Autodesk Reports Record Revenues of $509 Million

Autodesk Reports Record Revenues of $509 Million

Raises Revenue Guidance

SAN RAFAEL, Calif., May 17 /PRNewswire-FirstCall/ -- Autodesk, Inc. (NASDAQ:ADSK) today reported record quarterly revenues of $509 million, an increase of 17 percent over the first quarter of fiscal 2007.

"Autodesk delivered another record quarter of revenue," said Carl Bass, Autodesk president and CEO. "During the quarter, we launched strong new releases of our 2008 family of products which continue to improve our customers' design experience. Customers are responding enthusiastically to the improved performance and scalability across the product line. Additionally, our industry-leading 3D design software solutions are providing customers the ability to experience their ideas through the power of digital prototyping resulting in improved competitive advantage."

Operational Highlights

Autodesk's performance was driven by strong increases in revenue from its model-based 3D design products, maintenance revenue from subscription, revenue in the emerging economies, and revenue from new seats.

The Company's model-based 3D products, Inventor, Revit and Civil 3D software, continue to increase their market penetration. Combined revenues from these model-based design products increased 19 percent over the first quarter of fiscal 2007 to $106 million or 21 percent of total revenues. In total, Autodesk shipped more than 32,000 commercial seats of 3D in the quarter including 14,000 seats of Revit, 10,600 seats of Inventor and 7,400 seats of Civil 3D. During the quarter, Autodesk passed a significant milestone when it shipped the millionth commercial seat of its model-based 3D design solutions.

Installed base revenue, which includes upgrade revenue and maintenance revenue from subscriptions, increased 22 percent over the first quarter of fiscal 2007 to $197 million. Continued strength in subscription attachment and renewal rates drove strong performance on many subscription metrics. Maintenance revenue from subscriptions increased 45 percent compared to the first quarter of fiscal 2007 to $125 million. Deferred maintenance revenue from subscription increased $34 million sequentially and $110 million compared to the first quarter of fiscal 2007. The subscription installed base grew to 1.3 million subscribers. Total upgrade revenues decreased 5% compared to the first quarter of fiscal 2007, as expected.

Once again, emerging economies contributed robust growth in revenues. Revenues from the emerging economies in Asia Pacific, Eastern Europe, the Middle East and Latin America increased 36 percent over the first quarter of fiscal 2007 to $72 million and represented 14 percent of total revenues.

Revenues from new seats increased by 10 percent compared to the first quarter of last year. AutoCAD Mechanical and 3ds Max were particularly strong with revenues from new seats increasing 65 percent and 30 percent, respectively, compared to the first quarter of last year. Revenue from new seats of AutoCAD and AutoCAD LT were robust this quarter, growing 11 percent compared to the first quarter of last year.

   OTHER FINANCIAL HIGHLIGHTS     *    Cash, cash equivalents and marketable securities increased by $186         million sequentially to $964 million as of April 30, 2007.    *    Total backlog increased $23 million compared to January 31, 2007.         Total deferred revenue increased $21 million sequentially.  Deferred         maintenance revenues from subscription increased $34 million         sequentially.  Unshipped product orders increased by $2 million         sequentially to $19 million at April 30, 2007.    *    Channel inventory as of April 30, 2007 was below the normal range of         three to four weeks.    *    DSO decreased to 47 days.    *    Capital expenditures were $7 million.    *    As a result of the voluntary review of the Company's historical         stock option granting practices and the related accounting, the         Company did not issue or repurchase any shares during the quarter.    *    There were approximately 231 million total shares outstanding and         244 million diluted GAAP basis shares outstanding in the first         quarter.    *    Revenues in the Americas increased 8 percent over the first quarter         of fiscal 2007 to $184 million.    *    Revenues in EMEA increased 26 percent over the first quarter of         fiscal 2007 to $207 million.    *    Revenues in Asia Pacific increased 16 percent over the first quarter         of fiscal 2007 to $117 million.  Revenues in Japan decreased         slightly compared to the first quarter of fiscal 2007, and increased         23 percent sequentially.    *    In the first quarter of fiscal 2008, spending on total costs and         expenses -- which include cost of license and other revenue, cost of         maintenance revenues, marketing and sales, research and development,         and general and administrative - increased by $21 million         sequentially.    *    Spending on legal, tax and accounting fees related to the voluntary         stock option review was approximately flat with the fourth quarter         of fiscal 2007 at $3 million.    *    Interest and other income increased by $5 million sequentially to         $10 million.    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. As a result of the voluntary stock option review, the Company is not providing EPS guidance at this time. Additionally, because accounting related to the restatement of its financial statements is being finalized as a result of the voluntary stock option review, as described below, the Company is not able to provide GAAP operating margins for fiscal 2008 at this time.

