|
As Q2 Revenues Soar, Autodesk Launches Options Probe Sign Up to receive Daily News Alerts in your E-mail Inbox
Posted on Thursday, August 17, 2006 8:22:00 PM |
Continuing strong demand for its 3D design software products and accelerating adoption by customers of its software subscription model pushed Autodesk Inc. to record revenues for the three-month period ending July 31, the company said today.
Tempering the upbeat financial news, however, Autodesk revealed that it has undertaken a review of its historical stock-option-granting practices. As a result, Autodesk declined to disclose certain financial figures -- including net earnings and earnings per share -- for the quarter. Autodesk said it will withhold those financial results until it can determine whether it needs to record non-cash adjustments to compensation.
For the second quarter, Autodesk reported $449.6 million in revenue, up 20.5% from the like period last year. While license revenue grew only 11.7% during the quarter, maintenance revenue -- which includes revenue from software subscriptions -- jumped 63.7% to $104.1 million. Under Autodesk's subscription pricing model, customers pay an annual fee and automatically receive upgrades, technical support, and training materials.
"Overall, we were very pleased with our financial performance this quarter," Autodesk President and CEO Carl Bass told financial analysts.
Besides the rise in subscription business, Autodesk also continued to see increasing demand for its 3D products. Overall, combined revenues from 3D products -- Inventor, Civil 3D, and Revit for the building design market -- grew 37% over the second quarter of last year. Revenue from 3D products totaled $91 million, representing 20% of Autodesk's revenue for the quarter.
Bass acknowledged that, while continuing to grow, revenue from Autodesk's 3D products has slowed compared with previous quarters. In last year's second quarter, for example, revenues from the Inventor, Revit, and Civil 3D products jumped 93% over the year-earlier period. Bass said the percentage growth declines have more to do with the increasing size of Autodesk's 3D business than anything else. As the 3D business becomes larger, he noted, it becomes more difficult for Autodesk to grow it by large percentages each quarter.
Still, Bass said, Autodesk expects revenue from its 3D products to continue to grow. The company estimates that only about 10% of its installed base of 2D design software users has upgraded to 3D. "That leaves a significant opportunity for future growth," he said.
Autodesk's results across geographic areas were consistent and strong. Year over year, revenues from the Americas, at $167.7 million, were up 19%; revenues from Europe, at $174.2 million, increased 24%; and revenues from Asia, at $107.7 million, grew 18%.
Autodesk also saw a significant jump in business from manufacturing customers. Revenue from its Manufacturing Solutions division, at $75.7 million, was up 26% compared with the corresponding period last year, the company said.
During the quarter, company officials reported, revenue from Alias -- which Autodesk acquired in January -- reached $20 million, excluding a required write-down for deferred revenues. Bass said the integration of Alias into Autodesk has been completed.
While Autodesk declined to report net earnings figures, the company said its spending during the quarter was about $5 million below expected figures. The company said the lower spending was the result of deferred investment initiatives that had included plans to expand the company's distribution channels and round out its 3D product portfolio. Officials said the company expects to make most of those investments in the third quarter of this year.
Autodesk officials were not specific about the nature of the company's review of its options-granting practices, which is being conducted by independent outside legal counsel. Bass, however, said the company initiated the review after learning of similar recent reviews at other public companies. The post-dating of options has been an issue for some companies.
Although Autodesk revealed the review only today, Bass said the company began the audit "several months ago." He declined to say how many shares may be involved in the review or the period of time under examination. Nor would he say if Autodesk expects to file financial reports such as its 10-Q statement on time.
Bass noted that some public companies conducting options reviews have, nevertheless, reported their earnings figures. Autodesk, after consideration, declined to do so.
"Several companies [that] said something [about results] regretted it," Bass said. "I'd rather not be included in that."
|
|
|
|
|