10-QPeriod: Q2 FY2002

Autodesk, Inc. Quarterly Report for Q2 Ended Jul 31, 2001

Filed August 23, 2001For Securities:ADSK

Summary

Autodesk, Inc.'s second quarter and first half fiscal year 2002 results, ending July 31, 2001, show a slight decrease in net revenues for the quarter, down 0.6% year-over-year to $231.4 million, while the first half saw a 2.8% increase to $477.1 million. Net income for the quarter decreased to $19.2 million ($0.34 diluted EPS) from $20.8 million ($0.35 diluted EPS) in the prior year. For the six months, net income rose slightly to $47.1 million ($0.85 diluted EPS) from $46.4 million ($0.77 diluted EPS) in the prior year. The company incurred significant nonrecurring charges of $9.8 million related to a corporate restructuring aimed at reducing operating expenses. Management highlighted a shift in revenue contribution, with the Design Solutions segment showing growth while the Discreet Segment experienced a decline. The strengthening US dollar negatively impacted international revenue by an estimated $8.8 million for the quarter. The company also recently acquired the remaining 60% of Buzzsaw.com, Inc. for $15 million and continues to repurchase its own stock, spending $75 million in the first half of the fiscal year.

Key Highlights

  • 1Net revenues for Q2 FY2002 were $231.4 million, a slight decrease of 0.6% compared to $232.8 million in Q2 FY2001.
  • 2Net income for Q2 FY2002 was $19.2 million, or $0.34 per diluted share, down from $20.8 million, or $0.35 per diluted share, in Q2 FY2001.
  • 3The company incurred $9.8 million in nonrecurring charges related to a corporate restructuring and reorganization during the quarter.
  • 4The Design Solutions segment revenue increased by 5% year-over-year for the quarter, while the Discreet Segment revenue decreased by 21%.
  • 5The strengthening US dollar negatively impacted international revenues by approximately $8.8 million for the quarter.
  • 6Autodesk acquired the remaining 60% of Buzzsaw.com, Inc. for $15 million in cash and assumed liabilities in August 2001.
  • 7The company repurchased 2.0 million shares of common stock for $75.0 million during the first six months of FY2002.

Frequently Asked Questions

Autodesk reported a slight decrease in net revenues for the second quarter of fiscal year 2002 compared to the prior year, alongside a decrease in net income and diluted EPS for the quarter. However, for the first six months of the fiscal year, net revenues and net income saw modest increases year-over-year. The company also incurred significant one-time restructuring charges.

The Design Solutions segment showed revenue growth for both the quarter and the first half of the year, driven by sales of products like AutoCAD. Conversely, the Discreet Segment experienced a significant revenue decline in the second quarter and a smaller decline in the first half, indicating a challenging period for that business unit.

The strengthening U.S. dollar negatively impacted Autodesk's reported net revenues. For the second quarter, the company estimates that international revenue billed in local currencies would have been $8.8 million higher if prior year exchange rates had prevailed. This effect is also noted for the first six months of the fiscal year.

The company incurred $9.8 million in nonrecurring charges related to a corporate restructuring and reorganization plan aimed at reducing operating expenses. These charges primarily consisted of office closure costs and one-time reorganization expenses. Autodesk expects these charges to result in future operational savings.