Autodesk, Inc.
Consolidated Statements of Operations (In millions, except per share data) |
||||||||
Three Months Ended
April 30, |
||||||||
2010 | 2009 | |||||||
(Unaudited) | ||||||||
Net revenue: | ||||||||
License and other | $ | 279.8 | $ | 243.6 | ||||
Maintenance | 194.8 | 182.2 | ||||||
Total net revenue | 474.6 | 425.8 | ||||||
Cost of revenue: | ||||||||
Cost of license and other revenue | 41.2 | 44.1 | ||||||
Cost of maintenance revenue | 10.1 | 8.2 | ||||||
Total cost of revenue | 51.3 | 52.3 | ||||||
Gross profit | 423.3 | 373.5 | ||||||
Operating expenses: |
||||||||
Marketing and sales | 186.5 | 183.9 | ||||||
Research and development | 127.2 | 121.5 | ||||||
General and administrative | 51.7 | 50.0 | ||||||
Impairment of goodwill | - | 21.0 | ||||||
Restructuring charges | 7.1 | 16.5 | ||||||
Total operating expenses | 372.5 | 392.9 | ||||||
Income (loss) from operations | 50.8 | (19.4 | ) | |||||
Interest and other income (expense), net | (3.4 | ) | - | |||||
Income (loss) before income taxes | 47.4 | (19.4 | ) | |||||
Provision for income taxes | (10.5 | ) | (12.7 | ) | ||||
Net income (loss) | $ | 36.9 | $ | (32.1 | ) | |||
Basic net income (loss) per share | $ | 0.16 | $ | (0.14 | ) | |||
Diluted net income (loss) per share | $ | 0.16 | $ | (0.14 | ) | |||
Shares used in computing basic net income (loss) per share |
229.0 | 227.1 | ||||||
Shares used in computing diluted net income (loss) per share |
234.6 | 227.1 | ||||||
Autodesk, Inc.
Condensed Consolidated Balance Sheets (In millions) |
||||||||
April 30,
2010 |
January 31,
2010 |
|||||||
(Unaudited) | ||||||||
ASSETS: | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 938.1 | $ | 838.7 | ||||
Marketable securities | 121.7 | 161.9 | ||||||
Accounts receivable, net | 218.1 | 277.4 | ||||||
Deferred income taxes | 43.8 | 44.2 | ||||||
Prepaid expenses and other current assets | 72.3 | 57.4 | ||||||
Total current assets | 1,394.0 | 1,379.6 | ||||||
Marketable securities | 179.5 | 125.6 | ||||||
Computer equipment, software, furniture and leasehold improvements, net | 95.5 | 101.6 | ||||||
Purchased technologies, net | 80.1 | 88.0 | ||||||
Goodwill | 540.3 | 542.9 | ||||||
Long term deferred income taxes, net | 112.4 | 101.9 | ||||||
Other assets | 99.9 | 107.6 | ||||||
$ | 2,501.7 | $ | 2,447.2 | |||||
LIABILITIES AND STOCKHOLDERS' EQUITY: | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 90.4 | $ | 67.8 | ||||
Accrued compensation | 78.4 | 115.6 | ||||||
Accrued income taxes | 15.3 | 8.4 | ||||||
Deferred revenue | 470.6 | 444.6 | ||||||
Other accrued liabilities | 56.3 | 67.6 | ||||||
Total current liabilities | 711.0 | 704.0 | ||||||
Deferred revenue | 73.1 | 71.9 | ||||||
Long term income taxes payable | 131.1 | 127.2 | ||||||
Other liabilities | 72.4 | 70.6 | ||||||
Commitments and contingencies | ||||||||
Stockholders' equity: | ||||||||
Preferred stock | - | - | ||||||
Common stock and additional paid-in capital | 1,237.6 | 1,204.3 | ||||||
Accumulated other comprehensive income (loss) | (1.1 | ) | (3.5 | ) | ||||
Retained earnings | 277.6 | 272.7 | ||||||
Total stockholders' equity | 1,514.1 | 1,473.5 | ||||||
$ | 2,501.7 | $ | 2,447.2 | |||||
Autodesk, Inc.