Second Quarter Fiscal 2008

Net revenues for the second quarter of fiscal 2008 are expected to be in the range of $520 million to $530 million. Non-GAAP operating margins for the second quarter of fiscal 2008 are expected to be in the range of 24.5 to 25.4 percent. Non-GAAP operating margins do not include SFAS 123R stock-based compensation expenses or reimbursement to employees for tax issues arising from the stock option review, which in total the Company is currently unable to determine but believes will be significant. Non-GAAP operating margins also exclude amortization of acquisition related intangibles of approximately $4 million. Company estimates of non-GAAP operating margins include approximately $1.5 million in the second quarter of fiscal 2008 for legal, tax and accounting fees related to the voluntary stock option review.

Third Quarter Fiscal 2008

Net revenues for the third quarter of fiscal 2008 are expected to be in the range of $520 million to $530 million. Non-GAAP operating margins for the third quarter of fiscal 2008 are expected to be in the range of 26.4 to 26.9 percent. Non-GAAP operating margins do not include SFAS 123R stock-based compensation expenses, which the Company is currently unable to determine but believes will be significant, and amortization of acquisition related intangibles of approximately $4 million.

Full Year Fiscal 2008

For fiscal year 2008, net revenues are expected to be between $2.115 billion and $2.150 billion. Non-GAAP operating margins for fiscal year 2008 are expected to be in the range of 27 to 27.5 percent. Non-GAAP operating margins do not take into account SFAS 123R stock-based compensation expenses and reimbursement to employees for tax issues arising from the stock option review, both of which the Company is currently unable to determine but believes will be significant. Non-GAAP operating margins also exclude amortization of acquisition related intangibles of approximately $16 million. The Company expects its fiscal 2008 tax rate to be between 25 and 26 percent.

Stock Option Review

As announced on May 2, 2007, Autodesk is seeking the advice of the Office of Chief Accountant at the Securities and Exchange Commission (the "OCA") and on May 3, 2007, submitted to the OCA certain financial statement information arising out of adjustments related to accounting for stock-based compensation expense as a result of a voluntary review by the Audit Committee of the Board of Directors regarding timing of past stock option grants and other related issues. Autodesk intends to file its restated financial statements, as well as its delinquent quarterly reports on Form 10-Q for the quarters ended July 31, 2006 and October 31, 2006 and its annual report on Form 10-K for fiscal year ended January 31, 2007, as soon as practicable after receiving the advice of the OCA.

While Autodesk is in the process of restating prior years' financial statements to reflect the additional compensation expense associated with past stock option granting practices, the Company is also recording other minor adjustments related to reseller incentives on its subscription program. These adjustments increase revenue and decrease deferred revenues for fiscal 2006 and fiscal 2005 by approximately $15 million and $5 million respectively.

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 in the paragraphs under "Stock Option Review" above, statements regarding anticipated market trends and other statements regarding our expected performance. Factors relating to the voluntary stock option review described above that could cause actual results to differ materially include, but are not limited to: the timing of review and conclusions of the Company's independent registered public accounting firm regarding the Company's stock option grants and related accounting adjustments to the Company's financial statements for certain periods, the application of accounting or tax principles in an unanticipated manner, an unanticipated delay in the preparation and filing of the Company's required reports with the SEC or an inability to meet the requirements of the NASDAQ Global Select Market for continued listing of its shares. The stock option grant practices under review and related matters have led and could also lead to potential claims and proceedings relating to such matters, including shareholder or employee litigation and action by the SEC and/or other regulatory agencies, and negative tax or other implications for the Company resulting from any accounting adjustments or other factors.

