Autodesk (ADSK) Q4 1986 earnings summary

Executive summary

• FY1986 revenue reached $29.531M, up ~200% YoY; net income rose ~300% to $6.521M, marking a third consecutive profitable year.

• More than 40,000 AutoCAD packages had shipped by Jan. 31, 1986; management estimated ~50% micro-based CAD market share by year-end 1985.

Financial highlights

• Revenue was $29.531M vs. $9.874M in FY1985; gross profit was $24.949M and operating income was $12.393M.

• Net income was $6.521M vs. $1.626M; diluted share data reported EPS of $1.03 vs. $0.30.

• Q4 revenue of $9.995M and net income of $2.204M each exceeded the full FY1985 totals of $9.874M and $1.626M, respectively.

Outlook and guidance

• FY1987 shipments were planned for AutoCAD versions configured for IBM RT PC, DEC MicroVAX II, Sun, and Apollo workstations.

• Management expected cash, operating cash generation, and available credit to meet anticipated cash needs, including product development and growth.

• Management expected desktop CAD adoption to expand into larger corporations and saw networking and 32-bit workstations creating product opportunities.