Condensed Consolidated Statements of Cash Flows (In millions) |
||||||||
Fiscal Quarter Ended
April 30, |
||||||||
2010 | 2009 | |||||||
(Unaudited) | ||||||||
Operating activities: |
||||||||
Net income (loss) |
$ | 36.9 | $ | (32.1 | ) | |||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
||||||||
Depreciation and amortization | 26.7 | 27.0 | ||||||
Stock-based compensation expense | 24.3 | 23.0 | ||||||
Impairment of goodwill | - | 21.0 | ||||||
Restructuring charges, net | 7.1 | 16.5 | ||||||
Gain on disposition of assets | - | 1.1 | ||||||
Changes in operating assets and liabilities, net of business combinations |
44.1 | (29.3 | ) | |||||
Net cash provided by operating activities | 139.1 | 27.2 | ||||||
Investing activities: |
||||||||
Purchases of marketable securities | (134.5 | ) | (26.6 | ) | ||||
Sales of marketable securities | 29.7 |
1.4 |
||||||
Maturities of marketable securities | 94.1 |
10.3 |
||||||
Capital expenditures | (5.8 | ) | (13.6 | ) | ||||
Purchases of equity investments | - | (10.0 | ) | |||||
Net cash used in investing activities | (16.5 | ) | (38.5 | ) | ||||
Financing activities: | ||||||||
Proceeds from issuance of common stock, net of issuance costs |
36.2 |
25.4 |
||||||
Repurchases of common stock |
(58.8 |
) |
- |
|||||
Draws on line of credit | - | 2.2 | ||||||
Repayments of line of credit | - | (52.2 | ) | |||||
Net cash used in financing activities | (22.6 | ) | (24.6 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | (0.6 | ) | (1.2 | ) | ||||
Net increase (decrease) in cash and cash equivalents | 99.4 | (37.1 | ) | |||||
Cash and cash equivalents at beginning of fiscal year | 838.7 | 917.6 | ||||||
Cash and cash equivalents at end of period | $ | 938.1 | $ | 880.5 | ||||
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
profit, non-GAAP operating expenses, non-GAAP income from
operations 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.
|
||||||||
The following table shows Autodesk's non-GAAP results reconciled to GAAP results included in this release. |
||||||||
Three Months Ended
April 30, |
||||||||
2010 | 2009 | |||||||
(Unaudited) | ||||||||
GAAP cost of license and other revenue | $ | 41.2 | $ | 44.1 | ||||
Stock-based compensation expense | (0.8 | ) | (0.6 | ) | ||||
Amortization of developed technology | (7.7 | ) | (8.3 | ) | ||||
Non-GAAP cost of license and other revenue | $ | 32.7 | $ | 35.2 | ||||
GAAP gross profit | $ | 423.3 | $ | 373.5 | ||||
Stock-based compensation expense | 0.8 | 0.6 | ||||||
Amortization of developed technology |
7.7 | 8.3 | ||||||
Non-GAAP gross profit | $ | 431.8 | $ | 382.4 | ||||
GAAP marketing and sales | $ | 186.5 | $ | 183.9 | ||||
Stock-based compensation expense | (10.6 | ) | (9.5 | ) | ||||
Non-GAAP marketing and sales | $ | 175.9 | $ | 174.4 | ||||
GAAP research and development | $ | 127.2 | $ | 121.5 | ||||
Stock-based compensation expense | (8.3 | ) | (7.0 | ) | ||||
Non-GAAP research and development |
$ | 118.9 | $ | 114.5 | ||||
GAAP general and administrative | $ | 51.7 | $ | 50.0 | ||||
Stock-based compensation expense | (4.6 | ) | (5.9 | ) | ||||
Amortization of customer relationships and trade names |
(6.2 | ) | (6.4 | ) | ||||
Non-GAAP general and administrative | $ | 40.9 | $ | 37.7 | ||||
GAAP impairment of goodwill | $ | - | $ | 21.0 | ||||
Impairment of goodwill | - | (21.0 | ) | |||||
Non-GAAP impairment of goodwill | $ | - | $ | - | ||||
GAAP restructuring charges | $ | 7.1 | $ | 16.5 | ||||
Restructuring charges | (7.1 | ) | (16.5 | ) | ||||
Non-GAAP restructuring charges | $ | - | $ | - | ||||
GAAP operating expenses | $ | 372.5 | $ | 392.9 | ||||
Stock-based compensation expense | (23.5 | ) | (22.4 | ) | ||||
Amortization of customer relationships and trade names |
(6.2 | ) | (6.4 | ) | ||||
Impairment of goodwill | - | (21.0 | ) | |||||