Other factors that could cause actual results to differ materially include the following: unexpected expenses, resulting from the voluntary stock option review, our performance in particular geographies, general market and business conditions, fluctuations in our tax rate, the timing and degree of expected investments in growth opportunities, slowing momentum in maintenance or subscription revenues, changes in the timing of product releases and retirements, failure of key new applications to achieve anticipated levels of customer acceptance, difficulties encountered in integrating new or acquired businesses and technologies, failure to achieve sufficient sell-through in our channels for new or existing products, pricing pressure, fluctuation in foreign currency exchange rates, failure to achieve continued cost reductions and productivity increases, failure to achieve continued migration from 2D products to 3D products, failure to achieve continued success in technology advancements, the financial and business condition of our reseller and distribution channels, interruptions or terminations in the business of the Company's consultants or third party developers, 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 reports on Form 10-K for the year ended January 31, 2006 and Form 10-Q for the quarter ended April 30, 2006 which are on file with the Securities and Exchange Commission. Autodesk does not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.

Earnings Conference Call and Webcast

Autodesk will host its first quarter conference call today at 5:00 p.m. EDT. The live announcement may be accessed at www.autodesk.com/investors or by dialing 800-901-5241 or 617-786-2963 (passcode: 72422598). An audio webcast or podcast of the call will be available at 7:00 pm EDT at www.autodesk.com/investors. This replay will be maintained on our website for at least twelve months. An audio replay will also be available for one month beginning at 7:00 pm EDT by dialing 888-286-8010 or 617-801-6888 (passcode: 64067637).

About Autodesk

Autodesk, Inc. is the world leader in 2D and 3D design software for the manufacturing, building and construction, and media and entertainment markets. Since its introduction of AutoCAD software in 1982, Autodesk has developed the broadest portfolio of state-of-the-art digital prototyping solutions to help customers experience their ideas before they are real. Fortune 1,000 companies rely on Autodesk for the tools to visualize, simulate and analyze real-world performance early in the design process to save time and money, enhance quality and foster innovation. For additional information about Autodesk, visit http://www.autodesk.com/.

Note: AutoCAD, AutoCAD LT, Autodesk, Civil 3D, Inventor, Revit and 3ds Max are either registered trademarks or trademarks of Autodesk, Inc., in the USA and/or other countries. All other brand names, product names or trademarks belong to their respective holders.

