Summary
Autodesk, Inc. reported a significant decline in financial performance for the three and nine months ended October 31, 2009, primarily driven by the prevailing global economic downturn. Net revenue decreased by 31% year-over-year for both periods, with license and other revenue seeing a substantial drop of 44% and 45% respectively. This revenue contraction led to a sharp decrease in income from operations, down 81% for the quarter and 97% for the nine months. The company has implemented restructuring plans, including workforce reductions and facility consolidations, resulting in significant charges impacting profitability. Despite these challenges, Autodesk has maintained a strong liquidity position, with $1,053.6 million in cash and marketable securities as of October 31, 2009. Management expects to recover substantially all of its holdings in the Reserve Funds within the next 12 months and sees some signs of sequential stabilization in revenue during the third quarter of fiscal 2010.
Financial Highlights
48 data points| Revenue | $416.90M |
| Cost of Revenue | $45.00M |
| Gross Profit | $371.90M |
| R&D Expenses | $109.30M |
| Operating Expenses | $345.60M |
| Operating Income | $26.30M |
| Net Income | $29.50M |
| EPS (Basic) | $0.13 |
| EPS (Diluted) | $0.13 |
| Shares Outstanding (Basic) | 229.60M |
| Shares Outstanding (Diluted) | 232.90M |
Key Highlights
- 1Significant year-over-year revenue decline: Net revenue decreased by 31% for both the three and nine months ended October 31, 2009, reflecting the impact of the global economic downturn.
- 2Substantial drop in license and other revenue: This segment saw a decrease of 44% (quarterly) and 45% (nine months), indicating reduced demand for new software licenses.
- 3Sharp decrease in operating income: Income from operations fell by 81% quarterly and 97% year-to-date, largely due to revenue declines and restructuring charges.
- 4Restructuring charges impacting profitability: The company incurred $4.9 million in restructuring charges in the quarter and $47.8 million year-to-date, affecting net income.
- 5Goodwill impairment recognized: A $21.0 million impairment charge was recorded for the Media and Entertainment segment's goodwill.
- 6Strong liquidity maintained: Autodesk ended the period with $1,053.6 million in cash and marketable securities, providing financial flexibility.
- 7Sequential revenue stabilization noted: Management observed signs of sequential revenue improvement in the third quarter of fiscal 2010 compared to the second quarter, suggesting potential stabilization.