Business News
Autodesk Reports First Quarter Fiscal 2010 Financial Results
Friday 22. May 2009 - Implements Previously Announced Plan To Further Reduce Expenses
Autodesk, Inc. (NASDAQ:ADSK) today reported financial results for the first quarter of fiscal 2010.
— Revenue was $426 million, a decrease of 29 percent compared to the
first quarter of fiscal 2009.
— GAAP diluted loss per share was $0.14, compared to earnings of $0.41
per diluted share in the first quarter last year.
— Non-GAAP diluted earnings per share in the first quarter was $0.18,
compared to $0.50 per diluted share in the first quarter last year. A
reconciliation of the GAAP and non-GAAP results is provided in the
tables within this press release.
— Autodesk began implementing a previously announced expense reduction
plan, which is anticipated to result in pre-tax cost savings of
approximately $120 million in fiscal 2010.
“Our revenue results for the quarter continue to reflect the global economic downturn, which is impacting our business on almost every front,” said Carl Bass, Autodesk president and CEO. “We made significant progress in our continued effort to improve our cost structure and ongoing efficiencies, which resulted in lower than expected operating costs for the quarter and greater than expected earnings per share and cash flow.”
Operational Overview
By geography, EMEA revenue was $167 million, a decrease of 35 percent over the first quarter of fiscal 2009 as reported, and a decrease of 24 percent on a constant currency basis. Revenue in the Americas decreased 15 percent compared to the first quarter of fiscal 2009, to $164 million. Revenue in Asia Pacific was $95 million, a decrease of 36 percent as reported and on a constant currency basis year-over-year. Revenue from emerging economies decreased 42 percent, compared to the first quarter of fiscal 2009 to $59 million and represented 14 percent of total revenue.
Combined revenue from Autodesk’s model-based 3D design solutions decreased 16 percent compared to the first quarter of fiscal 2009 to $122 million and comprised 29 percent of total revenue for the quarter. Revenue from 2D horizontal and vertical products decreased 39 percent to $208 million as compared to the first quarter of fiscal 2009. Combined revenue from AutoCAD and AutoCAD LT, two of our important 2D horizontal products, declined 42 percent.
Further Reducing Expenses
Autodesk began implementing its new expense reduction plan, which was announced in April. The plan is anticipated to result in pre-tax cost savings of approximately $120 million in fiscal 2010. Combined with the expense reduction initiatives announced in January, Autodesk anticipates achieving approximately $250 million in total cost savings in fiscal 2010, as compared to fiscal 2009.
The new expense reduction initiatives will be achieved by reducing discretionary spending and contingent labor, and through a restructuring plan. The restructuring plan will result in a staff reduction of approximately 430 and the closure of certain facilities. The staff reduction will be partially offset by the hiring of approximately 100 key positions in select areas.
The company anticipates taking a pre-tax restructuring charge in the range of $33 million to $40 million. Approximately $29 million to $35 million in pre-tax charges will be taken in the second quarter of fiscal 2010. Most of the remaining charge will be taken in the third quarter of fiscal 2010.
“While we have already achieved significant cost savings, it was clear that additional measures had to be taken in order to better align our cost structure with current revenue expectations,” Bass continued. “The ultimate goal of these measures is to reduce our near-term expenses as well as further improve our operational efficiencies over the long-term. We will continue to balance these cost reduction actions with strategic investments as we navigate the current economic cycle and position Autodesk for long-term success.”
Business Outlook
The following statements are forward-looking statements which are based on current expectations and which involve risks and uncertainties some of which are set forth below. Autodesk is only providing revenue and earnings per share guidance for its fiscal second quarter of 2010 at this time.
Second Quarter Fiscal 2010
Net revenue for the second quarter of fiscal 2010 is expected to be in the range of $395 million and $420 million. GAAP loss per diluted share is expected to be in the range of $0.09 and $0.03. Non-GAAP earnings per diluted share are expected to be in the range of $0.15 and $0.20 and exclude restructuring related charges of between $0.10 and $0.11, $0.08 related to stock-based compensation expense and $0.05 for the amortization of acquisition related intangibles.