Autodesk, Inc. Quarterly Report for Q2 Ended Jul 31, 2010

Summary

Autodesk, Inc. (ADSK) reported a strong financial performance for the second quarter and first six months of fiscal year 2011, ending July 31, 2010. Revenue saw a significant increase, driven by a robust 22% rise in license and other revenue and a 4% increase in maintenance revenue for the quarter. This growth was observed across all major geographies and segments, indicating a broad-based recovery and improvement in demand compared to the previous year, which was impacted by the economic downturn. Profitability also improved markedly, with income from operations rising substantially year-over-year. This was attributed to revenue growth outpacing cost increases, alongside effective cost management initiatives and reduced restructuring and goodwill impairment charges compared to the prior year. The company ended the period with a healthy cash position and continues to execute on its strategic goals of product innovation, geographic expansion, and market leadership.

Key Highlights

• 1Total net revenue increased by 14% to $472.8 million for the three months ended July 31, 2010, compared to $414.9 million in the prior year period.
• 2License and other revenue experienced strong growth, up 22% to $280.7 million for the quarter, driven by a 46% increase in commercial new seat revenue.
• 3Income from operations surged to $79.8 million from $2.7 million in the prior year's comparable quarter, reflecting improved profitability.
• 4The company maintained a strong balance sheet with $1,417.4 million in total current assets and $1,525.8 million in total stockholders' equity as of July 31, 2010.
• 5Net cash provided by operating activities was $250.6 million for the six months ended July 31, 2010.
• 6Autodesk repurchased 2.5 million shares of common stock for $70.4 million during the quarter.

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