Autodesk Reports Fourth Quarter Results



SAN RAFAEL, Calif.--(BUSINESS WIRE)--Feb. 25, 2003--Autodesk, Inc. (Nasdaq: ADSK), the world's leading design software and digital content company, today announced financial results for its fourth quarter and fiscal year ended January 31, 2003. For the fourth quarter of fiscal year 2003, Autodesk reported net revenues of $196 million compared to $189 million in the third quarter of fiscal 2003, an increase of four percent sequentially. Net revenues were $254 million in the fourth quarter of fiscal year 2002.

Fourth quarter net income was $6.4 million or $0.06 per diluted share compared to a net loss of $3.9 million or ($0.03) per share for the third quarter of fiscal 2003. Net income for the same quarter a year ago was $21.8 million or $0.19 per diluted share.

"We are pleased to have grown revenue four percent sequentially in the face of continued economic challenges," said Carol Bartz, Autodesk chairman and CEO. "Strength in our subscription program and our industry verticals demonstrate that our strategy is working. Autodesk delivers the value and return on investment that customers are looking for now."

On a pro forma basis, as defined below, fourth quarter net income was $8.0 million or $0.07 per diluted share compared to $5.8 million or $0.05 per diluted share in the third quarter of fiscal 2003, sequential increases of 38 percent and 40 percent respectively. Pro forma net income was $37.0 million or $0.32 per diluted share for the same quarter a year ago.




	   Fourth Quarter Highlights

	   --  Fueled by strong performance from subscriptions and the
        vertical industries, net revenue grew four percent
        sequentially, despite the challenging business environment.

	   --  Momentum for subscription is building, as evidenced by six
        percent increase in subscription revenue for the quarter.
        Growth of subscription bookings was an impressive 58 percent.
        During the quarter, Autodesk closed its largest subscription
        contract to date, valued in excess of $1 million.

	   --  All of our Design Solutions vertical markets saw strong
        sequential growth proving customers see the value of
        Autodesk's market specific solutions.

	       --  Our Manufacturing Division grew 11% sequentially on the
            strength of our 3D business, with Autodesk Inventor(R) 6
            seats sold reaching 6,600 worldwide in the quarter.
            Streamline(R), our product lifecycle management initiative
            added 19 new customers in the quarter.

	       --  Our Building Division drove a third consecutive quarter of
            growth despite the global downturn in construction. The 10
            percent sequential increase was driven by an increase in
            Autodesk(R) Revit(R) 5 revenues of more than 80 percent,
            coupled with growth in Autodesk(R) Architectural Desktop
            and Autodesk(R) Building Systems 3.

	       --  An independent research study of 50 Autodesk(R)
            Buzzsaw(TM) customers noted their average return on
            investment in the first year was 370 percent. Breakeven
            for these customers was within three months, proving that
            Autodesk solutions do provide quick ROI to customers.

	       --  Our Infrastructure Division (formerly GIS) grew 10% from
            last quarter on strong performance from Autodesk
            MapGuide(R) and Autodesk(R) Land Desktop.

	   --  Cash and investments were $411 million at the end of the
        fourth quarter, up from $395 million in the last quarter.



"I have never been more confident about Autodesk's overall position in the market," said Bartz. "We will have significant new releases of all of our products by mid-year, and customers are already raving about them. Our subscription program is a resounding success, providing customers with the value they have come to expect. Our sound financial position and ability to generate positive cash flow in the midst of an industry slowdown continue to be significant competitive advantages for Autodesk."

Business Outlook

The following statements are based on current expectations. These statements are forward-looking and actual results may differ materially.

Q1 Fiscal 2004

Net revenues for the first quarter of fiscal 2004 are expected to be in the range of $205 million to $210 million. Earnings per diluted share for the first quarter of fiscal year 2004 are expected to be in the range of $0.03 to $0.06.

Full Year Fiscal 2004

Net revenues for fiscal 2004 are expected to be in the range of $875 million to $900 million. Earnings per diluted share for fiscal year 2004 are expected to be in the range of $0.50 to $0.60.

The statements above contained in the business outlook are forward-looking statements that involve risks and uncertainties. In addition to factors discussed above, other factors that could cause actual results to differ materially include the following: general market and business conditions, delays in the release of new products and services, failure to achieve customer acceptance of key new design and entertainment applications, pricing pressure, failure to achieve continued success in technology advancements, failure to successfully integrate new or acquired businesses, financial and business condition of our reseller and distribution channels, failure to grow lifecycle management or collaboration.

