |||||||||||||||||||
| Stated year-over-year percent increase/(decrease) | (6 | )% | (4 | )% | 2 | % | ||||||||||||||||
| Business Model Transition impact | 12 | % | 1 | % | 1 | % | ||||||||||||||||
| Normalized year-over-year percent increase/(decrease) | 6 | % | (3 | )% | 3 | % | ||||||||||||||||
| Reconciliation for Guidance: | ||||||||||||||||||||||
|
The following is a reconciliation of anticipated full year fiscal 2015 GAAP and non-GAAP operating margins: |
||||||||||||||||||||||
| FY15 Revenue Growth | 3% | 5% | ||||||||||||||||||||
| GAAP operating margin | 5 | % | 8 | % | ||||||||||||||||||
| Stock-based compensation expense | 6 | % | 5 | % | ||||||||||||||||||
| Amortization of purchased intangibles | 3 | % | 3 | % | ||||||||||||||||||
| Restructuring charges | — | % | — | % | ||||||||||||||||||
| Non-GAAP operating margin | 14 | % | 16 | % | ||||||||||||||||||
| Reconciliation for Long Term Operating Margins: | ||||||||||||||||||||||
| Autodesk is not able to provide targets for our long term (ending with fiscal year 2018) GAAP operating margins at this time because of the difficulty of estimating certain items that are excluded from non-GAAP that affect operating margin, such as charges related to stock-based compensation expense and amortization of acquisition related intangibles, the effect of which may be significant. | ||||||||||||||||||||||