Restructuring charges | (7.1 | ) | (16.5 | ) | ||||
Non-GAAP operating expenses | $ | 335.7 | $ | 326.6 | ||||
GAAP income (loss) from operations | $ | 50.8 | $ | (19.4 | ) | |||
Stock-based compensation expense | 24.3 | 23.0 | ||||||
Amortization of developed technology | 7.7 | 8.3 | ||||||
Amortization of customer relationships and trade names |
6.2 | 6.4 | ||||||
Impairment of goodwill | - | 21.0 | ||||||
Restructuring charges | 7.1 | 16.5 | ||||||
Non-GAAP income from operations | $ | 96.1 | $ | 55.8 | ||||
GAAP (provision) benefit for income taxes | $ | (10.5 | ) | $ | (12.7 | ) | ||
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 |
(14.5 | ) | (22.2 | ) | ||||
Non-GAAP (provision) for income tax | $ | (25.0 | ) | $ | (13.9 | ) | ||
GAAP net income (loss) | $ | 36.9 | $ | (32.1 | ) | |||
Stock-based compensation expense | 24.3 | 23.0 | ||||||
Amortization of developed technology | 7.7 | 8.3 | ||||||
Amortization of customer relationships and trade names |
6.2 | 6.4 | ||||||
Impairment of goodwill | - | 21.0 | ||||||
Restructuring charges | 7.1 | 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 |
(14.5 | ) | (22.2 | ) | ||||
Non-GAAP net income | $ | 67.7 | $ | 41.9 | ||||
GAAP diluted net income (loss) per share | $ | 0.16 | $ | (0.14 | ) | |||
Stock-based compensation expense | 0.10 | 0.10 | ||||||
Amortization of developed technology | 0.03 | 0.04 | ||||||
Amortization of customer relationships and trade names |
0.03 | 0.03 | ||||||
Impairment of goodwill | - | 0.09 | ||||||
Restructuring charges | 0.03 | 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 |
(0.06 | ) | (0.10 | ) | ||||
Non-GAAP diluted net income per share | $ | 0.29 | $ | 0.18 | ||||
GAAP diluted shares used in per share calculation |
234.6 | 227.1 | ||||||
Shares included in non-GAAP net income per share, but excluded from GAAP net loss per share as they would have been anti-dilutive |
- |
2.0 |
||||||
Non-GAAP diluted shares used in per share calculation |
234.6 |
229.1 |
|
||||||||||||||
Other Supplemental Financial Information* | ||||||||||||||
Fiscal Year 2011 | QTR 1 | QTR 2 | QTR 3 | QTR 4 | YTD 2011 | |||||||||
Financial Statistics ($ in millions, except per share data): | ||||||||||||||
Total net revenue | $ | 475 | $ | 475 | ||||||||||
License and other revenue | $ | 280 | $ | 280 | ||||||||||
Maintenance revenue | $ | 195 | $ | 195 | ||||||||||
GAAP Gross Margin | 89 | % | 89 | % | ||||||||||
Non-GAAP Gross Margin (1)(2) | 91 | % | 91 | % | ||||||||||
GAAP Operating Expenses | $ | 373 | $ | 373 | ||||||||||
GAAP Operating Margin | 11 | % | 11 | % | ||||||||||
GAAP Net Income | $ | 37 | $ | 37 | ||||||||||
GAAP Diluted Net Income Per Share | $ | 0.16 | $ | 0.16 | ||||||||||
Non-GAAP Operating Expenses (1)(3) | $ | 336 | $ | 336 | ||||||||||
Non-GAAP Operating Margin (1)(4) | 20 | % | 20 | % | ||||||||||
Non-GAAP Net Income (1)(5) | $ | 68 | $ | 68 | ||||||||||
Non-GAAP Diluted Net Income Per Share (1)(6) | $ | 0.29 | $ | 0.29 | ||||||||||
Total Cash and Marketable Securities | $ | 1,239 | $ | 1,239 | ||||||||||
Days Sales Outstanding | 42 | 42 | ||||||||||||
Capital Expenditures | $ | 6 | $ | 6 | ||||||||||
Cash from Operations | $ | 139 | $ | 139 | ||||||||||
GAAP Depreciation and Amortization | $ | 27 | $ | 27 | ||||||||||
Deferred Maintenance Revenue Balance | $ | 492 | $ |
492 |
||||||||||
Revenue by Geography (in millions): | ||||||||||||||
Americas | $ |
161 |
$ |
161 |
||||||||||
Europe, Middle East and Africa |
$ |
199 |
$ |
199 |
||||||||||
Asia Pacific |
$ | 115 | $ | 115 | ||||||||||
Revenue by Segment (in millions): | ||||||||||||||
Platform Solutions and Emerging Business | $ | 184 | $ | 184 | ||||||||||
Architecture, Engineering and Construction | $ | 137 | $ | 137 | ||||||||||
Manufacturing | $ | 108 | $ | 108 | ||||||||||
Media and Entertainment | $ | 46 | $ | 46 | ||||||||||
