Summary
Autodesk, Inc. reported its second-quarter fiscal year 2010 results on August 27, 2009, reflecting a challenging economic environment. For the three months ended July 31, 2009, net revenue significantly declined by 33% year-over-year to $414.9 million, impacted by a 48% drop in license and other revenue, although maintenance revenue saw a slight 3% increase. The company incurred an operating loss of $2.7 million, a stark contrast to the $118.8 million profit in the prior year, driven by substantial restructuring charges and reduced revenue. For the six-month period, net revenue fell 31% to $840.7 million, with a net loss of $21.7 million compared to a net income of $184.4 million in the prior year. The company took significant restructuring charges and a goodwill impairment charge, impacting profitability. Despite the downturn, Autodesk maintained a strong liquidity position with $1.03 billion in cash and marketable securities at the end of the period. The company is actively managing costs, including workforce reductions and facility consolidations, to navigate the economic challenges. Investors should note the significant revenue declines across all segments and geographies, with a particular emphasis on the impact of the global recession on software license sales.
Financial Highlights
47 data points| Revenue | $414.90M |
| Cost of Revenue | $50.10M |
| Gross Profit | $364.80M |
| R&D Expenses | $109.80M |
| Operating Expenses | $362.10M |
| Operating Income | $2.70M |
| Net Income | $10.50M |
| EPS (Basic) | $0.05 |
| EPS (Diluted) | $0.05 |
| Shares Outstanding (Basic) | 228.90M |
| Shares Outstanding (Diluted) | 232.30M |
Key Highlights
- 1Net revenue for the quarter ended July 31, 2009, decreased by 33% to $414.9 million compared to the prior year.
- 2License and other revenue declined by 48% year-over-year, while maintenance revenue increased by 3%.
- 3The company reported an operating loss of $2.7 million for the quarter, a substantial decrease from an operating income of $118.8 million in the prior year.
- 4A net loss of $21.7 million was recorded for the six months ended July 31, 2009, compared to a net income of $184.4 million in the same period last year.
- 5Significant restructuring charges of $26.4 million for the quarter and $42.9 million for the six months were recorded.
- 6A goodwill impairment charge of $21.0 million was recognized for the Media and Entertainment segment.
- 7Cash and cash equivalents, and marketable securities remained strong at $1.03 billion as of July 31, 2009.