In accordance with Statement of Financial Accounting Standards No. 5, Autodesk records reserves to cover contingent liabilities, based upon our best current estimates. Our expenses for the fiscal fourth quarter include a $2.5 million reserve for a lawsuit which is scheduled for trial in March. However, due to the inherent uncertainties of litigation, ultimate resolution of this matter could result in liability to the company which is greater or less than the reserved amount. In that event, if litigation is resolved prior to filing our fiscal year 2003 form 10-K, the results for the fiscal fourth quarter would be adjusted accordingly.

Further information on potential factors that could affect the financial results of Autodesk are included in the company's reports on Form 10-K, for the year ended January 31, 2002 and Form 10-Q for the quarter ended October 31, 2002, which are on file with the Securities and Exchange Commission.

Autodesk will host a toll free conference call at 800-369-1154 (password: Autodesk) and an audio webcast on the fourth quarter results beginning at 5:00 p.m. Eastern Time at www.Autodesk.com/investor. An audio webcast replay will be available until March 1, 2003.




A summary of Autodesk's financial results is as follows:

Three months ended January 31               2003           2002

Net revenues                            $195,516,000   $254,034,000
Net income(1)(2)                        $  6,413,000   $ 21,769,000
Pro forma net income(3)                 $  7,955,000   $ 37,022,000
Diluted net income per share(1)(2)      $       0.06   $       0.19
Pro forma diluted net
 income per share(3)                    $       0.07   $       0.32


	   (1) Net income for the quarter ended January 31, 2003 includes
restructuring and other charges of $7.3 million or  $0.06  per  diluted
share  and  a  non-recurring  tax  benefit  of  $3.8  million  or  $0.03  per
diluted  share.  Net  income  for  the  quarter  ended  January  31,  2002,
includes  restructuring  and  other  charges  of  $16.6  million  or  $0.14  per
diluted  share.
	      (2)  On  February  1,  2002,  Autodesk  adopted  new  accounting  rules
which  resulted  in  the  discontinuation  of  goodwill  amortization.  Net
income  for  the  quarter  ended  January  31,  2002  includes  $5.0  million  or
$0.04  per  diluted  share  of  goodwill  amortization.
	      (3)  Pro  forma  results  for  the  quarter  ended  January  31,  2003
excludes  restructuring  and  other  charges  and  amortization  of  purchased
intangibles  totaling  $7.4  million  or  $0.06  per  diluted  share  and  a
non-recurring  tax  benefit  of  $3.8  million  or  $0.03  per  diluted  share.
Pro  forma  results  for  the  quarter  ended  January  31,  2002  exclude
amortization  of  purchased  intangibles  totaling  $5.2  million  or  $0.05
per  diluted  share  and  restructuring  and  other  charges  of  $16.6  million
or  $0.14  per  diluted  share.

Fiscal  Year  ended  January  31                                2003                      2002

Net  revenues                                                        $824,945,000      $947,491,000
Net  income(4)(5)                                                $  31,904,000      $  90,313,000
Pro  forma  net  income(6)                                  $  47,196,000      $118,976,000
Diluted  net  income  per  share(4)(5)            $              0.28      $              0.80
Pro  forma  diluted  net  income
  per  share(6)                                                      $              0.41      $              1.06

	      (4)  Net  income  for  the  year  ended  January  31,  2003  includes  $25.9
million  of  restructuring  and  other  charges  or  $0.23  per  diluted  share
and  a  non-recurring  tax  benefit  of  $3.8  million  or  $0.03  per  diluted
share.  Net  income  for  the  year  ended  January  31,  2002,  includes
amortization  of  goodwill  and  purchased  intangibles  of  $20.9  million  or
$0.19  per  diluted  share,  restructuring  and  other  charges  of  $33.6
million  or  $0.30  per  diluted  share  and  a  one-time  gain  on  disposal  of
affiliate  of  $9.5  million  or  $0.08  per  diluted  share.
	      (5)  On  February  1,  2002,  Autodesk  adopted  new  accounting  rules
which  resulted  in  the  discontinuation  of  goodwill  amortization.  Net
income  for  the  year  ended  January  31,  2002  includes  $19.9  million  or
$0.18  per  diluted  share  of  goodwill  amortization.
	      (6)  Pro  forma  results  for  the  year  ended  January  31,  2003  excludes
restructuring  and  other  charges  and  amortization  of  purchased
intangibles  totaling  $26.2  million  or  $0.23  per  diluted  share  and  a
non-recurring  tax  benefit  of  $3.8  million  or  $0.03  per  diluted  share.
Pro  forma  results  for  the  year  ended  January  31,  2002,  exclude
amortization  of  goodwill  and  purchased  intangibles  of  $20.9  million  or
$0.19  per  diluted  share,  restructuring  and  other  charges  of  $33.6
million  or  $0.30  per  diluted  share  and  a  one-time  gain  on  disposal  of
affiliate  of  $9.5  million  or  $0.08  per  diluted  share.

 


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