Autodesk (ADSK) Q4 1988 earnings summary

Executive summary

• FY1988 revenue rose 51% to $79.257M; net income increased 77% to $20.541M and EPS rose to $0.89 from $0.55.

• AutoCAD remained the core product at 93% of revenue, while product expansion and international growth broadened the business.

Financial highlights

• Revenue was $79.257M, up 51% YoY; gross profit was $68.705M and operating income was $31.209M.

• Net income was $20.541M, up 77% YoY; net income per share was $0.89 versus $0.55.

• Interest income increased 238% YoY to $3.4M, primarily reflecting investment of proceeds from the June 1987 share offering.

• Cost of revenue declined to 13% of revenue from 15% in FY1987 and FY1986, reflecting scale benefits and lower royalty costs.

Outlook and guidance

• FY1989 product plans included AutoSolid, scheduled for Q2, and AutoFlix, planned for Q1.

• Longer-term cash needs are expected to include product development, business growth, and potential acquisitions of complementary software or technology.

• Growth priorities include expanding Fortune 1000 accounts and pursuing corporate agreements to standardize on Autodesk products.