10-QPeriod: Q1 FY2010

Autodesk, Inc. Quarterly Report for Q1 Ended Apr 30, 2009

Filed June 3, 2009For Securities:ADSK

Summary

Autodesk, Inc. (ADSK) reported a significant decline in financial performance for the quarter ending April 30, 2009, compared to the same period in the previous year. Total net revenue decreased by 29% to $425.8 million, driven primarily by a 44% drop in license and other revenue, while maintenance revenue saw a slight increase of 9%. This revenue decline, coupled with substantial operating expenses, resulted in a net loss of $32.1 million, or $(0.14) per diluted share, a stark contrast to the net income of $94.6 million, or $0.41 per diluted share, reported in the prior year. The company faced considerable headwinds from the global economic downturn, which impacted demand across all segments and geographies. This challenging environment led to a $21.0 million goodwill impairment charge related to the Media and Entertainment segment and $16.5 million in restructuring charges aimed at reducing operating costs. Autodesk is actively implementing cost-saving measures and has announced further restructuring plans to align its cost structure with the current financial performance.

Financial Highlights

46 data points
Beta

Revenue

$425.80M

87.7% Gross Margin

Net Income

-$32.10M

-7.5% Net Margin

EPS (Diluted)

$-0.14

Total Assets

$2.27B

Cash & Equivalents

$880.50M

Free Cash Flow

$13.60M

Financial Statements
Beta
Revenue$425.80M
Cost of Revenue$52.30M
Gross Profit$373.50M
R&D Expenses$121.50M
Operating Expenses$392.90M
Operating Income-$19.40M
Net Income-$32.10M
EPS (Basic)$-0.14
EPS (Diluted)$-0.14
Shares Outstanding (Basic)227.10M
Shares Outstanding (Diluted)227.10M

Key Highlights

  • 1Net revenue declined significantly by 29% year-over-year to $425.8 million.
  • 2The company reported a net loss of $32.1 million, or $(0.14) per diluted share, compared to a net income of $94.6 million ($0.41 per diluted share) in the prior year.
  • 3License and other revenue saw a substantial decrease of 44%, indicating weak demand for new software licenses.
  • 4Maintenance revenue increased by 9% year-over-year, providing some stability.
  • 5A goodwill impairment charge of $21.0 million was recorded for the Media and Entertainment segment.
  • 6Restructuring charges of $16.5 million were incurred as part of efforts to reduce operating expenses.
  • 7The company ended the quarter with $880.5 million in cash and cash equivalents, a decrease from the prior quarter, reflecting cash used in operations and investing activities.

Frequently Asked Questions

The primary driver for the decline was the deteriorating global economic conditions, which negatively impacted customer demand across all segments and geographies. This led to a significant decrease in license and other revenue, compounded by substantial operating expenses, a goodwill impairment charge, and restructuring costs.

Autodesk is implementing several cost-saving initiatives, including employee headcount reductions and facility consolidations, as evidenced by the restructuring charges. The company also announced further restructuring plans to align its cost structure with its financial condition and is focusing on maintaining its market-leading products and stimulating revenue growth.

Autodesk ended the quarter with $880.5 million in cash and cash equivalents, a decrease from the previous quarter. While cash from operations was impacted by lower revenue and restructuring payments, the company maintains a healthy cash position and has a $250 million U.S. line of credit available, indicating it has sufficient liquidity to meet its near-term obligations.

The $21.0 million goodwill impairment charge relates to the Media and Entertainment segment and reflects the company's conclusion that the carrying value of goodwill exceeded its fair value. This was primarily due to revised revenue and cash flow projections resulting from the significant and sustained revenue declines experienced across all segments and geographies.