    Investors:     Sue Pirri, sue.pirri@autodesk.com, 415-507-6467                   Katie Blanchard, katherine.blanchard@autodesk.com,                   415-507-6034                   John Clancy, john.clancy@autodesk.com, 415-507-6373     Press:         Caroline Kawashima, caroline.kawashima@autodesk.com,                   415-547-2498     Fiscal    Year 2008       QTR 1        QTR 2       QTR 3       QTR 4    YTD2008   Financial    Statistics    (in millions):    Total net    revenues         $509                                            $509     License and      other      revenues       $383                                            $383     Maintenance      revenues       $125                                            $125    Total Cash    and    Marketable    Securities       $964                                            $964   Days Sales    Outstanding        47                                              47   Capital    Expenditures       $7                                              $7   GAAP    Depreciation    and    Amortization      $14                                             $14    Revenue by    Geography    (in millions):   Americas          $184                                            $184   Europe            $207                                            $207   Asia/Pacific      $117                                            $117    Revenue by    Division    (in millions):   Design Solutions    Segment          $446                                            $446       Platform        Solutions        and        Emerging        Business        Division     $252                                            $252       Architecture,        Engineering        and        Construction        Division     $100                                            $100       Manufacturing        Solutions        Division      $94                                             $94    Media and    Entertainment    Segment           $59                                             $59    Other               $4                                              $4    Other Revenue    Statistics:   % of Total Rev    from AutoCAD,    AutoCAD upgrades    and AutoCAD LT    43%                                             43%   % of Total Rev    from 3D design    products          21%                                             21%   % of Total Rev    from Emerging    Economies         14%                                             14%   Upgrade    Revenue    (in millions)     $71                                             $71    Favorable    (Unfavorable)    Impact of U.S.    Dollar    Translation    Relative to    Foreign    Currencies    Compared    to Comparable    Prior Year    Period    (in millions):     Fx Impact on      Total      Net Revenues    $19                                             $19    Common    Stock    Statistics:   GAAP Shares    Out-    standing  231,166,000                                      230,741,000   GAAP Fully    Diluted    Shares    Out-    standing  243,848,000                                      243,172,000   Shares    Repurchased        --                                              --    Installed    Base    Statistics:   AutoCAD   Total    AutoCAD-    based    Installed    Base        4,162,000                                       4,162,000   Stand-alone    AutoCAD                                                     2,779,000   AutoCAD    Mechanical                                                    208,000   AutoCAD Map                                                    249,000   Architectural    Desktop                                                       503,000   Land Desktop                                                    78,000    AutoCAD LT    Installed    Base                                                        3,424,000   Total    Inventor    Installed    Base          699,000                                         699,000   Total    Subscription    Installed    Base        1,295,000                                       1,295,000     Fiscal Year    2007            QTR 1        QTR 2       QTR 3       QTR 4    YTD2007   Financial    Statistics    (in millions):   Total net    revenues         $436         $450        $457        $497     $1,840    License and     other     revenues        $349         $346        $346        $375     $1,416    Maintenance     revenues         $87         $104        $111        $123       $424    Total Cash    and    Marketable    Securities       $386         $468        $597        $778       $778   Days Sales    Outstanding        58           52          51          55         55   Capital    Expenditures      $11           $7          $7         $10        $35   GAAP    Depreciation    and    Amortization      $13          $14         $13         $14        $53    Revenue by    Geography    (in millions):   Americas          $170         $168        $194        $203       $735   Europe            $164         $174        $160        $189       $687   Asia/Pacific      $101         $108        $103        $105       $418    Revenue by    Division    (in millions):   Design    Solutions    Segment          $386         $388        $389        $430     $1,595      Platform       Solutions       and       Emerging       Business       Division      $224         $223        $212        $220       $879      Architecture,       Engineering       and       Construction       Division       $88          $90         $93        $112       $383      Manufacturing       Solutions       Division       $75          $75         $85         $97       $333    Media and    Entertainment    Segment           $47          $59         $64         $65       $234    Other               $3           $3          $3          $3        $11    Other    Revenue    Statistics:   % of Total Rev    from AutoCAD,    AutoCAD    upgrades and    AutoCAD LT        44%          41%         38%         37%        40%   % of Total Rev    from 3D    design    products          20%          20%         22%         24%        22%   % of Total Rev    from    Emerging    Economies         12%          13%         15%         15%        14%   Upgrade Revenue    (in millions)     $75          $49         $51         $78       $253    Favorable    (Unfavorable)    Impact of    U.S. Dollar    Translation    Relative to    Foreign    Currencies    Compared to    Comparable    Prior Year    Period    (in millions):   Fx Impact on    Total Net    Revenues        $(19)         $(2)          $6         $16         $1    Common    Stock    Statistics:   GAAP Shares    Out-    standing  231,296,000  230,523,000 230,919,000 231,166,000 230,741,000   GAAP Fully    Diluted    Shares    Out-    standing  244,698,000  243,119,000 242,029,000 243,861,000 243,172,000   Shares    Repurchased 1,700,000    2,498,000          --          --  4,198,000    Installed    Base    Statistics:   AutoCAD   Total AutoCAD-    based    Installed    Base        3,928,000    3,987,000   4,056,000   4,114,000  4,114,000   Stand-alone    AutoCAD                                                     2,758,000   AutoCAD    Mechanical                                                    200,000   AutoCAD    Map                                                           245,000   Architectural    Desktop                                                       494,000   Land Desktop                                                    79,000    AutoCAD LT    Installed    Base                                                        3,335,000   Total    Inventor    Installed    Base          578,000      610,000     643,000     676,000    676,000   Total    Subscription    Installed    Base          990,000    1,086,000   1,163,000   1,232,000  1,232,000  

First Call Analyst:
FCMN Contact:

Source: Autodesk, Inc.

CONTACT: Investors, Sue Pirri, +1-415-507-6467, sue.pirri@autodesk.com,
Katie Blanchard, +1-415-507-6034, katherine.blanchard@autodesk.com, John
Clancy, +1-415-507-6373, john.clancy@autodesk.com, or Press, Caroline
Kawashima, caroline.kawashima@autodesk.com, +1-415-547-2498, all of Autodesk,
Inc.

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

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