Green shoots may be sprouting across pockets of the economy, but lagging indicators such as quarterly earnings tend to show a different picture, and design software provider Autodesk’s second quarter of fiscal 2010 was no exception.
For the three-month period ended July 31, the company’s sales force brought in revenue of $414.9 million, 33% less than the $619.5 million reported in the second quarter of fiscal 2009. License sales were particularly weak, plunging nearly 48% to $231 million. Maintenance revenue actually crept up almost 3% to $183.9 million during the period.
No geography was safe from the sales decline, as revenue from the Americas dropped 21% to $159 million; EMEA fell 41% and lost its place as Autodesk’s biggest regional contributor, delivering $157 million; and Asia Pacific lost a third of its sales, contributing $99 million.
The sagging top line ate into profits, as the company reported net income of $10.5 million in the quarter, compared with $89.8 million a year earlier. Still, the black ink reversed a first-quarter loss of $32.1 million.
"We are pleased with the progress we've made to increase our efficiency and reduce our overall cost structure, and, as a result, we increased our profitability on a sequential basis," said CEO Carl Bass in a statement.
That reduced cost structure was in part due to a significant layoff program that Autodesk announced in January. Approximately 750 employees, or one in 10, lost their jobs in the housecleaning.
Appearing determined to sound an optimistic tone, Bass said that while business visibility remains limited, “we are encouraged by sequential revenue growth we posted in several areas and are beginning to see some positive indicators in our business." Among the metrics that improved against the first quarter were revenue from emerging economies and the Asia Pacific region, as well as Autodesk’s manufacturing business segment.
The company said it expects third-quarter revenue to total $400 million to $420 million. In the third quarter of fiscal 2009, as the global recession truly began to sink in its teeth, Autodesk brought in $607.1 million in revenue.