10-QPeriod: Q2 FY2011

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

Filed September 1, 2010For Securities:ADSK

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.

Financial Highlights

48 data points
Beta

Revenue

$472.80M

89.8% Gross Margin

Net Income

$59.90M

12.7% Net Margin

EPS (Diluted)

$0.25

Total Assets

$2.52B

Cash & Equivalents

$850.00M

Free Cash Flow

$106.20M

Financial Statements
Beta
Revenue$472.80M
Cost of Revenue$48.40M
Gross Profit$424.40M
R&D Expenses$119.30M
Operating Expenses$344.60M
Operating Income$79.80M
Net Income$59.90M
EPS (Basic)$0.26
EPS (Diluted)$0.25
Shares Outstanding (Basic)228.00M
Shares Outstanding (Diluted)233.80M

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.

Frequently Asked Questions

For the three months ended July 31, 2010, Autodesk reported total net revenue of $472.8 million, a 14% increase compared to $414.9 million in the same period of the prior fiscal year. This growth was primarily driven by a 22% increase in license and other revenue.

Autodesk demonstrated significant improvement in profitability. Income from operations rose to $79.8 million for the three months ended July 31, 2010, from $2.7 million in the prior year's comparable period. This was due to revenue growth outpacing cost increases and reduced restructuring and impairment charges.

As of July 31, 2010, Autodesk held $1,270.7 million in cash, cash equivalents, and marketable securities. During the quarter, the company repurchased 2.5 million shares of its common stock for $70.4 million, indicating a return of capital to shareholders alongside reinvestment in the business.

Autodesk is planning to adopt new accounting standards ASU 2009-13 and ASU 2009-14 concerning revenue recognition for multiple-element arrangements and software elements, effective February 1, 2011. The company is currently assessing the impact of these changes.