10-KPeriod: FY2009

Autodesk, Inc. Annual Report, Year Ended Jan 31, 2009

Filed March 20, 2009For Securities:ADSK

Summary

Autodesk, Inc.'s fiscal year 2009 filing reflects a company navigating a challenging economic environment, with net revenue increasing by 7% to $2.32 billion, primarily driven by a robust 29% growth in maintenance revenue. However, the company's income from operations saw a significant decline of 45% to $244.5 million. This decrease was heavily impacted by a $128.9 million goodwill and intangible asset impairment charge, predominantly related to the Media & Entertainment segment, and a $40.2 million restructuring charge. The company also experienced a substantial downturn in its results during the latter half of the fiscal year, with revenue declining sequentially in the third and fourth quarters, contrasting with growth in the first half. Despite the economic headwinds affecting customer demand and leading to a 10% workforce reduction, Autodesk is investing in product development and strategic acquisitions to bolster its digital prototyping and simulation capabilities, particularly within the Manufacturing Solutions (MSD) segment. The company's strong cash flow from operations, although down from the prior year, still provides a solid liquidity position. Investors should monitor the company's ability to manage costs effectively, drive adoption of its 3D model-based design products, and adapt to evolving market conditions amidst global economic uncertainty.

Financial Highlights

49 data points
Beta

Revenue

$2.32B

90.5% Gross Margin

Net Income

$183.60M

7.9% Net Margin

EPS (Diluted)

$0.80

Total Assets

$2.42B

Cash & Equivalents

$917.60M

Free Cash Flow

$515.50M

Financial Statements
Beta
Revenue$2.32B
Cost of Revenue$219.10M
Gross Profit$2.10B
R&D Expenses$576.10M
Operating Expenses$1.85B
Operating Income$244.50M
Net Income$183.60M
EPS (Basic)$0.81
EPS (Diluted)$0.80
Shares Outstanding (Basic)225.50M
Shares Outstanding (Diluted)230.10M

Key Highlights

  • 1Net revenue increased 7% to $2.32 billion, driven by a 29% increase in maintenance revenue.
  • 2Income from operations decreased 45% to $244.5 million due to significant charges.
  • 3A goodwill and intangible asset impairment charge of $128.9 million impacted the Media & Entertainment segment.
  • 4Restructuring charges of $40.2 million were recorded due to a workforce reduction of approximately 10% (750 employees).
  • 5The company completed several acquisitions, including Moldflow, Softimage, and ALGOR, to enhance its digital prototyping and simulation offerings.
  • 6Despite a 7% revenue increase, the company experienced a notable decline in revenue during the latter half of the fiscal year, reflecting economic pressures.
  • 7Cash flow from operations remained strong at $593.9 million, though lower than the prior year's $708.5 million.

Frequently Asked Questions

The significant decrease in operating income was primarily due to a $128.9 million impairment charge for goodwill and intangibles, largely related to the Media and Entertainment segment, and a $40.2 million restructuring charge associated with workforce reductions and facility consolidations. These charges, combined with the impact of recent acquisitions, significantly impacted profitability.

The global economic slowdown, particularly pronounced in the latter half of fiscal year 2009, led to customers deferring, reducing, or canceling purchases. This resulted in slower adoption of new technologies, increased price competition, and sequential revenue declines in the third and fourth quarters. The company responded with a restructuring plan and cost-saving measures.

Autodesk's strategy involves continuing to invest in product development and innovation, particularly in its 3D model-based design and digital prototyping solutions. The company also actively pursues strategic acquisitions to enhance its technology portfolio. Furthermore, Autodesk is focused on leveraging its strong global channel of distributors and resellers and maintaining customer loyalty through its maintenance program.

Autodesk saw a strong increase in maintenance revenue, which grew by 29% and represented 31% of total net revenue in fiscal 2009, up from 25% in fiscal 2008. This shift towards a more recurring revenue stream provides greater predictability. However, license and other revenue, which includes new seat sales and upgrades, decreased slightly, reflecting the impact of the economic slowdown on new purchases.