Autodesk Raises Financial Guidance for Fiscal 2006

Autodesk Raises Financial Guidance for Fiscal 2006

Provides Update on Company Strategy at Annual Investor Day Event

SAN RAFAEL, Calif., April 6 /PRNewswire-FirstCall/ -- Autodesk, Inc. (NASDAQ:ADSK) today announced it is raising its financial guidance for the first quarter, second quarter and full year of fiscal 2006.

"Once again, our fiscal year is off to a very strong start," said Carol Bartz, Autodesk Chairman and CEO. "We are seeing increased global demand across all of our industries. In March, we launched the strongest portfolio of products in our 23 year history and customer response has been terrific. Our customers demand quick implementation, ease of use and fast return on investment and Autodesk is meeting those needs."

During its Investor Day event, Autodesk management will address key trends driving the strong growth, including robust new seat sales and increasing adoption of 3D. The company will also address the emerging lifecycle management opportunity.

"It is clear our strategy is working," said Bartz. "Our products provide customers the ability to create smarter and richer designs. Customer adoption of our 3D solutions is increasing. In addition, our lifecycle management solutions are reaching new segments of the market. Customer awareness of our solutions for managing and sharing design data quickly, easily and profitably is growing, presenting a significant future growth opportunity. I have never been more enthusiastic about Autodesk's opportunities."

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.

First Quarter Fiscal 2006

Net revenues for the first quarter of fiscal 2006 are currently expected to be in the range of $340 million to $350 million. Earnings per diluted share are currently expected to be in the range of $0.27 to $0.29.

Second Quarter Fiscal 2006

Net revenues for the second quarter of fiscal 2006 are currently expected to be in the range of $335 million to $345 million. Operating expenses are expected to rise in the second quarter due to increasing investments in growth initiatives. Earnings per diluted share are currently expected to be in the range of $0.21 to $0.23.

Full Year Fiscal 2006

For fiscal year 2006, net revenues are currently expected to be in the range of $1.425 billion to $1.475 billion. Earnings per diluted share are currently expected to be in the range of $1.10 to $1.15. Guidance for full year fiscal 2006 does not take into account the impact of employee stock compensation expensing which is expected to be required beginning in the fiscal third quarter of 2006.

All fiscal 2006 EPS guidance ranges are based upon the company's estimated 20 percent effective tax rate. The company believes that its effective tax rate will revert back to the historical effective rate of approximately 24 percent in fiscal 2007. Adoption of the new employee stock compensation expensing rules may impact the effective tax rate for the second half of fiscal 2006 and fiscal 2007.

The Investor Day event will be available live via webcast beginning at 8:30 a.m. EDT today at www.autodesk.com/investors. A replay of this webcast will be maintained on our website for at least twelve months.

Safe Harbor Statement

This press release contains forward-looking statements that involve risks and uncertainties, including statements in the paragraphs under "Business Outlook" above, statements regarding customer acceptance of recent new product introductions, our lifecycle management solutions, our expected effective tax rate and other statements regarding our anticipated performance. Factors that could cause actual results to differ materially include the following: general market and business conditions, changes in accounting rules, the impact of stock option expensing, which could materially reduce our earnings per share for full year fiscal 2006, failure to achieve sufficient sell-through in our channels for new or existing products, failure of key new applications to achieve anticipated levels of customer acceptance, pricing pressure, failure to achieve anticipated cost reductions and productivity increases, delays in the release of new products and services, failure to achieve continued success in technology advancements, changes in foreign currency exchange rates, failure to successfully integrate new or acquired businesses, the financial and business condition of our reseller and distribution channels, renegotiation or termination of royalty or intellectual property arrangements, failure to achieve continued migration from 2D products to 3D products, failure to grow lifecycle management or collaboration products, and unanticipated impact of accounting for technology acquisitions.

Further information on potential factors that could affect the financial results of Autodesk are included in the company's report on Form 10-K for the year ended January 31, 2005, which is on file with the Securities and Exchange Commission.

About Autodesk

Autodesk, Inc. is wholly focused on ensuring that great ideas are turned into reality. With six million users, Autodesk is the world's leading software and services company for the building, manufacturing, infrastructure, digital media, and wireless data services fields. Autodesk's solutions help customers create, manage, and share their data and digital assets more effectively. As a result, customers turn ideas into competitive advantage by becoming more productive, streamlining project efficiency, and maximizing profits.

Founded in 1982, Autodesk is headquartered in San Rafael, California. For additional information about Autodesk, please visit www.autodesk.com.

NOTE: Autodesk is a registered trademark of Autodesk, Inc., in the USA and/or other countries. All other brand names, product names, or trademarks belong to their respective holders.

Contact: Sue Pirri, 415-507-6467 Email: sue.pirri@autodesk.com

Contact: John Clancy, 415-507-6373 Email: john.clancy@autodesk.com

Contact: Sarah Singleton, 415-290-8045 Email: singlets@fleishman.com

Source: Autodesk, Inc.

CONTACT: Sue Pirri, +1-415-507-6467, or sue.pirri@autodesk.com, or John Clancy, +1-415-507-6373, or john.clancy@autodesk.com, both of Autodesk, Inc.; or Sarah Singleton, +1-415-290-8045, or singlets@fleishman.com, for Autodesk, Inc.

Web site: http://www.autodesk.com/

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