Other | $ | - | $ | - | ||||||||||
Other Revenue Statistics: | ||||||||||||||
% of Total Rev from AutoCAD and AutoCAD LT |
36 |
% |
36 |
% | ||||||||||
% of Total Rev from Model-based Design products |
29 | % | 29 | % | ||||||||||
% of Total Rev from Emerging Economies | 14 | % | 14 | % | ||||||||||
Upgrade Revenue (in millions) | $ | 51 | $ | 51 | ||||||||||
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 | $ |
21 |
$ |
21 |
||||||||||
FX Impact on Total Operating Expenses | $ | (11 | ) | $ | (11 | ) | ||||||||
FX Impact on Operating Income | $ |
10 |
$ |
10 |
||||||||||
Gross Margin by Segment (in millions): | ||||||||||||||
Platform Solutions and Emerging Business | $ | 173 | $ | 173 | ||||||||||
Architecture, Engineering and Construction | $ | 123 | $ | 123 | ||||||||||
Manufacturing | $ | 100 | $ | 100 | ||||||||||
Media and Entertainment | $ | 36 | $ | 36 | ||||||||||
Unallocated amounts | $ | (9 | ) | $ | (9 | ) | ||||||||
Common Stock Statistics: | ||||||||||||||
Common Shares Outstanding |
229,391,000 | 229,391,000 | ||||||||||||
Fully Diluted Weighted Average Shares Outstanding |
234,606,000 | 234,606,000 | ||||||||||||
Shares Repurchased | 2,003,000 | 2,003,000 | ||||||||||||
Installed Base Statistics: | ||||||||||||||
Maintenance Installed Base | 2,383,000 | 2,383,000 | ||||||||||||
* Totals may not agree with the sum of the components due to rounding. | ||||||||||||||
** Includes favorable (unfavorable) revenue impact from our hedging program during the fiscal quarter. |
||||||||||||||
(1) 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 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, restructuring charges, amortization of purchased intangibles 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 Autodesk's press release. | ||||||||||||||
QTR 1 |
QTR 2 |
QTR 3 |
QTR 4 |
YTD 2011 |
||||||||||
(2) GAAP Gross Margin | 89 | % | 89 | % | ||||||||||
Stock-based compensation expense | 0 | % | 0 | % | ||||||||||
Amortization of developed technology | 2 | % | 2 | % | ||||||||||
Non-GAAP Gross Margin | 91 | % | 91 | % | ||||||||||
(3) GAAP Operating Expenses | $ | 373 | $ | 373 | ||||||||||
Stock-based compensation expense | (24 | ) | (24 | ) | ||||||||||
Amortization of customer relationships and trade names |
(6 | ) | (6 | ) | ||||||||||
Restructuring charges | (7 | ) | (7 | ) | ||||||||||
Non-GAAP Operating Expenses | $ | 336 | $ | 336 | ||||||||||
(4) GAAP Operating Margin | 11 | % | 11 | % | ||||||||||
Stock-based compensation expense | 5 | % | 5 | % | ||||||||||
Amortization of developed technology | 2 | % | 2 | % | ||||||||||
Amortization of customer relationships and trade names |
1 | % | 1 | % | ||||||||||
Restructuring charges | 1 | % | 1 | % | ||||||||||
Non-GAAP Operating Margin | 20 | % | 20 | % | ||||||||||
(5) GAAP Net Income | $ | 37 | $ | 37 | ||||||||||
Stock-based compensation expense | 24 | 24 | ||||||||||||
Amortization of developed technology | 8 | 8 | ||||||||||||
Amortization of customer relationships and trade names |
6 | 6 | ||||||||||||
Restructuring charges | 7 | 7 | ||||||||||||
Income tax effect on difference between GAAP and non-GAAP total costs and expenses at a normalized rate |
(14 | ) | (14 | ) | ||||||||||
Non-GAAP Net Income | $ | 68 | $ | 68 | ||||||||||
(6) GAAP Diluted Net Income Per Share | $ | 0.16 | $ | 0.16 | ||||||||||
Stock-based compensation expense | 0.10 | 0.10 | ||||||||||||
Amortization of developed technology | 0.03 | 0.03 | ||||||||||||
Amortization of customer relationships and trade names |
0.03 | 0.03 | ||||||||||||
Restructuring charges | 0.03 | 0.03 | ||||||||||||
Income tax effect on difference between GAAP and non-GAAP total costs and expenses at a normalized rate |
(0.06 | ) | (0.06 | ) | ||||||||||
Non-GAAP Diluted Net Income Per Share | $ | 0.29 | $ | 0.29 |