8-KEarnings & ResultsFinancial EventsExhibits & Filings

Autodesk, Inc. 8-K Report, Financial Results (May 21, 2009)

Filed May 21, 2009For Securities:ADSK

Summary

Autodesk, Inc. (ADSK) filed an 8-K on May 20, 2009, to report its first-quarter fiscal year 2010 financial results and provide updates on significant corporate actions. The company announced its Q1 FY2010 earnings, with detailed results available in furnished press releases and prepared remarks. A key takeaway for investors is the company's strategic decision to implement a global restructuring plan, impacting approximately 6% of its workforce and involving the closure of up to 32 leased facilities by the end of fiscal year 2010. This plan is designed to reduce costs and streamline operations amidst the current economic environment. Furthermore, Autodesk is taking steps to address asset valuation by recognizing a material non-cash goodwill impairment charge of $21 million related to its Media and Entertainment segment, specifically impacting the Softimage acquisition. The company also detailed its use of non-GAAP financial measures, explaining the adjustments made (such as excluding stock-based compensation, amortization of intangibles, and restructuring charges) to provide a clearer view of operational performance and facilitate comparisons. Investors should note the estimated restructuring and impairment charges associated with the workforce reduction and facility closures, expected to be largely recognized in Q2 and Q3 FY2010.

Key Highlights

  • 1Autodesk reported first-quarter fiscal year 2010 financial results on May 21, 2009, furnished via press release and prepared remarks.
  • 2The company announced a global restructuring plan involving a workforce reduction of approximately 6% and the closure of up to 32 leased facilities by the end of FY2010.
  • 3Restructuring and impairment charges are anticipated to range from $33 million to $40 million, with a significant portion expensed in Q2 and Q3 FY2010.
  • 4Autodesk will record a $21 million non-cash goodwill impairment charge in its Media and Entertainment segment, related to the Softimage acquisition.
  • 5The company provided detailed explanations for its use of non-GAAP financial measures, excluding items like stock compensation, amortization of intangibles, and restructuring charges.
  • 6These non-GAAP measures are used by management for operational decision-making and to facilitate comparisons with peers.
  • 7The restructuring actions are aimed at cost reduction, operational streamlining, and improving the company's cost structure.

Frequently Asked Questions

The 8-K filing primarily directs investors to the furnished press release (Exhibit 99.1) and prepared remarks (Exhibit 99.2) for detailed first-quarter fiscal year 2010 financial results. The filing itself focuses on the event of reporting these results and other material developments.

Autodesk is implementing a worldwide restructuring plan that will result in the termination of approximately 6% of its workforce. Additionally, the company intends to close all or portions of up to 32 leased facilities by the end of its fiscal year 2010 (January 31, 2010).

The company anticipates incurring restructuring and impairment charges of $33 million to $40 million. This includes $20 million to $25 million for employee termination benefits and $13 million to $15 million for facilities-related costs. These charges will largely be expensed in the second and third quarters of fiscal year 2010.

Autodesk concluded that it needs to record a material non-cash goodwill impairment charge of $21 million. This charge relates to its Media and Entertainment segment, specifically goodwill associated with the Softimage acquisition, primarily due to forecasted future cash flows from that segment.