10-QPeriod: Q2 FY2009

Autodesk, Inc. Quarterly Report for Q2 Ended Jul 31, 2008

Filed September 5, 2008For Securities:ADSK

Summary

Autodesk, Inc. (ADSK) reported its financial results for the second quarter and first half of fiscal year 2009, ending July 31, 2008. The company demonstrated robust top-line growth, with net revenue increasing by 18% year-over-year for both the quarter and the six-month period, reaching $619.5 million and $1,218.3 million, respectively. This growth was driven by strong performance across its segments, particularly in the Manufacturing Solutions and Architecture, Engineering, and Construction divisions, and a significant increase in maintenance revenue. Operationally, income from operations saw a notable increase of 4% for the quarter and 11% for the six-month period, reflecting improved efficiency despite increased investments in research and development and marketing. A significant factor impacting profitability during the period was the substantial in-process research and development (IPR&D) expense related to acquisitions, most notably Moldflow Corporation. Despite this, the company maintained a healthy cash position and continued its share repurchase program, demonstrating a commitment to returning value to shareholders.

Financial Highlights

29 data points
Beta

Revenue

$619.50M

90.4% Gross Margin

Net Income

$89.80M

14.5% Net Margin

EPS (Diluted)

$0.39

Cash & Equivalents

$929.60M

Free Cash Flow

$188.50M

Financial Statements
Beta
Revenue$619.50M
Cost of Revenue$59.70M
Gross Profit$559.80M
R&D Expenses$154.80M
Operating Expenses$441.00M
Operating Income$118.80M
Net Income$89.80M
EPS (Basic)$0.40
EPS (Diluted)$0.39
Shares Outstanding (Basic)224.20M
Shares Outstanding (Diluted)231.10M

Key Highlights

  • 1Net revenue increased by 18% to $619.5 million for the three months ended July 31, 2008, compared to the prior year period.
  • 2Maintenance revenue showed strong growth, up 36% year-over-year for the quarter, contributing significantly to overall revenue.
  • 3Income from operations for the quarter increased by 4% to $118.8 million, despite increased R&D spending.
  • 4The company completed the acquisition of Moldflow Corporation for approximately $183.1 million, along with four other entities for a total of $74.6 million, significantly increasing goodwill.
  • 5A substantial $16.8 million in-process R&D expense was recognized in the quarter related to acquisitions, impacting operating income.
  • 6Autodesk repurchased 8.0 million shares of common stock during the six months ended July 31, 2008, as part of its ongoing stock repurchase program.
  • 7International revenue represented a significant portion of total revenue, accounting for 74% of net revenue for the quarter, with strong growth in EMEA and Asia Pacific.

Frequently Asked Questions

Autodesk demonstrated strong revenue growth, with net revenue up 18% year-over-year to $619.5 million for the quarter. Income from operations also grew, albeit at a slower pace of 4% to $118.8 million, largely due to increased investments in R&D and significant in-process R&D charges from acquisitions.

Revenue growth was driven by a combination of factors, including a substantial 36% increase in maintenance revenue, strong performance in license and other revenue (up 12%), and growth across key segments like Manufacturing Solutions and Architecture, Engineering, and Construction. International markets, particularly EMEA and Asia Pacific, were strong contributors to this growth.

Autodesk made several strategic acquisitions, notably Moldflow Corporation. While these acquisitions are expected to enhance product offerings and market position, they resulted in significant in-process research and development (IPR&D) expenses totaling $16.8 million in the quarter, which negatively impacted operating income. Goodwill also saw a substantial increase due to these acquisitions.

The company maintained a healthy liquidity position with $962.2 million in cash, cash equivalents, and short-term marketable securities at the end of the quarter. Autodesk continued its share repurchase program, buying back 8.0 million shares during the first half of the fiscal year, and had $120 million drawn on its lines of credit for operational needs and acquisitions.