10-QPeriod: Q1 FY2002

Autodesk, Inc. Quarterly Report for Q1 Ended Apr 30, 2001

Filed May 22, 2001For Securities:ADSK

Summary

Autodesk, Inc. reported net income of $27.9 million for the first quarter of fiscal year 2002, a 9% increase compared to $25.6 million in the same period last year. Diluted earnings per share rose to $0.50 from $0.41, reflecting growth driven by the Design Solutions segment. Total net revenues increased by 6.2% to $245.7 million, with international sales accounting for a significant 69% of this total, up from 60% in the prior year. The company continues to invest heavily in marketing, sales, and research and development to drive future growth. Despite revenue growth, the company is navigating a challenging economic environment, as noted in the MD&A. The stronger U.S. dollar negatively impacted international revenue translation by $9.2 million. Autodesk is actively managing its exposure to currency fluctuations through hedging strategies. The company also announced plans to record restructuring and reorganization expenses in the coming year, which will impact future results. Overall, the company appears to be executing its strategy while managing risks associated with market conditions and ongoing investments.

Key Highlights

  • 1Net income increased by 9% to $27.9 million for the first quarter of fiscal 2002, up from $25.6 million in the prior year.
  • 2Diluted EPS grew to $0.50 from $0.41, demonstrating improved profitability on a per-share basis.
  • 3Total net revenues rose 6.2% to $245.7 million, indicating continued top-line growth.
  • 4International sales represented a substantial 69% of net revenues, up from 60% in the prior year, highlighting global demand for Autodesk products.
  • 5The Design Solutions segment saw net revenue increase by 7%, contributing significantly to overall revenue growth.
  • 6The company repurchased 1.8 million shares of common stock for $68.3 million, aiming to offset dilution and return capital to shareholders.
  • 7Despite revenue growth, the stronger U.S. dollar had a negative impact of $9.2 million on translated international revenues.

Frequently Asked Questions

Autodesk reported a 6.2% increase in net revenues to $245.7 million for the first quarter of fiscal 2002, compared to $231.3 million in the prior year. This growth was driven by increases in international sales, particularly in the Asia/Pacific region, and a 7% increase in the Design Solutions Segment. The Discreet Segment also saw a 5% revenue increase.

Autodesk actively manages its exposure to foreign currency fluctuations through derivative financial instruments, primarily foreign currency option contracts for anticipated transactions and forward contracts for firm commitments. These instruments generally have maturities of less than three months. The company noted that a stronger U.S. dollar negatively impacted revenue translation by $9.2 million in the quarter.

Autodesk expects to continue making significant investments in marketing and sales, as well as research and development, to support product development and growth initiatives. The company also indicated that it expects to record restructuring and reorganization expenses later in the year, primarily related to office closures and one-time costs.

Three class-action complaints alleging violations of the Securities Exchange Act of 1934 were consolidated into one lawsuit. The court granted Autodesk's motion to dismiss the initial complaint, allowing plaintiffs to amend it. An amended complaint has been filed, and Autodesk has filed a motion to dismiss it, which is pending. The company believes it has meritorious defenses and intends to vigorously defend the action, stating that the resolution is not expected to have a material adverse impact, although an unfavorable outcome could affect a particular period's results.