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Autodesk Annual Report, Year Ended Jan 31, 1995

Filing Date
Filed May 1, 1995
Period End
January 31, 1995
Security
ADSK
In the record · 2016–202610-K1110-Q328-K113

ADSK filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 113 current reports (8-K) between 2016 and 2026.

  1. FY2016 annual report10-K · Mar ’16Mar ’16
  2. Deal closed8-K · Dec ’18Dec ’18
  3. Leadership change8-K · May ’21May ’21
  4. Leadership change8-K · Jun ’25Jun ’25

01—Abstract

Summary

Summary of the 10-K filed May 1, 1995. Cited figures are marked; the original filing is the authoritative source.

Autodesk's fiscal 1995 10-K (fiscal year ended January 31, 1995) shows a company that grew revenue steadily but saw net income decline.

Net revenues rose 12% to $454.6 milliona from $405.6 million, with growth in all geographies and a strong fourth quarter (revenues up 27% year over year to $129.6 million) driven by the late-November 1994 launch of AutoCAD Release 13. Reported net income fell 9% to $56.6 million ($1.14 per share), but this reflects a $25.5 million litigation charge tied to the Vermont Microsystems trade-secret judgment, which the company is appealing. Excluding that charge, net income would have been about $73.1 million, or $1.47 per share, up from $1.25 per share the prior year.

The balance sheet is strong. Cash, cash equivalents and marketable securities totaled $255.4 millionb, stockholders' equity was $323.5 million, and the current ratio was 2.4. The company repurchased about 3.0 million shares for $89.9 million, which helped hold shares outstanding roughly flat at 47.2 million.

Operating margin was about 24% (income from operations of $107.4 millionc), and marketing and sales spending remained high at 34% of net revenues. The main investor concerns are concentration and legal exposure. AutoCAD and its updates still represented about 80% of revenues, down from 85%, so the business depends heavily on one product family.

Foreign revenues were about 61%d of the total, which exposes results to currency swings. The company also flagged intensifying competition from low-cost CAD vendors and noted that outsourcing of manufacturing and distribution, expected in fiscal 1996, should help gross margins. The appeal of the Vermont Microsystems judgment is the key unresolved item.

02—Key points

Key Highlights

  1. Net revenues rose 12% to $454.6 million in fiscal 1995, with growth in all sales geographies, led by Asia/Pacific (up 25%).
  2. Fourth-quarter net revenues grew 27% to $129.6 million, driven by the AutoCAD Release 13 launch in late November 1994.
  3. Reported net income fell 9% to $56.6 million ($1.14 per share) because of a $25.5 million litigation charge; excluding it, EPS would have been $1.47 versus $1.25 in fiscal 1994.
  4. Strong balance sheet with $255.4 million in cash and marketable securities, no borrowings under a $40 million credit line, and stockholders' equity of $323.5 million.
  5. Heavy reliance on AutoCAD, which accounted for about 80% of revenues (down from 85%), with foreign revenues at about 61% of the total.
  6. Active share repurchases of 2.99 million shares for $89.9 million, which offset dilution from employee stock plans and held year-end shares outstanding near 47.2 million.
  7. Outsourcing of US and some international manufacturing and distribution, expected in fiscal 1996, is expected to improve gross margins.

03—Questions

Frequently Asked Questions

  1. Why did net income decline in fiscal 1995 even though revenue grew 12%?

    A $25.5 million litigation charge, tied to a December 1994 judgment in the Vermont Microsystems trade-secret case, was recorded in fiscal 1995. The charge, plus interest and related expenses, reduced net income by about $16.5 million, or $0.33 per share. Excluding the charge, net income would have been about $73.1 million, up from $62.2 million.

  2. What is the status of the Vermont Microsystems judgment?

    Autodesk strongly denies wrongdoing and has appealed the $25.5 million judgment, which bears interest at 7.22% per year until paid. The judgment and accrued interest are carried as a $25.8 million litigation accrual on the balance sheet. The outcome of the appeal is not yet known.

  3. How dependent is Autodesk on AutoCAD?

    Heavily. AutoCAD and AutoCAD updates made up about 80% of fiscal 1995 revenues, down from about 85% in the prior two years. Growth in non-AutoCAD products such as AutoCAD LT, AutoCAD Designer, and multimedia products (3D Studio, AutoVision, Animator Studio) is gradually diversifying the mix, but AutoCAD remains the core of the business.

  4. Is Autodesk's balance sheet and capital allocation healthy?

    Yes. The company ended fiscal 1995 with $255.4 million in cash and marketable securities, a current ratio of 2.4, and stockholders' equity of $323.5 million. Operating cash flow was $104.4 million. Autodesk spent $89.9 million repurchasing shares, $20.0 million on equipment, and $11.3 million on dividends at $0.24 per share annually, and it said existing resources should cover fiscal 1996 requirements.

04—Continue

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