Introduces 15 Percent Target Revenue CAGR
During its Annual Investor Meeting, Autodesk management will address key trends driving its outstanding financial performance including growth in revenue from new seats, increasing adoption of 3D, continued success of its subscription program and the growing opportunity in emerging economies.
"I have never seen Autodesk better positioned," said Carol Bartz, Autodesk chairman and CEO. "For 24 years, Autodesk has focused on serving the mainstream design market. We have developed the products, the distribution, the business model and the strategy to serve this powerful market in a way no other software company can match."
"The world of our customers is characterized by increasing consumer choice, rapid globalization, and an escalating need to keep data digital," said Carl Bass, Autodesk COO. "Our products enable users to create smarter, richer and more innovative designs, providing a real competitive advantage. We are confident in our ability to meet our financial goals for fiscal 2007 and to sustain strong growth into the future."
Full Year Fiscal 2007
For fiscal year 2007, net revenues are expected to increase in the range of 18 to 20 percent compared to fiscal 2006. GAAP earnings per diluted share are expected to be between $1.12 and $1.17. Non-GAAP earnings per diluted share are expected to be between $1.45 and $1.50. Non-GAAP earnings per diluted share exclude $0.05 for the amortization of acquisition-related intangibles and $0.28 related to stock based compensation expenses as required by SFAS No. 123R, which becomes effective in the first quarter of fiscal 2007. As previously indicated, Autodesk currently believes that its effective tax rate will increase to 23 percent in fiscal year 2007.
First Quarter Fiscal 2007
Net revenues for the first quarter of fiscal 2007 are expected to be between $425 and $435 million. GAAP earnings per diluted share are expected to be between $0.22 and $0.24. Non-GAAP earnings per diluted share are expected to be between $0.30 and $0.32 and exclude $0.07 related to stock based compensation expenses, and $0.01 for the amortization of acquisition-related intangibles.
Second Quarter Fiscal 2007
Net revenues for the second quarter of fiscal 2007 are expected to be between $440 and $450 million. GAAP earnings per diluted share are expected to be between $0.26 and $0.28. Non-GAAP earnings per diluted share are expected to be between $0.34 and $0.36 and exclude $0.07 related to stock based compensation expenses, and $0.01 for the amortization of acquisition-related intangibles.
Long Term Revenue Growth Target
Based upon the strength of its business strategy, the company set a 15 percent compound annual revenue growth rate target for fiscal 2008 through fiscal 2012. Projected fiscal 2007 revenues will approximately double by fiscal 2012.
A reconciliation of the above non-GAAP measures to the corresponding GAAP amounts is provided at the end of this press release.
Autodesk's management team plans to discuss its business strategy at its Annual Investor Meeting being held today in New York City. A webcast of today's Annual Investor Meeting will be available beginning at 8.30 a.m. eastern time on our website at www.autodesk.com/investors . A webcast and podcast replay of the event will be available beginning at 2.30 pm eastern time on our website at www.autodesk.com/investors. This replay will be maintained on our website for at least twelve months.
Safe Harbor Statement
This press release contains forward-looking statements that involve risks and uncertainties, including our statements regarding our financial performance for fiscal 2007 and beyond, including the 15 percent compound revenue growth rate, statements regarding our expected effective tax rate, the anticipated effect of stock based compensation expenses and other statements regarding our anticipated performance. Factors that could cause actual results to differ materially include the following: failure to achieve continued migration from 2D products to 3D products, failure to successfully integrate new or acquired businesses and technologies, failure to achieve sufficient sell-through in our channels for new or existing products, failure of key new applications to achieve anticipated levels of customer acceptance, the timing and degree of expected investments in growth opportunities, changes in the timing of product releases and retirements, pricing pressure, failure to achieve continued cost reductions and productivity increases, unanticipated changes in tax rates and tax laws, mix of geographic earnings, unexpected outcomes of matters relating to litigation, failure to achieve continued success in technology advancements, continued fluctuation in foreign currency exchange rates, the financial and business condition of our reseller and distribution channels, interruptions or terminations in the business of the company's consultants or third party developers, failure to grow lifecycle management or collaboration products, and unanticipated impact of accounting for technology acquisitions, and general market and business conditions.
Further information on potential factors that could affect the financial results of Autodesk are included in the company's report on Form 10-K for the year ended January 31, 2006 which is on file with the Securities and Exchange Commission.
About Autodesk
Autodesk, Inc. is wholly focused on ensuring that great ideas are turned into reality. With seven million users, Autodesk is the world's leading software and services company for the building, manufacturing, infrastructure, digital media, and wireless data services fields. Autodesk's solutions help customers create, manage, and share their data and digital assets more effectively. As a result, customers turn ideas into competitive advantage by becoming more productive, streamlining project efficiency, and maximizing profits. Founded in 1982, Autodesk is headquartered in San Rafael, California. For additional information about Autodesk, please visit www.autodesk.com.
Investors: Sue Pirri, 415-507-6467
Email Contact
John Clancy, 415-507-6373
Email Contact
Press: Caroline Kawashima, 415-547-2498
Email Contact,
Nicole Pack, 415-507-6282
Email Contact
Autodesk, Inc.
Reconciliation of Diluted Net Income Per Share on a GAAP basis to Diluted
Net Income Per Share on a Non-GAAP Basis
Fiscal Year Ended January 31, 2007
Unaudited
Three Months Ended Three Months Ended Fiscal Year Ended
April 30, 2006 July 31, 2006 January 31, 2007
Low end High end Low end High end Low end High end
of range of range of range of range of range of range
Diluted net
income per
share on a
GAAP basis $0.22 $0.24 $0.26 $0.28 $1.12 $1.17
Stock based
compensation
expense in
accordance
with SFAS
No. 123R 0.07 0.07 0.07 0.07 0.28 0.28
Amortization
of
acquisition-
related
intangibles 0.01 0.01 0.01 0.01 0.05 0.05
Diluted net
income per
share on a
non-GAAP
basis $0.30 $0.32 $0.34 $0.36 $1.45 $1.50
CONTACT: investors, Sue Pirri, +1-415-507-6467, or
Email Contact,
or John Clancy, +1-415-507-6373, or
Email Contact, or media,
Caroline Kawashima, +1-415-547-2498, or
Email Contact, or
Nicole Pack, +1-415-507-6282, or
Email Contact, all of Autodesk,
Inc.
Web site: http://www.autodesk.com/