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Autodesk Posts Another Solid Quarter Sign Up to receive Daily News Alerts in your E-mail Inbox
Posted on Friday, August 15, 2008 2:05:33 PM |
Autodesk, Inc. finished its fiscal 2009 second quarter with record revenue of $619.5 million, an 18% rise that was led by the continued march toward 3D model design software and strength in emerging economies.
The maker of 2D and 3D design software for manufacturing and other industries reported net income of $89.8 million, down 2% from the $91.6 million reported in the year-earlier period. GAAP diluted earnings per share were up 3% to $0.39.
Autodesk CEO Carl Bass, addressing financial analysts on a conference call late yesterday, termed these “solid financial results,” saying that the international business remains “very strong. We’re confident in our ability to maintain the momentum going forward.” He pointed to Autodesk’s diversified business, spanning a variety of geographies and vertical industries, as cover for the recent economic uncertainties in the U.S. and other markets.
“We have positioned ourselves well for future growth and for an eventual rebound of the U.S. economy. Product diversification and geographies enabled us to weather the headwinds in the U.S.,” he said. “Demand remains strong. And we’re seeing an increase in the underlying business. We’re investing in products, channels, and infrastructure.”
Autodesk’s revenue broke down into $440.2 million in license sales and $179.3 million in maintenance. Sales of the company’s model-based 3D offerings increased 36% in the quarter to $166 million, representing 27% of total revenue. Its Manufacturing Solutions business landed $122 million in revenue, up from $110 million in the first quarter.
Part of that boost came from a promotional campaign to push AutoCAD LT users to transition to the 3D AutoCAD. “Over half [of our customers have] moved to 3D,” Bass told analysts.
Autodesk completed its acquisition of Moldflow, a maker of simulation software used in designing injection molded plastic parts, during the quarter, and was pleasantly surprised to get an uptick in sales from the new unit. Excluding Moldflow, Autodesk’s model-based 3D software grew 31% to $159 million, the company said. Moldflow’s technology will enable the company to offer a fully digital development process for plastic injection parts and mold design, Bass said.
In addition, Autodesk wrapped up four smaller acquisitions during the quarter, none of which contributed significantly to revenue, but which will provide the company with visualization, simulation, and analysis technologies to advance its design offerings in the energy-efficient buildings business.
Revenue from emerging economies rose 40% over last year’s second quarter to $114 million — 18% of total revenue. EMEA revenue was $267 million, up 31% from year-earlier reported numbers; 15% in constant currencies. Revenue in Asia Pacific was $150 million, an increase of 18% as reported and 11% at constant currencies. Revenue in the Americas experienced resistance from sluggish U.S. markets and increased only 4% over year-earlier levels, though Canada and Latin America contributed healthy growth.
Nevertheless, Bass told analysts that he believes the U.S. market is “stabilizing.” While he doesn’t see the U.S. economy in recovery mode yet, he said Autodesk is seeing pockets of good business. “Manufacturing remains stronger than we might have imagined in this kind of downturn,” he said. Other areas of strength that he noted were Europe and Asia.
Autodesk executives gave guidance for the rest of the year, factoring into the mix an anticipated strengthening of the U.S. dollar, a slow rate of growth in the United States, and “underlying strength in the business.” They expect third-quarter revenue in the range of $625 million to $635 million. Diluted per-share GAAP earnings are anticipated in the range of $0.40 to $0.42. For the fourth quarter, Autodesk anticipates revenue ranging from $660 million to $680 million. GAAP earnings per diluted share are expected in the range of $0.64 to $0.68. These targets would bring full-year revenue up to $2.50 billion to $2.53 billion, the company said. Autodesk ended fiscal 2008 with $2.17 billion.
In response to an analyst’s question, Bass said that Autodesk is continuing to invest in its aggressive anti-piracy campaign. And the company is adding sales and reseller channel resources in strong markets, especially emerging economies.
In addition, Bass noted that Autodesk is seeking a replacement for CFO Alfred Castino, who recently left the company. Bass said he hopes to make the appointment shortly.
Also, this week, the company’s Emerging Products & Technologies group unveiled a tool to help 3D software users increase productivity in designing plastic parts. The preview version of Autodesk Inventor, available to any 3D designer or engineer, is said to simplify the design of plastic products by letting users automatically create thin-walled plastic parts. For a limited time, the preview is available free from Autodesk Labs, the company said.
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