Autodesk Reports 16 Percent Fourth Quarter Revenue Growth
Strong fourth quarter caps year of significant growth
SAN RAFAEL, Calif. - Autodesk, Inc. (NASDAQ:ADSK) today reported financial results for the fourth quarter and full fiscal year 2011.
"After a challenging fiscal 2010, we experienced a healthy rebound in global demand for our software solutions in fiscal 2011"
o Revenue was $528 million, an increase of 16 percent compared to the fourth quarter of fiscal 2010 and 11 percent compared to the third quarter of fiscal 2011.
o GAAP operating margin was 14 percent, compared to 12 percent in the fourth quarter of fiscal 2010 and 15 percent in the third quarter of fiscal 2011.
o Non-GAAP operating margin was 20 percent, a 60 basis point increase compared to the fourth quarter last year, and a decrease compared to 21 percent in the third quarter of fiscal 2011. A reconciliation of GAAP to non-GAAP results is provided in the accompanying tables.
o GAAP diluted earnings per share were $0.26, compared to $0.21 in the fourth quarter of fiscal 2010 and $0.23 in the third quarter of fiscal 2011.
o Non-GAAP diluted earnings per share were $0.35, compared to $0.30 in the fourth quarter of fiscal 2010, and $0.32 in the third quarter of fiscal 2011.
o Cash flow from operating activities was $176 million, an increase of 40 percent compared to the fourth quarter of fiscal 2010 and 54 percent compared to the third quarter of fiscal 2011.
"We closed the year with solid momentum and double-digit quarterly revenue growth in all of our geographies and all of our business segments," said Carl Bass, Autodesk president and CEO. "We're seeing a global increase in demand for 3D design, engineering, and entertainment tools. Demand for our Inventor software helped deliver record quarterly revenue in our Manufacturing segment, and record quarterly sales of our Revit family of products led to strong growth in our Architecture, Engineering and Construction segment."
"Our fourth quarter results topped a solid year of growth for Autodesk," said Mark Hawkins, Autodesk Executive Vice President, Chief Financial Officer. "In addition to diversified revenue growth in the quarter, we generated strong cash flow from operations, record maintenance billings, and ended the quarter with a record balance for deferred revenue. We achieved significant operating margin improvement for the fiscal year despite higher than expected performance-based compensation expense due to our over performance on revenue for the year. With close to $1.5 billion in cash and marketable securities and no debt, our balance sheet is very strong."
Fourth Quarter Operational Overview
EMEA revenue was $212 million and increased 13 percent compared to the fourth quarter last year as reported and 22 percent on a constant currency basis. EMEA revenue increased 16 percent sequentially as reported and 14 percent on a constant currency basis.
Revenue in the Americas was $193 million and increased 15 percent compared to the fourth quarter last year and 7 percent sequentially.
Revenue in Asia Pacific was $123 million and increased 22 percent compared to the fourth quarter last year as reported and 20 percent on a constant currency basis. Revenue in Asia Pacific increased 7 percent sequentially as reported and 5 percent on a constant currency basis.
Revenue from emerging economies was $85 million, an increase of 16 percent compared to the fourth quarter last year as reported and 20 percent on a constant currency basis. Revenue from emerging economies increased 11 percent sequentially as reported and 10 percent on a constant currency basis. Revenue from emerging economies represented 16 percent of total revenue in the fourth quarter.
All constant currency calculations remove the impact of foreign currency fluctuations and any gains or losses recorded to revenue within the current period as a result of Autodesk's hedging program.
Revenue from the Platform Solutions and Emerging Business segment was $181 million, an increase of 10 percent compared to the fourth quarter last year and an increase of 5 percent sequentially. Revenue from the Architecture, Engineering and Construction business segment was $162 million, an increase of 18 percent compared to the fourth quarter last year and 19 percent sequentially. Revenue from the Manufacturing business segment was a record $133 million, an increase of 23 percent compared to the fourth quarter last year and 14 percent sequentially. Revenue from the Media and Entertainment business segment was $52 million, an increase of 12 percent compared to the fourth quarter last year and 3 percent sequentially.
Cash flow from operating activities was $176 million, compared to $126 million in the fourth quarter last year, and $114 million in the third quarter of fiscal 2011.
Full Year Fiscal 2011
o Revenue was $1.95 billion, an increase of 14 percent compared to fiscal 2010.
o GAAP operating margin was 14 percent, compared to 4 percent in fiscal 2010.
o Non-GAAP operating margin was 21 percent, an increase of 480 basis points compared to 17 percent in fiscal 2010.
o GAAP diluted earnings per share were $0.90, compared to diluted earnings per share of $0.25 in fiscal 2010.
o Non-GAAP diluted earnings per share were $1.32, compared to non-GAAP diluted earnings per share of $0.99 in fiscal 2010.
o Cash flow from operations was $541 million, an increase of 119 percent compared to fiscal 2010.
"After a challenging fiscal 2010, we experienced a healthy rebound in global demand for our software solutions in fiscal 2011," continued Bass. "We made significant progress in growing our business and profitability, and our employees and partners are to be congratulated on their efforts. As we head into fiscal 2012, Autodesk is well positioned to build on the success of the past year and drive towards our 5-year targets."
First Quarter Fiscal 2012
Net revenue for the first quarter of fiscal 2012 is expected to be in the range of $510 million and $525 million. GAAP earnings per diluted share are expected to be in the range of $0.21 and $0.24. Non-GAAP earnings per diluted share are expected to be in the range of $0.34 and $0.37 and exclude $0.08 related to stock-based compensation expense, and $0.05 for the amortization of acquisition related intangibles, net of tax.
First quarter outlook includes the impact of the two recently announced acquisitions, which are expected to close in the quarter.
Full Year Fiscal 2012
Net revenue for fiscal 2012 is expected to increase by approximately 10 percent compared to fiscal 2011. Autodesk anticipates fiscal 2012 GAAP operating margin to increase by approximately 220 basis points compared to fiscal 2011. Autodesk anticipates fiscal 2012 non-GAAP operating margin to increase by approximately 200 basis points compared to fiscal 2011. Non-GAAP operating margin excludes approximately 20 basis points of operating margin improvement consisting of 60 basis points of restructuring charges, 10 basis points of amortization of acquisition related intangibles, and negative 50 basis points of stock-based compensation expense. Operating margin growth is anticipated to return to typical linearity during the year. Autodesk is not providing specific EPS guidance for fiscal 2012 at this time.
Fiscal 2012 outlook includes the impact of the two recently announced acquisitions, which are expected to close in the first quarter of fiscal 2012. Outlook assumes effective tax rate of approximately 24 percent for GAAP results and approximately 26 percent for non-GAAP results.
About Autodesk
Autodesk, Inc., is a leader in 3D design, engineering and entertainment software. Customers across the manufacturing, architecture, building, construction, and media and entertainment industries - including the last 15 Academy Award winners for Best Visual Effects - use Autodesk software to design, visualize, and simulate their ideas. Since its introduction of AutoCAD software in 1982, Autodesk continues to develop the broadest portfolio of state-of-the-art software for global markets. For additional information about Autodesk, visit www.autodesk.com.
