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Nov 15, 2011

Autodesk Reports 15 Percent Third Quarter Revenue Growth

Autodesk, Inc. (NASDAQ: ADSK) today reported financial results for the third quarter of fiscal year 2012.

Revenue was $549 million, an increase of 15 percent compared to the third quarter of fiscal 2011.
GAAP operating margin was 16 percent, compared to 15 percent in the third quarter of fiscal 2011.
Non-GAAP operating margin was 25 percent, compared to 21 percent in the third quarter of fiscal 2011. A reconciliation of GAAP to non-GAAP results is provided in the accompanying tables.
GAAP diluted earnings per share were $0.32, compared to $0.23 in the third quarter of fiscal 2011.
Non-GAAP diluted earnings per share were $0.44, compared to $0.32 in the third quarter of fiscal 2011.
Cash flow from operating activities was $138 million, compared to $114 million in the third quarter of fiscal 2011.

“Our business grew 15% in the third quarter as more and more people turned to Autodesk to help solve their most pressing design and engineering challenges,” said Carl Bass, Autodesk president and CEO. “Our strong revenue gains coupled with continued cost controls resulted in a healthy improvement in profitability and cash flow from operations. We experienced double-digit growth across all geographies, with particular strength in Asia Pacific. All of our businesses performed well, driven by continued adoption of our suites.”

Third Quarter Operational Overview

EMEA revenue was $202 million, an increase of 10 percent compared to the third quarter last year as reported and 8 percent on a constant currency basis. Revenue in the Americas was $200 million, an increase of 12 percent compared to the third quarter last year. Revenue in Asia Pacific was $146 million, an increase of 28 percent compared to the third quarter last year as reported and 19 percent on a constant currency basis. Revenue from emerging economies was $87 million, an increase of 15 percent compared to the third quarter last year as reported and 11 percent on a constant currency basis. Revenue from emerging economies represented 16 percent of total revenue in the third quarter.

Revenue from the Platform Solutions and Emerging Business segment was $210 million, an increase of 21 percent compared to the third quarter last year. Revenue from the Architecture, Engineering and Construction business segment was $152 million, an increase of 12 percent compared to the third quarter last year. Revenue from the Manufacturing business segment was $134 million, an increase of 14 percent compared to the third quarter last year. Revenue from the Media and Entertainment business segment was $53 million, an increase of 6 percent compared to the third quarter last year.

“We continue to advance on our plan of driving revenue growth and expanding our operating margin, controlling our costs, and making appropriate investments in the future of our business,” said Mark Hawkins, Autodesk Executive Vice President, Chief Financial Officer. “Our cash flow from operating activities remained strong, growing 20 percent, and helped fund a number of small, but important, business and technology acquisitions and strategic investments during the quarter. Our balance sheet remains solid with over $1.5 billion in cash and marketable securities and no debt.”

Business Outlook

The following statements are forward-looking statements that are based on current expectations and assumptions, and involve risks and uncertainties some of which are set forth below.

Fourth Quarter Fiscal 2012
4Q FY12 Guidance Metrics 4Q FY12 (ending January 31, 2012)
Revenue (in millions) $575 to $590
EPS - GAAP $0.26 to $0.29
EPS - Non-GAAP $0.42 to $0.45

Non-GAAP earnings per diluted share exclude $0.10 related to stock-based compensation expense, and $0.06 for the amortization of acquisition related intangibles, net of tax.

Full Year Fiscal 2012
FY12 Guidance Metrics FY12 (ending January 31, 2012)
Revenue (in millions) $2,198 to $2,213
EPS - GAAP $1.17 to $1.20
EPS - Non-GAAP $1.70 to $1.73

Non-GAAP earnings per diluted share exclude $0.32 related to stock-based compensation expense, and $0.21 for the amortization of acquisition related intangibles, net of tax.

Full Year Fiscal 2013

Autodesk’s fiscal 2013 guidance assumes a continuation of the current economic environment and foreign exchange currency rate environment.

Net revenue for fiscal 2013 is expected to increase by at least 10 percent compared to fiscal 2012. Autodesk anticipates fiscal 2013 GAAP operating margin to increase by approximately 150 basis points and non-GAAP operating margin to increase by approximately 200 basis points compared to fiscal 2012. A reconciliation between the GAAP and non-GAAP projections for fiscal 2013 is provided in the tables following this press release.

Earnings Conference Call and Webcast

Autodesk will host its third quarter conference call today at 5:00 p.m. ET. The live broadcast can be accessed at http://www.autodesk.com/investors. Supplemental financial information and prepared remarks for the conference call will be posted to the investor relations section of Autodesk’s website simultaneously with this press release.

NOTE: The prepared remarks will not be read on the conference call. The conference call will include only brief remarks followed by questions and answers.

A replay of the broadcast will be available at 7:00 pm ET at http://www.autodesk.com/investors. This replay will be maintained on Autodesk’s website for at least 12 months.