Autodesk (ADSK) Q4 1989 earnings summary

Executive summary

• FY89 net revenues rose 48% to $117.3M; net income increased 59% to $32.7M, with AutoCAD contributing ~93% of revenue.

• AutoCAD remained the recognized desktop CAD standard, sold in 64 countries and 11 languages; foreign revenue reached 48% of worldwide sales.

Financial highlights

• FY89 gross profit was $102.8M; operating income was $46.9M, up from $31.2M in FY88.

• FY89 net income was $32.7M, up from $20.5M; diluted EPS was $1.35 versus $0.89 in FY88.

• Cost of revenues was $14.5M, or 12% of revenue versus 13% in FY88; scale benefits and pricing mix supported the decline.

• FY89 quarterly revenue rose from $25.8M in Q1 to $34.0M in Q4; quarterly net income increased from $7.2M to $9.3M.

Outlook and guidance

• Plans included continued software development, product enhancements, hiring software developers, and possible acquisitions of complementary technology or products.

• Existing cash, marketable securities, operating cash flow, and the available credit line were considered sufficient for current cash requirements.

• Order deferrals ahead of product releases, shipment delays, currency fluctuations, and stronger competition could affect future quarterly results.